Zespri, the largest kiwifruit marketer globally, has moved to the next stage of its digital transformation journey by upgrading its SAP S/4HANA digital core as part of its ongoing Horizon transformation program.
Zespri’s partnership with SAP has been pivotal in enhancing the company’s operational efficiency and sustainability. The collaboration began in 2021 when Zespri initially implemented SAP S/4HANA Cloud, private edition, and SAP Integrated Business Planning. These solutions have modernized Zespri’s supply chain and finance processes, enabling the company to improve productivity and reduce costs. The recent upgrade of the SAP S/4HANA digital core marks a critical point in this partnership, as Zespri now aims to further optimize its operations for long-term growth.
The first phase of this transformation resulted in tangible benefits, including the avoidance of over NZD 1 million in infrastructure costs, saving 15,000 hours in productivity, and achieving NZD 2.2 million in profit and loss savings. Zespri’s decision to focus on a ‘clean core,’ separating its cloud-based ERP infrastructure from custom modifications, played a significant role in these achievements. This strategic move enabled a smooth upgrade of its SAP S/4HANA platform, which would have otherwise required considerable resources.
With the foundational technology in place, Zespri is now advancing into the second phase of its Horizon program. This phase focuses on leveraging data to simplify decision-making, enhance innovation, and increase returns for its global network of kiwifruit growers. Zespri intends to build on the success of the first phase by expanding its digital capabilities to create sustainable value.
Angela Colantuono, President and Managing Director of SAP Australia and New Zealand, underscored the importance of innovation and focus in Zespri’s journey. She pointed out that Zespri has been a forward-looking customer, consistently adopting cutting-edge technologies to enhance its business capabilities. As Zespri moves into the next stage of its transformation, SAP is also committed to supporting the company in achieving its goals of sustainability, operational excellence, and consumer satisfaction.
Upgrading SAP S/4HANA Digital Core
Zespri’s collaboration with SAP is more than just a technological upgrade; it represents a strategic investment in the company’s future. Over the years, Zespri has adopted several SAP solutions, including SAP Business Technology Platform, SAP Analytics Cloud, SAP Integration Suite, and SAP Extension Suite, among others. These platforms have also provided Zespri with the tools necessary to streamline operations and drive efficiency across its supply chain.
One of the most notable aspects of this digital transformation is Zespri’s focus on sustainability. As part of the next phase, Zespri will integrate SAP’s Sustainability Control Tower into its RISE with the SAP framework. This tool will enable the company to collect, analyze, and act on data related to environmental, social, and governance (ESG) factors. By embedding ESG data into its business processes, Zespri aims to further improve its environmental impact and social responsibility.
Zespri’s innovation journey also includes the adoption of AI-powered quality control software in collaboration with SAP partner Clarifruit. This specialized mobile app, designed for the fruit and vegetable industry, has already led to a 5% improvement in the quality and efficiency of the supply chain and enhanced inspection productivity by 25%. This initiative is part of Zespri’s broader goal to ensure that all fruit meets rigorous standards before reaching consumers, further enhancing its brand’s reputation for quality.
SAP and Zespri’s Strategic Partnership
Zespri’s partnership with SAP has been critical to the success of its digital transformation. Under the leadership of David Scullin, Chief Digital Officer at Zespri, the company has embraced SAP’s solutions to enhance its business operations. Scullin emphasized that the focus remains on creating long-term value for growers by utilizing digital platforms to meet global demand for kiwifruit. This has already resulted in the distribution of over 193 million trays of kiwifruit across 51 countries.
Scullin also highlighted that the next phase of Zespri’s transformation will center on data-driven decision-making and further innovation. By continuing to invest in SAP technologies, Zespri intends to modernize its operations and increase returns for its growers. The integration of data across the company’s processes will simplify operations and improve overall efficiency.
