How We Helped a Leading IT Provider Streamline Operations — Via SAP S/4HANA Landscape Transformation

LeverX helped the client overcome SAP S/4HANA limitations by delivering tailored solutions that optimized processes and enhanced strategic business agility.

Client

A leading IT infrastructure solutions and services provider for businesses and public-sector organizations in Nordic and Baltic regions. The company operates across various industries and delivers tailored solutions to enhance business efficiency and compliance. 

Project Background

The client had already implemented SAP S/4HANA as part of their digital transformation journey, aiming to modernize their business processes and streamline operations. However, after deployment, it became evident that the system's current functionality did not fully meet the organization's specific operational and strategic needs. Several gaps were identified in critical areas, including process optimization, system configuration, and alignment with business workflows.

Key challenges included insufficient adaptation of the system to the client’s industry-specific requirements, limitations in existing configurations, and the need for additional integrations with other platforms and tools. These issues hindered the full utilization of SAP S/4HANA’s potential, leading to inefficiencies in daily operations and an inability to leverage advanced features for decision-making and analytics.

The project was initiated to address these challenges by performing a detailed assessment of the current SAP S/4HANA setup, identifying pain points, and implementing tailored solutions. The objective was to:

• Enhance the system’s functionality through additional configurations and customizations.
• Improve integration with existing business applications and external systems.
• Optimize key business processes to align with the client’s operational goals.
• Prepare the system for seamless scalability and future enhancements.

By bridging the gap between the current system capabilities and the client’s business demands, the project aimed to deliver a robust and adaptable SAP S/4HANA environment that could effectively support the client’s growth and long-term objectives.

Project Scope

The project involved working with the client’s Swedish and Norwegian branches, each presenting unique challenges due to differences in their SAP environments. The Swedish branch operated a cloud-based ERP system (SAP S4HANA Cloud 2023 FP2), while the Norwegian subsidiary utilized a local on-premise ERP (on-premise SAP ERP 6.0 with EHP8). These varying infrastructures added complexity as the solutions needed to address the two regions' business-specific requirements and distinct technical landscapes.

To address these challenges and ensure that both systems met the client’s operational and strategic needs, the following set of tasks was undertaken:

SAP Basis activities

The project included extensive SAP Basis activities to optimize system performance and support critical operations. Key tasks involved completing the migration of the SAP BW productive system to Azure and conducting annual patching activities across the entire landscape (ERP, BW, and PI). This ensured all systems were upgraded to the latest SPs, database levels, and kernel levels in alignment with the customer's patching plan.

System monitoring and Early Watch Alert reporting were done via SAP Solution Manager to maintain system health. Settings and customization were made to monitor customer systems via SAP Cloud ALM (Application Lifecycle Management). The team also provided SAP Basis support for the SAP Rise cloud service on the AHS project and the SAP Signavio service, including setting up subaccounts, connecting Signavio to ERP systems, and addressing service requests related to SAP security, networks, and architecture.

Additional efforts included SAP Fiori configuration, security support (including SAP SoD Matrix), and HANA DB tuning, along with customizing and optimizing SAP Focus Build for testing, development, and production of S/4HANA systems. SAP roles and authorizations were refined by analyzing and correcting existing Fiori spaces and pages based on business roles and reviewing authorization concepts within organizational structures.

Our team also supported the SAP HEC service, including service requests, cloud tuning, and the migration of systems to on-premise. Comprehensive documentation was created, detailing daily routines, backup and restore procedures, tuning, monitoring, and security aspects, providing a robust foundation for ongoing system maintenance and user support.

Profit center accounting and period-end closing 

Significant efforts were made to enhance processes in Profit Center Accounting and support period-end closing activities. This included handling sales agreement settlements using RA KAY and creating new RA KAYs to provide improved analytics. Additional steps were implemented in validation and substitutions to refine data accuracy and consistency.

A specialized report was developed to analyze loss provisions, offering more profound insights into financial performance. Work was also conducted on WBS elements, focusing on closing outdated ones to enable mass automatic calculations via background jobs and streamline financial processes.

An in-depth analysis of rounding errors was carried out, leading to changes in the User-exit as new ID lines were introduced over the years. 

Additionally, various other period-end closing issues were resolved, ensuring smoother operations and more accurate financial reporting.

SAP HCM application management 

One of the key stages of the project focused on enhancing SAP HCM functionality to meet the client’s needs. This included customizing the salary file format to comply with ISO 20022 XML, managing HCM background jobs, and tracking SAP HCM notes specific to Norway. Additionally, payroll maintenance was optimized, covering payroll periods, payment dates, cumulations, rates, postal codes, creating new wage types and payee keys, and communication with authorities. 

