The following case study was a partnership between ASUG and MyTecSoft, featuring L.B. Foster. Download it in full here.
The Background
Founded in 1902 by Lee B. Foster, L.B. Foster Company is a Pittsburgh-based global leader in technology solutions for rail and infrastructure. The company is dedicated to enhancing safety, optimizing information flow, maintaining operational efficiency, monitoring conditions, and enhancing environments. Specializing in innovative engineering technologies, L.B. Foster strives to support and empower the people who keep the world moving forward.
Providing innovative engineering solutions for the rail and infrastructure sectors, including rail products, friction management, rail technologies, control and digital display, contract services, condition monitoring solutions, precast concrete structures, and pipe protective coatings, the company manages worldwide customer support from manufacturing, distribution, and sales facilities located in the United States, Canada, and the United Kingdom. Globally, L.B. Foster and its offerings play a key role in maintaining and developing reliable, safe infrastructure.
L.B. Foster’s cumulative impact is widespread; its end-to-end critical engineering solutions fulfill an essential role in ensuring railroad networks worldwide can operate safely and reliably, while its expertise in the design, manufacture, and deployment of infrastructure solutions has moved the built environment forward. The tangible results of the company’s services and expertise reflect its track record as a builder, connector, and innovator.
As part of its emphasis on innovation and technology development, the company underwent a digital transformation by deploying SAP S/4HANA to centralize its business processes and modernize its operations across several locations. The strategic initiative, driven by the need for scalability, efficiency, and real-time data access, marked a significant step in L.B. Foster’s journey toward greater visibility and maintaining a competitive edge.
The Situation
By 2019, L.B. Foster identified an opportunity to enhance its operational efficiency and support future growth through a more integrated ERP system that would unify disparate processes and provide access to current data organization-wide. While their previous system had supported the company’s operations for many years, evolving business demands and a growing portfolio required more advanced capabilities. The existing system’s limitations, such as fragmented processes and a reliance on manual input, presented an opportunity for innovation.
One of L.B. Foster’s core purposes is to improve information flow. Yet its previous system presented limited visibility into real-time information, with informational silos and disjointed operational processes. This led to difficulties in ensuring all the departments had the necessary, up-to-date insights to guide decision-making.
The company’s engineer-to-order model depended on precise master data and accurate costing, but limited visibility into critical elements such as bills of materials, labor, and routing hindered the ability to establish reliable baselines for engineered products. This lack of integration led to lost productivity and repetitive manual efforts by the team to develop and maintain master data outside the ERP platform. Furthermore, the majority of strategic activities were managed outside existing systems, and the diverse nature of L.B. Foster’s operations, spanning multiple locations and sectors, highlighted the need for a fully integrated solution. Reliance on multiple ERP systems made it difficult to standardize processes, consolidate financials, and ensure consistent reporting across the organization.
Recognizing these shortcomings as an opportunity to optimize its operations, L.B. Foster sought out a solution to integrate disparate functions and assets into a cohesive platform. The company strove to adopt an ERP system that would address these issues and yield a competitive edge in the infrastructure space.
The Initiative
L.B. Foster partnered with MYTecSoft, a firm known for its S/4HANA expertise, to elevate its operations and unlock strategic advantages. “MYTecSoft, as an extension of the IT team and the business team alike, allows us to create that cohesive bond to make projects run efficiently,” said Brendan Verni, Vice President of Information Technology at L.B. Foster. This combination of agility, flexibility, and a commitment to maintaining a clean core made MYTecSoft the ideal partner in L.B. Foster’s initiative to achieve streamlined operations and informed decision-making via S/4HANA. A key priority was to optimize the company’s processes, particularly in the order-to-cash and procure-to-pay areas. By implementing S/4HANA, L.B. Foster could automate and streamline operations, reducing delays and errors. This provided real-time visibility into works-in-progress, costs, and variance calculations, empowering informed decision-making and operational efficiency.
The integration of Variant Configuration (VC) within S/4HANA was particularly impactful for the company’s CXT subsidiary. Utilizing VC enabled CXT to handle the complexity of engineer-to-order, make-to-order, and make-to-stock scenarios with greater precision. This was especially important for the team, considering their ability to customize products based on specific customer requirements is crucial to their internal success and client satisfaction. CXT could more effectively manage and track each unique product by incorporating design, production, financial, and quality data. This integration gave L.B. Foster a competitive advantage in back-office operations by streamlining the management of complex orders and reducing the risk of errors.
Many companies achieve this by creating a highly customized SAP environment, resulting in long wait times to access key data needed to guide strategic decisions that improve company performance. In its collaboration with MYTecSoft, L.B. Foster instead focused on maintaining a clean core capable of rapidly transmitting up-to-date information.
