SAP operational excellence and

the journey to ERP modernization

Produced by:

Interview with

Angel Sebastián

Hernández Patiño

EWM SOLUTION ARCHITECT

Following SAP's 2020 decision to prioritize SAP S/4 HANA over SAP ECC, how has this impacted Latin American businesses? And how are they addressing the integration challenges with their legacy systems?

The prioritization of SAP S/4 HANA has undoubtedly affected many businesses, with Latin America feeling significant ramifications. Given the post-pandemic economic challenges, these businesses have had to reconsider their digital strategies extensively. While some US-based organizations are swiftly adapting, the global transition might be slower than anticipated. Factors like delays, resource constraints, and a general lack of urgency contribute to this skepticism.

Transitioning from legacy systems to newer platforms like SAP presents its own set of challenges. Many companies are gradually retiring these older systems, focusing on a consolidated approach with SAP. This shift isn’t merely a technological one; it’s about minimizing the administrative burdens of managing different licenses, the dwindling support for older systems, and leveraging the robustness of SAP’s support infrastructure.

Transitioning from legacy systems to newer platforms like SAP presents its own set of challenges. It’s about minimizing the administrative burdens and leveraging the robustness of SAP’s support.

Implementations can span months or even years, and during this period, it's crucial to maintain a consistent understanding and vision.

As the SAP environment becomes more intricate, how should companies prepare and assess their operational effectiveness? What migration pitfalls should they be wary of?

The effectiveness of SAP operations is often gauged by key metrics: deliveries made, handling units processed, weight transported, and human resources deployed, among others. With emerging challenges in areas like Extended Warehouse Management (EWM), companies need to be more proactive in their strategic planning.

Migration is a multifaceted process. One of the pitfalls I've observed is inconsistency across different operational sites. Implementations can span months or even years, and during this period, it's crucial to maintain a consistent understanding and vision. Additionally, personnel turnover, especially of key users mid-implementation, can severely disrupt continuity. To mitigate these risks, companies should prioritize regular feedback loops and ensure alignment at all stages of migration.

Training isn't just a preliminary step; it's an ongoing necessity. This means providing access to comprehensive, constantly updated documentation, which includes user-friendly manuals and training videos.

New technological implementations can be daunting. How can companies ensure these transitions are smooth without overwhelming their internal teams?

The bedrock of any successful technological transition is effective change management. Introducing a new system can be disorienting for many users, who may feel adrift amidst unfamiliar processes and interfaces. Training isn't just a preliminary step; it's an ongoing necessity. This means providing access to comprehensive, constantly updated documentation, which includes user-friendly manuals and training videos. Additionally, having a robust support mechanism for addressing the more repetitive and common user queries can offload a significant burden from the support teams.

How do you envision the role of Automation and AI, specifically concerning SAP operations?

Hyper automation and AI Ops are not just trends; they're becoming the backbone of modern enterprises aiming to keep pace with market demands. Automation, when done right, significantly reduces operational issues and enhances efficiency. The recent surge in e-commerce, accelerated by the pandemic, has underlined the necessity for rapid and automated processes.

AI Ops in SAP is still in its nascent stages, but the intrigue is palpable. There's a burgeoning interest in integrating AI functionalities to streamline operations, especially in sectors I'm closely acquainted with, like warehousing. SAP's proactive approach in seeking insights from professionals on AI's potential role in operational automations signifies its imminent growth in this domain.

Hyper automation and AI Ops are not just trends; they're becoming the backbone of modern enterprises aiming to keep pace with market demands.

In a dynamic environment like SAP, with swift project turnovers and frequent personnel shifts, thorough documentation is a linchpin for success.

Why are documentation and change management vital in SAP environments? And can you elaborate on the value of outsourcing?

In a dynamic environment like SAP, with swift project turnovers and frequent personnel shifts, thorough documentation is a linchpin for success. It ensures that despite inevitable role transitions or departures, business continuity remains unaffected. Proper documentation aids in a smoother transition between users, ensuring that operational efficiency doesn't suffer.

Outsourcing, on the other hand, offers a multifaceted advantage. Primarily, it aids in cost reduction, especially for custom development tasks that can be prohibitively expensive when done in-house. Accessing specialized expertise externally often means tapping into niche skills unavailable within the organization. Moreover, with the increasing complexity of certain operational segments, many clients are gravitating towards outsourcing these functions, like logistics, to third-party logistics providers (3PLs). This not only grants them the expertise of 3PLs but also allows businesses to center their focus on core competencies.

Lastly, you've touched on the talent gaps in the SAP consulting sector. How do you propose we address this shortage?

Addressing the talent gap requires a concerted effort. Formal training programs and knowledge dissemination are imperative. We're experiencing a dearth of niche expertise, like EWM consultants. It’s time organizations invest more in developing this talent organically. While on-the-job learning is invaluable, structured training, perhaps augmented by SAP certification programs, can rapidly bridge this gap. I've personally been exploring the idea of authoring a guidebook for new SAP inductees. Knowledge sharing isn’t just a responsibility; it's a necessity for the entire ecosystem to thrive.

Sebastián Hernández is an EWM Solution Architect for MSCG, which stands for Extended Warehouse Management Solution Architect. He specializes in warehousing and boasts a decade-long experience in logistics. Sebastián is well-versed in integration, especially production integration, and is also knowledgeable in quality management. Furthermore, his professional experiences extend to transport management, and he is adept at working with a variety of models. He has worked for Deloitte, Westernacher and MSCG. Sebastián's client-facing role has seen him complete more than 22 projects, serving over 15 customers throughout his career.