Technology Strategy

Agria Embraces Innovation with SAP S/4HANA Single Tenant Edition

 

Success Story 

As an international company specialized in plant protection products Agria needed a partner who would lead their digital transformation journey, migrate their business infrastructure to SAP S/4HANA STE and help them take advantage of all benefits this future-proof ERP solution brings. Scalefocus’ SAP consultants crafted Agria’s digitalization strategy that optimized their business processes, increased visibility and traceability and reduced overhead.

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Improved production and resource planning capabilities

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Higher agility and reduced time to market

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Lowered maintenance costs and prevented downtime

The Client

Established in 1932 in Bulgaria to meet local demand for high-quality plant protection solutions, today Agria is the largest agrochemical producer on the Balkan peninsula. The company has two main production and packaging facilities and exports their internationally certified products to over 70 countries in Europe, Asia, South America, Africa and the Middle East. Agria’s multi-faceted business development approach includes continuous modernization, regular portfolio expansion and an ongoing commitment to environmental protection.

The Solution

As part of their global plan for digitalization and process optimization, Agria needed a technology partner who would help craft the company’s digital roadmap for years ahead. The first step involved migrating their heavily customized SAP ECC 6.0 solution to SAP S/4HANA to allow seamless management convergence of all company subsidiaries in Bulgaria, Russia, Ecuador and Indonesia. The main objectives of the project were standardizing processes across Agria’s global business entities, increasing visibility over KPIs as well as the entire business and reducing overhead.


Agria executed an extensive RFP procedure to find the best vendor for their digitalization journey and Scalefocus was among the shortlisted companies. They tasked us with executing their ERP migration strategy due to our extensive experience in delivering complex enterprise projects for business transformation and solid track-record of successful SAP S/4HANA implementations within the manufacturing industry. We guided Agria in unpicking the SAP ECC 6.0 customization that was not driving satisfactory results and provided the complete picture of the value they would get moving forward with SAP S/4HANA. In this way we were going to fulfill step one of the global plan to move all of Agria’s subsidiaries to SAP and resolve the long-standing issue of production and resource planning optimization.


SAP S/4HANA is a future-ready enterprise resource planning (ERP) system with built-in intelligent technologies, including AI, machine learning and advanced analytics. It transforms business processes with smart automation and runs on SAP HANA—a market-leading in-memory database that offers real-time processing speed and a dramatically simplified data model. After careful evaluation with the active participation of Scalefocus’ consultants, Agria decided to go with S/4HANA Single Tennant Edition, which provides next generation ERP capabilities packaged as Platform as a Service (PaaS) for maximum flexibility and scalability. The decision allowed the company to take advantage of all benefits this comprehensive cloud-focused approach offers, specifically a flexible licensing model and compliance with regulations in the countries of all subsidiaries. Having carried out the first Greenfield SAP S/4HANA migration in Bulgaria the year before, Scalefocus had the confidence and full expertise to rise to the occasion and turn Agria into a trailblazer on yet another front.


The modules in the implementation scope were Sales and Distribution (SD), Materials Management (MM), Production Planning (PP), Finance (FI), Controlling (CO), Plant Maintenance (PM) and Quality Management (QM) and we configured them in a single integrated system. The Scalefocus SAP team utilized PP/DS (Production Planning and Detailed Scheduling) with characteristic dependent planning, which we had to modify in a way that would enable extremely precise resource planning and configuration. It was a necessary step to ensure compliance with varying sets of international regulations and quality standards. We conducted walkthrough tests, key user trainings and provided dedicated hyper care to secure seamless integration.

Results

Agria’s SAP S/4HANA migration strategy involved complex decision making on the Scalefocus SAP team’s part due to the global scale of the project and the sophisticated nature of production processes. Alignment with the company’s subsidiaries required a flexible system that combines innovation, scalability and full transparency on all levels with UI that would facilitate and accelerate user adoption. Every digital transformation runs into challenges, but with the right roadmap they can be minimized and solved quickly. Going forward with a cloud-first approach enabled Agria to have a higher degree of agility, reduced the time to market and in the end ensured the project’s success.


  • Implementation and Go-live of the future-proof S/4HANA STE

  • Improved production and resource planning capabilities

  • Eliminated business-critical system inefficiencies perpetuated by ECC 6.0

  • Laid the foundation of the international SAP convergence plan

  • Lowered maintenance costs and prevented downtime

  • Enabled traceability of results down to single transaction level

  • Ensured transparent real-time information flow and informed decision making


“The business value for Agria that Scalefocus helped unlock with the implementation of S/4HANA STE is just the beginning of our digital transformation and the collaboration between our companies.  Our long-term strategy to transform both internally and externally to adapt to constantly evolving market requirements was set in motion by the best technology partner we could have hoped for. We will take full advantage of the opportunities offered by the cloud and keep pursuing innovation at every step of our digital transformation journey. Thanks to Scalefocus and the implementation of S/4HANA STE, we feel completely supported on that journey and together we will continue pushing the boundaries of what this new solution can bring in terms of business value. “


Alexander Krustev

CIO, Agria

Our Work

We have a global client base that includes Fortune 500 companies, innovative startups and industry leaders in Information Technology, e-Commerce, Insurance, Healthcare, Finance and Energy & Utilities.

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