SAP S/4HANA Implementation Drives Cost Savings and Operational Efficiency for Global Automation and Control Solutions Giant

Company Profile

Global Leader in providing automation and control solutions for buildings and homes. The company provides hardware and software used to control and automate environmental systems (HVAC, lighting, and window coverings), audio and video systems, as well as computer networks, and security systems

Objective

Help Audio and Video equipment, Environmental & Security systems manufacturer to replace their legacy systems with SAP S/4HANA for Logistics, Sales, Procurement, Finance and Customer Service operations in EMEA.

Business Challenge

The client had installed SAP for their US operations whereas their EMEA operations were running on legacy software. They were looking to roll out SAP S4HANA, CRM, CPI and BW to their EMEA operations to cut costs, streamline and standardize business processes company wide and perform consolidated reporting. The client’s main goals were consolidating logistics, financial, sales and customer service systems into a single system, boost efficiency, single material master and pricing database, optimized supply chain processes and integration with 3PL, streamline financial processes, create a common foundation for future growth, and improve global reporting, by minimizing customizations and taking advantage of SAP functionality implemented for their US operations. Client was looking to have a single system for their global operations including EMEA, APAC and Australia/New Zealand.

Solutions Implemented

Accrete Consulting Solutions conducted an initial discovery phase to understand the existing business processes and systems being used. A high-level system architecture diagram, Fit Gap analysis, Enhancement List and Implementation plan with time, resource and cost estimates were some of the key deliverables that were created during this phase. The implementation phase was kicked off with an aim to streamline and standardize the client’s business processes and achieve process improvements, with workshops being conducted with the business to define the end-to-end Order to cash, Procure to pay, Service to cash, Supply chain and Financial processes.

The design and implementation for some of the complex business requirements like integration of SAP with a 3PL provider for inventory management processes, multiple language & currency support, EU VAT compliance, generation of EU financial documents & reporting, customer facing portal integration, EMEA bank interfaces, integration with VANAS and Intercompany accounting were completed as per project schedule to the satisfaction of the client. Data migration of legacy data was a critical and complex part of the project, and it included Data conversion plan, data mapping, data conversion rules definition, data cleansing & purging, data extraction and load programs, Load program testing in Test system and finally loading into SAP production system.

Results

With the successful implementation of the SAP solution in EMEA, the client made a significant step toward its global vision of streamlined operations, cost savings and optimized business performance. Close collaboration between the client and Accrete Solutions team members, as well as the use of Accretes’ India Delivery Center, helped speed the solution’s development and contributed to the project’s success. A global material master was a key business requirement that enabled easier customer ordering, buying from vendors and 3PL operations

Streamlined and improved processes resulted in better communication with 3PL and US operations, and provided better visibility into the business, with all information integrated in one system. Improved supply chain processes resulted in a reduction in inventory carrying costs and excess inventory, and increased customer satisfaction with faster deliveries to customers.

Balance sheet, P&L, Tax and Financial reporting for various regions in EMEA were accurately generated from the system on a timely basis. Global standardized reporting for Sales, RMA’s, Repairs and Purchase orders enabled the company to improve and quicker decision making and helped in identifying and eliminating bottlenecks. The solution will serve as a platform for deployment to other regions of the world and align with the client’s business strategy and support growth objectives. The rollout facilitated global repairs and replacements, enhanced customer experience with better visibility and reporting.

Project Highlights

• Salesforce, S/4HANA, SAP CPI/BTP and SAP BW roll out to Europe, Middle East, and Africa
• Europe’s complex Input and Output Tax setup in SAP
• SAP integration with 3PL for logistics processes
• Customer facing portal integration for Accounts, Products, Price, and Demo Loans
• Accurate tracking of RMA and Repairs from Customer portal
• Sales, Logistics, Procurement, Manufacturing, Customer Service and Finance business processes were implemented.
• Migration of data from legacy systems
• Integration of a custom quoting tool with SAP
• Interface SAP with EMEA banks
• Large multi country project delivered on time and budget.