A new enterprise resource planning (ERP) system was to be introduced with SAP in a medical laboratory belonging to one of Germany's largest laboratory services groups. Around three months before the planned launch, the client's commercial manager resigned. This jeopardized both the implementation date of the software at the site and the commercial support. As the parent company wanted to introduce SAP at several locations, a postponement would also have affected the implementation dates at the sister companies.
SAP modules MM and SD introduced - Shared Service Center for SAP FI
With his proven SAP expertise, the interim manager supported the Labor Group's central SAP implementation team. Under his technical leadership, the SAP modules MM (Materials Management) and SD (Sales & Distribution) were introduced at the site. The FI module (Finance) was put into operation in a group-owned shared service center for the site. The site has three operating sites within a radius of 50 kilometers, where the implementation had to take place in parallel.
ERP system successfully in regular operation - annual financial statements without errors
The interim manager's main focus was initially on the material master data, as incorrect master data makes subsequent controlling evaluations very difficult, possibly even impossible. He also carefully checked the interfaces to the upstream systems. Thanks to the detailed preparatory work, the introduction went largely smoothly. After just one month, the company was able to get on with its day-to-day business as far as possible. The annual financial statements were also error-free. The introduction of the new ERP system was thus completed.
Cost analysis reveals restructuring approaches
In a further sub-project, the interim manager focused on the data in the legacy system in order to check the level at which comparability with the data in SAP could be established in the short term. This task had been neglected in the past. The interim manager developed an evaluation at product area level, which led to interesting analyses.
The site's EBITDA has fallen continuously over the past three years. Based on the evaluation tool developed by the interim manager, three causes for the decline in earnings emerged:
- Increased requirements of the group (quality management, controlling, etc.) had led to higher personnel costs, particularly in administration.
- Several operating sites that were taken over as part of a transfer of operations posted negative results. The interim manager reviewed the contracts and began renegotiations. Due to the contractual situation, however, these negotiations remained unsuccessful for the time being.
- A personnel-intensive division had suffered heavy losses in turnover in the previous twelve months. Based on the interim manager's analysis, the management decided to implement a hiring freeze. All fixed-term contracts were not extended and vacant positions were filled in other areas with employees from the loss-making area.
Another order for the development of controlling started
In addition, the interim manager was commissioned to develop and install a sales controlling system until the handover to the successor. The interim manager implemented the client's wishes and set up a corresponding rudimentary controlling system.
