Fletcher Building - Best Tech Awards 2025 Intelligent ERP

Fletcher Building’s RISE with SAP Migration Download the Document

SAP Australia and NewZealand Best Tech Awards2025
Best Tech SAPIndustry WebsiteProduct and Services Featured SAP SolutionsManufacturingandDistributionhttps://fletcherbuilding.com/Manufacturer, distributor, andretailer of building materials andconstruction productsRISE with SAP (Private Cloud Edition),SAP Transportation Management (TM),SAP Extended Warehouse Management(EWM), SAP Integrated Business Planning(IBP), SAP BTP, SAP Commerce Cloud,SAP CPI, SAP CPS, Opentext, Tricentis,Lean IXFletcher Building is a leading Australasian manufacturer and distributor of building and construction materials, with a diver se portfolio of businesses acrossNew Zealand and Australia.Fletcher Building transitioned four of its businesses to the RISE with SAP platform, moving from an on-premise S/4HANA environment to SAP’s private cloud.The migration laid the foundation for future innovations while optimising licensing costs and operational efficiencies.Fletcher Building’s RISE with SAP MigrationIntelligent ERP
ChallengesFletcher Building was maintaining an on-premise SAP environment, which placed the onus on Fletcher Buildingto perform frequent and resource-intensive system upgrades, including technical and security updates.Operationally, the organisation was also constrained in its ability to adopt SAP’s latest innovations, such asJoule and AI-driven capabilities, as these were only accessible via RISE with SAP.In addition, Fletcher Building was incurring significant costs due to a large number of unused SAP licenses, aresult of an initial strategy to move all businesses to S/4HANA quickly. When this plan paused, the business wasleft with surplus licenses, leading to unnecessary expenditure.The business was further challenged by widespread change fatigue across its teams, increasing the risk ofdisengagement with yet another major IT project.
SolutionFletcher Building migrated four of its businesses to RISE with SAP Private Cloud Edition, transitioning from an on -premise S/4HANA environment. This move optimised licensing costs to reflect actual usage, eliminated the internalburden of frequent system upgrades, and positioned the company to adopt SAP’s latest innovations, including Jouleand AI capabilities.The project was delivered on time, under budget, and met all project requirements. A total of 104 people wereinvolved across Fletcher Building, SAP Services, and partners, working cohesively through well-executed discovery,planning and delivery. Effective change management was critical to success, helping to overcome significant changefatigue across the business units.In total, 700 users were successfully migrated across the four businesses. We also had to ensure that our SAP instancesremained connected to 23 EDI partners, as any disruption would have impacted customer orders and deliveries.Workarounds were carefully planned to avoid disrupting weekend manufacturing operations during the migration.The Tricentis testing suite was also implemented to minimise business disruption for future SAP releases and upgradesby automating regression testing.Notably, the project achieved an early closure of hypercare with no disruption to business processes and only one ortwo minor incidentsan outcome likened to “moving the engine from one car to another without the driver noticing.”SAP was selected as a strategic partner, providing not only the technology but the professional services expertise toensure a seamless and future-ready migration.
ImpactThrough the RISE with SAPsubscription, SAP now manages 24x7system monitoring, security updates,and built-in cyber security and dataprotection, ensuring compliance withthe latest global standards whilereducing internal resource demands.On-premise SAP infrastructurefootprint reduced by 90%.Restructuring the existing SAPlicenses through RISE with SAPPrivate Cloud Edition has deliveredsignificant cashflow savings andreduced the total cost of ownership(TCO).The migration to RISE with SAP has strengthened Fletcher Building’s operational capabilities while unlocking a future -readyplatform to support ongoing innovation. The business now benefits from reduced operational overhead, improvedstakeholder trust in IT transformations, and readiness to adopt SAP’s AI and Joule capabilities.The project delivered meaningful outcomes across commercial, operational, and strategic dimensions, including:Significant cost savings: Delivered substantial cash flow savings across two financial years by aligning licensing costs withactual consumption.Operational efficiency gains: System maintenance and upgrades are now managed by SAP supported by an automatedtesting suite, freeing up internal resources and eliminating the need for regular in-house updates.Stakeholder engagement uplift: Four previously change-fatigued businesses regained trust in IT projects due to thesmooth, disruption-free migration, supported by best-practice change management.The shift to a cloud subscription model aligns with Fletcher Building’s strategy and SAP’s innovation roadmap. It establishesa future-ready platform for Fletcher Building, laying the foundations to accelerate digital transformation in future.
“”With SAP RISE on Google Cloud, we’ve not only simplified our digital corebut also demonstrated what’s possible when strategy is executed. Theseamless delivery of this transformationon time and under budgetwasdriven by a deeply collaborative team effort across FletcherTech and ourbusiness units. This delivers even greater value to our Customers andStakeholders- Mike Butler, CIO, Fletcher Building