Navigating the Digital Frontier: Overcoming Challenges in Business Process Transformation through ERP Assessment

Business process mapping & transformation

process reengineering

DIGITISATION

Before embarking on a journey of digital transition and business process optimisation with the AROL Group – a specialist in capping and sealing bottles and containers for a wide range of product sectors (food & drink, home & personal care, pharma and chemicals) – the SCAI Group mapped and redesigned AROL’s company processes and application landscape.

The main objective of AROL’s digital and process transformation – which is still ongoing due to the programme’s breadth and complexity – is to generate value for its customers by setting some challenging targets:

• zero defects (line quality);

• 100% on-time delivery (comprehensive process visibility and order monitoring in real time);

• faster management of strategic and critical components (through a Group MRP, embracing shared material billing and optimising processes using the Lean Six Sigma methodological approach);

• comprehensive mapping of produced and purchased items (new material codes at Group level);

• a new Management Control model and tools to support analytical accounting.

Our AROL strategy was centred around streamlining inventory and maximising efficiency through the integration of real-time end-to-end data and convenient access for decision makers. This covered everything from offer management to customer delivery and after-sales activities.

During the initial preparatory phase, we completed an assessment to gather business and ICT-related information and map items, with the intention of defining a roadmap and to-be scenarios. AROL also asked the SCAI Group to assist with scouting and vendor assessment activities for the ERP and CRM components. This phase also included in-depth demo sessions on the sector’s leading platforms.

Given its growth through acquisitions, the AROL Group needed to standardise processes and applications, modernise IT platforms, and respond more comprehensively and adequately to business owners’ needs. The AROL Group companies are renowned for their intricate operations, specialising in production-to-order and engineer-to-order methods that meet their customers’ technical and functional specifications. With the goal of improving profitability and efficiency, the SCAI Group helped AROL re-evaluate its processes and implement multi-job planning at every production stage.

Processes were transformed by leveraging change to cater to the needs of both AROL management and its customers. This entailed a comprehensive overhaul of applications, making use of the latest cloud and in-memory technologies, while ensuring seamless integration with all company departments through modern interfaces.

The assessment took around three months and the majority of activities were carried out at AROL’s headquarters in Canelli. The SCAI Group organised a series of workshops and interviews with department managers, who shared valuable insight on current processes, daily activities, pain points, must-haves, and nice-to-haves for the new ERP platform, taking into account interactions and integrations with applications and their future development.

Leadership also needed a new management control model and end-to-end, real-time order progress monitoring features to assist project managers, track performance, and communicate well with customers.

All requirements and integration aspects were analysed and addressed during brainstorming sessions with a wider company audience.

From the start, it was evident that SCAI Fast need to tackle the intricacies of AROL’s transition to a new application scenario by incorporating a cutting-edge ERP platform and cloud ecosystem. After thoroughly evaluating leading platforms and vendors in line with the requirements defined during the assessment phase, the SAP platform and its RISE WITH SAP S/4HANA private edition solution emerged as the top choice, capable of meeting the needs of the AROL Group. The BTP suite acts as the enabling force behind seamless integration between all the platforms and tools in the field.

Updating internal procedures and change management by implementing a robust and flexible ERP solution addresses the majority of the needs and requirements for which AROL required greater coverage. The majority of processes are adequately covered by standard SAP features (including finance, management control, and sales), making use of best practices.

The SCAI Group’s work for AROL deepened and further consolidated its experience and expertise in the production-to-order and engineering-to-order field. Alongside the AROL project, SCAI designed a preconfigured, SAP S/4HANA-centred project to meet the needs of AROL’s business sector.

The SCAI Group designed and implemented a pre-configured Fast Package for Manufacturing, based on the private edition of RISE WITH SAP S/4HANA, which is intended for these types of business and issues. The Group focused specifically on:

• multi-job planning and monitoring;

• encoding and versioning BOMs (synchronising sales BOMs, engineering BOMs, production BOMs, and service BOMs);

• planning finite-capacity resources (in the technical and engineering departments specifically);

• managing advanced materials (classifications, alternative components) and advanced MRP that would pool all of the Group’s ICT assets and visibility;

• management control, cost accounting, and order progress monitoring (costs and timings);

• demand forecasting logic;

• application/platform integrations; CRM/CPQ, PLM (CAD/CAM), MES, and

• embedded analytics.

In addition to ERP, the digital transformation will affect Sales&Services and its CRM & CPQ platform, the CAD/CAM and PLM department, the document system, and the MES. The AROL Group will be involved in the project for the next few years. It will be important to ensure these systems remain aligned in real time when integrating them to guarantee maximum effectiveness and efficiency with a view to creating an intelligent enterprise and rendering end-to-end processes seamless and paperless.