How Cheap SAP Rates Created An Expensive Catastrophe

Attractive fees masked inadequate expertise for two devastating years
“I secured a promotion because I chose Pivot and you delivered!”

The Problem

Cheap Rates, Expensive Consequences

A major producer of perishable foodstuffs decided to implement SAP. They engaged a consultancy offering very attractive fee rates. The decision felt comfortable because basic SAP surely wasn’t groundbreaking technology anymore.

How wrong they were.

After two years of work, the programme had failed audit for go-live readiness. Twice. The consultancy conducted a re-planning exercise identifying defective, insufficient, and missing functionality.

Their conclusion: Four months additional development required. Stage gates rescheduled accordingly.

The Hemorrhaging Continues

Two weeks before the first stage gate review, 600 hours of development work remained. The consultancy had less than 50% of resources available to deliver within timeframe.

The bargain basement approach was hemorrhaging time and money. Two years of attractive rates had created an expensive catastrophe.

The Solution

The Rescue Mission

On the recommendation of project management consultants, the client asked Pivot to review and fix the programme if possible.

Pivot immediately deployed a ‘hybrid’ solution architect.  That’s a  programme and project manager with deep technical skills. His role: lead programme review, check deliverables, provide quality assurance, general advice, guidance, design authority, and bring in specialists as required.

A basis consultant conducted quick system health checks. He ensured that the sizing was appropriate and that the performance response was adequate during peak loading.

Separating Necessary from Nonsense

The Pivot team assessed development priorities. Deep SAP experience and knowledge revealed where development work was unnecessary.

Example: The client had budgeted for 60 hours of development for functionality available within standard SAP. The Pivot consultant implemented it in 30 minutes.

Where the client required significant development, Pivot consultants delivered well within budgeted timeframes. What remained was a manageable task list the original consultancy could complete with Pivot guidance.

Two Days Early, Back on Track

Work completed two days before scheduled gate review. The whole program was back on track.

The bargain basement disaster had become a rescue success story.

User Acceptance: The Real Test

User acceptance testing revealed new issues. The client engaged Pivot consultants were engage again to review and resolve.

Deep business process experience and specialist testing agency services identified real showstoppers. Most related to short shelf life foodstuffs, high order volumes, and constant last-minute amendments.

Example One: Delivery Document Crisis

Delivery notes required modification to match picked and loaded products before vehicle dispatch. Variations in production output and customer order changes required last-minute substitutions.

The legacy system took 12 minutes to effect delivery document changes. The new SAP interface was taking hours.

Pivot consultants redesigned the interface achieving average 4-minute change times.

Example Two: EDI Integration Breakdown

Big Five retailers placed orders via EDI. Pivot identified and rectified issues, providing specific hardware recommendations.

Example Three: Standing Order Visibility Disaster

Smaller customers had regular standing orders modifiable at short notice, subject to lead times.

Legacy system gave customer service teams 7-day order views per customer. One screen showed long-term standing orders, another showed current week modifications. Representatives could note required changes and effect after calls.

The new SAP solution provided no seven-day customer order view. Personnel would need to review individual orders to identify changes. That was impractical for an engaged, efficient team.

Pivot consultants designed one-screen views showing all standing orders, modified orders, and applicable lead times. Customer service representatives could now change orders with customers on the line.

The Result

Uneventful Success

Successful go-live with finance and purchasing modules was followed by logistics. The client asked Pivot consultants to provide weekend go-live cover.

It proved to be one of the most uneventful weekends of their working lives.

From Disaster to Promotion

The bargain basement disaster became a premium success story. The IT Director got promoted because he “chose Pivot and you delivered.”

Pivot delivered expertise turned catastrophe into career advancement.

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