Case New

Holland

Accenture helps Case New Holland Drive High

Performance with an SAP-based Service Excellence
Parts Management Solution

Case New Holland is a leading manufacturer of agricultural and construction

equipment. Its products are available through a network of more than 10,000 dealers
in nearly 160 countries.

Business challenge
Accenture’s experience and ongoing research into the characteristics of high-
performance businesses reveal that these companies compete on competency. That
is, they focus on mastery, innovation and differentiation in strategically critical areas
of their operations. For industrial equipment manufacturers, one of the most
important areas of operations is the service excellence business. It is easy to
understand why this is the case. While post-sale parts and services typically account
for only 10 to 25 percent of sales, these service excellence areas can generate 25 to
50 percent of a company’s profits.
 In its efforts to become a high-performance business, Case New Holland recognized
the need to improve its service excellence productivity and efficiency—especially in
the area of logistics management. As a result of the merger between Case and New
Holland in 1999, the company found itself with a portfolio of different brands—each
with its own logistics and parts-management systems, as well as different processes
and ways of working. This disjointed and confusing method of managing parts and
logistics was particularly frustrating, time consuming and inefficient for the company’s
dealers. In addition, managing this network of multiple systems was growing
increasingly expensive.
To reduce costs, improve dealer satisfaction and enable more effective inventory
management practices, the company decided to adopt a common parts-management
system based on SAP R/3, an integrated software solution for client/server and
distributed open systems. The goal was to harmonize parts-related business
processes across the company’s European operations and provide a business-to-
business portal through which dealers could more efficiently manage the movement
of spare parts.
For help in designing and implementing this ambitious solution—and also managing
the solution on an outsourcing basis—Case New Holland turned to Accenture. There
were several reasons for this decision. Accenture is a top SAP alliance partner with
deep industry, logistics, supply chain management and application management
outsourcing experience. Equally important, Accenture offers a one-of-a-kind industry
solution focused on transforming automotive and construction equipment companies’
spare parts distribution practices. Finally, Accenture had developed an effective
working relationship with the client through a number of previous projects with the
company.

How Accenture helped

Accenture quickly teamed with Case New Holland to develop a comprehensive
solution for parts marketing, sales and distribution. The joint team selected the
Accenture Parts Enterprise Architecture as the cornerstone application best suited to
optimize the client’s service and stock levels. This Accenture proprietary, SAP-based
solution optimizes every element of the service parts life cycle and extends the value
of SAP’s parts-management solution. It also addresses key areas where shortfalls
typically occur, such as technical architectures for high-volume logistics,
dealer/distributor/retail integration, warehouse management integration, customized
billing and integration with multiple third-party systems. At the heart of Parts
Enterprise Architecture is the industry and strategy know-how that reflects
Accenture’s 10 years of global experience in service parts. Layers of technology
assets and related processes lower the risks and costs of implementation, while
driving additional value in the company’s service excellence business.
As a first step toward implementing Parts Enterprise Architecture, the
Accenture/Case New Holland team relied on resources from the Accenture Delivery
Center in Turin, Italy, to develop an architectural blueprint of the proposed solution.
Next, the team developed a solution prototype that adapted the Accenture Parts
Enterprise Architecture solution to fulfill the industrial equipment manufacturer’s
specific order-processing requirements. The prototype system, which was tested in
three client sites (Italy, France and Germany) and 185 dealer facilities across Europe,
included the following SAP application components:

* Materials Management (MM). This module supports most of the phases of the
client’s materials management, including purchase order processing, goods receiving
and inventory evaluation.

©2006 Accenture All rights reserved. 2

 * Sales & Distribution (SD). This application component supports the client’s global
sales and distribution activities, including pricing, order processing, delivery
monitoring, billing, credit and risk management.
* Business Warehouse (BW) and Strategic Enterprise Management (SEM).
These modules offer state-of-the-art price simulation capabilities, enable data
integration on a common platform, and support flexible reporting and analysis.
Armed with the success of the pilot, the client and Accenture began to roll out the
complete solution across the client’s European operations. Again relying on the
Accenture Delivery Center in Turin, the team customized and tested the SAP solution
and then integrated the solution with six of the client’s legacy systems, including
demand and inventory planning, finance and purchasing. The use of Accenture
delivery center resources increased the speed of solution delivery by approximately
30 percent. The final migration of legacy data to the new system is now under way.
When the project is complete, Accenture will continue to provide application
maintenance services on an outsourcing basis. At the end of the transformation
program, five client European parts operation centers and more than 4,000 dealer
facilities will adopt the new parts application solution.

High performance to be delivered

With Accenture’s help, Case New Holland is developing a standardized approach to
service excellence parts management and logistics across its brand portfolio. The
new enterprise-wide SAP system will enable:

* Inventory transparency across the supply chain.

* Greater stock efficiencies.
* Improved dealer satisfaction.
* Improved integration with external systems such as inventory planning and finance.
* Common and unique reporting suite, based on agreed key performance indicators
across different countries and brands.
The Accenture-led solution will also help the client realize savings through lower-cost
application management outsourcing and by eliminating disparate applications that
the client previously needed to maintain. The use of Accenture’s Parts Enterprise
Architecture is also expected to contribute to cost savings by generating up to 40
percent savings in solution design and implementation.
These benefits, in turn, are expected to translate into better customer service, greater
customer satisfaction and increased revenues due to increased dealer loyalty.
Clearly, with its superior service excellence parts-management capability, Case New
Holland will be well on its way to achieving high performance.

About Accenture
Accenture is a global management consulting, technology services and outsourcing
company. Committed to delivering innovation, Accenture collaborates with its clients
to help them become high-performance businesses and governments. With deep
industry and business process expertise, broad global resources and a proven track
record, Accenture can mobilize the right people, skills and technologies to help clients
improve their performance. With more than 129,000 people in 48 countries, the
company generated net revenues of US$15.55 billion for the fiscal year ended Aug.
31, 2005. Its home page is www.accenture.com.

©2006 Accenture All rights reserved. 3