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  1. 1. HINDUSTAN UNILEVER LIMITED (HUL) LEADING CONSUMER GOODS COMPANY FULFILS BUSINESS OPTIMISATION GOALS WITH SAP QUICK FACTS “With SAP NetWeaver PI, we have Summary Phase 2: SAP Customer Relationship Name: Hindustan Unilever Limited Management, SAP Advanced Planning & finally streamlined, advanced and Location: Mumbai, Maharashtra, India Optimisation Production Planning and integrated our process capability. This Industry: Consumer Products Detailed Scheduling, SAP Transportation Employees: 15,000 Planning and Vehicle Scheduling goes a long way in enhancing HUL’s Website Implementation Highlights ability to meet the demands of the Rollout in two phases. Phase 1 went live modern trade.” in September 2007 Key Challenges Arrival of modern trade in India Why SAP Solution KS Arunkumar, IT Group Manager, Hindustan Legacy systems and business SAP is Unilever Group’s global premium Unilever Limited infrastructure were unable to meet IT solutions provider transaction and process capability SAP NetWeaver PI enables process- requirements of the modern trade centric collaboration Project Objectives Key Benefits Optimise business operation and simplify Streamlined business operations IT management Improved information sharing with partners Achieve process consolidation internally even if they are not using SAP’s solutions and across the value chain Increased supply chain efficiency through Preserve investment of legacy inventory process-centric collaboration across the and cash-to-order management system enterprise—internally and externally for business partners Enhanced value of legacy system Integrate with business partners’ IT infrastructure quickly and seamlessly Implementation Partner IBM Solutions and Services Phase 1: SAP ERP Central Component Hardware 5.0, SAP NetWeaver Process Integration IBM (SAP NetWeaver PI), SAP NetWeaver Portal, SAP Supply Chain Management (SAP SCM), SAP Solution Manager, SAP NetWeaver Business Intelligence (SAP NetWeaver BI), SAP NetWeaver Composition Environment (SAP NetWeaver CE) SAP NetWeaver Success Story Hindustan Unilever Limited, India
  2. 2. HINDUSTAN UNILEVER LIMITED (HUL) LEADING CONSUMER GOODS COMPANY FULFILS BUSINESS OPTIMISATION GOALS WITH SAP The demands of a competitive market require a solution that supports process-centric collaboration internally and across its value chain. To address this, HUL found the answer in SAP NetWeaver Process Integration. The fast moving consumer goods orders in the most cost efficient tight communication links with its (FMCG) industry is an unforgiving one. manner. This is even more critical in external business partners. However, “If a retailer’s shelves are empty of a the emerging modern trade scenario. the task of ensuring seamless manufacturer’s product, he will simply connectivity between its IT system with fill them with a competing product,” “The distribution of goods across the that of its distributors was not an easy one. says KS Arunkumar, IT Group Manager, country in the right quantity, right time Hindustan Unilever Limited (HUL). and at the right place is already one of For instance, the company was using an the biggest challenges we face.. In in-house developed e-business system This challenge of ensuring that the order to thrive in the era of modern to manage the replenishment and order business is optimised to cater to ever- trade, we need to deliver a service level fulfilment process. This was done by changing market demands is an issue that is higher than what the industry exchanging and synchronising inventory that HUL is deeply familiar with. is used to and operate a supply chain and sales data between itself and its Established in 1931, this stalwart of the which is superior to our competitors’,” distributors. India FMCG market is a subsidiary of says Arun. the world-renowned Unilever Group. “But because our customers had Behind HUL’s vast business footprint Business Optimisation Hurdles multiple, disparate systems of their that spans 4,000 distributors is an entity The first part of HUL’s business own, integrating our system with theirs consisting of 15,000 staff as well as optimisation strategy to enhance to facilitate data exchange was a big multiple factories, warehouses and efficiency involved consolidation of headache. Furthermore, the e-business branches. its warehouses and branch offices. system was a customised module. It streamlined its business systems So as our business grew, there were It is not easy keeping its house in order concurrently too, and it was in 2003 problems scaling it to fit our