Zespri upgrades SAP S/4HANA digital core and begins next stage of supply chain digital transformation

Newsbyte

SAP NEWSBYTE —2 October 2024 – SAP SE (NYSE: SAP) today announced that Zespri, the world’s largest marketer of kiwifruit, has kicked off the second phase of its digital transformation with SAP.

The move follows the completion of its first tranche of work that resulted in avoiding more than NZD$1 million in infrastructure costs over 6 years, 15,000 hours saved in productivity, and $2.2m in profit and loss savings. The team’s focus on a ‘clean core’ – cloud-based ERP infrastructure that separates core applications from custom modifications – also enabled a recent seamless upgrade of its SAP S/4HANA platform that would previously have required significantly more resources.

The successful establishment of the core technology to digitally enable its finance and supply chain processes will see Zespri move into the second stage of its ambitious, multi-year Horizon transformation programme.

“Zespri’s transformation is entirely focused on creating sustainable, long-term value for our kiwifruit growers by ensuring robust digital platforms enable offering consumers the world’s leading portfolio of branded kiwifruit all year round,” said David Scullin, Chief Digital Officer at Zespri. “Our partnership with SAP has so far seen us distribute more than 193 million trays of kiwifruit across 51 countries through our digital platforms to meet growing global demand.”

“And this is just the start. The next phase of our work will see greater focus on data to improve decision-making, simplify operations, modernise with innovation, and provide higher returns to our grower community.”

As part of that program, Zespri has purchased SAP Sustainability Control Tower as part of its RISE with SAP implementation. The solution will enable Zespri to record, report, and act on environmental, social, and governance (ESG) data, embedded into its business processes.

Ongoing investment in digital transformation

Zespri has been transforming its operations with SAP since 2021, having gone live with SAP S/4HANA Cloud, private edition and SAP Integrated Business Planning in 2022. The implementation also includes SAP Business Technology Platform capabilities, including SAP Analytics Cloud, SAP Integration Suite, the SAP Extension Suite, and SAP-endorsed partner solutions from OpenText, Tricentis, and Celonis.

“Our Horizon transformation program is designed to amplify and enhance our business capabilities and creating a seamless, user-friendly experience across our operations,” continued Scullin. “By deepening our use of SAP RISE and S/4HANA, we’ve created a robust, clean core that can scale for success, fuel our data-driven ambitions, and unlock the full potential of our customer, grower, and staff ecosystem.”

Zespri has also invested in an innovative AI-powered Quality Control software with SAP-partner Clarifruit. The implementation included a specialised mobile app and artificial intelligence engine designed specifically for the fruit and vegetable industry. The new app has modernised quality control processes, achieving 5 per cent improvement in the quality and efficiency of the supply chain, enhancing inspection productivity by 25 per cent, and ensuring that every piece of fruit meets rigorous standards before reaching the consumer.

Angela Colantuono, President and Managing Director of SAP Australia and New Zealand, said: “In the same way kiwifruit growers invest in their orchards and nurture them over time to create something magical, Zespri’s transformation has really shown the value of focus, innovation, and excellence in delivery.

“Zespri has long been one of our most forward-looking customers. As we begin the next phase of their ambitious RISE with SAP program, I look forward to the innovative ways Zespri will continue to grow and delight consumers, boost sustainability, and maintain its amazing returns for growers.”