SAP Innovation Awards 2024 – 4343 - Modern Farming
Established in September 2005 and headquartered in Ma'anshan, Anhui Province, Modern Farming Group Limited went public on the Hong Kong Stock Exchange in 2010.As a leading enterprise in China's farming industry, Modern Farming Group achieved a total revenue exceeding 12 billion RMB in 2022. Operating over 50 farms nationwide, the company manages a controlled herd of over 480,000 cattle, producing a daily output of 7,700 tons of fresh milk. With a mission to "nurture healthy cattle and safeguard every drop of quality milk," Modern Farming Group prioritizes quality through meticulous breeding and adheres to testing standards surpassing EU norms. The brand is widely acclaimed in the Chinese market.With SAP S/4HANA PE CDC, Modern Farming has established unified standards across the entire group, achieving automation in the generation of various financial reports, and reducing its monthly closing time by 50%. Download the DocumentPUBLIC
Entry Pitch Deck
Modern Farming (Group) Co., Ltd
Agribusiness
Build A Smart and Efficient Ranch with SAP S/4HANA
Cloud, private edition, customer data center
Entry Pitch Deck
Modern Farming (Group) Co., Ltd
Agribusiness
Build A Smart and Efficient Ranch with SAP S/4HANA
Cloud, private edition, customer data center
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Modern Farming (Group) Co., Ltd
Ma’anshan, China
Agribusiness
www.xiandaimuye.com
8,000
Established in September 2005 and headquartered in Ma'anshan, Anhui
Province, Modern Farming Group Limited went public on the Hong Kong
Stock Exchange in 2010.
As a leading enterprise in China's farming industry, Modern Farming
Group achieved a total revenue exceeding 12 billion RMB in 2022.
Operating over 50 farms nationwide, the company manages a controlled
herd of over 480,000 cattle, producing a daily output of 7,700 tons of fresh
milk. With a mission to "nurture healthy cattle and safeguard every drop of
quality milk," Modern Farming Group prioritizes quality through meticulous
breeding and adheres to testing standards surpassing EU norms. The
brand is widely acclaimed in the Chinese market.
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Modern Farming (Group) Co., Ltd
Ma’anshan, China
Agribusiness
www.xiandaimuye.com
8,000
Established in September 2005 and headquartered in Ma'anshan, Anhui
Province, Modern Farming Group Limited went public on the Hong Kong
Stock Exchange in 2010.
As a leading enterprise in China's farming industry, Modern Farming
Group achieved a total revenue exceeding 12 billion RMB in 2022.
Operating over 50 farms nationwide, the company manages a controlled
herd of over 480,000 cattle, producing a daily output of 7,700 tons of fresh
milk. With a mission to "nurture healthy cattle and safeguard every drop of
quality milk," Modern Farming Group prioritizes quality through meticulous
breeding and adheres to testing standards surpassing EU norms. The
brand is widely acclaimed in the Chinese market.
CHALLENGE: SOLUTION: OUTCOME:
Farming Smartly with SAP S/4HANA Cloud, private edition,
customer data center
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Time saved for monthly closing Time saved for warehouse management Cash flow increase in supply per month
50%
Modern Farming (Group) Co., Ltd
15% 15 million
In recent years, Modern Farming has expanded its
business throughout the entire industry chain,
acquiring numerous subsidiaries and innovative
business units. However, the lack of a unified
digital management system among these
companies has resulted in inefficient financial
consolidation at the group level. Additionally, the rise
in prices of key raw materials like forage has
prompted Modern Farming to further focus on cost
reduction and efficiency improvement.
Modern Farming has implemented SAP S/4HANA
PE CDC to unify the ERP systems of its various
subsidiaries. Through customized deployment, it
has connected data sources related to pasture
feeding and medication, establishing a cost
control system precise down to individual cattle.
At the group management level, SAP S/4HANA
serves as the digital foundation, integrating OA and
SRM systems to achieve end-to-end digital
management.
With SAP S/4HANA PE CDC, Modern Farming has
established unified standards across the entire
group, achieving automation in the generation of
various financial reports, and reducing its monthly
closing time by 50%.
Modern Farming has achieved real-time feeding
cost control precise to each individual cattle.
Within six months of implementation, the feeding
cost per cattle has decreased by 9.8%.
The robust SAP S/4HANA PE CDC serves as the
foundation connecting complex data sources
from the ranches, providing a solid base for Modern
Farming's subsequent business innovations.
Farming Smartly with SAP S/4HANA Cloud, private edition,
customer data center
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Time saved for monthly closing Time saved for warehouse management Cash flow increase in supply per month
50%
Modern Farming (Group) Co., Ltd
15% 15 million
In recent years, Modern Farming has expanded its
business throughout the entire industry chain,
acquiring numerous subsidiaries and innovative
business units. However, the lack of a unified
digital management system among these
companies has resulted in inefficient financial
consolidation at the group level. Additionally, the rise
in prices of key raw materials like forage has
prompted Modern Farming to further focus on cost
reduction and efficiency improvement.
Modern Farming has implemented SAP S/4HANA
PE CDC to unify the ERP systems of its various
subsidiaries. Through customized deployment, it
has connected data sources related to pasture
feeding and medication, establishing a cost
control system precise down to individual cattle.
At the group management level, SAP S/4HANA
serves as the digital foundation, integrating OA and
SRM systems to achieve end-to-end digital
management.
With SAP S/4HANA PE CDC, Modern Farming has
established unified standards across the entire
group, achieving automation in the generation of
various financial reports, and reducing its monthly
closing time by 50%.
Modern Farming has achieved real-time feeding
cost control precise to each individual cattle.
Within six months of implementation, the feeding
cost per cattle has decreased by 9.8%.
