Mukwano Industries reaps benefits of Cloud transformation

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Leading East African conglomerate takes its core business systems to the Cloud to improve visibility across the organisation and unlock greater efficiencies in operations

Mukwano Industries is one of the great success stories of the Ugandan business world. From humble beginnings as a general dealer in Kampala in the 1980s, the company has grown into one of the leading FMCG conglomerates in East Africa, with interests that include manufacturing, agriculture and property development. Its products, ranging from petroleum jelly and detergents to cooking oil and soap; from drinking water to household and commercial plastics; can be found in every home across Uganda.

The major challenge for the company was that its technology infrastructure had not kept pace with its growth. It had implemented SAP ECC 6.0 back in 2008, and the now dated platform was creating a host of issues: numerous custom developments, plant maintenance and operations not implemented, and an enduring dependency on paper-based systems and Excel spreadsheets.

“We had data everywhere, but information nowhere,” says Mukwano CEO Tony Gadhoke. “This meant we had low cost insights and a growing need for operational efficiencies. Something had to give. So we decided to shed our legacy systems and move our core business processes to the Cloud using the SAP S/4HANA Public Cloud platform. In doing so, we aimed to leverage Cloud capabilities to improve technical and operational agility, enhance real-time visibility across the business, harmonise data, improve reporting, and enable future growth and innovation.”

There was just one catch: the business insisted on a rapid implementation strategy to reduce the amount of time and resources needed, by around 35%, to implement the project. In effect, this meant replacing Mukwano’s core systems and training the necessary people to be able to go live, within five and a half months.

There were a couple of factors working in Mukwano’s favour: the company wanted a “best practices” SAP system, which meant minimal customisation time. And partner iMark Technologies’ ‘zero fat’ approach to getting projects done, combined with Mukwano’s highly structured project management approach, ensured the implementation never deviated from its time scale for a moment.

“Apart from the incredibly tight timeframe for the implementation, our biggest challenge was that we were changing the organizational structure completely to align to the SAP system. This meant we had to ensure the right people were in the right positions. To ensure immediate buy-in and adoption of the new system by its users, we ran extensive training sessions every day, with ongoing monitoring of skill absorption, to ensure as high a level of ownership as possible,” said Gadhoke.

This meant cancelling all leave for the duration of the project – including over Christmas and New Year – to ensure every individual was onboard and the project didn’t deviate from the timeline. “It was tough, but we had no choice. There was no room for a redo, and we had to make sure we got it right first time,” said Gadhoke.

Ultimately, the effort was worth it, with the results of the implementation exceeding Mukwano’s already high expectations. In a first for Uganda, the business put its core business systems into the Cloud by the agreed deadline, with minimal disruption to the business. The company has already seen significant gains in productivity and faster time to market. It has greater visibility into its operations than ever before, through an intuitive, unified platform from which it can oversee its business operations from end-to-end. It has also seen a ‘huge’ reduction in capex on its server infrastructure and IT resources.

Gadhoke said partner iMark Technologies’ experience in the digital transformation of organisations in the East African region was critical to the success of the project. S Iyer, the managing director of iMark, said: “It has been very exciting for us to see how organisations like Mukwano are realising the promise of digital transformation by leveraging SAP technologies and solutions to effect transformational change.

Mukwano has already been able to achieve significant progress in its operational excellence with S/4 HANA, thanks to the incredible analytics functionality that has been unlocked. “The next steps in our journey will be to focus on people performance and excellence. But we’re confident that we have the right platform in place to take the business to the next level,” said Gadhoke.

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