Timken to implement SAP globally

Pragati Simlote

NEW DELHI: The Timken Company, manufacturer of tapered roller bearings and mechanical seamless steel tubing, is launching a global SAP implementation called Project ONE.

Accenture is the system integrator for the project, which commenced this year.

Cost saving and better efficiencies are some of the benefits that the company is seeking from this global rollout. According to The Timken Co. Global CIO & Sr. VP Jon Elsaasser, “It will be a global design. Emphasis is going to be on improving our business processes, getting better information and supply chain management (SCM) and customer service.”

He added, “We have about 14,000 IT users in the company — in other words 14,000 network addresses out of 26,000 associates. We have purchased around 5,000-6,000 user licenses from SAP. We can exchange some of these licenses for different kind of licenses from SAP, so I think we can probably cover half of our 14,000 IT users as SAP users.”

Three years ago, Timken had acquired US-based Torrington, a worldwide producer of needle roller, heavy-duty roller and ball bearings and motion control components and assemblies. Elsaasser added that the SAP rollout would also help in further integrating both the companies.

Bangalore-based Timken Engineering and Research — India (TER-I) houses 20 percent of Timken's global IT force. The facility is expected to play an important role in implementing IT for Timken. Built with an investment of around $8.5m in the facility, the facility was purpose built for the company and was inaugurated in April 2004.

Elsaasser said, “The IT associates in India will play an important role in future as they are now getting involved in SAP implementation. In the process, they are now learning new technologies like SAP Basis, SAP NetWeaver, etc. Timken has bought mySAP business suite, which uses NetWeaver technology. So Indian associates are learning that.”

The SAP rollout will end in 2008 and initially the company would start by implementing ERP and advanced planning and optimization (APO). “Timken has 50 + offices and 100's of sales offices in 28 countries. We have more than 65 plants and nearly 100 sales offices, design centers and distribution warehouses located in 26 countries on six continents. We plan to connect all our branches through SAP,” Elsaasser added.