Global digital transformation project powered by SAP Cloud

Situation

Dormer Pramet, a leading global manufacturer of a wide range of rotary and interchangeable tools for drilling, milling, threading, and turning, part of the multinational SANDVIK concern, has decided to implement an ambitious global 1WAY project to unify the ERP systems of the entire concern using the SAP S/4HANA system.

Project objectives:

• Standardization and unification of procedures and processes across the entire company, taking into account and implementing local specifics, which is why the project was named 1WAY.
• Unification of a diverse and complicated range of ERP systems. The customer was using up to 4 different ERP platforms, often a combination of two in one place, dozens of interfaces changing over time, and corporate and in-house systems.
• Digital transformation of sales branches and production plants.
• Modernization of logistics.
• Identification and contractual provision of local consulting resources through an international network of local SAP partners in individual countries within the required time, capacities, and scope of implementation.
• Respond flexibly to changes in schedule, processes, project scope, personnel changes, architecture, and sudden decisions on new unplanned projects.
• Unified group reporting.

Solution

• Adoption of a global process concept (127 business and production processes) for SAP S/4HANA implementation, including complete process documentation in SAP Solution Manager.
• Creation of a global model company, 1WAY Model Company, which represents a pre-configured solution for the described processes and, at the same time, an implementation accelerator for all business branches.
• The project was carried out in a way that utilized synergy and shared costs when implementing multiple markets at the same time.
• We have implemented 1WAY Model Company primarily in the scope of business processes in 18 European countries (e.g., Germany, Italy, France, Sweden, and others), but also in exotic countries for us, such as Japan, Thailand, Vietnam, South Korea, and Indonesia. In critical stages of the project, we implemented up to 7 countries in parallel.
• Replacement of the SAP R/3 system used for years with a new SAP S/4HANA solution for financial, business, and production processes for the production plant in Šumperk, Czech Republic.
• During the project implementation, the customer decided to move to the cloud and implement the transition from SAP S/4HANA 1909 on premise to SAP S/4HANA Cloud, Private Edition.
• Replacing non-standard solutions with the standard, uniformly = 1WAY.
• SAP S/4HANA Cloud, Private Edition provides the support to customer for effective economic management, controlling, human resources, logistics, quality, purchasing, production, warehousing, and sales.
• Active use of modern predictive analytics in real time makes decision-making more manageable for the customer.
• The cornerstone of the project's success is cooperation with the customer's internal team, local consulting teams (we actively used our membership in UnitedVars), who helped us with legislative and local requirements, as well as user support.

Benefits:

• A unified approach for all business and production processes, taking into account local and legislative requirements and specificities.
• All processes in one modern, integrated environment SAP S/4HANA Cloud, Private Edition.
• Reduction of the number of IT systems.
• Predictive analytics and simplification of decision-making in business processes.
• Transition to the reliable and scalable cloud platform, SAP S/4HANA Cloud, accessible from anywhere, which ensures the running of everyday business processes.