Suzhou Grundfos Reduces Costs and Increases Productivity with Scala

Leading pump manufacturer adds 15th installation worldwide

30 July 2002: Suzhou Grundfos is using Scala to improve production and business management processes. The Danish pump manufacturer Grundfos has been using Scalas standard ERP software for over 10 years. After the latest implementation at the Chinese subsidiary in Suzhou - its 4th installation of Scalas software in China - staff have praised the multi-lingual and multi-currency capabilities of Scalas software and ability to keep costs low.

With Scala we are reducing costs and significantly increasing productivity and management efficiency," says Ms Sharon Xiong, Suzhou Grundfos IT Administrator. Our international trading has been growing dramatically and upgrading with Scala is effectively driving our company expansion. Our business management has been improved to a new level – the development of our use of Scala has resulted in a development of our management."

Over the last five years Suzhou Grundfos has advanced from a pure parts assembly site into a major manufacturer of pumps and pump support castings, a distributor of its sister companies products, and the services and training centre. In managing this growth and meeting customer demands Scala has been more than just an IT system. Scalas collaborative ERP solution has solved a lot of production and logistics problems, and is still going to improve our efficiency. Now, if we receive orders in the morning we can deliver them that same afternoon," continues Ms Xiong. This is possible because Scalas system allow collaborative working between departments so each business process point works together from order entry, through to stock control, invoicing and accounts receivable.

Suzhou Grundfos business is both remote and complicated, but Scala software makes management of the business simple," says Peter Bornschein, Managing Director for Scala Business Solutions in China. Also, for large companies like Grundfos - operating in 41 countries - it is essential to have a system that can interact around the world for coherent management reporting. Our long-held philosophy of making global business simple means we have built our system for easy interaction with other applications and across international boundaries, and I know this has been an extremely attractive feature for Grundfos. Our system has the right specifications for the way businesses operate now and in the future. We are ready for all our customers to grow."

Ms Xiong comments, Everything we have seen while working with the Scala system proves to us that our IT investment was a wise move and is right for the long-term."

By using a pre-set implementation template based on Scalas standard implementation methodology, Signature, Grundfos can speedily install Scalas software. Bornschein concludes, Our products are cost-effective, can be deployed globally, and implemented speedily to give our customers the standardisation they need for making global business simple.

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Notes to Editors

About Grundfos
Suzhou Grundfos is a subsidiary of Grundfos. Headquartered in Denmark, Grundfos is one of the worlds most successful global pump providers, with operations in 61 offices in 41 countries. Grundfos is one of the top 3 Danish companies. Grundfos aims to be the world's leading and most successful pump manufacturer. The Group is dedicated to ongoing research in new materials and processes. It is the companys goal to constantly introduce outstanding new pumps and pumping systems that satisfy the markets' needs for effective, reliable, energy-efficient solutions. Grundfos products are sold and serviced primarily through a network of Grundfos-owned national subsidiary companies.

Suzhou Grundfos was founded in 1995 and has since become the biggest pump-manufacturing base in China. The subsidiary is mainly responsible for producing pump and pump support castings, distributing its sister companies pump products in China, assembling SDKs for the Chinese market and exporting assembled products. For more information visit www.grundfos.com.

About Scala Business Solutions
Scala Business Solutions creates collaborative ERP software – integrating Internet technology and traditional ERP functionality – to make global business simple. With Scala, global companies can fully integrate all their ERP systems anywhere in the world, whether in a subsidiary, division or headquarters, and extending to their partners and suppliers. Scalas collaborative ERP software makes it possible for global companies to meet the requirements for advanced e-business as well as use a standard ERP product for managing traditional business processes. This enables them to gain measurable benefits from trading electronically, building a private exchange or global portal, or optimising the supply chain.
From offices in Europe, North America and the Far East, and through its network of partners and dealers, Scala delivers software and services that are available in over 30 languages in more than 140 countries.

Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA). 2001 revenue was USD 70.6 million.
Visit Scalas website at www.scala.net for press information including press releases, information for investors, and company and product information.

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