Milestone for the Digital Transformation| Successful Launch of Huabao SAP ERP Phase I Project

With the successful completion of the monthly financial report of H&K Flavours & Fragrances on January 28, 2022, Huabao SAP ERP Phase I Project realized the comprehensive closed-loop operation among the headquarters and 20 subordinate enterprises for the first time, marking the successful launch of Huabao SAP ERP Phase I Project, a solid step for Huabao to transform from informatization to digitization.

The implementation of SAP ERP Phase I Project is an important part for Huabao to uphold the enterprise mission of “Green, Nutritious and Healthy” and drive comprehensive industry upgrading, and also the development cornerstone for the company to focus on “scientific and technological innovation” and “integration of industry and finance”. The implementation of this project has helped build the overall architecture of the integrated digital management platform for Huabao. Through integration of business and finance, the differentiated management and control mode that can adapt to different business scenarios has been realized; and the “upstream and downstream” of the business and the “front, middle and back platforms” of the functions have been deeply integrated, which comprehensively enhances the competitiveness of the company in the whole industry chain, thus to further strengthen the company’s operational efficiency, analytical ability and control ability for “endogenous growth” and “extensive development”.

In July 2021, Huabao joined hands with Ernst & Young (China) Business Advisory Service (hereinafter referred to as “EY”) and launched the SAP ERP Phase I Project. Relying on SAP’s excellent business practice and EY team’s professional implementation experience, the business processes related to Huabao were comprehensively combed in the SAP ERP Phase I Project. It finally formed a financial accounting handbook of hundreds of thousands of words, 126 business blueprint processes, 68 supporting improvement items and 55 key report forms, achieved full connection with the company’s existing management system, and completed comprehensive sorting and reshaping of the company’s management system.

Meanwhile, the SAP ERP Phase I Project has been the largest cross-organization and cross-department collaboration in the history of Huabao, involving a total of 21 companies and spanning production, procurement, sales, finance, information and other departments. The SAP project is also the first “West Point Military Academy” for “talent digital transformation” in the history of Huabao, which has cultivated more than 30 expert talents who both understand digitization and excel in business for each business segment of the company and a group of backbone force for the company’s digital transformation.

In 2022, Huabao will continue to promote the digital transformation of all business segments. In the future, the company will continue to deepen digital construction, continuously improve the company’s ability in management and control, business analysis and internal-external coordination, comprehensively lift the overall operation efficiency of the company, and build a digital ecological platform for “Flavoring Your Life”.