Logistics Leader Optimizes Operations with SAP

Business Challenge 

Before the transformation, the European logistics provider was using an aging Axapta (Microsoft Dynamics AX 2009) system that was at the end of its lifecycle. An upgrade or replacement of the legacy solution was necessary to support scalability and innovation. For a company that was growing rapidly, managing complex data and regulatory environments became increasingly challenging.  

A dedicated team of our client spent over a year evaluating Transport System Management (TMS) solutions before selecting SAP as the optimal platform to support evolving business needs. 

By implementing SAP, the company aimed to achieve specific business objectives, including: 

• Enhance price control for vehicle sales 
• Streamline sales administrative processes 
• Improve decision-making capabilities 
• Optimize financial operations 
• Accelerate planning processes and reduce errors 
• Increase efficiency in stock and fleet management 
• Foster business scalability 

About the Customer  

Our client is a leading European transportation and logistics provider with a strong focus on sustainability and innovation. Employing over 20,000 professionals, the company has grown exponentially from its humble beginnings with a single truck. Now, operating a vast fleet and extensive warehousing network across Europe, the company is a major player in the industry. Committed to responsible logistics, the company is continually investing in technology, infrastructure, and sustainable practices to deliver efficient transportation solutions to its customers while minimizing its environmental impact.  

Solution  

In 2020, our client launched the “ENABLE” program to modernize its business operations by implementing SAP systems. This complex project involves optimizing, enhancing, and digitalizing processes across 50 entities in 11 countries. To navigate this challenge, the transportation giant selected Tietoevry Create as a service provider and a certified RISE with SAP partner.  

Project Team 

• At peak activity, Tietoevry Create's team consisted of nearly 80 professionals, including SAP specialists, developers, architects, migration and testing teams, and integration specialists. 
• Business requirements occasionally exceeded standard SAP functionalities, requiring custom development solutions. 

In close cooperation with the client, Tietoevry Create is involved in implementing and configuring integration among numerous SAP modules, including:  

Core SAP S/4HANA Modules: 

• Financial Accounting (FI) for tracking and reporting on financial data  
• Controlling (CO) for planning, recording, and tracking business transactions 
• Sales and Distribution (SD) to store and manage customer- and product-related data 
• Materials Management (MM) for material, inventory, and warehouse management 
• Plant Maintenance (PM) to support and maintain equipment and systems 

Industry Specific Modules: 

• VMS – Vehicle Management System, a specific SAP application for the automotive industry that enables managing, procuring, and tracking vehicles 

Human Capital Management (HCM): 

• SAP SuccessFactors – Integration configured between SAP SuccessFactors (a separate HCM suite for workforce data and HR processes) and SAP S/4HANA to streamline HR processes and workforce data synchronization. 

The newly deployed SAP solutions were Integrated with various proprietary and third-party systems: 

• Legacy System: Axapta (Microsoft Dynamics AX 2009) 
• Customer Relationship Management (CRM): Salesforce 
• Human Capital Management (HCM): SAP SuccessFactors cloud platform 
• Financial institutions and other systems 

We also performed custom SAP developments: 

• SAP Fiori-based Fleet Demand Planning Cockpit with optimized purchasing functions. 
• Fully integrated Master Data model (Vehicle – Equipment – Asset – WBS element) with detailed vehicle statuses and qualifiers. 

Implementation Methodology 

• SAP Activate Methodology: Five phases (Prepare, Explore, Realize, Deploy, Run). 
• Scaled Agile Approach: Within the Realize phase, we used the Scaled Agile Framework (SAFe) for better transparency, planning, and coordination among multiple stakeholders and diverse teams involved in such a complex project. 

 Project Phases and Key Achievements 

 Phase 1 (February 2023): Pilot Go-Live for the client’s Competence Center in Lithuania. During this phase, we focused on consolidating, centralizing, and optimizing procurement functions. 

Phase 2 (July 2024): Go-Live of Transport & Maintenance (TAM) for core businesses in Lithuania and Poland. This phase delivered key benefits in several areas:  

• Digitalized and transparent purchasing processes 
• Improved and automated pricing logic 
• Efficient stock sales order management 
• Automated accounting functions 
• Faster period-end closing activities 
• Unified profit/cost center structure 
• Data availability for improved decision-making 

Benefits 

By implementing SAP solutions, the European logistics leader continues driving its digital transformation. Powered by AI and machine learning, the SAP ecosystem allows the company to optimize complex logistics and administrative processes.  

 Streamlined Processes 

SAP standardized processes and automation capabilities streamline core business functions such as procurement, finance, HR, and logistics. 

Data Accuracy and Consistency 

By consolidating over 25 disparate data sources into SAP Datasphere, our client could establish a single source of truth, providing their departments with reliable data access.  

Enhanced Workforce Planning 

SAP SuccessFactors replaced over 20 separate HR systems, providing a centralized platform for HR data and self-service functions.