Introduction
As global competition in the confectionery market intensifies, companies face increasing pressure to accurately identify shifting consumer preferences while significantly improving production efficiency. The Hershey Company, a leading global candy manufacturer, recognized the imperative of digital transformation and partnered with Accenture to implement SAP S/4HANA as part of a comprehensive strategic overhaul. This initiative represents more than a simple system upgrade—it's a fundamental reimagining of Hershey's supply chain, production processes, and customer insights designed to maintain market leadership.
Hershey's Digital Transformation Strategy
Hershey's engagement with Accenture marked an acceleration rather than initiation of its digital journey. Prior to this partnership, the company had already implemented digital solutions across operations, including intelligent sensors on production line extruders connected through Microsoft Azure and Office 365 platforms. These sensors captured real-time temperature, pressure, and speed data, enabling predictive algorithms that optimized equipment performance and reduced costs.
However, Hershey's leadership recognized that operational improvements alone couldn't address declining sales in a rapidly evolving market. The company needed deeper consumer insights to develop products aligned with changing tastes. This realization drove the decision to implement SAP S/4HANA with Accenture's support—a next-generation ERP system offering real-time analytics and data processing capabilities through SAP's HANA in-memory computing platform.
Accenture's Strategic Role
Accenture functioned as more than an implementation partner, serving as a transformation architect. Beyond system deployment, Accenture provided comprehensive consulting to streamline Hershey's business processes and maximize SAP S/4HANA's value. Their team developed customized solutions that integrated seamlessly with Hershey's existing infrastructure while addressing specific operational requirements.
The collaboration extended beyond immediate technical needs. Accenture helped establish a digital innovation center to explore emerging technologies like AI and advanced analytics, positioning Hershey for sustained competitive advantage. This forward-looking approach transformed the innovation center into an engine for continuous digital advancement.
SAP S/4HANA: The Transformation Engine
For Hershey, SAP S/4HANA became the cornerstone of enterprise-wide digital integration. The system's capabilities include:
- Enhanced production efficiency through optimized planning and reduced operational costs
- Streamlined supply chain management with real-time monitoring and inventory optimization
- Improved customer satisfaction via intelligent CRM systems
- Accelerated decision-making through unified data access across departments
- Facilitated innovation through emerging technology applications
The Microsoft-SAP Cloud Alliance
A strategic 2016 partnership between Microsoft and SAP enabled Hershey to deploy SAP S/4HANA on Azure cloud infrastructure, eliminating the need for dedicated servers while increasing operational flexibility. This collaboration exemplifies how cloud-based ERP solutions can reduce IT overhead while maintaining enterprise-grade capabilities.
Connectivity as Transformation Catalyst
Hershey CIO Carlos Amesquita identified connectivity as the linchpin of successful transformation. SAP S/4HANA serves as the central nervous system linking production, sales, and marketing data into a unified operational view. Beyond internal integration, Hershey strengthened connections with external partners including suppliers, distributors, and technology consultants like Accenture to create a responsive supply network.
Beyond Technology: Organizational Evolution
Hershey's leadership understood that digital transformation requires cultural and structural change alongside technical upgrades. The company established a dedicated Digital Transformation Committee comprising senior executives to oversee strategy and resource allocation. Concurrently, Hershey invested in workforce training and fostered an innovation culture encouraging employee-driven technological experimentation.
Future Roadmap
Building on its SAP S/4HANA foundation, Hershey plans increased investment in AI and advanced analytics while pursuing strategic partnerships with technology providers. This ongoing commitment positions the company to maintain industry leadership through continuous digital innovation.
Conclusion
Hershey's collaboration with Accenture demonstrates how strategic technology partnerships can drive comprehensive business transformation. The initiative highlights that successful digital evolution requires synchronized technological, organizational, and cultural changes. By implementing SAP S/4HANA while reshaping operations and workforce capabilities, Hershey is building an intelligent, efficient, and customer-centric enterprise positioned for sustained market leadership.