New Products Group is undergoing digital transformation, introducing modern SAP B1 software throughout the enterprise

21.06.2020

New Products Group has long established itself on the Ukrainian market as a progressive organization, a follower of the best world practices and a trendsetter on the domestic market. Recently, as part of the improvement and optimization of business processes at the enterprise, we began implementing the latest technological solution called SAP Business One (SAP B1). This will significantly improve efficiency by linking all organizational processes into a single system.

SAP B1 is an enterprise resource planning (ERP) system that manages all processes related to the production and sales. SAP B1 is owned by the German company SAP SE, a well-known global developer of software for organizations with headquarters in Waldorf and a major development center in Silicon Valley (Palo Alto, California). New Products Group is one of the first Ukrainian food producers to embark on a digital transformation of this kind.

The main advantage of implementing SAP B1 is the ability to connect all processes within a single system: sales, logistics, production, procurement, financial control, quality assurance, and research (R&D). Another clear advantage is a radical improvement in planning, the elimination of the so-called “Bullwhip Effect” – when uneven demand, supply and production entail either a loss in sales, or losses from the inability to sell the products that have already been made. Additionally, thanks to SAP B1, we can significantly reduce the cost of transactions, which allows to process a large number of small and frequent ones according to market requirements, as well as create a single set and a single source of master data, which is the foundation of any business.

At present, the first phase of the implementation of SAP B1 has been completed – the launch of the Secondary Sales functionality, which, thanks to a clear control system and sales forecasts, laid the foundation for cooperation with distributors at a new level. Future plans include automation of the procurement process based on Bill of Material and the production process using MRP II (Manufacturing Resources Planning). The ultimate goal of the innovation is to build a stable automated system for achieving and improving results with minimal dependence on the human factor, and which process owners could literally carry in their own pockets.

“Our company is currently undergoing an important transformation from a functional to a process-based system for organizing a business, in which process owners play a crucial role. It also means establishing a team in which each employee has the opportunity to prove themselves, to reach a new level of knowledge and skills, to feel fully involved in the growth and development of the enterprise. The introduction of SAP B1 is only one step, but it’s a significant move towards more modern, productive, responsible and promising cooperation. Metaphorically speaking, we leave our Lada, GAZ and UAZ in the parking lot of the railway station and transfer to the high-speed DB ICE Sprinter”, – commented Andrey Belinsky, Head of the IT Department at New Products Group.