Customer Stories / Manufacturing / Egypt

2023
Fresh Electric

Fresh Electric Expands Globally, Cuts Costs by 40%, and Speeds Report Processing by 75% Using AWS

Fresh Electric has sped up business processes by up to 75 percent, reduced costs by 40 percent, and launched innovative projects using AWS. Based in Egypt, it is a global manufacturer and seller of consumer goods and home appliances. Its previous on-premises infrastructure required long wait times for system upgrades and downtimes for software updates, which held back business innovation and agility. It uses SAP on AWS for business ERP, Amazon EC2 for scalability, Amazon CloudWatch to monitor AWS resources, and Amazon S3 for disaster recovery and storage. The customer can now innovate and respond quickly to changing business needs and can serve customers in Europe after demonstrating compliance with the EU GDPR.

Compliance with EU

General Data Protection Regulation (GDPR)

40%

annual total IT cost savings

75%

 faster processing of financial and regulatory reports

Scalability and resilience

 to support expanding operations

Overview

Fresh Electric is a home appliances manufacturer and retailer based in Egypt. To succeed in the fast-paced consumer goods market, it must respond quickly to changes in the business environment such as supply-chain disruptions, new competitors, and ever-growing customer expectations. However, its previous on-premises infrastructure required long lead times for updates and was vulnerable to downtime, limiting its ability to innovate, provide an excellent customer experience, and maximize operational efficiency in its factories.

Fresh Electric moved to SAP on AWS and built a secure, flexible infrastructure using Amazon Web Services (AWS). The company can now provide reliable access to SAP applications to support 24/7 operations, create new products such as a mobile ecommerce app, and run essential business reports up to 75 percent faster than before. It’s also reduced overall IT costs by approximately 40 percent, and overcome regulatory hurdles so it can serve European customers and expand globally.

fresh electric

Opportunity: The Need to Innovate to Compete and Succeed

Founded in 1987, Fresh Electric manufactures and assembles more than 1,000 different types of products, including air conditioners, washing machines, and refrigerators. It operates more than 20 factories, employing 12,000 employees and selling to over 150 million customers in 65 countries.Employees rely on SAP to manage business functions, round-the-clock factory operations, and 24/7 after-care customer support. Downtime slows down production, hurts customer service, and disrupts critical financial processes.

Managing SAP applications on-premises meant finding staff with the right skills, which was a challenge. Upgrading resources required long lead times and updating software led to downtime. As a result, resource-intensive tasks such as payroll processing and manufacturing planning could be slow and unreliable—and users didn’t have the information they needed to make sound business decisions.

Fresh Electric wanted to be able to innovate to fulfill constantly growing customer expectations and rapidly respond to market forces such as supply chain disruptions during the COVID-19 pandemic. “Many of the projects we work on are unplanned,” says Abdelfattah Ali, chief information officer (CIO) at Fresh Electric. “They arise from new business requirements or shifts in the competitive landscape. We need flexible technology that supports rapid innovation to develop and grow our business.”The company also wanted to expand into Europe, which meant complying with local data regulations such as the EU General Data Protection Regulation (GDPR).

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Using AWS, we’ve sped up our infrastructure and development process so we can launch new products quickly—this is crucial to our success.”

Abdelfattah Ali
Chief Information Officer (CIO), Fresh Electrice

Solution: Moving to SAP on AWS For 75% Faster Processing and 40% Cost Savings

Fresh Electric decided to move to SAP on AWS. It chose AWS because of the wide range of services and fast processing speeds in initial tests. The migration was speedy and caused no downtime. “In one night, my team set up and connected to a virtual private cloud without any prior training on AWS,” says Ali. “That's when it was very clear to us that AWS was the right choice. We thought, ‘If we can accomplish this in a single night, what else can we do on it?’”

Downtimes are now a thing of the past, so Fresh Electric can reliably offer 24/7 after-care customer service and manage factories operating with three shifts. Its infrastructure automatically scales to manage spikes in demand while maintaining high levels of performance, using Amazon Elastic Compute Cloud (Amazon EC2), which offers secure and resizable compute capacity. This means business users can run financial or sales reports as much as 75 percent faster than before, and can make decisions based on the latest information.This scalability supports the company’s ambition to continue expanding globally. “Using AWS, we find it easy to cope with the changes around us,” says Ali. “We can quickly adjust workloads to accommodate unplanned projects or to add extra factories as we grow, without the need for long lead times.”

When expanding into Europe required compliance with the GDPR, Fresh Electric was able to do so using AWS Regions and Availability Zones to store data for European customers in local data centers. To quickly add resources in different markets, the team uses AWS CloudFormation to speed up cloud provision with infrastructure as code.Fresh Electric can now launch new products and features faster, because its IT team can instantly add new services or adjust resource levels according to needs. Implementing a new CRM application, for example, took just a few clicks—before, it would have taken weeks to schedule an upgrade. “Using AWS, we have a faster innovation cycle,” says Ali. “We always find the support and services we need to achieve what we want.”

With less time needed to manage and maintain infrastructure, employees also have more time for high-value projects and innovation. Over the last year, Fresh Electric has launched more than 10 new projects running on AWS. These include an app that allows B2B customers to place orders, query order status, and check out from mobile phones through a seamless ecommerce experience. To simplify maintenance, the team uses Amazon CloudWatch, which helps to observe and monitor AWS resources

.Fresh Electric has received design support from AWS to build high levels of security for new projects, and it can improve security quickly too. For instance, it upgraded its firewalls in a couple of weeks—a process that previously would have taken months. It uses Amazon Simple Storage Service (Amazon S3), a highly scalable cloud storage service, for disaster recovery and backups, eliminating the need for inefficient physical storage systems.

Fresh Electric also reduced its annual infrastructure costs by 40 percent and saved 80 percent on software licensing costs, compared to before. “Our AWS account team helps us to find the right services and to optimize our costs,” says Ali. “They look out for our business.”

Outcome: Preparing for a Future of Innovation on AWS

Fresh Electric is all-in on AWS and plans new projects such as using AI and IoT to automatically monitor shop floor production levels and perform predictive maintenance on manufacturing equipment.It’s also expanding its mobile ecommerce solution to dealers, using machine learning to automate financial processes and predict future sales, and installing QR codes on appliances to manage after-sales care. “Using AWS, we’ve sped up our infrastructure and development process so we can launch new products quickly—this is crucial to our success,” says Ali. “We get so much support from AWS technically and commercially. Whenever we have an issue, they are there for us.”

About Company

Founded in 1987 and based in Egypt, Fresh Electric is a global manufacturer and seller of consumer goods and home appliances. It sells thousands of products to over 150 million customers in 65 countries.

AWS Services Used

SAP on AWS

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Amazon Elastic Compute Cloud (Amazon EC2)

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AWS CloudFormation

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Amazon CloudWatch

Observe and monitor resources and applications on AWS, on premises, and on other cloudsGet started with CloudWatchLearn with an AWS Observability workshop


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