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<h5><b>Manufacturing case study</b></h5>

Vorwerk transforms its business model in eight countries with SAP S/4HANA

Cognizant-led SAP S/4HANA program supports the maker of Thermomix and Kobold appliances to adopt a Limited Risk Distributor model, with an AI-enabled digital sales platform for faster growth.

a women wearing apron holding glass in kitchen
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<h3 class="m-0 pb-1"><b>At a glance</b></h3>
<p><span class="text-accent1-light"><b>Industry<br> </b></span>Manufacturing</p> <p><span class="text-accent1-light"><b>Location</b><br> </span><span style="line-height: 26.0px;">Germany &amp; Switzerland</span></p> <p><span class="text-accent1-light"><b>Challenge</b><br> </span>More than a migration, consolidate eight countries onto a single cloud-hosted SAP S/4HANA platform to enable the strategic shift from a commissionaire to a Limited Risk Distributor model.</p>
<p><b><span class="text-accent1-light">Success Highlights</span></b></p> <ul> <li><b>On-time, within-budget, high-quality delivery</b> with externally-validated 99.9% data quality</li> <li><b>AI-enabled platform for growth</b> with harmonized financial and inventory management</li> <li><b>Transformed business model</b> from a commissionaire to a Limited Risk Distributor model</li> </ul>

The challenge

Founded in 1883 and headquartered in Wuppertal, Germany, the Vorwerk Group is a family-owned manufacturer of premium-quality appliances and related services. With operations in more than 60 countries, Vorwerk’s Thermomix kitchen appliances and Kobold vacuum cleaners are known and trusted throughout the world, generating annual sales of over three billion euros for the group.

Vorwerk is Europe’s leading direct sales company and a global leader in premium household appliances. With over 80% of European revenue driven through independent sales partners and digital commerce channels, the company recognized the need for a large-scale SAP® migration to enable a unified, scalable business model across eight core European markets: Germany, Austria, France, Switzerland, Italy, Portugal, Poland and Spain.

An opportunity to streamline business operations with SAP S/4HANA

Vorwerk’s sales and order management processes are key to the company’s success. It had long relied on highly custom-developed SAP ECC instances for managing relatively complicated commissionaire processes. This introduced significant complexity into intra-company order, delivery and invoicing processes as well as group reporting. Limited visibility of inventory led to capital being tied up in stock and created challenges around timely trade declarations. Lack of visibility into local profit and loss (P&L), especially cost of goods sold (COGS), made it hard to forecast results and gain transparency over business development throughout a business year. The legacy landscape also limited scalability during peak demand periods

With SAP ECC end-of-life approaching, Vorwerk saw an opportunity to streamline its business operations. It opted to consolidate and standardize sales and order management for eight countries on a single, AI-enabled SAP S/4HANA® platform in the cloud. This would support a strategic move from a commissionaire model to a Limited Risk Distributor (LRD) model, as well as full ownership of P&L for faster decision-making.

<div class="pt-1"><p>This was a major, multiyear, selective data transition that required deep expertise in SAP S/4HANA, cloud transformation and business process reengineering. Key to success would be the migration of 20 years of business data from each country and the smooth migration of more than 200 integration points with other SAP and non-SAP systems, including those of external logistics providers. Vorwerk turned to its trusted and long-standing partner Cognizant to plan and deliver the project.</p> </div>
<h3><span class="text-accent2-dark"><b>Our approach</b></span></h3> <p>More than just a migration, the program would establish a unified commercial backbone for growth, resilience and consistent operation across eight countries.</p>
<p>We approached the project in two key phases, four countries at a time. Our roadmap for each phase included Microsoft Azure cloud infrastructure configuration, SAP S/4HANA configuration including the activation of simplification items, systems migration covering all third-party integrations and selective data migration. Extensive testing meant that both phases went live on time, in a single weekend cutover each time, with no disruption to business operations.</p> <p>To accelerate adoption while protecting business continuity, Vorwerk used a selective data transition approach, combining targeted data migration with harmonization of finance foundations (including chart of accounts and the Universal Journal) and controlled interface migration to minimize risk and downtime.</p>
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<p class="pt-1">As an enabler of Vorwerk’s new LRD model, highlights of the SAP S/4HANA migration included:</p> <ul> <li><b>Automated trade compliance:</b>&nbsp;Previously, Vorwerk gathered data manually for cross-border customs declarations, creating a significant administrative workload with a risk of human error. We fully automated data gathering for trade management and Intrastat disclosures, ensuring on-time customs compliance with zero local variance.</li> <li><b>Real-time inventory visibility:</b>&nbsp;A lack of real-time inventory visibility meant Vorwerk had to keep higher levels of stock on hand to ensure orders could always be fulfilled. We enabled real-time synchronization between SAP S/4HANA and the warehouse management systems (WMS) of Vorwerk’s third-party logistics (3PL) providers, ensuring real-time visibility and reducing safety stock requirements.</li> <li><b>Working capital optimization:</b>&nbsp;Limited insight into stock ownership meant Vorwerk had a lot of capital tied up in inventory in transit. We implemented the Limited Risk Distributor (LRD) model for working capital optimization, enabling real-time visibility of stock ownership during intra-European transit points, reducing frozen capital.</li> <li><b>Automated 3PL interfacing:</b>&nbsp;Vorwerk relies on 3PLs to distribute stock and deliver orders. We drew on Ariba and SAP S/4HANA to automate interfaces with 3PL and freight invoices, ensuring contract compliance for all eight countries.</li> <li><b>Faster access to products for sales partners:</b>&nbsp;Availability of inventory across all eight countries means an order taken by one sales country can be fulfilled from inventory held in another country if the stock isn’t available locally, accelerating delivery timescales. Thanks to the transit points, the overall fulfillment has been speeded up.</li> <li><b>End-to-end lead-to-order visibility:</b>&nbsp;Supports faster, more consistent commercial execution across countries.</li> <li><b>Scalable&nbsp;cloud foundation: </b>Designed to handle peak demand events (such as Black Friday and seasonal order spikes) without disrupting the customer experience.</li> </ul>

