Mind System Consulting delivers the first SAP S/4 HANA implementation in Hungary – a joint project with KPMG
Not only was it a landmark project for the client Praktiker, but also for SAP Hungary and the implementation partners KPMG Consulting Ltd. and Mind System Consulting Ltd. with the completion of the first SAP S/4HANA Retail enterprise resource planning system in Hungary. The new system, capable of processing several hundred thousand store and online orders in real time, provides Praktiker, now under Hungarian ownership, with a significant competitive advantage and elevates both customer experience and operational efficiency with its new-generation digital portfolio that includes artificial intelligence.
Operating 20 stores in Hungary, with an annual net revenue of 64 billion forints and serving 6 million customers, Praktiker’s leadership decided in 2018 to replace its AS400 logistics system and SAP All-in-One 6.0 general ledger system, as well as other implemented software, with a new, modern, integrated system. The 22-month implementation project received full support from Wallis, the strategic owner of Praktiker: the Praktiker decision-makers had the freedom to select the most suitable implementation partner, IT system, and required additional modules.
During the selection process, the key consideration for Praktiker was the business knowledge and experience of the implementation partner to ensure that the technical implementation was done with a perfect understanding of business processes. “There are many good programmers, but it was important that our chosen partners also had business knowledge and understood the client,” said Dr. Sándor Ónody, Economic Director of Praktiker. Another important aspect was the long-term cooperation with the partner, so that the same company would handle both the implementation and maintenance of the ERP system.
After nearly a year of preparatory work and tendering, Praktiker chose KPMG Consulting Ltd. and Mind System Consulting Ltd. as the implementation partners and selected the SAP S/4HANA software. The implementation project was also overseen by the quality assurance firm IFUA Horváth & Partners Ltd., appointed by Praktiker.
The SAP S/4HANA solution provides Praktiker with both performance and ergonomics; the system is fast enough and adequately supports efficient operation, while assisting store employees and management. The unique user experience is supported by SAP Fiori applications, which make the ERP system transparent and easy to use. This is further supported by mobile (PDA) devices adaptable to the specific needs of the stores.
The Praktiker project was not only the first SAP S/4HANA Retail implementation in Hungary but also the largest domestic project covering full logistics processes with the new-generation SAP product. The system needed to handle and manage nearly a quarter of a million supplier invoice transactions annually, validating various payment, discount, and delivery functions on both the customer and supplier sides, all integrated with warehouse management, administrative, and controlling modules. The preparation of more than 700 SAP users across the 20 stores was a key aspect of the implementation process. Although the COVID-19 pandemic affected the implementation, the enforced delay allowed more time for online training at individual stores and thorough testing of the integrated operation.
Customers, whether ordering online or visiting a store, can now get a real-time view of the availability of selected products. The store’s commercial department can now introduce more sophisticated loyalty campaigns and customer programs based on always up-to-date online analytics, while also automating business processes and consignment arrangements with suppliers through seamless EDI processes. “The SAP system offers many sophisticated advantages that, when mastered and integrated into daily practice, will allow us to achieve all the planned points of our digitalization strategy,” evaluated Dr. Sándor Ónody.
With the full integration of Praktiker’s SAP-based logistics, sales, financial, marketing, and other systems, not only can the customer brand experience be enhanced, but the company’s sales operations can also become more efficient and successful.