According to SAP, successful implementations of SAP applications are characterised above all by efficient project planning and particularly fast, cost-effective implementation. In addition, they should achieve demonstrable benefits and significantly simplify business processes. Last but not least, they should fulfil the requirement for short implementation cycles and rapid value creation. To achieve this, SAP recommends adhering to ten quality principles, which Scheurich and its implementation partner CONCETO also followed when introducing the dropshipping solution. These include the following three criteria:
- The business value should be firmly anchored in the project
In order to make efficient implementation decisions, all project stakeholders should fully understand and track the strategic importance, business objectives and key success criteria of a project. This is the only way to determine whether software changes create real added value and are therefore justified. - Risks and problems should be recognised and managed during the project
Regardless of the size of the project, a formal risk management process should be followed that includes all organisations and implementation partners involved. This includes an independent review at key project milestones and an effective governance policy. - The use of standard software and the observance of best practices has top priority
By configuring or using templates and following best practices, many business requirements can be met without major software customisations and workarounds. This enables faster deployment of more sustainable solutions with less risk and a lower total cost of ownership (TCO).
Dropshipping processes as a new challenge
Scheurich-Group GmbH & Co. KG, the world's number one manufacturer of premium plant pots, has been pursuing a clear digitalisation strategy for years, relying on SAP-based logistics and supply chain management solutions. In combination with over 250 years of experience in the craft industry, this forward-looking company with a long tradition is able to provide its business partners with reliable, digitalised processes at all times.
However, since More and more retailers are selling their product range via drop shipmentsScheurich was recently faced with the question of how the dropshipping processes in B2C e-commerce specified by the business partners could be handled smoothly and economically. The major challenge was to fulfil the many different process requirements of around 25 dropshipping business customers in a fully or partially automated manner.
Manual handling of the small-scale dropshipping processes was not an option for Scheurich in the long term: Manually entering and checking orders in Excel lists and SAP S/4HANA was far too labour-intensive, time-consuming and error-prone. Other manual activities such as adding or deleting information from other sources, for example the CEP consignment status, made the process even more complicated. In addition, the subsequent search for an order in the event of enquiries was extremely cumbersome, as this was only possible via the SAP system or the DHL shipment data.
Fully or partially automated processing with dropshipping cloud solution
After Scheurich expanded its existing SAP ERP system with the cloud-based dropshipping solution together with CONCETO within just six months, all of these problems soon became a thing of the past. In addition to SAP S/4HANA, individual or multiple components of the dropshipping process can now be technically supported or completely automated, which is reflected in a significant increase in efficiency and more power to act.
In practice, this means, for example, that all parcel orders now automatically end up in the cockpit - regardless of their source. Orders that require special processing, for example because a decision has to be made between parcel and freight forwarding, are highlighted visually.
By allowing users to set different filters, all orders can be monitored easily and errors identified more easily. Employees can also use a note function to add comments to each order or package, which enables optimised collaboration without numerous phone calls and emails. Furthermore, a practical search function ensures that orders can be found quickly. All in all, the time saved by the specialist teams amounts to around 50%.
While manual handling of the dropshipping processes would most likely have had a negative impact on business relationships in the B2B business over time, Scheurich now expects the introduction of the dropshipping solution to significantly increase its order volume and make it more future-proof. As the open structure of the cloud allows for rapid customisation, nothing stands in the way of new business relationships with different requirements and order types. Changes and functional enhancements are much easier and more cost-effective to realise than in ERP.
CIS/4 Cloud as a central platform for digitalisation projects
The solution used by Scheurich is CIS/4-Cloud - Dropshipping (formerly CIS/4-Cloud - E-Commerce Cockpit), which is a centralised tool for managing sales and logistics dropshipping processes. The module belongs to the product family CIS/4 Cloud - a managed EiPaaS framework developed by CONCETO that is based on the SAP Business Technology Platform (BTP) and Microsoft Azure. CIS/4-Cloud combines an integration-focused architecture layer with personnel expertise, enabling SMEs to implement their integration and digitalisation projects with the necessary speed and quality.
Even before implementing the dropshipping solution, Scheurich had already opted for the cloud-based CIS/4 Cloud framework as the central platform for its digitalisation projects. The CIS/4 Cloud - EDI solution module was already available as a basis, so that in combination with the innovative dropshipping module, valuable synergy effects are now created and intelligent networking of data and systems is achieved.
The highly integrative CIS/4 cloud solutions make it possible to react quickly and precisely to future digitisation requirements, so that a very short time-to-value and time-to-market can be achieved. As they can be booked as a financially attractive fully managed service offering and CONCETO can routinely avoid time-consuming and costly pitfalls during project implementation thanks to its comprehensive integration expertise, there are clear cost benefits for the customer.
Objective achieved
We are proud that the introduction of the CIS/4 cloud dropshipping solution at Scheurich was honoured as Grand Winner in the "Rapid Time To Value" category. As a technological innovation partner with targeted consulting and proven implementation expertise, we were able to support and actively shape the project throughout all phases. We achieved one hundred per cent of our goal of creating a tangible benefit with every implementation project and thus creating long-term value for Scheurich.
Receiving the SAP Quality Award is a great confirmation for us that our many years of B2B and B2C integration expertise, our methodology and our forward-looking solutions can be used to realise projects that effectively help our customers move forward. And it is a wonderful incentive for us to approach future implementations with the same care, speed and flexibility as we have done so far.