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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 andintegrated our process capability. This Industry: Consumer Products Detailed Scheduling, SAP Transportation Employees: 15,000 Planning and Vehicle Schedulinggoes a long way in enhancing HUL’s Website Implementation Highlightsability to meet the demands of the Rollout in two phases. Phase 1 went livemodern trade.” in September 2007 Key Challenges Arrival of modern trade in India Why SAP SolutionKS Arunkumar, IT Group Manager, Hindustan Legacy systems and business SAP is Unilever Group’s global premiumUnilever 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 StoryHindustan Unilever Limited, India
  2. 2. HINDUSTAN UNILEVERLIMITED (HUL)LEADING CONSUMER GOODSCOMPANY FULFILS BUSINESSOPTIMISATION GOALS WITH SAPThe demands of a competitive market require a solution thatsupports process-centric collaboration internally and acrossits value chain. To address this, HUL found the answer inSAP 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 seamlessmanufacturer’s product, he will simply connectivity between its IT system withfill 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 timeHindustan 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 systemThis challenge of ensuring that the order to thrive in the era of modern to manage the replenishment and orderbusiness is optimised to cater to ever- trade, we need to deliver a service level fulfilment process. This was done bychanging market demands is an issue that is higher than what the industry exchanging and synchronising inventorythat HUL is deeply familiar with. is used to and operate a supply chain and sales data between itself and itsEstablished 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 hadBehind HUL’s vast business footprint Business Optimisation Hurdles multiple, disparate systems of theirthat spans 4,000 distributors is an entity The first part of HUL’s business own, integrating our system with theirsconsisting of 15,000 staff as well as optimisation strategy to enhance to facilitate data exchange was a bigmultiple factories, warehouses and efficiency involved consolidation of headache. Furthermore, the e-businessbranches. its warehouses and branch offices. system was a customised module. It streamlined its business systems So as our business grew, there wereIt is not easy keeping its house in order concurrently too, and it was in 2003 problems scaling it to fit our constantlybut it found a perfect solution to its that HUL discovered the limitations changing business needs,” he management needs with SAP. of its incumbent enterprise resource planning (ERP) system. In a distributed general tradeModern Trade Challenges environment, HUL has implementedHUL’s SAP journey started in 2004 “The old system just couldn’t scale up a standard distributor managementwhen it decided to streamline its to meet future transaction and process system. To cover the extended supplyoperations in order to address the capability requirements of the modern chain, the distributor operations neededemerging 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 thatensure availability of its products so that business optimisation and supply chain This system is functioning well, HULit can respond quickly to customers’ efficiency cannot be achieved without wants to preserve its investment in2 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 Limitedthis area. This meant that the new ERP Component (SAP ECC), SAP distributors’ IT systems. This essentiallysolution must be able to integrate with NetWeaver PI, SAP NetWeaver enhances the replenishment and orderthis back-office application too, so Business Intelligence (SAP NetWeaver fulfilment process.that HUL can continue to leverage BI), SAP NetWeaver Compositionand 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 finallyProcess Centric Collaboration Manager and SAP Supply Chain streamlined, advanced and integratedIn 2004, HUL decided to revamp its IT Management (SAP SCM). our process capability. This goes a longsystem with SAP. “This is very much in way in enhancing HUL’s ability to meetline 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 benefitssolutions and deep experience in the of this SAP investment. However, returnconsumer goods industry to execute on investment (ROI) is not all thatour global transformation strategy,” matters.says Arun. This strategy aims tostreamline and standardise business “What is most important is that throughprocesses across all its global the SAP NetWeaver platform, we areoperations in order to accelerate able to consolidate and exchangebusiness transformation and drive business-critical data across not justsignificant IT simplification. our internal processes with ease but externally with our partners, suppliersBut 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 itsfurther, “(It) enables process-centric aim of retaining its investment in Centralcollaboration not just internally, but Unify and Unify—thanks to SAPacross HUL’s extended value chain. NetWeaver PI. This is because withoutAnd it doesn’t matter what our partners’ this software, HUL would not have beenIT infrastructure consists of. SAP able to integrate the legacy inventoryNetWeaver PI facilitates communication and order-to-cash management systemand an exchange of information with the rest of the SAP-based systembetween multiple applications with ease, he explains.regardless of whether it is an SAPor non-SAP solution.” Another SAP NetWeaver component that HUL is most impressed with is thePhase 1 of HUL’s SAP implementation SAP NetWeaver Portal, which iswent live in September 2007, this currently used for customer collaboration.signalled the end of its legacy ERP By replacing the e-business system withand e-business systems. The solutions this portal meant that HUL no longerdeployed include SAP ERP Central have to worry about integration with its SAP Partner Success Story 3
  4. 4.’s registration no.: 198902722M 2008 by SAP AG. All rights reserved. SAP, R/3,, xApps,©xApp, SAP NetWeaver, and other SAP products and servicesmentioned herein as well as their respective logos are trademarks orregistered trademarks of SAP AG in Germany and in several othercountries all over the world. All other product and service namesmentioned are the trademarks of their respective companies. Datacontained in this document serves informational purposes only. Nationalproduct specifications may vary. Printed on environmentally friendlypaper.These materials are subject to change without notice. These materialsare provided by SAP AG and its affiliated companies (“SAP Group”) forinformational purposes only, without representation or warranty of anykind, and SAP Group shall not be liable for errors or omissions withrespect to the materials. The only warranties for SAP Group productsand services are those that are set forth in the express warrantystatements accompanying such products and services, if any. Nothingherein should be construed as constituting an additional warranty.