Case Study

How UST helped a CPG manufacturer increase operational efficiency by 20% through a seamless SAP S/4HANA migration

This leading CPG manufacturer achieved a 20% boost in operational efficiency with zero downtime during its on-premises-to-cloud digital transformation. UST successfully migrated the company’s SAP ECC 6.0 system to SAP S/4HANA on AWS within nine months. By modernizing its ERP system, the company improved agility, gained real-time visibility, and reduced operational complexity.

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OUR CLIENT

This leading consumer packaged goods (CPG) manufacturer operates across Central America and distributes a diverse mix of beverage and food products. Serving millions of customers, the company focuses on consistent product quality, operational efficiency, and scalable growth. Its long-standing presence in the market reflects its commitment to innovation and meeting evolving consumer demand.

THE CHALLENGE

Tackling the hurdles of an on-premises ERP system that limited scalability and growth

With increasing demand, evolving expectations, and a growing regional footprint, the CPG manufacturer wanted to modernize its technology foundation to sustain growth. In particular, the company needed to scale its IT infrastructure to innovate and adapt quickly to market changes. However, the company’s on-premises enterprise resource planning (ERP) environment, SAP ECC 6.0 running on a Microsoft SQL server, had become a constraint. The legacy system couldn’t keep pace with the ever-growing demands of the rapidly evolving CPG industry. The key challenges were:

Growing competition—The company needed to enhance its agility and responsiveness as regional and international beverage players modernized their ERP environments more rapidly.
Shifting consumer demands—Customers expect faster fulfillment, better product availability, and more personalized service. Legacy processes and systems limited the company’s responsiveness.
Digital transformation pressures—The beverage industry was rapidly adopting cloud technologies and real-time analytics capabilities. The company risked being left behind if it did not modernize its operations.
Limited scalability—SAP ECC 6.0 was rigid and required extensive customizations to handle new processes or higher transaction volumes.
Lack of real-time data—Decision-makers didn’t have instant visibility into sales, operations, and inventory, which negatively impacted business responsiveness.
Migration risks—The shift from SAP ECC to S/4HANA posed the risk of downtime, data loss, and performance issues. With beverage distribution running around the clock, disruptions were not an option.

THE TRANSFORMATION

Building a scalable cloud environment optimized for growth and innovation

UST delivered a migration strategy that protected operations, minimized risks, and produced lasting value. The engagement included:

Assessment—We evaluated the company’s existing ERP landscape, mapping current processes to identify bottlenecks, analyzing integration points with external systems, and evaluating data structures to ensure a smooth migration.
System migration—UST executed the migration from SAP ECC 6.0 on Microsoft SQL Server to SAP S/4HANA, deployed in an AWS private cloud environment, ensuring seamless connectivity with existing applications.
End-to-end transition management—UST’s collaborative phased project roadmap covered planning, data migration, testing, deployment, and post-go-live support, mitigating risks and ensuring an on-time, on-budget engagement.

THE IMPACT

20% operational efficiency gains delivered with zero disruption

The company’s legacy ERP modernization initiative enhanced its core capabilities, including:

20% increase in operational efficiency—Streamlined processes enhanced collaboration across departments, increasing the organization’s ability to adapt to market changes.
Improved scalability—The private cloud environment supports rapid expansion without requiring costly customizations.
Enhanced decision-making—The real-time data access helped executives and line-of-business leaders make more informed decisions.

The 20% efficiency gain resulted in faster order fulfillment, improved supply chain responsiveness, and better customer service.

See how UST’s SAP expertise helps global CPG leaders modernize ERP systems to boost agility, scalability, and efficiency.

RESOURCES

https://www.ust.com/en/cloud

https://www.ust.com/en/planner-configuration

https://www.ust.com/en/insights/has-the-cloud-delivered-its-promises