Mondelez International deployed a proven transformation methodology using SAP software to conduct two significant and highly complex global conversion initiatives to more flexibility for its business operations across two of its major regions of the world.
Mondelez International is a leading player in the global food industry running a global snack powerhouse in 165 countries with a portfolio of iconic brands and leading category positions in biscuits, chocolate, gum, and candy.
In 2016 Mondelez decided to re-align regional business templates without changing the underlying two SAP instance — enterprise resource planning (ERP) and business intelligence (BI) — structures to accelerate growth in developing markets. The VAN/Ambition objectives were first to build a SAP platform for scale, speed, and simplicity in support of the Mondelez International growth initiatives. The goal was to achieve and enable a quantifiable, operational, and financial benefit, and secondly to set up a global supply chain principal company (GSCP) business model in AMEA and moreover establish an export flow management and automate cross instance customer invoicing.
Highlights of the Quality Approach
Mondelez International had to cover many innovation elements under one umbrella while two very mature and heavily used SAP instances (ERP and BI) had simultaneously maintain operational business. To meet all these requirements the company reused its proven, very well-established transformation methodology to keep the more than 170 team members and stakeholders well informed across the distant project geography, spanning from Ireland to New Zealand.
To provide best-in-industry SAP solutions, the SAP Data Management & Landscape Transformation team and the SAP platinum partner DXC Technology were chosen as the project partners based on their proven ability and expert knowledge. SAP technical experts were invited to examine and ensure profound project delivery during the review and test cycles the most technically refined solutions and processes were correctly and successfully implemented.
Tackling Project Challenges
To avoid business disruption, it was important not to change the two SAP software instances underlying the company’s proven transformation approach, one each for the SAP ERP and SAP Business Warehouse applications. It was equally important not to impact the supply chain by making significant business process changes. There was one change, however, that was important to make: All differences in the software used by the two regions had to be eliminated.
Another main focus was to implement the ability to change, report, plan, and forecast across regions and to build an SAP software platform for scale, speed, and simplicity to foster global business growth.
Final “Big Bang”
On May 1, 2017, the project was implemented with all business and ITS initiatives. Mondelez International business functions are now able to run two parallel GSCP companies that interconnect via automated business process flows. The company can change export flows between regions in an agile and flexible manner and can report forecast across new “super regions” AMEA and MEU.
Actual and Further Business Benefits
The overall success of the transformation project can be used to progress with cross-regional business process innovations using new technologies. The importance of the global Mondelez International growth strategy is being reflected via new projects, such as the SAP Master Data Governance application and SAP Information Lifecycle Management, as well as the proof of concept for SAP Leonardo and machine learning.
For the future, Mondelez can pick up next steps on different regional business process innovations to drive agility and business acumen to further leverage the global Mondelez International Growth Strategy and its ITS Mission and Value proposition.