The team also addressed issues within the Personnel Administration (HCM-PA) sub-module and implemented mass information changes using the LSMW tool to streamline data management. Troubleshooting efforts resolved errors in payroll drivers, time evaluation, Fiori applications (Timesheet, Approve Overtime), and integration with Catalyst (Cloud HR system), ensuring smooth and accurate payroll and HR operations.

Purchasing: Custom solutions development and system optimization

The project included comprehensive support, which involved implementing and developing tailored solutions to address specific business needs, focusing on key areas such as refurbishment products and procurement processes. A comprehensive solution was developed for managing refurbishment products and materials, covering the entire lifecycle from receiving to sale. This involved implementing new integration points, expanding existing ones, and improving master and organizational data.

For procurement, a solution was designed to automate and streamline supplier and purchasing email communications, improving control over purchase orders and facilitating the procurement department's work.

Efforts were made to modernize obsolete custom functionalities by reviewing and reworking custom code, transitioning to new technologies, and leveraging standard SAP functionality. Examples included migrating from SAPscript to PDF/BRF+ technologies for document printing and adopting standard solutions for serial number management.

To prepare the SAP ECC system for migration to S/4HANA, a "spot" system audit was conducted, identifying gaps and ensuring readiness. Workshops were held to structure support, maintenance, and change request (CR) implementation processes, establish communication channels, and prioritize tasks effectively.

Existing custom solutions were analyzed to identify weak points, with recommendations provided for improvements. For instance, integration between SAP and the custom Vendor Portal was enhanced to better manage partially delivered items.

Comprehensive project management documentation, including detailed solution designs, user guides, functional specifications, and technical specifications, was developed to support ongoing maintenance and future system enhancements. Accurate estimations and strategic plans were also prepared to extend current functionalities and ensure alignment with business goals and system requirements.

Integration and sales process enhancements

The project included comprehensive support and improvement of integrations with various external systems. These efforts focused on optimizing the processing of sales and shipping documents to enhance operational efficiency and data accuracy.

A major milestone was the finalization of EHF (Electronic Handling Format) functionality implementation, followed by successful go-live support, ensuring compliance and streamlined document exchange processes.

Additionally, new reports were developed to provide better monitoring of sales processes, while existing reports were modified to meet evolving business needs. The project also involved improvements and fixes to various SAP standard extensions, ensuring enhanced functionality and system reliability across critical operations.

Streamlining operations with EWM

During the initial phase, LeverX conducted a series of activities to ensure alignment with the client's operational requirements. The process began with multiple meetings to gather stakeholder requirements and clarify objectives. The team thoroughly analyzed the customer's documentation and requirements to understand the intricacies of their business processes and identify potential challenges.

To address specific needs, our team prepared detailed demo scenarios within their internal system. These scenarios included: 

• The inbound process, where products, purchase orders, and inbound deliveries were created and tested. 
• The outbound process involved the creation of sales orders and outbound deliveries, followed by testing of outbound logistics.
• The kit-to-order process focused on activating BOMs, customizing STO processes, and executing comprehensive tests. 

These scenarios were meticulously crafted to highlight how the system could handle the client’s unique workflows.

These efforts culminated in a comprehensive demo presentation showcasing all three scenarios to stakeholders. This activity was pivotal in establishing a shared understanding of the system's capabilities and ensuring the project was set on a firm foundation for success.

Data management and reporting improvements

The project also focused on enhancing the SAP BW in the HANA environment to ensure optimal system performance and meet business reporting needs. Key activities included:

• Monitoring data loads and overall system health
• Promptly addressing incidents reported by business users
• Ensuring seamless operation

Upgrades were carried out for existing data models, data flows, and reports to improve efficiency and usability. New data models and reports were also designed to enhance analytics and support the client's evolving business requirements.

Results

Over the two-year project, LeverX transformed the customer’s SAP S/4HANA landscape, delivering tailored solutions to enhance operational efficiency, streamline processes, and prepare for future growth. While the full impact will unfold over time, the foundation for measurable business improvements is already in place.

Key achievements include:

• Enhanced system functionality with custom configurations and streamlined integrations
• Optimized business processes, including procurement and refurbishment workflows
• Improved data management for better reporting and decision-making
• Future-proof IT infrastructure ready for scalability

This successful collaboration reinforces LeverX’s commitment to driving innovation and value through SAP expertise.