SAP S/4 HANA Implementation on Cloud: Machinery Manufacturing Company
The Introduction:
One of our client from machinery manufacturing sector have the exports and imports relationship worldwide with the team strength too spread across two continents. They were mainly focused into quality engineering, release engineering, developer tools, service management and automation.
Client was having aggressive growth plans, and they required their applications to be more agile and respond faster. Their current application were lacking modern capabilities to produce real time insights and they were seeking to move the current system that serves all purposes of data management, notifications, CRM, Warehouse Management and much more – consolidated to have an ERP system to serve the purpose.
Key Stats
- 20% improvement on new product and service revenue
- 24% reduced R&D cost
- 20% increase in on-time delivery
- 15% higher customer satisfaction
- 18% lower cost due to stock-outs
- 15% reduced order lead time
- 35% reduction in days to close annual books
- 30% reduction in audit cost
The Problem Statement
The client is currently slacked between deals orders, assembling, and dissemination, which lead to postponed request achievements causing overwhelming misfortunes.
Thus, the customer understood the requirement for a single platform and give a straightforward perspective on tasks information. In view of these key destinations, the customer looked to:
- Implement institutionalized and orchestrated business forms overall business capacities for better reconciliation and control
- Streamline worldwide exchanges that included different monetary forms
- Improve accuracy of orders, customer delivery times, product costing and profitability analysis
- Increase visibility and transparency across the entire supply chain, from procurement to logistics to customer service
- Enhance sales and service by making inventory information available online and on mobile devices
- New manufacturing plant projected to double the revenue
- Handle complex network of suppliers
- Empower users and delegate tasks across processes with ease
- Remove time-consuming manual processes
Core challenge faced was the country-based machinery specification, accounting, raw material and legal aspects to be taken care of, which will be managed as enhanced in SAP S/4HANA solution.
Our Solution
In view of the client's objectives and requirements, and after a thorough review of the existing workflows and going through the automated workflows client require, Stridely Solutions proposed the usage of S/4HANA ERP implementation along with the database on Cloud.
Reason to have cloud database was the excessive cost spend by a client behind the infrastructure, also the client has teams working remotely, so cloud transformation helped them with extensive access to ERP.
SAP S/4 Hana consultants suggested executing SAP Activate methodology for quick implementation of functionalities, which consequently decreased Total Cost of Ownership (TCO).
- Procurement Process including Payment
- Ordering, tracking, with Payment
- Planning to Implementation and Deployment cycle
- Core Finance and Accounting Module
- Inventory Management
- Raw Material Data Management along with Wastage proportion
- Recycle elements Data Management
- CRM implementation for maintaining Sales records
- Aftersales Management & Maintenance
- HR module for employee benefits
- Variant Configuration and Pricing solutions
- Analytics solution
- SAP Fiori solution
Core Features Required -
Intelligent & Analytical Reports & Dashboards
For reviewing the growth and outcomes in the various module, dynamic reports are created with user access implementation.
- Customizable Comprehensive reports with standard and dynamic patterns
- Production and Sales Report
- Raw material consumption Report
- Accounting and Invoicing
- Grade-wise Costing
Core Features Required -
Based on client, vendor, date, year, month - the reports can be generated. Dashboards were customized department-based to monitor the ongoing and upcoming activities.
SAP Digital Business Services was centralized keeping into consideration Charts of Accounts (COA), cost factors, vendors requirements, customers assets, raw material availability, tons of wastage and its reuse.
Onshore and offshore - the hybrid model was recommended to the client for SAP Enterprise Resource Planning (ERP) implementation for better resource utilization and absolute support.
"We accept that SAP S/4HANA by SAP won't just effect business forms yet additionally the IT landscape. We can assist with differentiating and further grow the business by utilizing the ongoing advancements. Stridely solutions team consolidated our business objectives and specialized capacities in a Single Platform which is a promptly expanded degree of progress.”
The Results
SAP S/4HANA solution implementation to be the beneficiary outcome for the client.
- Single standalone platform for bound together tasks and operations
- Overall department entities in the organization reduced significant time and cost in TCO.
- Single view of Sales Orders catered the completely transparent and seamless view throughout the organization.
- Single decongestion of the industrial facility and expanded stockroom space because of streamlined shop floor tasks.
- Well-characterized charts of all accounts with complete alignment of corporate and other accounts to match the scope of single platform for all operations.
- Wastage, Raw Material and Stock Management on Single Platform offered the cost saving on the wastage and encouraged reusability of leftovers.
- Leveraged the implementation by using templates and accelerators along with SAP Activate methodology.
- Planning and Production of operations with seamless integration of ordering processes, procurement and accounting.
- Robust and Secure cloud-based solution which is flexible and scalable for future rollouts for all entities.
