Quinnox drove various digitization initiatives using SAP S/4 HANA for Asia’s largest direct marketer

Description

Asia’s largest direct marketer who are one of the pioneers in water and air purification systems, vacuum cleaners and security systems.

Business need

With a wide variety of products and a large sales team touching over 1.5 million homes in the surging direct sales market in Asia, this global leader turned to SAP to simplify its complex business model and improve customer service and support levels. In addition, they looked to SAP technologies to improve warehouse management and other mission-critical business processes.

However, their investment in SAP fell short of their expectation due to an unreliable and inexperienced IT partner, particularly in the area of Application Management Services (AMS). This resulted in poor quality support services, a six-month backlog of over 300 open tickets, poor documentation, and an unstable SAP environment due to patches, hot packs, and service packs not being released on time. Root causes were not addressed either, leading to recurring problems in the areas of order management, service management and marketing activities. 

Solution:

Their SAP system was being primarily used as a database with operational tasks – such as period closing – not being executed optimally. Our SAP experts focused on these primary steps:

Transition: We executed a tool-based reverse engineering transition

Stabilization: Over the first year, we completed stabilized operations by taking steps like resolving root causes and re-implementing CRM middleware.

Continuous Improvement: We carried out a series of continuous improvements to clear the way for automation. We implemented various Quinnox proprietary tools, like Amenity and ESTRUC for operational efficiencies and greater spare capacity for strategic initiatives.

Business Transformation: We addressed the significant challenge of inefficient processes in the underlying SAP system. Our team helped build business cases for 62 key projects in areas of supply chain and order-to-cash. These efforts helped transform the company and contributed directly to revenue growth and savings.

S/4 HANA and Digitization: We drove various digitization initiatives like a digital call center, cloud invoice retrieval, and IOT based purifiers.

Benefits:

23% increase in sales for service vertical Reduction of COGS by 3% Developed a new sales channel for web sales that contributes to 6% of revenue Increased customer satisfaction with reduced call center wait times and effective customer journey mapping Implementation of hub and spoke Supply chain Predictive maintenance using IoT.