Initial situation
To manage its operations Niaga needed a full scope ERP solution with the flexibility to scale for growth and implement new business models within the shortest possible time frame. Adding Niaga business entities to one of the existing DSM SAP ECC systems was not the preferred solution so DSM selected S/4HANA Cloud as the new platform for onboarding new initiatives.
DSM wanted to prove that Cloud ERP systems for new businesses can be implemented quickly and successfully. The new platform supports all of Niaga’s end-to-end processes from sales, direct procurement, production, quality management, warehousing, logistics and finance with an SAP Fiori user interface.
“Scheer was very keen, structured and systematic in their approach to on-boarding team members and explaining S/4HANA’s end-to-end processes. The flexibility of their support readiness and the continuous dedication to solving problems made it a pleasant and constructive journey”.
- Margreeth Klein | Customer Services Benelux, Niaga
The project
Together with representatives from Niaga and the DSM IT department, Scheer IDS conducted the first discovery workshop. In just one day, the business processes (scope items) that are of central importance to Niaga's business were identified. It was determined that the standard functionality of SAP S/4HANA supports the business models within the project scope:
- Selling the technology under license with the required machines and adhesives
- Tolling model for the production and export of carpets
After the discovery workshop, the project plan, planning and budget could be agreed based on the Scheer performanceREADY approach, which includes the following:
- SAP Activate methodology with accelerators for configuration, testing, change management and documentation
- Agile and process-oriented approach to ensure a fully integrated solution for all departments involved and management of the implementation
- Detailed “fit-to-standard” workshops to validate the suitability of SAP S/4HANA Cloud
- Sprints to configure and validate an entire end-to-end process
A finance sprint was added to ensure integration with DSM Finance Shared Services
The solution
SAP S/4HANA Cloud was implemented at Niaga to incorporate sales (including export and third-party sales), procurement, manufacturing (make-to-order and assembly), quality management, logistics and finance functions (including profitability reporting, product costing for insights into costs and profitability per product, customer, region and business model). The cloud solution enabled a cost-effective, business-focused implementation that met DSM's “fit-to-standard” goals and ensured a future-proof solution that minimized IT costs.
Key learnings:
- Allow sufficient time to analyze best practice processes in the discovery phase
- Ensure that all project participants are fully involved
- Coordinate the cloud ERP initiative with global IT support at an early stage
- SAP S/4HANA Cloud works!
Implementing a complete ERP solution based on standard procedures within a few months was a unique experience for DSM and an ideal opportunity to gain expertise in operating an ERP system in the cloud using a software-as-a-service model. The main advantage of cloud solutions over on-premises implementations is the availability of an entry-level system. From the first day of the project - without IT involvement or long waiting times - employees had direct access to all functions that fell within the scope of the project, as well as to the learning content.
The platform comprises a considerable number of scope items, each with its own configuration, test scripts and documentation. A scope item activates the functionality to support an end-to-end process or a specific scenario within a process. Above all, DSM needed an experienced partner with the right approach to ensure success.
Benefits
Using S/4HANA Cloud, Niaga is now ready for the future and is an excellent reference point for other business units with unique business models or fast-growing businesses. The new digital platform for growth provides DSM with real-time insight into its physical and financial positions across the entire supply chain and an open environment for collaboration with partners. End-users have their dashboard with KPI's for monitoring the business in real-time and with direct insights into exceptions. Niaga operates with SAP S/4HANA Cloud a compliant, secure environment that fulfills the company's governance requirements.
