Successful S/4HANA Carve-out
By consolidating its R&D operations into a single unit, TRATON increases efficiency and streamlines collaboration.
The TRATON GROUP is a global leader in commercial vehicle manufacturing, representing the brands Scania, MAN, International, and Volkswagen Truck & Bus. Its product range includes trucks, buses, light commercial vehicles, spare parts, and related services. TRATON is committed to shaping the future of the transportation and logistics sector, focusing on sustainability, decarbonization, and digitalization.
To support this direction, TRATON is initially centralizing its R&D capabilities within three key national entities: Germany (MAN and Volkswagen Truck & Bus), Sweden (Scania), and the United States (International), with additional regions to follow.
CONSILIO previously assisted TRATON with its greenfield SAP S/4HANA implementation in 2022, which included carving out TRATON SE and two other company codes from the MAN system. The current project involved integrating the newly established R&D subsidiaries – comprising approximately 10,000 users – into the existing production system. This integration covers all finance operations and R&D project cost control. It also includes the whole purchase-to-pay process for indirect procurement.
Introducing SAP S/4HANA Brings Transparency to Finance, Controlling, and Procurement
Challenges
Tight Timeline
A fixed go-live date required detailed backward planning across all project phases. With only nine months to complete the project, the entire team operated under considerable time pressure. To stay on track, TRATON and CONSILIO assigned parallel stream leads who continuously reviewed and reprioritized tasks based on evolving needs.
Complex International Project Scope
Multiple countries, each with unique stakeholders, requirements, and regulatory conditions (such as U.S. tax rules), added to the project’s complexity. CONSILIO also managed the migration of master and transactional data from multiple legacy systems into SAP S/4HANA.
Change Management & Communication
Rolling out new SAP processes to 10,000 employees across international locations created significant change management demands. This required careful coordination and clear communication throughout the organization.
CONSILIO handled key user training and developed the training materials. As part of cutover management, CONSILIO also played a central role in coordinating communication before, during, and after go-live.
Project
Duration
Company
Codes
Technical & Systemic Challenges
CONSILIO supported the resolution of technical and system-level challenges throughout the project. This included leading the purchasing stream and deploying subject matter experts in finance, such as those supporting travel and expense (T&E) and payroll interface topics. Key activities included:
- Deployment of the current SAP template with minimal scope expansion, only where required
- Implementation of the Project System (PS) for R&D cost controlling
- Addressing finance-specific requirements, including U.S. tax regulations
- Standardizing self-service procurement and purchasing processes across three legacy systems (catalog-based procurement, free-text orders, and contract call-offs), including goods receipt workflows
- Introduction of SAP Cloud ALM (CALM) for application lifecycle management
We were already familiar with the strong SAP S/4HANA expertise of the CONSILIO team from previous projects. As expected, their expertise and flexibility were key factors in the successful carve-out of our R&D units into three independent national companies and their integration into our existing SAP S/4HANA system
Project Objectives
- Integration of three new national subsidiaries into the existing SAP S/4HANA system
- Carve-out of relevant data and business processes from multiple legacy systems
- Establishment of standardized processes for 10,000 users across three different legacy environments—both in terms of systems and operations
PROJECT ORGANIZATION
The project followed the SAP Activate methodology, with the implementation phase representing the largest effort. An iterative approach to implementing requirements allowed the project team to address new challenges quickly and efficiently.
Lean and Efficient Processes as a Result of Carving out R&D Expertise into Independent National Companies unlock hidden Potential.
Project Benefits for the TRATON Group
- Fully operational SAP S/4HANA system for newly established national subsidiaries at the time of their formation
- Integration with an external platform for R&D project cost controlling
