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Christine Hein, BLG LOGISTICS, reveals in an exclusive interview how the logistics giant, which has almost 100 locations on four continents, successfully mastered the SAP S/4 HANA transformation despite limited resources - and was not only able to meet the planned go-live date, but also return to a smooth operational rhythm almost seamlessly.
What goals and expectations were associated with the introduction of SAP S/4 HANA at BLG LOGISTICS?
HEIN A central goal at BLG LOGISTICS was the standardization of business processes. By standardizing processes across different departments and locations, we can ensure more consistent and efficient workflows. SAP S/4HANA enables centralized data storage, which improves data quality and leads to fewer redundancies. Accurate and reliable data is crucial for sound business decisions. In-memory technology enables us to gain real-time insights and react faster to market changes. Overall, we are increasing our operational efficiency and competitiveness through agile and data-driven decision-making.
How comprehensive would you rate the change by the S4 project?
HEIN The change is relatively large. A key aspect of this change is the replacement of a tool in the purchase-to-pay process, which represents a significant adjustment in our operational processes. In addition, we have sought to standardize earnings structures to ensure consistent and comparable data across different business units. This standardization helps to improve the transparency and efficiency of our reporting. Another important point is that invoicing now takes place directly in SAP.
What is the initial assessment of the target achievement, which expectations have been met or not met?
HEIN We are very pleased to have successfully met the planned go-live date, which was often not the case in other SAP projects. We also managed to quickly switch to a functioning operational mode. Invoicing is running smoothly, we are back to the usual rhythm of results reporting and the purchase-to-pay process is also working so that our suppliers are paid on time.
This is particularly remarkable as the available resources were scarce. Our employees were extremely committed, even though we could have needed a few more people in the project. However, we have not yet reached an optimal state. There are still unfinished business and processes that are not running smoothly, and an ongoing need for training. We were not as successful as I would have liked in terms of pursued process standardization. This is also due to our very complex system landscape.
Based on your experience: How can companies prepare for the transformation so that it runs as smoothly as possible?
HEIN I see several aspects that can be considered in the run-up to the project to ensure its success. For example, master data should be cleansed BEFORE the project begins to avoid delays and complications. It is also essential to identify and train the project participants at an early stage so that they are aware of the comprehensive options and optimal ways of using the system. This also helps to identify and standardize special solutions. Furthermore, resource planning should be formalized at an early stage to prevent overload and delays. Process visualization is another critical success factor: existing process documentation should be checked to ensure it is up to date or, if there is no corresponding documentation yet, current processes should be visualized. Finally, I recommend not making process and system changes at the same time, as changing and standardizing result structures simultaneously is a major challenge.
Once the project has started, there is no time to deal in depth with these points. At the same time, these measures lay an important foundation from the outset, firstly for change management and secondly for the activities of the auditors who assess the system change.
Looking ahead - what further digital transformation steps are you planning and how will these build on the ERP transformation?
HEIN We are planning further steps in our digital transformation, building on the ERP transformation that has already taken place. A key focus is on integrating the invoicing processes of our subsidiaries, which are not currently handled via SAP. This integration will enable us to establish a uniform and efficient invoicing structure across the entire company.
We are also working on the introduction of SAP Analytics Cloud (SAC) and Group Reporting. These tools will help us to optimize our planning and consolidation processes in an integrated environment. The aim is to use these technologies to further increase the efficiency and accuracy of our financial reporting and make well-founded decisions based on comprehensive data analyses.
Last but not least: What advice would you give CFOs planning a SAP S4/HANA transformation?
HEIN Understand your company's current SAP maturity level by checking how well your processes are documented, whether process responsibilities are clearly defined and whether a key user organization already exists. Also consider when the last major SAP project was carried out. Based on this analysis, you should plan the preparation time.
In a comprehensive SAP transformation, it is also important to inform operational employees at an early stage and involve them in the project organization. This integration facilitates the transition and ensures that everyone involved is on the same page.
And finally: plan sufficient resources for change management in good time. It requires special skills and time to successfully shape the change. The transfer of knowledge to your own team is crucial for the acceptance and sustainability of the transformation.
About Christine Hein
Christine Hein has been a member of the Management Board of BLG LOGISTICS, an international seaport and logistics service provider based in Bremen, since November 2020. She is responsible for the Finance division. After working for the Oberhausen-based mechanical engineering company Babcock Borsig in the 1990s, Hein has worked in various divisions and companies of the French oil company TotalEnergies since 2003. In 2015 and 2016, she was Vice President Corporate & Project Finance, Refining Chemicals/Marketing & Services at Total SE, where her responsibilities included the financial analysis and risk assessment of major investments.
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