From horse to digital racehorse

With around 2,200 employees and a turnover of 2.25 billion euros in the 2023 financial year, the family-owned company founded in Münster in 1923 now operates at over 20 production sites in Europe. This success story would not have been possible without continuous innovation and adaptation to new market conditions.

One example of this is the One Finance project, which is supporting the digital transformation of the Westfalen Group. The company is facing the task of switching from SAP R/3 to SAP S/4 Hana. In order to optimally meet the requirements of a changing business environment, Westfalen placed a particular focus on modernizing finance and business processes in SAP R/3 at an early stage.

"A modern management concept based on segments requires structured financial data in the income statement and balance sheet in order to make the right decisions. This was the driving force behind activating the New General Ledger in our existing SAP R/3 in order to implement segment accounting, with which we can generate precise figures for the individual business areas," emphasizes Tilman Heise, Head of Controlling Systems at Westfalen.

Step-by-step implementation

The decision to proceed step by step by implementing the New General Ledger (New GL) in the current SAP R/3 was also motivated by the need to prepare for the changeover to S/4 Hana and thus minimize risks. This enables the company to benefit from the improved financial data even before the changeover.

"We went through various options for the introduction of the SAP New General Ledger (New GL) and ultimately decided on an introduction in SAP R/3 with our migration partner cbs in order to spread out the changeover to S/4 Hana. At the same time, we wanted to use the opportunity provided by the One Finance project to streamline our chart of accounts and bring our new control concept to life," explains Tilman Heise.

Tests and adjustments

Several test cycles, including unit tests, integration tests and performance tests, ensured that the migration could be carried out successfully within the planned time frame. This also required optimization of the hardware in the run-up to the changeover: "We worked together with our service providers on system performance to ensure that the migration ran smoothly on the planned weekend," explains Tilman Heise.

The core team comprised employees from the Controlling, Finance and Accounting and IT departments. This team was supplemented by the migration partner cbs and other external consultants. The close cooperation and early involvement of the specialist departments were crucial to the success of the project. "Everyone involved was involved at an early stage so that they could work together effectively. Open communication was a particular success factor in the project.

Feedback was given and accepted mutually. It was a very constructive collaboration, we are moving forward together," reflects Stephan Tybus, Manager at cbs Corporate Business Solutions, who managed the project with the Westfalen Group.

Precise control

"We are very satisfied with the result and will now tackle the next steps of improvement and optimization that we have set ourselves. With One Finance, we have already created a good basis for modern corporate management in SAP R/3," says Tilman Heise. "The Westfalen Group impressively demonstrates how tradition and innovation can be successfully combined.

With the targeted modernization of its financial systems, it is securing a future-proof basis for sustainable growth. With more precise management tools and innovative processes, it remains competitive even in a dynamic market and is therefore a role model for successful digital transformation in SMEs," emphasizes Stephan Tybus, Manager at cbs.

Westfalen Group

The Westfalen Group is active in the fields of technical gases, cooling and heating, filling stations and mobility as well as respiratory home therapy. The energy source hydrogen in particular is playing an increasingly important role in the area of sustainability. Founded in Münster in 1923, the family-owned company is now represented by numerous subsidiaries and associated companies at over 20 production sites in Germany, the Netherlands, Belgium, France, Switzerland and Austria. In the 2023 financial year, the company generated sales of over 2.25 billion euros with around 2,200 employees.

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