S/4 Hana Transformation in Retail

Uncertainty factors in Germany, Europe and the USA, caused by political destabilization and geopolitical conflicts, as well as the resulting economic conditions, continue to influence consumer purchasing behaviour. At the same time, competition from new online retailers with aggressive marketing strategies (e.g. Temu) is increasing, putting further pressure on traditional retailers.

Retail companies must adapt quickly and flexibly to the changing conditions and needs of customers. A personalized shopping experience is becoming increasingly important, as customers expect tailored offers and an individual approach. Loyalty to certain providers is decreasing and the switch to more attractive offers is increasing.

Another key to competitiveness is the successful implementation of omnichannel concepts. However, many retailers struggle to seamlessly integrate their online and in-store systems, which can lead to data inconsistencies in inventory or prices, for example. In addition, logistical challenges such as uncertainties in the supply chain, delivery bottlenecks and rising shipping costs pose considerable problems for retailers.

These factors require flexible and robust solutions to ensure security of supply. At the same time, sustainability and digitalization, in particular the use of artificial intelligence, are becoming increasingly important.

These trends not only offer opportunities to optimize the supply chain and improve the customer experience, but also increase the efficiency of operational processes. One component of optimization in this context can be the transformation to the latest technology and software, as offered by SAP with the current ERP version S/4 Hana. BearingPoint pursues a holistic transformation approach, i.e. the close integration of business processes with the organization and IT. To this end, we provide our expert knowledge of proven and field-tested business processes (leading practices) from a large number of successfully implemented transformation projects.

S/4 Transformation

The BearingPoint SAP S/4 Hana Transformation Framework (S4TF): In a preliminary phase (Discovery), we scrutinize the economic benefits together with our clients and weigh up trends versus strategy. These results serve as a decision-making basis for the actual transformation and include the evaluation of scenarios for a future-proof, scalable target architecture, identification of optimization potential, risk analysis, identification of fields of action, communication strategy, change management, transformation roadmap and a TCO analysis.

During implementation, we already use the future SAP system with predefined processes from our leading practice to validate the target requirements against the software standard at an early stage, thereby avoiding (costly) in-house developments. The future customer solution is developed step by step together with representatives from the specialist departments and IT. Thanks to this agile approach and the consistent consideration of value management, our customers generally achieve better results in the transformation in terms of acceptance and implementation results. In joint workshops, we prepare the stakeholders for the concept of value management, including the KPIs and value drivers. These KPIs and value drivers are defined together - for example, optimized profitability (supplier negotiations, stock, margin), inventory optimization in each sales channel, acceleration of the consolidated financial statements - and then compared with industry benchmarks and the company's actual values.

Once value management has been completed, the prioritized tasks are divided into sub-projects and synchronized with the overall planning. During implementation, we offer our customers fast, value-oriented results. Continuous monitoring and control of the degree of achievement is essential in order to achieve the expected results.

Digitization with Signavio

BearingPoint has supported Sonepar, a leading electrical wholesaler, in a strategic transformation to harmonize its fragmented and inefficient IT landscape. This transformation strengthens Sonepar's market leadership and customer service, increases efficiency and flexibility and enables a faster response to market changes. Innovative technologies such as machine learning and IoT are driving the digital transformation.

BearingPoint created a customer-specific process list and took a semi-agile approach to avoid costly in-house developments. New processes were developed iteratively using SAP Signavio and the first regional companies were able to switch to S/4 after a short time. Sonepar also used the S/4 transformation for an organizational realignment and accompanied the process with effective change management. Targeted training courses prepared the employees for the new systems. The biggest challenge in such projects is still a clear definition of the target state, and the importance of consistent time and scope management with the help of a partner should not be underestimated by the existing SAP customer.

BearingPoint

BearingPoint is an independent European management and technology consultancy with over 6200 employees. We operate in the areas of consulting, products and capital, support digital transformation initiatives, offer IP-based products for business-critical processes and cover M&A, ventures and investments. BearingPoint works with over 30 of the 40 DAX companies and supports clients in the retail, consumer goods and luxury goods sectors to combine technology and strategy.

To the partner entry: