Tontec Taps SAP for Supply Chain Transformation 


Following through with its cloud transformation initiatives in 2022, Tontec has expanded its partnership with SAP for supply chain modernization. 

Global plastics producer Tontec International Limited (Tontec) is expanding its strategic partnership with German tech giant SAP to propel a digital supply chain transformation. Leveraging the SAP Integrated Business Planning for Supply Chain (SAP IBP) solution, the Hong Kong-based company intends to modernize its supply chain to strengthen its position as a key player and a competent partner of top businesses in the aerospace, automotive, industrial appliances & equipment, office appliances, and medical devices industries. 

Nelson Lam, Tontec President, stated that the manufacturer is steadfast in its transformation goals towards Industry 4.0, especially being acknowledged as a worldwide leader in the design and production of plastic injection molds and moldings. On selecting SAP IBP to deliver on the supply chain modernization initiative, he stressed:

“Thus, it is imperative that our supply chain planning processes are harmonized on one platform. With SAP IBP, we can make use of real-time data from multiple functions and locations and align our planning with our financial targets in collaboration with customers and suppliers. This improves the accuracy of our forecasts and the efficiency of our planning processes to significantly impact our working capital, operating costs, and income.”

Tontec and SAP for Supply Chain Modernization 

Tontec is one of many enterprises in Hong Kong that have been utilizing SAP integration technologies to drive automation and deliver networking solutions for enhanced product customization, higher quality, and shorter delivery times, having 11 high-tech manufacturing facilities across the world. 

In February 2022, Tontec initiated a wider digital transformation upgrading its current SAP S/4HANA system to the Private Cloud Edition to provide the enterprise with improved capabilities to better manage their critical processes, such as financial reporting and disaster recovery, and respond to changing business conditions with greater speed and flexibility. The company selected RISE with SAP along with SAP Integration Suite to help its customers journey to smart manufacturing by accelerating innovation, agility, and responsiveness.

Continuing its modernization momentum towards Industry 4.0, Tontec has slated to launch its digital supply chain transformation journey harnessing the cloud-based SAP IBP for Supply Chain. Powered by SAP HANA, SAP IBP combines sales and operations planning (S&OP), forecasting and demand, response and supply, demand-driven replenishment, and inventory planning, allowing Tontec to deliver enhanced customer service and reduce costs.

Having a wide network of manufacturing plants worldwide, including three development centers, the SAP supply chain solution will empower the manufacturer to manage its complex global supply chains by synchronizing supply chain planning in real-time– ensuring business continuity amidst disruptions.

“Fast and accurate business planning is vital for manufacturers in an operating environment that is more challenging than ever, with fluctuating demand, long supply lead times, and logistics disruption,” commented Esmond Tong, Managing Director, SAP Hong Kong. “SAP IBP enables companies throughout the supply chain to handle these challenges and work together to be more agile and resilient. Market leaders like Tontec are leading the way to create an efficient and highly digitalized system with tangible business benefits.”

Tontec will be deploying Demand Planning and Sales and Operations Planning modules in SAP IBP to boost responsiveness and efficiency. Demand Planning will enable the Hong Kong-headquartered enterprise to generate data-based demand forecasts, allowing it to continuously monitor segmented internal and external data sources and create a balanced action plan. Sales and Operations Planning, which supports cross-functional process orchestration and collaboration with suppliers, will offer Tontec the capability to assess multiple key constraints over an extended forecast horizon to help achieve financial targets.

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