SAP ECC Implementation for a Leading Wholesale Distributor

The customer had an existing SAP system in place which was not giving them the results they expected. They were looking for a better-integrated system which would be more user- friendly and afford more transparency and consolidation across geographies.

Customer Profile

Our customer is a wholesale distribution company with several years of success in the tobacco products trading sector. Wholesale distribution has, in fact, been one of the core businesses of the group. With over a decade of experience in working with several international partners, the group has earned the confidence required to sustain long-term business relationships. The group has a strong network of interconnecting business operations that allow the group to leverage international opportunities for all their business partners.

Business Challenge

The company was finding it difficult to fully utilize the existing SAP system in their day to day business functions. Our customer runs wholesale distribution networks in several locations, and so data entry was being done on multiple systems. This often caused duplication in data entry. The company was also worried that user familiarity of the system was less than satisfactory. Language was another hindrance that prevented the system from being used across multiple geographies. The system did have a Business Intelligence component, but it was not usable for their day to day business functions.

They needed a seasoned partner with proven expertise in delivering projects within stringent timelines. The new solution had to be capable of working across geographies. At the back-end, it had to integrate with the existing SAP solution. Another aspect of the implementation was that it should not be radically different from the processes already in place. This was to ensure process convergence. Moreover, this would reduce the cost of maintenance and support. Maintaining separate business systems at each of these locations was proving difficult to manage. They needed to implement a new system that would integrate all areas of the business. The implementation had to be done without affecting the existing SAP system operations.

Client Testimonial

Applexus remained true to the name by being a high-performing business partner. Their solution has been very instrumental in providing efficient communication between our internal teams and incentivized us to serve our customers better.

Business Objectives

Since the business operated from several locations, the SAP ECC implementation should allow it to be usable across multiple geographies and languages. The system should be transformed from its current state as a data entry system to a usable ERP system that can be used to improve the efficiency of their day to day business functions. The system that was in use was a non-Unicode system. This has to be converted to a unicode compliant system that enables a single set of source code to be written to process data in virtually all languages. The implementation should enable the company to utilize all of the capabilities of the BI system to help them increase their ROI.

Our Workaround

Our team worked on stabilizing the SAP system and implementing process extensions to bring more business processes under the scope of the system. We also worked on integrating the business processes of multiple departments and business units of the company. As a result seamless transformation from the earlier processes (revolving around Peripheral systems) to a new SAP-centric business process was achieved, thus unifying all the required data into a single landscape. All of the P2P (peer-to-peer) processes and O2C (order-to-cash) processes of the group has been brought under the ambit of SAP ECC system. All the data necessary for an informed decision-making process is now available in SAP system. The conversion to a Unicode-compliant system has enabled the group to use SAP for different geographies

Business Benefits

  • Process convergence was achieved at reduced maintenance and support costs
  • Peripheral systems used for executing the business could be sidelined
  • All the business operations (wholesale distribution) are now made possible through one system (SAP ECC)
  • Consolidated reporting from multiple geographies was made possible
  • Improved confidence in IT/ERP infrastructure for the top management, helping them in faster expansion and improved returns