constantly but it found a perfect solution to its that HUL discovered the limitations changing business needs,” he adds. business management needs with SAP. of its incumbent enterprise resource planning (ERP) system. In a distributed general trade Modern Trade Challenges environment, HUL has implemented HUL’s SAP journey started in 2004 “The old system just couldn’t scale up a standard distributor management when it decided to streamline its to meet future transaction and process system. To cover the extended supply operations in order to address the capability requirements of the modern chain, the distributor operations needed emerging market challenges. trade,” explains Arun. to be tightly integrated with its internal ERP solutions. Market fundamentals require HUL to At the same time, HUL knew that ensure availability of its products so that business optimisation and supply chain This system is functioning well, HUL it can respond quickly to customers’ efficiency cannot be achieved without wants to preserve its investment in 2 SAP Partner Success Story
  3. 3. “In order to thrive in the era of modern trade, we need to deliver a service level that is higher than what the industry is used to and operate a supply chain which is superior to our competitors’.” KS Arunkumar, IT Group Manager, Hindustan Unilever Limited this area. This meant that the new ERP Component (SAP ECC), SAP distributors’ IT systems. This essentially solution must be able to integrate with NetWeaver PI, SAP NetWeaver enhances the replenishment and order this back-office application too, so Business Intelligence (SAP NetWeaver fulfilment process. that HUL can continue to leverage BI), SAP NetWeaver Composition and maximise it well into the future. Environment (SAP NetWeaver CE), “We are happy with the results. With SAP NetWeaver Portal, SAP Solution SAP NetWeaver PI, we have finally Process Centric Collaboration Manager and SAP Supply Chain streamlined, advanced and integrated In 2004, HUL decided to revamp its IT Management (SAP SCM). our process capability. This goes a long system with SAP. “This is very much in way in enhancing HUL’s ability to meet line with the Unilever Group’s decision Ease of Integration the demands of the modern trade,” to have SAP as our standard IT solutions Arun says that it is early days yet in concludes Arun. provider, using its feature-rich enterprise determining the quantitative benefits solutions and deep experience in the of this SAP investment. However, return consumer goods industry to execute on investment (ROI) is not all that our global transformation strategy,” matters. says Arun. This strategy aims to streamline and standardise business “What is most important is that through processes across all its global the SAP NetWeaver platform, we are operations in order to accelerate able to consolidate and exchange business transformation and drive business-critical data across not just significant IT simplification. our internal processes with ease but externally with our partners, suppliers But what sealed the deal for HUL was and customers too.” SAP NetWeaver Process Integration (SAP NetWeaver PI). Mr Arun explains For instance, HUL is able to fulfil its further, “(It) enables process-centric aim of retaining its investment in Central collaboration not just internally, but Unify and Unify—thanks to SAP across HUL’s extended value chain. NetWeaver PI. This is because without And it doesn’t matter what our partners’ this software, HUL would not have been IT infrastructure consists of. SAP able to integrate the legacy inventory NetWeaver PI facilitates communication and order-to-cash management system and an exchange of information with the rest of the SAP-based system between multiple applications with ease, he explains. regardless of whether it is an SAP or non-SAP solution.” Another SAP NetWeaver component that HUL is most impressed with is the Phase 1 of HUL’s SAP implementation SAP NetWeaver Portal, which is went live in September 2007, this currently used for customer collaboration. signalled the end of its legacy ERP By replacing the e-business system with and e-business systems. The solutions this portal meant that HUL no longer deployed include SAP ERP Central have to worry about integration with its SAP Partner Success Story 3
  4. 4. 2008/02 Company’s registration no.: 198902722M 2008 by SAP AG. All rights reserved. SAP, R/3,, xApps, © xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. 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. Printed on environmentally friendly paper. 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.