Cerradinho modernizes operations with SAP S/4HANA

01. Transforming Operations: The Success Story of Usina Cerradinho's SAP S/4HANA Migration

Usina Cerradinho, the bioenergy arm of the Cerradinho Group, has been producing ethanol and electricity from renewable raw material sources for over four decades. Headquartered in Chapadão do Céu, Goiás, we contribute to the development of the states of Goiás and Mato Grosso do Sul, particularly in the city of Chapadão do Sul, where we manage logistics operations through CerradinhoLog, the Group's Logistics division.

CERRADINHOBIO IN NUMBERS

• We generate approximately 4,000 jobs (direct and indirect).
• Our milling capacity is 6 million tons of sugarcane, enough to produce 530 million liters of hydrated ethanol per harvest.
• In 2016, we began our first expansion project, increasing our energy export capacity to 850 GWh, making us the largest biomass thermoelectric plant in Brazil.

02. Description and Objective

Usina Cerradinho, a prominent player in the renewable energy sector, embarked on a mission to modernize its business operations through migration to SAP S/4HANA.

With a project timeline spanning from September 27, 2022 to May 24, 2023 and a substantial data size of 1.5 TB, the goal was to seamlessly transition its existing SAP ERP 6.0 (EHP8 SP14) environment to advanced S/4HANA capabilities.

This journey aimed to unlock greater operational efficiency, improved financial management, and enhanced logistics processes. The project involved a comprehensive overhaul of its systems, including modules such as FI, AA, CO, FM, SD, MM, PS, PM, QM, PP, FSCM, LES-TRA and DMS, all hosted on the Oracle database. The challenge was to ensure a smooth transition without disrupting daily operations.

03. Solution and Approach

Our involvement in formulating the situation began with a thorough assessment of Usina Cerradinho's existing SAP landscape. To address the challenges, we leveraged MIGNOW, the world's first software for SAP conversion and upgrade, in combination with the Rise with SAP approach. The Brownfield conversion strategy was adopted to minimize disruption during the actual transition to S/4HANA. This phase included custom code corrections, ensuring compatibility with LES-TRA and implementing CLM (Contact Lifecycle Management).

Following the conversion, Phase 2 saw the activation of SAP DC (Inbound) and the implementation of Treasury and Risk Management (TRM). Additionally, large-scale integration was performed via SAP Cloud Platform Integration (CPI) to optimize data transfer and streamline business processes.

04. Results

The migration to SAP S/4HANA marked a turning point for Usina Cerradinho

The result was a modernized and efficient operational structure, aligned with industry best practices. With manual adjustments reduced representing only 1.3% of total modifications, the transition was remarkably smooth. Usina Cerradinho can now leverage the full potential of S/4HANA's capabilities for financial management, logistics, and contract lifecycle management. The project not only streamlined processes but also laid the groundwork for future growth and innovation.

05. Technical Aspects

The technical conversion included an upgrade from SAP ERP 6.0 (EHP8 SP14) to SAP S/4HANA, accommodating modules such as FI, AA, CO, FM, SD, MM, PS, PM, QM, PP, FSCM, LES-TRA and DMS, with Oracle as the database. The process also incorporated ABAP, BASIS, PI/PO, GRC IN, and GRC OUT as technical modules, all operating on NetWeaver Version 7.5. The entire migration was executed within a 1.5 TB database.

Usina Cerradinho's SAP S/4HANA migration is a testament to the successful collaboration between the company and our solution, emphasizing our commitment to delivering excellence in SAP migrations and paving the way for a more agile, efficient, and future-ready renewable energy company.