MK Group: Preparing for an even sweeter future with standardized business processes based on industry best practices
Future-focused ERP to support intelligent operations
Holding company MK Group has a simple philosophy: “One vision. Smart decisions.” With the RISE with SAP S/4HANA Cloud Private Edition solution, it has improved its processes, optimized costs and efficiency, and enhanced data availability and security, proving that adopting the solution was a very smart decision indeed.
| Industry | Region | Company Size | Partners |
| Agribusiness | Vojvodina, Serbia | 4,000 employees | MK IT Business Solutions d.o.o., Eviden Serbia, and Hircunus d.o.o. |
of cloud ERP functions using best practices, cutting IT work.
digitalization of credit- and deposit-related activities.
day a month needed for ABAP development tools maintenance.
Director of IT and Technology, MK Group d.o.o.
Challenging existing processes to enhance efficiency
Holding company MK GROUP d.o.o. is an important driver of economic development in Serbia and southeastern Europe, with operations spanning agrifood, green energy, tourism, and real estate. Within the agrifood division, the Sunoko sugar business has a 70% market share in Serbia and is a regional market leader, while the agriculture business produces 220,000 tons of food each year and exports to 25 countries.
Global population growth, climate change, food insecurity, and broken supply chains mean agrifood businesses must increasingly use digital technologies to produce food. For MK Group, this includes using drones, robotic and self-propelled machines, and Internet of Things devices that measure crop growth as well as soil moisture, temperature, and quality. But to use these technologies effectively, the company needs connected IT systems that can nimbly collect and process data. To enable this, MK Group embarked on a transformative journey to upgrade its on-premise ERP landscape.
One of the challenges of maintaining the existing ERP system was the complexity of software management in a highly customized environment. Dejan Cupać, the company’s director of IT and technology, explains, “You have to take care of the entire infrastructure—the network, servers, security systems, licenses, access rights—everything that is not the ‘core’ business of MK Group. Our desire was to entrust that work to professionals and instead be users of business processes. We wanted to improve these processes by moving to ‘best practice’ as a concept that would allow a much faster transition and ERP implementation.”
Director of IT and Technology, MK Group d.o.o.
Adapting to industry-leading standards
A user of SAP solutions for more than 20 years and somewhat of a pioneer in Serbia when it comes to using the software, MK Group knew transitioning with RISE with SAP S/4HANA Cloud Private Edition was the logical next step for the company. The subscription-based model of SAP S/4HANA Cloud Private Edition would lower the total cost of ownership and help enhance data protection, cybersecurity, and business resilience. In addition, adopting the solution would allow the company to move to the cloud at its own pace and choose the environment best suited to its needs.
MK Group set out to define standard processes for member companies within the group, which it named the “model company,” so that it could tailor these processes to standard wherever possible. This would create benefits in terms of maintenance, usability, and adoption of the best practices recommended by a leader in ERP software.
The initial implementation, which took 11 months, covered the five key areas of financial accounting, controlling, materials management, sales and distribution, and treasury and risk management.
As well as MK IT Business Solutions, MK Group worked with Eviden Serbia, part of Atos Group, and Hircunus to help ensure a successful and smooth project.
Supporting growth by reenvisioning the way things are done
Having successfully implemented RISE with SAP S/4HANA Cloud Private Edition, MK Group now benefits from consolidated IT architecture at the group level, harmonized master data, and standardized, unified business processes based on best practices supported by SAP. From finance, controlling, sales, and logistics to production management, plant maintenance, and quality management, digitalized processes have created significant efficiencies across the business.
For instance, the best practices supported by SAP S/4HANA Cloud Private Edition mean developers are almost entirely freed from IT maintenance work. They can instead focus on areas such as interfaces, automation, print forms, development on SAP Business Technology Platform, and tools that add value to the business while keeping the core clean. MK Group has seen IT maintenance costs fall sharply, while customer satisfaction has increased due to more reliable and stable systems.
According to Cupać, “The main goal of introducing new systems and digital technologies is to focus on future solutions and on innovations, processes, and optimizations—not on maintaining the existing system. The moment you fall behind on maintenance, you’re falling behind on others. With SAP S/4HANA Cloud Private Edition, you get both product and processes and improve your own production and business.”
Meanwhile, the solution’s treasury and risk management functionality has enabled more-transparent processes and comprehensive digitalization of credit- and deposit-related tasks that used to be handled through spreadsheets and e-mail.
Combined with these enhanced processes, integrated document flows and real-time processing of large volumes of information enable faster and nimbler business decisions. MK Group has also realized IT infrastructure savings across data centers, servers, and backup systems while improving the security of both physical IT infrastructure and cybersecurity systems.
Cupać says, “Automation of business processes enables higher quality and greater operational efficiency. We can analyze current business processes, reengineer them, and digitalize them. Our factories have been operating for several decades, and the change in business processes has led to much better business results in terms of production and efficiency.”
On the importance of standardizing production processes, Cupać notes: “Finance, controlling, sales, and logistics are found in most companies, and these processes are easily standardized and managed. The challenge is how to translate the production process, which is quite different from company to company, to a standard ERP system. That is the benefit of SAP solutions. The processes predefined in SAP software represent best practices for us all. Our task is to try to fit our processes into those models. That way, programming is minimized, things are standardized, and we avoid high maintenance costs.”
In MK Group’s case, the sugar production process from field to laboratory is monitored by SAP software. GPS tracking observes the progress of trucks to a precise location in the factory, after which sugar beet volume and quality are automatically measured before processing occurs in the lab. Each of these processes is covered by SAP S/4HANA Cloud Private Edition, forming a comprehensive overview of operations.
Embracing the potential of the cloud
Bolstered by its successful ERP transformation, Cupać sees MK Group moving to cloud solutions where possible “because this increases business flexibility, system and data availability, and security.”
The next phase includes deploying SAP S/4HANA Cloud Private Edition in different production companies across the areas of production planning, plant maintenance, quality management, and warehouse management.
Specific plans involve using lean procurement processes to enhance transparency, cost-effectiveness, and supplier relationship management as well as plant maintenance processes to minimize downtime and enhance production-KPI tracking. Also on the agenda are improving visibility of production costs and enhancing investment management with better tracking of capital expenditure projects. MK Group also intends to explore industry solutions from SAP that address the needs of the sugar and agriculture businesses.
MK Group is a company that believes in “celebrating the future.” With an IT landscape built on the solid backbone of SAP S/4HANA Cloud Private Edition, this 40-year-old company knows the best is yet to come.
Featured partners
MK IT Business Solutions d.o.o. has successfully implemented SAP software for diverse companies in areas from internal and external trade, agriculture, and livestock farming to processing and production, investment management, and hotels. The company helped MK Group deploy standard, tested, and proven SAP software implementation methodology and project management.
Eviden Serbia, part of Atos Group, brings together world-class consultants to provide deep expertise across diverse industries. Eviden aims to expand the possibilities of data and technology across the digital continuum now and for generations to come. The company helped MK Group simplify adoption of SAP S/4HANA with a cloud-first approach, enabling business innovation.
Hircunus d.o.o. believes the best results come from a dedicated team of experts who can efficiently respond to clients’ business requirements. The company combines proficiency in SAP solutions and vertical industries with horizontal cross-industry expertise. It offered an integrated set of project management, functional consulting, and technical services tailored to MK Group’s needs.