Zespri selects SAP cloud solutions in multiyear deal

SAP SE announced that Zespri International, marketer of kiwifruit, will become one of the first SAP customers globally to utilize the SAP S/4HANA private cloud edition.

The new solution forms a key part of the recently announced “Rise with SAP’ offer that delivers business transformation as a service. This will help Zespri standardize and automate processes across the organization, creating efficiencies and providing a platform for growth and innovation to support the fast-growing company.

The grower-owned marketer, based in Mount Maunganui, New Zealand, has signed a multi-year deal to support Zespri’s global supply chain process transformation, including a move to SAP S/4HANA, private cloud edition and the implementation of several SAP Digital Supply Chain applications including SAP Global Trade Services, SAP Integrated Business Planning (IBP), and the SAP Logistics Business Network.

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“The new SAP S/4HANA private cloud edition will deliver fast time to value, enabling Zespri to seize new business opportunities and respond to changes with speed and agility,” said Phil Cameron, managing director, SAP New Zealand. “It will also provide a platform for innovation, utilizing the latest intelligent technologies from the internet of things to predictive analytics.”

Zespri will also take advantage of SAP Business Technology Platform capabilities, including SAP Analytics Cloud, SAP Integration Suite the SAP Extension Suit, and SAP-endorsed partner solutions from OpenText, Tricentis, and Celonis.

The technology will underpin Zespri’s ambitious four-year Horizon transformation program to digitize its operations, become more efficient, and increase sales.

SAP environment

Strong demand for its premium-quality fruit has seen the industry grow strongly, recording global sales of NZD$3.14 billion in the years 2019 and 2020. Longer-term, the industry is forecast to increase the global supply of kiwifruit from 164.4 million trays in 2019 and 2020 to around 280 million trays by 2030.

“Zespri’s Horizon program will transform the way our company operates, replacing legacy systems and processes that were designed 20 years ago, before the significant growth we’ve experienced in recent years,” said Dave Scullin, chief digital officer, Zespri. “Our new SAP environment will transform the systems and processes across our business, from finance and supply chain to grower enablement and engagement, sales, and business planning. This will strengthen our ability to grow and sustain returns for the industry for decades to come.”

Global demand for kiwifruit is currently outstripping supply, buoyed by the increasing trend of more health-conscious consumers looking for products that taste good and are nutritious.

“Zespri is a large and fast-growing business and we need mature processes and systems to fuel our next stage of growth. Adopting SAP’s standardized core platforms will be transformational in itself, while also letting us leverage SAP’s cloud roadmap to adopt innovation at speed,” Scullin said.

Private cloud

Zespri currently runs its SAP environment on Microsoft Azure public cloud, which will be migrated to the SAP S/4HANA private cloud edition. Zespri will continue to use Azure for its enterprise infrastructure, bringing the best of Microsoft and SAP.

Zespri’s move to SAP S/4HANA, private cloud edition follows the announcement of SAP’s new concierge service to the Intelligent Enterprise, RISE with SAP, which offers software, infrastructure, and technical operations all under one contract. SAP S/4HANA private cloud edition will form a key component of the new Rise with SAP offer.

Designed to deliver business transformation as a service and tailored to each customer’s specific needs, Rise with SAP will include business process redesign, technical migration support, SAP’s Business Technology Platform, the SAP Business Network, SAP S/4HANA Cloud deployment model of choice, and Hyperscaler of choice.

The implementation will be conducted by a consortium of partners, including Deloitte NZ in partnership with ZAG, part of Accenture. The project will be split into several phases, with the first Digital Core build phase due to begin in February 2021, focused on finance and supply chain processes, before progressing to integrated business planning and sales enablement.