“Getting critical information into the hands of our users when they need it most allows us to make strategic decisions that drives growth and productivity across the company,” said Verni. “Focusing on the key value streams in SAP—order-to-cash, requisition-to-pay, demand-to-supply, and record-to-report—we are able to create actionable information that drives strategic decision-making across all levels of the organization.”
By focusing on standard SAP functionalities and only allowing customizations with a direct business case, L.B. Foster and MYTecSoft implemented an ERP system that was easier to manage and update. This resolved immediate operational inefficiencies and set up the company for long-term success.
The Results
L.B. Foster’s partnership with MYTecSoft and implementation of S/4HANA yielded several benefits, demonstrating how the company’s proactive nature and commitment to transparency culminated in an ERP solution built on visibility, data accuracy, and operational efficiency.
Real-Time Data Access:
With S/4HANA, critical information such as variance calculations and production metrics becomes immediately accessible across all levels of the organization — from the C-suite to the shop floor. This enhanced visibility allows stakeholders to make strategic decisions quickly and confidently, reducing bottlenecks and streamlining processes.
Optimized Operations:
S/4HANA allowed L.B. Foster to integrate its order-to-cash, requisition-to-pay, and manufacturing processes. All parties involved have access to real-time, accurate data, ensuring operational excellence from project initiation to completion.
Scalability and Adaptability:
Deploying S/4HANA in the AWS cloud provided L.B. Foster with an environment to support future growth and take advantage of future technological advancements. Additionally, it bridged operations across multiple locations and functions. The system’s architecture, unburdened by unnecessary customizations, ensures that L.B. Foster is prepared for future updates and opportunities. Overall, the partnership with MYTecSoft and the deployment of S/4HANA are emblematic of L.B. Foster’s continued pursuit of connectedness, efficiency, and reliability. Armed with a streamlined ERP system, the company is poised to deliver on these core principles via operational effectiveness and real-world impact.
Lessons Learned
With over a century of experience, L.B. Foster has solidified itself as a long-standing infrastructure leader and a forward-thinking enterprise. When its previous ERP system could no longer effectively support its expanding teams and locations, leaders took an industrious yet practical approach to digital transformation.
A key takeaway from the S/4HANA implementation process is the importance of identifying an aligned partnership. In collaboration with MYTecSoft, L.B. Foster ensured that data visibility and efficiency would remain priorities as it consolidated various business functions into a single ERP system. This coordinated effort was critical in facilitating a smooth transition and delivering tangible benefits across the organization.
Throughout the journey, L.B. Foster’s leaders remained focused on their overarching goal: the growth and operational excellence of the company. “Ensuring the core functionality is right first will allow us to scale, grow, and drive a competitive advantage,” said Verni while reflecting on the desire to minimize customizations in favor of ease of use and adaptability. “Getting the core functionality right from the start is key as we can continue to build upon the success with future extensions that drive direct benefit.”
By aligning technology with clear-eyed objectives, prioritizing core functionalities, and deploying an ERP system that is thoughtfully calibrated for sustained success, L.B. Foster positions itself at the intersection of fulfilling present needs and seeking out new opportunities. As the company continues to evolve, the capabilities gained and insights uncovered during this process will differentiate it from its competitors.
About MYTecSoft
- MYTecSoft builds innovative, customized solutions and products with advanced technologies to bring efficiencies and speed to the business.
- MYTecSoft is an SAP Partner:
- Strategic solution provider for SAP R&D around Mill Products
- Considered an SME for all Mill Products development by SAP
- Rated by SAP as a top company for delivering Mill Products solution
- MYTecSoft has extensive experience implementing and supporting SAP S/4HANA and ECC.
- MYTecSoft specializes in industries like Wire & Cable, Polymers, Ceramics, Rail, Precast Concrete, Pipes, Extrusions, etc.
- MYTecSoft implemented the following specialized solutions:
- CDP (Characteristic Dependent Planning)
- LPP (Long Product Planning)
- Heuristics Planning
- Reel/Drum/Spool Determination (Returnable Packaging)
- NF Metals (Non-Ferrous Metals)
- Batch Management (Unique/Pseudo)
- Combined Orders at FG & SFG levels
- WIP Batch management and tracking
About ASUG
ASUG is the world’s largest SAP user group. Originally founded by a group of visionary SAP customers in 1991, its mission is to help people and organizations get the most value from their investment in SAP technology. ASUG currently serves thousands of businesses via companywide memberships, connecting more than 130,000 professionals with networking and educational resources to help them master new challenges. Through in-person and virtual events, on-demand digital resources, and ongoing advocacy for its membership, ASUG helps SAP customers make more possible.
ASUG develops and publishes case studies regularly in partnership with its members and customers. For more information on ASUG Case Study content, contact editorial@asug.com.