Accenture to oversee SAP roll-out of US chocolatier Hershey's

16 March 2018 3 min. read

Famous US chocolate maker Hershey’s has signed Accenture up to support its SAP Hana S/4 implementation. The firm will work to help Hershey’s roll out the in memory ERP system, as the foods group looks to boost its growth, while reducing operational costs.

According to a recent report by Gartner, as many as 30% of service centric companies will move the majority of their ERP apps to the cloud by 2018. As a result, consulting services aimed at helping professional services providers leverage new ERP solutions from companies such as SAP are in demand.

Another aspect of the growth in SAP consulting is the continuing roll out of the enterprise resource planning (ERP) giant’s S/4Hana system – which is also available on cloud, alongside more traditional on-premises and hybrid deployment models. Billed as SAP’s "most important release in 23 years" when it was announced, S/4Hana was intended to be easier to use and administer while helping to solve more complex problems and handle vastly larger amounts of data than its predecessors.

The Hershey Company

Chocolate manufacturer The Hershey Company has become the latest in a list of global firms looking to leverage S/4Hana to this end. Hershey’s – the company behind such well-known products as Reese’s Peanut Butter Cups and Hershey’s Kisses – is a long-term SAP user, with its first implementation of SAP’s R/3 ERP package, in 1999.

Accenture to oversee SAP roll-out of US chocolatier Hershey's

It retained SAP despite initial troubles, when the £72 million ERP project caused order processing problems that hampered the company's ability to ship products to retailers at one of the busiest times in its business cycle. The problems caused the company to fall short of its third-quarter sales target by £65 million. 

Three years later and after consolidating the processing of more than 95% of its revenue and business transactions within a single system and increasing consistency, visibility and real-time access to critical business information, it upgraded Now, the company wants to reduce its costs and increase sales via the implementation of the in-memory version of SAP’s Business Suite ERP platform technology.

In order to achieve its goals, the confectionary conglomerate contracted outsourcing giant Accenture. The firm, which was also recently enlisted by the Canadian Government for its technological expertise, will aid the roll out of the ERP system, as part of a programme to make manufacturing and supply more efficient and better understand what customers want.

Speaking on the hiring of Accenture, Terry O’Day, Chief Product Supply and Technology Officer at Hershey’s, said, “This will enable us to increase competitive advantage and support our growth ambition through greater collaboration and innovation, as well as service delivery built around the needs of our customers. We selected Accenture for its understanding of our industry, technology credentials and proven track record in delivering enterprise transformation at scale.”

Related: Accenture helps Bharti Retail with SAP implementation.