Scalable Consumer Packaged Goods Company Automates with SAP S/4HANA

Key Takeaways What you need to know

The CPG client faced challenges with siloed IT systems across the U.S. and Mexico, leading to data fragmentation and inefficiencies in their order-to-cash and supply chain processes.
The decision to adopt S/4HANA on AWS under the RISE with SAP program streamlined operations, reduced project timelines, and enhanced data centralization, allowing for better reporting and user training.
Post-implementation, the client achieved significant improvements, including reducing financial close time from 20 days to 5, automating repetitive tasks, and gaining real-time visibility into inventory, ultimately fostering innovation and growth.

A consumer packaged goods company adopted S/4HANA on AWS to streamline operations across the U.S. and Mexico, significantly improving financial processes, real-time data visibility, and automation, while establishing a unified global platform for future growth.

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The Challenge

With operations in the United States and Mexico, each country was utilizing a siloed IT system for order-to-cash, production planning, supply chain management, and financial processes. This fractured approach led to data fragmentation and non-centralized processes. Tired of reconciling manually, our client wanted a more streamlined solution that would propel future development. Moreover, since their operational processes were legacy systems and manually maintained through spreadsheets, it was important that a new processing system could easily scale with this CPG company’s growing footprint in the market.

The Approach

After an extensive ERP evaluation supported by the selection firm Mazars, our client decided to adopt S/4HANA on AWS under the RISE with SAP program for its comprehensive offering, including a cloud ERP that fits any business need, and business process intelligence to suggest more efficient workflows.

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Leveraging SAP Best Practices, minimal customization was needed, ensuring the most optimal SAP implementation process. The client enjoyed a shorter project timeline and faster time-to-value, while providing opportunity for users to understand what the standard SAP functionality entailed.

The focus on centralizing and standardizing data played a pivotal role in the success of both streamlined processes and quality reporting. To ensure successful adoption of the new systems, we guided the client through user training, user adoption, and change management so the team could better prepare for the coming system changes and understand how it would impact their day-to-day business.

The Impact

After successfully implementing and adopting RISE with SAP, our client created a strong foundation for digital transformation that provides them with the opportunity to deploy more innovative solutions that will support future growth and expansion. They now have one unified global platform that supports all of their core business processes.

With S/4HANA, our client’s financial processes were shortened, reducing the financial close process from twenty days to five days. The real-time reporting capabilities and insight into key data, such as inventory and production costs, regardless of location, continues to be instrumental in guaranteeing that financial close is completed in a timely manner. Another important result from implementing S/4HANA was real-time visibility to inventory throughout the organization. Under S/4HANA, inventory is centralized, better controlled, and provides real-time updates across the company’s locations.

Processes that were repetitive and time consuming for staff were automated. Before the move, our client’s accounts payables team created invoices and then manually sent them out. With S/4HANA, the AP process is fully automated and managed with minimal human intervention. The time saved by automation can now be redirected to other areas.

Now with a centralized business system that is accessible for all employees, they are able to focus on further business innovation and future growth, knowing their back end is agile for what’s to come.

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Scalable Consumer Packaged Goods Company Automates with SAP S/4HANA

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The CPG client faced challenges with siloed IT systems across the U.S. and Mexico, leading to data fragmentation and inefficiencies in their order-to-cash and supply chain processes.

The decision to adopt S/4HANA on AWS under the RISE with SAP program streamlined operations, reduced project timelines, and enhanced data centralization, allowing for better reporting and user training.

Post-implementation, the client achieved significant improvements, including reducing financial close time from 20 days to 5, automating repetitive tasks, and gaining real-time visibility into inventory, ultimately fostering innovation and growth.

The Challenge

The Approach

The Impact