SAP S/4Finance Readiness Check at Zalando

20th September 2018

In only a few years and with a turnover of EUR 4.5 billion, Zalando has become a dominant fashion online retailer, corresponding with significant data volumes and complex processes on the information technology side. For the merchandise processes and at the customer interface Zalando relies on in-house developed systems, while the finance area is run with SAP FI and SAP FI-CA. A modified SAP solution, strongly tailored to Zalando’s requirements, is used for the cash management.

Zalando entrusted consenso with a feasibility analysis for an S/4 Finance introduction to replace the existing SAP ERP system as well as an estimation for the appropriate project scope and required resources.

As a result, all components and processes concerned by this question were examined, and risks and dependencies to further projects were estimated. On the sidelines, the planning implications (BPC – Business Planning and Consolidation) were also discussed.

In this context, consenso started the discussion on the suitable introduction approach – green field vs. brown field – as an essential preliminary decision for the economic benefits.

consenso’s S/4HANA Finance feasibility study focused on the following aspects:

• General technical prerequisites for the implementation
• Interfaces
• Customer-specific programming
• Master data
• Financial processes (general ledger, accounts receivable, accounts payable, asset accounting, controlling, ERP reporting, consolidation, banking, treasury, cash and liquidity management)
• Analytics
• Evaluation SAP Fiori apps
• Project portfolio – considerations and dependencies

The study confirmed the valuation that the feasibility of a technical system migration is given. Furthermore, it was found that the processes have to be reassessed from a sustainable and growth-oriented perspective, also considering changes in the SAP architecture. In the course of the project and in discussion with the business departments, the added value of a green field approach became clear: existing, suboptimal solutions are no longer pursued, technological solutions with less compromises can be realised, business processes can be reconsidered and led to better solutions. The added value of a software solution does not only come from itself, but from the optimisation of the business model using the appropriate software at its best. One example is SAP CO-PA. In the past, CO-PA could not be used by retailers, but today, they can also apply it very efficiently in an SAP S/4Finance context.

The project’s extensive findings are also documented in the fact that Zalando has now started even more comprehensive architectural considerations.