Case Study: European FMCG

Client Requirement

This Major FMCG company was a largely country based organisation with little in terms of European processes or systems, and increasing costs and complexity in its business. Recent Y2000 SAP implementations had taken place in several countries and these had resulted in multiple versions and designs of SAP operating and high dissatisfaction within the business with the process and system capability and escalating IT costs.

The request was to develop a European IT strategy, with a view to increasing effectiveness and reducing cost and complexity. The European President and the client manager also wanted to use this exercise to review the organisational and management structures across the business, with a view to moving to greater European harmonisation.

Solution Proposed and Delivered

Rod Clarke was lead consultant (in a team of three), with especial focus on the supply chain processes and organisation, SAP strategy and the high-level corporate/local process issues.

A series of workshops was held with senior business staff to review the existing processes across Europe and identify opportunities to implement best practice, including moving to European wide processes where appropriate.

A review of the existing SAP implementations took place and options to move to a single SAP implementation were evaluated.

Recommendations were made to the European Management Board following these initial findings and a second phase to start implementation was approved. The first stage of this assignment took place over 2 months, with the first phase of implementation being supported for a further 4 months.

Recommendations and Action Taken

  • A detailed process map, defining corporate and local responsibilities, was agreed by the client.
  • Outline proposals to move to a single SAP implementation were agreed.
  • Move to a single European IT organisation with increased outsourcing adopted.
  • A new role of European Business Process Owner was agreed, and senior appointments were made.

Cost/Benefit

  • Cost of initial phase – c.£200k.
  • Cost of implementation phase – c.£300k.
  • Benefits to client included increased effectiveness of IT, improved focus on European management and simplified business processes.