futuristic bright warehouse

Reliability is the key

Logistics company FIEGE counts on T-Systems for its SAP operations

Cost-efficient service provision

Packages in automatic logistics management

The logistics volume handled by FIEGE is immense: the service provider sends one parcel every second and the company transports 35 million tires every year. Optimized processes in transport, order picking, etc. are the name of the game. Not only do they serve customers, but they also ensure cost-effective service provision, which is essential given the typically low margins in logistics. FIEGE is also continuously exploring the potential of relevant innovations and introducing them into its business processes. In logistics operations for fashion retailer Esprit, FIEGE uses SAP to efficiently manage its processes in the 47,000 m² central warehouse in Mönchengladbach. The company procures its SAP operating services from T-Systems.

Benefits for the customer

“We have found T-Systems to be a reliable partner for the operation of our SAP systems,” sums up Bülent Möller, Head of IT SAP Logistics. “As a result, T-Systems is also our preferred service provider for further SAP projects.” Fail-safe operation with high availability and extraordinary performance is essential for smooth logistics processes, which have made FIEGE a trusted partner for its retail customers. FIEGE also benefits from optimum cost efficiency for its SAP operations thanks to the T-Systems solution. But FIEGE is also counting on T-Systems as the right partner for its upcoming system upgrade, as T-Systems will find a suitable solution for future SAP operation based on its comprehensive consulting and implementation expertise, gathered from hundreds of SAP projects. A solution that meets the logistics provider's specific requirements in terms of costs and performance – and offers the necessary future viability.

Over many years, the services provided by T-Systems have proven it to be an SAP service provider that not only reliably supports our demanding operations, but is also a true business partner.

Bülent Möller, Head of IT SAP Logistics, FIEGE

The challenge

When the new goods from Asia arrive at the main warehouse in Mönchengladbach, everything has to happen quickly. In each shift, 400 employees pick the incoming goods for onward distribution to Esprit's shops and warehouses. These workflow processes are controlled by the SAP system, which lets the employees know which items are expected where. The various processes in SAP need to keep up with the speed of the workflow: FIEGE expects individual transactions to be processed in the millisecond range. The company was looking for an experienced partner to operate such an efficient SAP system.

The solution

“We have now been partners for about 10 years,” explains Account Manager Torsten Grothaus from T-Systems. “Over this time, we have proven ourselves to be a reliable service provider and partner for FIEGE.” The SAP system being operated comprises a total of 140,000 SAPS for the database, application server, testing, and development, as well as stand-by capacities for disaster recovery. This is the basis on which FIEGE develops, tests, and operates its company-specific SAP applications. The managed SAP system is operated from a T-Systems twin-core data center. T-Systems uses its tried-and-tested private cloud based on dynamic computing services – with one key modification: no shared resources are used because of the fast response times; the hardware used is provided exclusively for the FIEGE system. This means that it can meet the performance requirements for fast logistics processes as well as be managed according to proven best practices.

Cost optimization during COVID

Alongside many years of stable operation, T-Systems also proved to be a true partner in the global COVID pandemic: when Esprit was forced to grapple with the effects of the pandemic, this also meant restrictions for FIEGE's business activities. In order to reduce costs, the partners agreed to downsize the SAP system, which was no longer being used to capacity. Reducing the size of the application server allowed FIEGE to dynamically adjust SAP costs to reflect the business situation. With this third contract extension, the partners reaffirmed their long-standing cooperation. Significant upgrades to the SAP system are planned over the next few years, including the migration to SAP HANA.

All information at a glance

The customer

With around 19,000 employees at more than 150 locations across Europe and Asia, the FIEGE Group generated turnover of 1.8 billion euros in 2019. The family business was established in 1873 and is currently run by the fifth generation. FIEGE is a pioneer in contract logistics: Contract logistics providers ensure smooth supply chains from the manufacturer to the retailer. They place importance on long-term partnerships with their clients and bundle various tasks along the supply chain.

To the customer's website

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