“The SAP S/4HANA-led transformation was a business-critical project for Vorwerk. Any delay or data quality issue could have seriously impacted operational continuity. We had full confidence in Cognizant’s ability to deliver on time and to the highest quality, and they didn’t let us down. I’m grateful to the whole team for their efforts and for the fantastic outcomes achieved.”

—Christian Horschinegg, Senior Vice President, Business Transformation, Vorwerk
<h3><span style="font-weight: normal;"> <b><span class="text-primary"><i></i>Business outcomes</span></b></span></h3> <p>With eight countries live on SAP S/4HANA, Vorwerk has realized its goal of standardizing and streamlining sales and order management for improved business efficiency. The successful SAP S/4HANA migration has supported its transition to an LRD model, giving in-country operations greater autonomy, while providing increased visibility and control of supply chain, inventory and financial flows at Group level.</p>
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<p>Tangible outcomes achieved to date include:</p> <ul> <li><b>On-time, within-budget, high-quality delivery:</b>&nbsp;Cognizant delivered this complex, large-scale SAP-enabled transformation within the target timescale and budget, and with externally-validated data quality of 99.9%.</li> <li><b>AI-enabled “One Sales” platform for growth:</b>&nbsp;More than 200 interfaces have been migrated to a cloud-native, AI-enabled SAP S/4HANA backbone, enabling consistency of processes across countries and channels, and ensuring scalability for demand peaks and future expansion.</li> <li><b>Transformed business model:</b>&nbsp;eight sales countries can now own, buy and sell inventory directly, supporting Vorwerk’s shift to the LRD model.</li> <li><b>Improved customer experience:</b>&nbsp;online and direct orders are now fulfilled faster, improving customer experience and enhancing Vorwerk’s reputation for quality.</li> <li><b>Harmonized financial management:</b>&nbsp;Vorwerk now benefits from a universal journal for eight countries with an integrated digital core across finance and procurement, optimizing working capital and enabling more accurate forecasting.</li> <li><b>Leaner inventory management:</b>&nbsp;Country-level inventory ownership with shared global visibility has enabled 100% accurate, on-time trade declarations, while automated 3PL interfacing has reduced logistics leakage, improving Vorwerk’s bottom line.</li> </ul>
A transparent, agile business model with a scalable technology foundation

By working with Cognizant to migrate to SAP S/4HANA, Vorwerk has established a flexible, future-proof and AI-enabled platform for growth across eight European countries. The new platform has supported Vorwerk’s strategic move to a value-driven distribution model, in which independent sales partners have local ownership and control of supply chain, inventory and financial management, enabling faster and more impactful decision-making. At Group level, Vorwerk benefits from enhanced margin visibility, greater financial control and simplified regulatory compliance. A business model that had grown complex and opaque is now transparent and agile, with standardized processes and a powerful technology foundation that can scale to accommodate future growth.

8

countries moved to a new business model

99.9%

externally-validated data quality

100%

accurate automated trade declarations

Vorwerk transforms its business model in eight countries with SAP S/4HANA
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