November 19 was Food, Agriculture, and Water Day at COP29, the United Nations Climate Change Conference. The day was dedicated to highlighting the crucial role of sustainable food systems in addressing climate change and how agricultural practices, food production, and consumption habits affect emissions, deforestation, biodiversity loss, and water use.
Players at every stage of the food chain can influence the shift away from harmful practices. Many are striving to achieve greater efficiency and sustainability through innovation, data-driven decision-making, and streamlined processes. For most, technology is the key enabler.
Two exemplary companies leading the way are KWS SAAT SE, a German seed producer, and New Zealand-based Zespri Group Limited, the largest marketer of kiwi fruit in the world.
Seeding the future since 1856
With 84 subsidiaries and almost 5,000 employees worldwide, KWS has been a trusted partner to farmers for generations. From development to production and sales, the company breeds high-performance seeds for a variety of crops that meet the most diverse requirements in temperate and tropical climates. KWS’s seed inventory, for example, includes about 1.3 million seed samples.
According to Jens Hittmeyer, CIO of KWS SAAT SE, the company strives to be sustainable because the earth is not just for the current generation but for future ones as well. In a recent video statement, Hittmeyer explained how KWS is transforming with SAP S/4HANA Cloud Private Edition for process optimization and harmonization.
“The way we contribute to the needs of the world population is by constantly improving genetic potential through research and breeding programs,” he said. The company also offers expert services to farmers to help them choose the right solutions to beat the heat, profit from pests, and use catch crops to their advantage.
To help them on this mission, the company has implemented a clean core strategy with SAP Business Technology Platform (SAP BTP), industry solutions such as the SAP Intelligent Agriculture solution, and AI capabilities. These technologies help KWS further digitalize business processes and implement sustainable agriculture practices.
“We needed a strategic partner with a proven methodology to drive our digital transformation in regard to process optimization and harmonization,” said Hittmeyer. Key advantages provided by the clean core SAP BTP delivered through a global template include new tools and more features that will help KWS better react to user or market demands.
Although its use is still in the early stages at KWS, AI will definitely be a key solution for the future. Finding answers to questions such as how to grow more with less will be done with AI and through further collaboration with partners and customers.
Delivering from orchard to plate
The other company making exemplary use of technology is Zespri, the producer of world-renowned kiwi fruit. Kiwi consistently ranks as one of the most nutrient-rich fruits available, supporting good health on a daily basis. Its impressive nutrition profile supports many avenues of health, including digestion, weight management, and blood sugar control.
Zespri does business in over 50 countries. It works with around 2,800 New Zealand and 1,500 international growers and post-harvest companies to source the best-quality fruit for distribution through its wholesale and retail partners and customers. An SAP customer for over 20 years, digitalization is the underpinning company strategy for overall supply chain excellence.
“Everything we do in our business has a technology element and needs to be enabled by modern platforms and processes,” said Dave Scullin, chief digital officer at Zespri, in a recent video interview.
He was describing the company’s business transformation with the RISE with SAP offering, using SAP S/4HANA Cloud Private Edition, the SAP Integrated Business Planning for Supply Chain solution, the SAP Commerce Cloud solution, and other offerings to transform business processes.
Scullin explained that Zespri chose SAP because it provides the capability and technology enablement for a business of such breadth. The new solutions have completely transformed Zespri’s offshore supply chain, so that SAP S/4HANA Cloud Private Edition impacts the process from the moment the fruit goes out to market. The new solutions were implemented through a company-wide program named Horizon, which was designed to transform entire lines of business in the company, from finance to quality management and customer claims management processes.
Having an integrated supply plan based on accurate forecasting to match supply and demand is a critical element for success. The company was formed in the 1980s to specifically address the challenges of the kiwi fruit industry at that time when rapid expansion and large crop volumes dipped the price of the fruit to an all-time low. Local growers were badly affected, leading them to take action in the form of a new company.
Besides improving the supply and demand matching process, Scullin said the company also gained broader efficiencies in the fruit inspection area. It was also able to markedly reduce touch points in purchase-to-pay invoice processing to pay vendors more quickly.
“There were a number of clear reasons we chose RISE with SAP. For us, it was a matter of buying into a strategic road map developed by SAP to access innovations over time,” said Scullin. He explained that Zespri did not want to be bogged down by complexity or worry about either its own infrastructure installation or that of a hyperscaler.
“We didn’t want to waste time, money, or energy putting up a firewall around a hyperscaler,” he said. “We prefer to invest in the business transformation and change management that often go along with large-scale transformation programs. RISE with SAP also fit the bill in terms of cost effectiveness.”
With the right kind of technology, these companies are leading the way toward greater efficiency and sustainability.
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