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About The Client

The client is an 80-year-old Indian sweets, snacks, and restaurant company. They have over seven million outlets in major cities in India, the US, the UK, and the Middle East.

Business Need

As one of India's leading food manufacturers with a presence in multiple countries, the client wanted to implement industry best practices and company codes for improving product costing across all the plants. The aim was to calculate the cost incurred in manufacturing a single product.

They wanted to harmonize product costing processes across all plants to improve transparency, create a unified process, eliminate gaps, and enhance the organization’s efficiency.

Additionally, they wanted to generate profitability reports for products, product groups, customers, and customer groups and automate costs and profitability analysis (COPA) for two companies and 15 manufacturing plants using a system-driven approach to reduce manual work.

The client decided to use SAP S/4 HANA to implement product costing and profitability analysis.

As one of SAP’s trusted partners, the client gave Sapours responsibility for implementing product costing and COPA.

Solution

After a thorough understanding of the business requirements, our team implemented the following solutions:

  • Implement SAP S/4 HANA best practices -
    Every business is different. Hence, we took time to study the client’s business needs and modified the SAP S/4 HANA best practices and processes to improve product costing and profitability analysis.
  • Perform systems-driven product cost analysis and review -
    We recommended the use of the SAP S/4 HANA product cost analysis app. This app provides details on product costs according to account and business transactions. This allows the user to make a cost comparison between budgeted cost and actual cost, track variances, and find the root cause for it.
  • Harmonize processes -
    With SAP S/4 HANA, we could harmonize the processes across all plants to standardize them and improve transparency. We provided a unified platform to manage all the processes efficiently.
  • Create profitability reports -
    SAP S/4 HANA’s Profitability Analysis module allows companies to dive deep into market segments, customers, products, business units, etc., to understand revenue streams, costs, and profitability drivers. We ensured the client could generate system-driven profitability reports and allow the management to review them. This helped the management understand the company’s profitability and make informed business decisions based on the results.
  • Minimize disruption in existing processes -
    Our team of four SAP experts implemented this project in phases for six months. We also provided long-term post-implementation support to the client. This enabled us to minimize disruptions and ensure business continuity.

Impact

Here are a few improvements the client witnessed after implementing the SAP S/4 HANA:

  • Improvement in processes: By reducing the manual work and promoting system-driven analysis, the client could cover all the processes from analysis to optimization in one SAP system.
  • Better product cost and profitability reporting: The system-driven cost calculation helped the client reduce product and profitability reporting errors. They got a better visibility of the product cost and profits across all plants.
  • Easy maintenance: The client did not have to worry about managing multiple processes as everything was brought under one SAP system. It also eliminated the need to use various legacy systems.
  • Enhanced efficiency: The client witnessed improved efficiency as the system-driven processes eliminated all the manual processes.

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