Coca-Cola Hellenic: SAP Software and Services Drive Business Transformation

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Mergers present opportunities for a complete transformation of the
combined business organization. A blend of two smaller bottling
companies, Coca-Cola Hellenic Bottling Company S.A. is one of the
world’s largest bottlers and distributors of Coca-Cola products. It
standardized on the SAP® ERP application to better coordinate with
its partner and supplier, The Coca-Cola Company, which also standardized
on SAP software. Coca-Cola Hellenic used SAP technology
for other challenges, including transformation of its customer service
processes.

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Coca-Cola Hellenic: SAP Software and Services Drive Business Transformation

  1. 1. Coca-Cola Hellenic SAP® Software and Services Drive Business Transformation Quick facts“This is the first end-to-end SAP soft- Company • SAP Mobile Direct Store Delivery • Name: Coca-Cola Hellenic Bottling application ware implementation in the Coca-Cola Company S.A. • SAP Mobile Asset Management bottling system. As such, it provides a • Location: Maroussi, Greece application • Industry: Consumer products – beverages • SAP Consulting services sustainable platform for future growth • Products and services: Nonalcoholic bev- • SAP Safeguarding services, delivered by erage production, sales, and distribution the SAP Active Global Support and enhancements.” • Revenue: €6.8 billion organization Kiril Topalov, SAP Program Director, Coca-Cola • Employees: 42,505 • Web site: www.coca-colahellenic.com Implementation Highlights Hellenic Bottling Company S.A. • Implementation partners: SAP® Consulting • Business-driven project, starting with an organization, Movilitas Consulting AG end-to-end process approach to the techni- cal details Challenges and Opportunities • SAP Consulting services for business pro- • Develop end-to-end process support cess design and solution implementation • Expand capabilities to cover new business requirements Why SAP • Provide a single solution for all countries • Successful implementation of SAP solu- and markets tions for back-office and front-office processes Objectives • Support for end-to-end process integration • Build an end-to-end solution • Deliver, to the extent possible, a single Benefits solution • Efficiency improvements in several busi- • Define and formalize best practices in a ness processes template and then roll it out in a pilot • Implementation of the latest SAP implementation technology • Build new capabilities to support retail • Support for organizational and process customers change SAP Solutions and Services Existing Environment • SAP NetWeaver® technology platform • SAP Business Suite applications, including • SAP NetWeaver Mobile component SAP ERP and the SAP Advanced Planning • SAP Customer Relationship Management & Optimization component application • SAP NetWeaver Business Warehouse • SAP ERP application componentSAP Customer Success StoryConsumer Products – Beverages
  2. 2. Mergers present opportunities for a complete transformation of the review all the processes developed dur- ing previous SAP projects to make surecombined business organization. A blend of two smaller bottling we had an end-to-end approach forcompanies, Coca-Cola Hellenic Bottling Company S.A. is one of the everything.” The processes impacted by Wave 2 included market to cash, fore-world’s largest bottlers and distributors of Coca-Cola products. It cast to deploy, procure to pay, financestandardized on the SAP® ERP application to better coordinate with management, and human resources.its partner and supplier, The Coca-Cola Company, which also stan- “Finally,” Erlekam continues, “thisdardized on SAP software. Coca-Cola Hellenic used SAP technology redesign of all our processes had to align with our new business-strategicfor other challenges, including transformation of its customer service initiative, called ‘Excellence Across theprocesses. Board,’ which was a separate but com- plementary program to improve the efficiency and outcome of all ourTwo New “Waves” of Technology involving promotional activities. There processes.” were also business-strategic directionsWith operations in 28 countries, Coca- in customer services and growth in the The selection of SAP to provide theCola Hellenic of Maroussi, Greece, complexity of the product portfolio – in products and services necessary toserves a population of approximately fact, there was a whole range of strate- meet these objectives was based on560 million people. Its product portfolio gic imperatives that touched the com- some pivotal considerations, in particu-consists of 613 different beverages, of mercial processes, and most of these lar, integration and the consequentialwhich 485 are noncarbonated drinks. could benefit from software integration lower total cost of ownership. “WhileIn 2010 the company employed 42,505 across the group. The sum of those there were alternatives,” says Erlekam,people and sold over 2 billion unit considerations led to a complete trans- “at the end of the day, if you want end-cases, generating net sales revenue formation of the information systems, to-end processes, you need integrationof nearly €6.8 billion. processes, and people at Coca-Cola rather than individual best-of-breed Hellenic. applications. Integration also has impli-Through the implementation of a tech- cations for flexibility – that is, your abil-nology initiative called “Wave 1,” Cross-Functional, End-to-End ity to change your process and to addCoca-Cola Hellenic moved from a Processes new capabilities.”decentralized IT system to a centralizedsystem. It introduced the SAP Advanced Sven Erlekam, Wave 2 project manager The emphasis on integration providedPlanning & Optimization component to at Coca-Cola Hellenic, explains the proj- Coca-Cola Hellenic with a considerableassist management with all aspects of ect’s objectives. “First, we wanted to incentive to remain with SAP in thebusiness planning. The SAP NetWeaver® implement integrated commercial func- next phase of IT development. The SAPBusiness Warehouse component was tionality, including mobile applications,” products and services implemented asalso added at that time. says Erlekam. “That entailed replacing a part of the Wave 2 project included: 35-year-old legacy system. Another • The first instance of the latest versionAll of this activity served as a prelude objective was not just to design and of the SAP NetWeaver Mobile com-for the company’s next IT initiative, implement new commercial processes ponent going live“Wave 2.” Coca-Cola Hellenic is first but to realign our approach from func- • SAP Customer Relationshipand foremost a sales company, and the tional areas to cross-functional, end-to- Management applicationcompany needed to address issues end processes. That meant we had to
