ContiTech enables state-of-the-art processes and system landscape using SAP S/4HANA

Embracing SAP S/4HANA for global efficiency and sustainable growth

ContiTech Gmbh, a major division of Continental AG (based in Hanover, Germany), is a manufacturer of rubber and plastic products outside the tire industry. With its numerous business areas and plants, which are distributed globally, ContiTech relies on SAP for its core business operations. Due to multiple acquisitions over the years, the company faced a heterogeneous IT and process mix of techology systems. ContiTech’s SAP landscape consisted of 12+ SAP R/3 environments  that were unsynchronized, comprising varying configurations and material master databases. This situation impeded the company ability to get a clear view of product lifecycles, leading to inefficiencies from data duplication and lengthy information consolidation.

ContiTech set out to improve its operational efficiency by moving to a Greenfield approach using an SAP S/4HANA template in order to standardize processes across diverse plants and business units. This initiative was also aligned with ContiTech's strategic focus on sustainable growth, aiming to establish a strong IT foundation for enabling the company to focus on its customers and markets. At the same time, this transition to SAP S/4HANA  was essential as it enabled ContiTech to avoid possible disruptions arising from the planned maintenance outage of SAP Business Suite 7 in 2027.

Shifting from a heterogeneous to a harmonized solution using holistic and Agile approaches

In  2019 ContiTech began the SAP S/4HANA transformation project—called IMp@CT—with the  aim of designing and building a harmonized, global business process template for ContiTech’s organization worldwide. Working with the client, BearingPoint developed the standard process template by analyzing one of ContiTech’s business unit's operations, legal requirements, and processes, focusing on workflows common to other locations. The project team then adapted the processes to the template, implementing these changes in ContiTech's manufacturing locations in Romania, Hungary,  China, and Japan.

By leveraging strong business transformation capabilities and effective tools from the Global Business Template Toolkit, BearingPoint facilitated the rollout methodology and execution. Through seven workstreams, the consultants enabled more than 200 project members at ContiTech in applying established methodologies and preparing roll-outs for more than 130 Manufacturing Plants, Distributions Centers, and Services locations.  BearingPoint used a Greenfield strategy, adhering to best practices to customize the system's functionalities for ContiTech's industry needs. This approach ensured the new system is user-friendly while retaining standard settings with tailored functionalities to meet specific process requirements. During the transition, operational continuity was secured to avoid disruptions to the company’s daily business activities. The transformation covered various functional areas—such as Finance, Controlling, Project Systems, Production Planning, Materials Management, Warehouse Management, Sales and Distribution, Transportation Management, Quality Management, Plant Maintenance, and Foreign Trade.

With extensive experience in SAP S/4HANA implementation, BearingPoint experts have tactically addressed all facets of the transition process. This included not only the technical implementation of the new system, but also a holistic approach to transforming all business processes, while promoting a mindset change among ContiTech’s employees for them to adopt more efficient ways of working.

Building a robust foundation for scalable and sustainable development to drive innovation

With SAP S/4HANA replacing the legacy ERP system, ContiTech can respond effectively to industry demands and maintain a competitive edge while addressing potential disruptions from the upcoming SAP Business Suite 7 maintenance outage.

The comprehensive upgrade has significantly improved accuracy and efficiency in Finance, Planning, Procurement, Production, and Sales. This harmonization has streamlined operations and reduced redundancies, facilitating better decision-making, and optimized resource utilization. Additionally, it has enabled better monitoring and control, aligning operations with industry standards. All departments are now working towards common objectives, fostering collaboration and synergy. By continuously refining processes, ContiTech has developed a dynamic and Agile operational framework that supports sustained growth and innovation. Adhering to global standards now facilitates better integration with international partners, supporting ContiTech's global expansion efforts.

ContiTech

ContiTech is one of the world’s leading industry specialists. The Continental group sector offers its customers connected, environment-friendly, safe and convenient industry and service solutions using a range of materials for off-highway applications, on rails and roads, in the air, under and above the ground, in industrial environments, for the food sector, and the furniture industry. With about 42,000 employees in more than 40 countries and sales of some 6.8 billion euros (2023), the global industrial partner is active with core branches in Asia, Europe, and North and South America.