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Wilo sets new standards in the digital age

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Jens Dallendoerfer, Wilo Group Vice President Eurasia & General Manager of OOO Wilo Rus

On 13 October 2017, OOO Wilo Rus, the Ministry of Industry and Trade of Russia and Moscow Region concluded a special investment contract. This was the tenth special investment contract signed since the beginning of 2016. The investment programme Wilo will place its state-of-the-art technology in Russia, and the manufactured products will meet the strictest international standards of reliability and energy efficiency. The company looks at this project not only as the creation of production capacity, but also as a platform for future development.

Digital transformation is one of the greatest challenges of our time. Countries’ economies and corporations must be prepared to face these changes. To survive in such a highly competitive world marked by technological change, the company Wilo (one of the world’s leading producers of pumps and pumping systems) chose a new path with a clear direction for its group. Wilo’s implementation of its digital strategy will lead to a substantial increase in investment activity, including in Russia.

With the help of smart solutions, employees, products and services, all linked together, Wilo is striving to be a digital pioneer in the industry. In the context of digital transformation and innovative manufacturing technologies in conjunction with Industry 4.0, we have again developed production and logistics processes anew. In April 2020 we will inaugurate our ultra-modern manufacturing complex, our Smart Factory, in the city of Dortmund, where our headquarter is located.

However, not only at our Dortmund headquarters, but also at our new manufacturing site in Noginsk (Moscow Region), we want to establish new standards for the digital era. In doing so, we are concentrating on three key processes: Product Lifecycle Management (PLM), Supply Chain Management (SCM), and Customer Relationship Management (CRM).

The first order of business is to create a supplier structure. This issue occupies a central place for both Russian medium-sized enterprises and German enterprises in Russia. In its pilot projects, Wilo continues to evaluate selected Russian medium-sized enterprises in order to optimize its local supply chain in cooperation with our Russian partners. The purpose is to maintain German quality standards in Russian manufacturing. We plan to create a central digital logistics platform in Noginsk, which will be aimed at optimizing warehouse facilities, reserves in the warehouse, and supply times. This platform will be managed on an End2End basis and will have an EDI-based integrated order management system. Local suppliers will be effectively integrated and combined into a single network.

In future, our Smart Factory in Russia will make it possible ensure the closest possible connection between people, machines and corporate resource planning systems, as well as the precise interaction of all components of the value creation chain in real time, using the latest manufacturing technologies such as 3D printing, augmented reality, robot technology and autonomous freight-handling vehicles. Our goal is to achieve the highest level of automatic regulation and optimization of all processes as part of a closed, regulated system with full transparency and efficiency of value creation flows. At the same time, we will create excellent working conditions for our employees thanks to the creation of the Smart Factory. In this way, we will achieve a high degree of flexibility and speed of delivery to clients, with growing productivity and cost efficiency in Russia.

In parallel with the creation of the Smart Factory, Wilo plans to establish a new level of closeness to the client in digital Russia. Digitalization will connect the world of clients and the world of Wilo and will allow individual contact with each group of clients and shareholders, with individual marketing in real time. Digital CRM makes it easier to set priorities in client relationships, projects and offerings, ensures a high level of transparency on the Russian market and among its participants, and can thereby provide substantial support for work with key clients.

In the development of a new, digital business model, as the next step Wilo defines and will develop the appropriate lines of business. In doing so, we will also rely on startups. Wilo is already conducting a systematic analysis and monitoring of young, innovative enterprises. The objective is to integrate the technologies of the future and digital business models into existing business activity. In this way, we will in future create new innovative spaces in Russia, so that using products, systems and solutions we can meet the technological challenges of the future.

Digital transformation will not be an obstacle for Wilo. Thanks to targeted, longterm investments we can confidently take advantage of our chances and realize the potential of future transformations.

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