  3. 3. “With [SAP Consulting], we have been successful in the integration of new processes and the latest technology. . . . SAP will continue to be an important partner.” Sven Erlekam, Project Manager, Coca-Cola Hellenic Bottling Company S.A.• SAP Mobile Asset Management usability, mobile solutions require “Accordingly, we are paying special application extreme user-friendliness, with easy- attention to change management.”• SAP Mobile Direct Store Delivery to-understand screens and flow logic application for the mobile device. SAP AGS joined The major change is integration. In the• Services from the SAP Consulting this project to help resolve issues sur- past, there were over 400 different organization and the SAP Active rounding performance, stability, and applications covering sales and distri- Global Support (SAP AGS) integration. bution, various customer relationship organization activities, back-office support, ware- Traffic-Light Report house management, and so on. “ForProcess Template to Streamline the first time, we tried to standardizeGlobal Rollout One of the deliverables provided by and harmonize the way the commercial SAP AGS during the implementation processes functioned, again in an end-Coca-Cola Hellenic began by develop- was a portfolio of SAP Safeguarding to-end environment,” says Topalov.ing the template for the market-to-cash services. “We used SAP Safeguarding “So, for example, that means if some-process and deploying a pilot imple- for technical quality management cov- body places an order, immediatelymentation into two major markets to ering a defined scope – processes, there’s an availability-to-promise checktest it. SAP Consulting was viewed as solutions, and technology – and exe- using the whole warehouse manage-an essential part of the Wave 2 project, cuted based on a jointly agreed ment functionality. And when we exe-providing an end-to-end solution for approach,” says Peter Seymenski, cute this order, we monitor theCoca-Cola Hellenic’s bottling business. manager of the SAP Customer respective key business indicators with respect to the customer service level.”“[With SAP technology], we expect significant efficiency improvements. . . . Projected Benefits: Savings and Growth It provides a foundation for future enhancements and future expansion.” Kiril Topalov, SAP Program Director, Coca-Cola Hellenic Bottling Company S.A. Coca-Cola Hellenic is still performing its evaluation of the benefits of the Wave 2 project, but the pilot has confirmed theErlekam states, “SAP Consulting has Competence Center location at Coca- original value case, with modifications.taken a key role in the important area Cola Hellenic. “Primarily, SAP provides “We have a survey, called a functionalof market to cash, and together with a guideline based on its experience assessment tool, that we run before thethem we have been successful in the with other customers as well as a gen- implementation in order to see whatintegration of new processes and the eral review of the implementation. It’s a kind of gaps and what kind of inefficien-latest technology into the SAP tem- traffic-light report across the board and cies exist in the organization,” saysplate. We piloted the template in two includes action items we need to com- Topalov. “We then define our targets forcountries, and we’ll continue to roll it plete before going live.” the implementation and perform a post-out to the entire group. SAP will con- implementation review using the sametinue to be an important partner in In the end, Coca-Cola Hellenic survey. In preparation for this survey,those projects.” reviewed and revised some 341 pro- we created a value case for the whole cesses, 151 of them commercial. group.”In the area of mobility, SAP Consulting “We’re really talking about massive– supported by Movilitas, an experi- organizational and process changeenced partner in mobile development – here,” says Kiril Topalov, SAP programhas taken the lead. To improve director at Coca-Cola Hellenic.
  4. 4. www.sap.com /contactsapMany benefits are already beginning toappear. Coca-Cola Hellenic expects toachieve improvements in the followingareas:• Advance account management• Customer asset management• Trade promotion management• Distribution and order management• Overall field sales managementCoca-Cola Hellenic estimates that theWave 2 implementation will roll out tothe last of the 28 countries it serves in2013. “At the moment, we are runningdeployments in four countries, two ofthem the biggest in our group,” saysTopalov. “Wave 2 represents a majortransformation in the Coke environ-ment. This is the first end-to-end SAPsoftware implementation in the Coca-Cola bottling system. As such, it pro-vides a sustainable platform for futuregrowth and enhancements. SAP tech-nology is moving us into a totally new,integrated environment. From there,from a pure IT perspective, we expect 50 095 095 (11/12)significant efficiency improvements. ©2011 SAP AG. All rights reserved.And on the business side, it provides SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, anda foundation for future enhancements other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AGand future expansion.” in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trade­ marks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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