Explain the conditions that necessitated the adoption of ERP systems by CasaLuker. • Discuss the…
Explain the conditions that necessitated the adoption of ERP systems by CasaLuker. •
Discuss the role of Deloitte in CasaLuker’s ERP implementation project and why their role was critical.
• Explain the factors that contributed to the success of CasaLuker’s ERP implementation project. •
What lessons can be learned from CasaLuker’s ERP implementation project?
CasaLuker SAP Case Study As one of Colombia’s largest consumer products companies, chocolate maker CasaLuker understands the importance of managing growth. Faced with a burgeoning domestic business as well as growth in overseas markets such as Europe, company leadership over the past decade has been looking for ways to transform business processes to align with new growth and demands. Central to the vision of transformation has been a need to integrate processes and systems across the enterprise—to pull together procurement, manufacturing and logistics and deliver a comprehensive view into the enterprise. For CasaLuker, making that vision a reality involved investing heavily in its existing SAP® infrastructure and enlisting Deloitte professionals for critical assistance Investing in growth With a workforce of 2,200 employees and a chocolatemaking legacy extending back more than 100 years, CasaLuker stands as a major and growing player in the South American consumer goods landscape. Outside of Colombia, its offices in Russia, Panama and Ecuador continue to extend their reach into new markets, today providing products in 25 countries. With growth part of the recipe for CasaLuker, smart planning has been a necessity. Helping the company to operate effectively over the past two decades has been a core of SAP ERP functionality. For more than a decade, CasaLuker has relied on SAP solutions to help run finance and other central operations. But with the shape of the business changing in 2009— becoming a more consolidated global organization—the company needed a refreshed and integrated system to support global business processes and deliver business intelligence which could support better decision making across the board. To get there, company leadership saw promise in a new set of solutions leveraging the in-memory computing power of SAP HANA®. The right ingredients To begin putting together the pieces for supporting an effective business transformation, CasaLuker worked with Deloitte to develop a process that would help ensure that milestones were met strategically—based on business priorities and needed capabilities. The resulting threephase project provided a clear path to an SAP-powered organization. Following the deployment of core SAP HANA functionality for central operations in 2014, as part of a first phase CasaLuker leaders implemented SAP Business Warehouse powered by SAP HANA as well as the SAP BusinessObjects BI suite, including an SAP Supplier Portal. The company also launched dashboard features, analytics tools, and SAP Control Center, to help workers get more timely and intuitive access to business-related insights for decision making. In moving to the final phase of the project, CasaLuker is looking toward implementing SAP Business Planning and Consolidation and SAP Manufacturing Integration and Intelligence—to support advanced planning and simulation capabilities for CasaLuker’s supply chain. Effectively undertaking the transformation has relied on collaboration across the organization and among its technology and consulting partners, including Deloitte and an infrastructure partner, according to Gerson Granados, CasaLuker’s director of IT. That collaborative path was defined early on in the process by a steering committee, which was created to examine risks, explore benefits, develop steps for the three-phase transformation, and align roles and responsibilities for the various players. Internally, close to 60 workers were involved in the project, with 30 consultants helping to implement solutions and guide transformation strategy. The payoff Standing up SAP solutions to transform procurement, manufacturing and logistics at CasaLuker has helped position the company for a future in which workers across the 4 organization can get access to actionable insights for more effective decision making. Here are some of the benefits that the company is seeing from its efforts. Speed. By pairing SAP Business Warehouse powered by SAP HANA with SAP HANA Live (a bridge between SAP HANA and SAP applications for analytics processing), CasaLuker has allowed workers to connect directly to the database to more quickly get the information they need to do their jobs. Previously, the company had to download data from the ERP system to the data warehouse. The new SAP-based solutions have enabled CasaLuker to generate reports in a fraction of the time. Whereas some reports previously required three hours to generate, they now can be produced in close to three minutes. Performance and flexibility. With all ERP and reporting systems now consolidated into SAP Business Warehouse powered by SAP HANA, CasaLuker has experienced improved system performance while also seeing new flexibility from in-memory computing. The new, highperforming environment can support the big data and analytics needs that the company faces as it grows— allowing it to ask new questions about how its business is doing and to react promptly, adjusting activities and reallocating resources to meet evolving demands. Efficiency. CasaLuker’s SAP-focused transformation has helped bring fresh efficiencies and greater accuracy in several areas. For example, new SAP solutions have helped the company optimize inventory and boost accuracy, with the new warehouse-management system helping to reduce picking time from about one day to less than two hours. Meanwhile, the company’s code development landscape has become more efficient. Before the SAP project, CasaLuker had roughly 1,000 instances of custom code in its SAP environment. That number has been trimmed to about 200 following the transformation. Standardization. Streamlining functions through SAP solutions has helped the company address compliance needs as it seeks to align with international standards and improve its processes for quality management. With SAP functionality geared toward governance, risk and compliance—namely, SAP Access Control to help ensure data integrity—CasaLuker has made more data accessible to its workers, while also making sure that only authorized users can access critical data. Why Deloitte In searching for help to guide its SAP-led transformation, CasaLuker had some significant reasons for selecting Deloitte. At the center of the reasons: Deloitte’s emphasis on partnerships and results. Granados said working with Deloitte professionals proved easy because of the “side-by-side” approach they took when it came to understanding and addressing CasaLuker’s business challenges. And that partnership mindset extended beyond just CasaLuker workers. “Deloitte also was very effective at working together with our other partners—which was critical for our transformation,” Granados said. In addition to the ease of working together, Deloitte’s strong credentials mattered to CasaLuker. For example, Deloitte’s experience with many SAP projects in Colombia, as well as its strength in delivering results with SAP HANA, helped the company stand out as a partner that could bring value, according to Granados. Experience in implementing largescale projects involving financial reporting standards also helped Deloitte stand out, according to Granados. Additionally, Deloitte brought highly relevant business know-how and industry experience to CasaLuker’s transformation. “Deloitte’s experience in the consumer industry was particularly important to us,” Granados said. “Knowing our industry made a difference.” Another bonus of the partnership: Deloitte’s Enterprise Value Methodology (EVD), which helped the company y ensure that activities were linked to business results, and not simply to technical requirements.