The robust SAP S/4HANA PE CDC serves as the
foundation connecting complex data sources
from the ranches, providing a solid base for Modern
Farming's subsequent business innovations.
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4
To transform from ‘experience-based farming’ to
‘digital farming,’ it is essential to integrate all
business data within the group and along the value
chain. Thanks to RISE with SAP S/4HANA Cloud,
private edition, customer data center, a stable and
flexible digital foundation, Modern Farming has
achieved seamless interconnectivity throughout
the entire industry chain.
Zhao Zhicheng
CIO
To transform from ‘experience-based farming’ to
‘digital farming,’ it is essential to integrate all
business data within the group and along the value
chain. Thanks to RISE with SAP S/4HANA Cloud,
private edition, customer data center, a stable and
flexible digital foundation, Modern Farming has
achieved seamless interconnectivity throughout
the entire industry chain.
Zhao Zhicheng
CIO
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
· Greenhouse Gas Emissions
The livestock industry is a significant contributor to greenhouse gas emissions,
requiring immediate environmental management to mitigate its impact.
• Food Safety Concerns
Public apprehension is easily triggered by additives, preservatives, and other
safety issues in dairy products. The intricate supply chain amplifies the
challenge of quality control, necessitating increased investment in resources to
uphold product safety and quality for maintaining brand reputation.
• Rising Raw Material Costs
Influenced by domestic and international economic conditions, the prices of
livestock feed ingredients, symbolized by corn, have continuously climbed in
the past few years. The cost management in modern animal husbandry has
been relatively rudimentary, lacking precise cost statistics at the level of
individual cattle. Additionally, the rapid expansion of cattle scale in modern
animal husbandry exerts significant pressure on feeding costs, impacting
overall profitability.
• Full Value Chain Development
Modern Farming has strategically adjusted its plan to encompass the entire
industry chain. Leveraging the market advantage of Inner Mongolia Mengniu
Dairy Group (the world 7th largest dairy manufacturer and Modern Farming’s
parent company), Modern Farming aims to expand beyond a singular raw milk
business into upstream and downstream sectors, including feed production,
breeding, beef cattle, and smart innovations such as trading platforms. The
success of these business innovations relies on a unified and robust digital
infrastructure.
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
· Greenhouse Gas Emissions
The livestock industry is a significant contributor to greenhouse gas emissions,
requiring immediate environmental management to mitigate its impact.
• Food Safety Concerns
Public apprehension is easily triggered by additives, preservatives, and other
safety issues in dairy products. The intricate supply chain amplifies the
challenge of quality control, necessitating increased investment in resources to
uphold product safety and quality for maintaining brand reputation.
• Rising Raw Material Costs
Influenced by domestic and international economic conditions, the prices of
livestock feed ingredients, symbolized by corn, have continuously climbed in
the past few years. The cost management in modern animal husbandry has
been relatively rudimentary, lacking precise cost statistics at the level of
individual cattle. Additionally, the rapid expansion of cattle scale in modern
animal husbandry exerts significant pressure on feeding costs, impacting
overall profitability.
• Full Value Chain Development
Modern Farming has strategically adjusted its plan to encompass the entire
industry chain. Leveraging the market advantage of Inner Mongolia Mengniu
Dairy Group (the world 7th largest dairy manufacturer and Modern Farming’s
parent company), Modern Farming aims to expand beyond a singular raw milk
business into upstream and downstream sectors, including feed production,
breeding, beef cattle, and smart innovations such as trading platforms. The
success of these business innovations relies on a unified and robust digital
infrastructure.
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• Achieve precision management to cope with rising feed costs
Obtain detailed financial and herd data to establish a cattle value model, and
utilize budget management systems for proactive cost management.
• Unified business management for subsidiaries
Develop an integrated finance platform, incorporating peripheral systems like
OA, SRM, and equipment platforms. Standardize financial systems across
subsidiaries to reduce manual costs and data risks.
• Enhance procurement collaboration and efficiency
Establish data system connectivity across the supply chain. Facilitate
communication between inventory management and frontend procurement,
enhancing collaborative procurement planning for significant cost savings.
• Lay data foundation for industrial intelligent innovations
Expand the industrial chain upstream and downstream. Establish a unified
digital platform for global dairy industry ecosystem sharing, comprehensive
information ranches, and data-driven decision-making.
• SAP S/4HANA’s business-finance integration concept
• SAP S/4HANA’s seamless integration capabilities with OA and SRM
solutions
Modern Farming emphasizes PE CDC as a strong factor because of:
• its cloud-based service
• its high compliance
• its accurate cost estimate
• its flexibility and low TCO
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• Achieve precision management to cope with rising feed costs
Obtain detailed financial and herd data to establish a cattle value model, and
utilize budget management systems for proactive cost management.
• Unified business management for subsidiaries
Develop an integrated finance platform, incorporating peripheral systems like
OA, SRM, and equipment platforms. Standardize financial systems across
subsidiaries to reduce manual costs and data risks.
• Enhance procurement collaboration and efficiency
Establish data system connectivity across the supply chain. Facilitate
communication between inventory management and frontend procurement,
enhancing collaborative procurement planning for significant cost savings.
• Lay data foundation for industrial intelligent innovations
Expand the industrial chain upstream and downstream. Establish a unified
digital platform for global dairy industry ecosystem sharing, comprehensive
information ranches, and data-driven decision-making.
• SAP S/4HANA’s business-finance integration concept
• SAP S/4HANA’s seamless integration capabilities with OA and SRM
solutions
Modern Farming emphasizes PE CDC as a strong factor because of:
• its cloud-based service
• its high compliance
• its accurate cost estimate
• its flexibility and low TCO