Case Study: Manufacturing Company achieves accurate China pay-rate calculations and compliant external workforce management with SAP Fieldglass

Leveraging SAP Fieldglass in China for Complex Pay Rate Calculations and Legislative Requirements

A global manufacturing company with a long history in China — operating subsidiaries and joint ventures across more than 20 cities, employing over 12,000 people and having invested CNY 1 billion locally — needed to manage a complex external workforce program that complied with China’s detailed pay rules and legislative requirements. The challenge included handling multi-component pay calculations tied to local hukou-based social burdens, varying allowances and bonuses, shift schedules, leave entitlements and accurate supplier invoicing across numerous sites.

The company implemented SAP Fieldglass in phases to standardize procure-to-pay processes, formalize contingent recruitment, and automate timesheets and reporting. Configured hourly and unit-rate schedules now calculate monthly pay, overtime, shift premiums, absences, allowances and location-specific social burdens automatically, improving visibility into shift management and compliance. The result: greater accuracy and control of worker pay and supplier invoices, demonstrable compliance, improved spend and reporting, identified cost-savings opportunities and ongoing support for external labor management.