Implementing Initial Step of SAP S/4HANA System for a Firm from the Strict Retail Industry
The Midwest Tire and Automotive Services, a leading provider in the region, has embarked on a significant transformation journey, modernising its IT landscape and streamlining its operations with the implementation of SAP S/4HANA. This move marks a strategic step forward in the company's growth trajectory, following a path of substantial growth through organic expansion and acquisition.
The transformation project, initiated in March 2024, began with Phase 1A - the migration of financial accounting to SAP. This marked the beginning of a series of changes aimed at enhancing efficiency, scalability, and decision-making across the organisation.
The transition from a homegrown ERP to SAP S/4HANA has allowed the company to leverage modern, cloud-based capabilities, improving overall operational efficiency. The implementation of standardised fiscal practices, such as the 4-5-4 fiscal year, has also improved year-over-year comparisons and standardised reporting, providing better financial visibility and decision-making.
Cost centers and profit centers are now more clearly delineated, enabling better cost management and revenue tracking across different business units. SAP S/4HANA’s in-memory database provides real-time transaction processing and analytics, enabling faster decision-making across departments. This real-time data access facilitates accurate forecasting and inventory optimisation, crucial for businesses facing fluctuating demand.
The implementation of SAP S/4HANA has also brought about omnichannel capabilities, ensuring a consistent customer experience across different sales channels. Furthermore, the system offers visibility into supply chain operations and resource consumption, supporting sustainability goals.
The Midwest Tire and Automotive Services have also introduced automation for batch processing of financial tasks within the SAP system, establishing SAP as the new system of record. To ensure a smooth transition, the Clarkston team trained 27 users over 26 hours using 70+ training simulations. The company has also established a core SAP community of finance users and support resources.
Interfaces with banks and partners have been established for the client's SAP system, and a flexible, store-facing reporting solution was implemented to offer greater visibility to stores of their own profit and loss. Stores are now profit centers in SAP, providing a more detailed understanding of each store's financial performance.
In a bid to re-imagine their core IT landscape, the Midwest Tire and Automotive Services have engaged Clarkston for business transformation. However, no information has been provided regarding the adoption of any new systems of record beyond SAP S/4HANA. The company's choice of SAP S/4HANA as the core of their new IT landscape signifies a commitment to leveraging technology for operational efficiency and strategic growth.
- The Midwest Tire and Automotive Services, during their transformation journey, have chosen SAP S/4HANA as the core of their new IT landscape, demonstrating a commitment to utilizing technology for operational efficiency and strategic growth.
- As part of the transformation, the company has initiated the migration of financial accounting to SAP, marking the beginning of a sequence of changes aimed at enhancing efficiency, scalability, and decision-making.
- The implementation of SAP S/4HANA has brought about a transition from a homegrown ERP to cloud-based capabilities, improving overall operational efficiency.
- Within the new system, cost centers and profit centers are now more clearly delineated, enabling better cost management and revenue tracking across business units.
- The Midwest Tire and Automotive Services have also established interfaces with banks and partners for their SAP system, and a flexible, store-facing reporting solution was implemented for greater visibility into each store's profit and loss.
