At a Glance
- A large appliance manufacturing company starting a major enterprise software upgrade wanted to be certain it captured the full potential of such a significant investment.
- We helped ApplianceCo* design a comprehensive digitalization strategy including a roadmap for a migration to SAP’s S/4HANA suite of products. This complex transition has already boosted the company’s value and revolutionized its capabilities in omnichannel selling, revenue management, supply chain and manufacturing.
- Once fully implemented the transformation is expected to generate $200M in five years, including savings and revenue across the company’s customer, supply chain, and manufacturing capabilities.
savings in first year of implementation
increase in margin
The Full Story
Our engagement began with an exhaustive analysis of ApplianceCo’s business strategy and capabilities, which revealed numerous pain points and areas of opportunity. Some divisions were initially reluctant to embrace automation or new digital solutions, and, while ApplianceCo had a solid base architecture built on SAP, its future success depended on expanding that base and maximizing its potential.
We started by presenting a compelling vision of the industry’s direction to ApplianceCo’s top leadership. Through innovation treks, expert presentations and our proprietary research we gave the management team an immersive view of the next generation of manufacturing. We clearly laid out how the new systems would drive key business outcomes, and how technology would always work in service to enterprise strategy. We demonstrated that this was not an IT project but a chance to leap ahead, into the future of their industry.
Next we mobilized ApplianceCo’s talent to co-create the “future state” of the organization. We formed cross-functional, Agile teams of top managers to design business cases for the new software tools that would improve outcomes and user satisfaction. Working hand-in-hand with SAP’s enterprise technology experts, we helped these teams create and prioritize digital initiatives by function (supply chain, manufacturing, etc.), and aligned these projects with the company's overall digital ambition. The process mapped out ways for ApplianceCo to maximize the return on its investment and quickly modernize the most important business capabilities.
Today the company is on track to hit its goal of boosting sales by 25% over five years.
ApplianceCo then began to implement these new programs across its ecommerce, supply chain, manufacturing and other functions. The company launched SAP’s IBP and Ariba logistics program to track products from origin to destination. A reinvention of ApplianceCo’s pricing practices, using Pricef(x) connected to SAP, allowed the company to manage prices and discounts in real time, from the sales floor to the field to resellers. A new model for SKU reduction has reduced complexity significantly, and similar initiatives are underway to reduce complexity in ecommerce, logistics and manufacturing.
The initial results of ApplianceCo’s transformation are encouraging, with around $30M in cost reductions already captured and a clear plan to realize more in the coming years. Today the company is on track to hit its goal of boosting sales by 25% over five years. The migration to S/4HANA has accelerated a digital transformation that has helped the company gain a 1-3% increase in margin.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.