Chicken kebabs served in pitta bread with salad and lime slices.

MHP: Building a best-in-breed company in a challenging environment by nimbly adopting next-generation ERP

Logo of Customer MHP, an SAP customer

Explore MHP’s journey with SAP

Adopting a new ERP solution can be difficult, even at the best of times. Thanks to the RISE with SAP journey and a team of dedicated employees, international food and agriculture company MHP Group was able to speedily deploy SAP Cloud ERP Private, helping it integrate, unify, and enhance its worldwide operations.

IndustryRegionCompany Size
Agribusiness and foodSlovenia, Serbia, Croatia, and Bosnia and Herzegovina>36,000 employees
~93%

on-time, accurate delivery due to better stock management.

~85%

accuracy of planned targets.

5%

reduction in production costs.

We accomplished in just six months a journey that normally takes companies of our size much longer. And with a corporate template based on SAP solutions, rollouts to new assets now take weeks instead of months, saving resources.
Kateryna Kulish
Program Manager, MHP Group

Connecting a fast-growing business using standardized processes

MHP Group is an international company in the food and agritechnology sectors, with production facilities in Ukraine and southeastern Europe. MHP exports its products to more than 80 countries.

 

MHP has expertise in fully integrated vertical and horizontal management systems in grain production, poultry production (the largest in Europe), oilseed processing (protein meal and oils), retail, logistics ownership and management, and conversion of waste to electrical energy.

 

With more than 36,000 employees, MHP manages a land bank of 360,000 hectares across 12 regions in Ukraine. The company develops over 15 product brands and, together with its partners, runs several retail chains, including MeatMarket stores and Döner Market restaurants. MHP also operates a Culinary Center.

 

In collaboration with its strategic partner, the charitable foundation MHP-GROMADI, MHP is actively engaged in community development. The company is also fostering the MHP Standing Together program to provide personalized assistance and comprehensive support to military personnel, veterans, their families, and those awaiting the return of their loved ones from the front lines.

 

Against this backdrop, MHP also faced an integration challenge, having acquired Croatia-based Perutnina Ptuj PIPO d.o.o., the largest poultry producer in the Balkans.

 

All of these factors combined meant MHP urgently needed an IT solution that would help it conduct business across multiple countries efficiently and consistently.

We strive to achieve technological leadership in our industry. RISE with SAP has significantly shortened this path for us.
Dubravko Folnović
CEO, Perutnina Ptuj PIPO d.o.o. (an MHP Group company)

Quickly deploying a suite of software solutions

To access tailored-to-fit cloud ERP that could adapt to its needs, increase flexibility, and enable the latest best practices, MHP decided to migrate from SAP S/4HANA to the SAP Cloud ERP Private package.

 

Kateryna Kulish, MHP Group’s program manager, explains: “We employed a big-bang rollout strategy. It sounds complex, and it truly was, especially considering the external challenge we faced. The start of a full-scale war in our country had a direct impact on our Ukrainian team members. This project would not have been possible without our employees taking responsibility at critical moments to keep it moving forward.”

 

The required speed would also not have been possible without RISE with SAP. As Kulish explains, “There are many ways to increase productivity across all business lines. We chose the shortest path, using the stack of cloud solutions offered by RISE with SAP.”

Improving planning, visibility, and consistency across diverse functions

MHP deployed SAP Cloud ERP Private in Croatia, Serbia, Slovenia, and Bosnia and Herzegovina in just six months, an astonishing feat, given the situation in Ukraine.

 

Now, production management, personnel management, warehousing, sales, finance, and planning and analytics are covered by SAP solutions with SAP Cloud ERP Private at their core, and production and sales work as one team. The company has been able to shift from short-term operational planning to midterm (two to five years) and long-term (more than five years) planning. This increases predictability, flexibility, and the ability to develop and correct a longer-term strategy. MHP can better compare actual material consumption with target consumption and has enhanced stock management from order to final delivery, significantly increasing the accuracy and timeliness of deliveries.

 

According to Dubravko Folnović, CEO of Perutnina Ptuj, “We oversee and manage the production chain from egg to product on store shelves across Europe using SAP software. Currently, no other company in our industry worldwide uses the SAP solution portfolio to the extent that MHP does.”

 

This comprehensive approach increases transparency and consistency, with real-time, KPI-based production monitoring as well as traceability from breeding egg to delivery of broilers for slaughter. MHP has reduced the risk of payment fraud, enabled more-efficient risk management, standardized processes, improved master data management, and cut time spent on invoicing and group reporting.

 

Kulish notes that the company now intends to deploy SAP Cloud ERP Private more widely across the enterprise. A testament to a speedy and successful project, this next implementation wave will further strengthen MHP’s ability to confidently address whatever challenges may lie ahead.

Want to know more about MHP?

  • MHP: Building a Best-in-Breed Company in a Challenging Environment by Nimbly Adopting Next-Generation ERP (SAP video)

  • MHP: End-to-End Processes Optimization along the Entire Value Added Chain with SAP Meat and Fish Management by msg (SAP video)

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