SAP S/4HANA implementation at HIL GmbH
More efficient processes, faster maintenance, and a future-proof IT landscape
At a glance
Military Service Provider
Headquarters Bonn
3.047 employees
Approx. € 630 million in annual turnover
The company
HIL Heeresinstandsetzungslogistik GmbH (HIL) is a leading company in military logistics and maintenance in Germany. As a wholly-owned subsidiary of the German government, HIL GmbH serves the Bundeswehr and is responsible for maintaining and modernizing large-scale military equipment for use. With over 3,000 employees at more than 70 locations nationwide, HIL GmbH provides reliable logistical support through its extensive service network.
Dealing with public administrative structures, particularly within the Bundeswehr, and breaking up old processes is time-consuming and involves lengthy decision-making phases. Nevertheless, we pushed ahead with introducing SAP S/4HANA in the greenfield and successfully implemented the first two.
Thomas Laudor,
Project Lead of the S4 project at HIL GmbH
The challenge
At the beginning of the 2020s, HIL was under increasing strain from its existing IT structures. The global political situation was changing rapidly. Consequently, the volume of maintenance measures for the Bundeswehr's weapon systems increased significantly. The existing SAP system, which HIL had taken over from a former consortium member in the early 2000s, was not prepared for these new requirements. Maintenance and spare parts management were organized using outdated processes that could not meet current logistical and technical requirements.
Additionally, the system was not scalable enough to support the planned growth. HIL expected maintenance hours to increase from approximately 3.5 million to 5.8 million per year by 2031. The number of supported systems and devices was also expected to grow from 28,500 to approximately 38,500. Another problem was warehouse management: while the plants were managing at the storage bin level, many smaller bases did not have a precise overview of their stock. This resulted in time-consuming searches and inefficient material flows.
Over two decades, the old SAP landscape had continued to branch out through customizations and special solutions. Consequently, processes had become inefficient over time. Many tasks, such as recording working hours or managing the procurement process, still required manual work or cumbersome paper processes. Without a fundamental overhaul, modern, efficient, and secure maintenance logistics were no longer possible.
Furthermore, it was foreseeable that existing operating sites would have to be expanded or converted to multi-shift operation due to increasing repair requirements. Therefore, HIL needed an IT solution that would establish a robust foundation for the future, both technically and organizationally. In the sensitive field of defense technology in particular, it was essential to comply with the highest data protection and IT security requirements. For security reasons, cloud solutions were ruled out. Instead, a modern, scalable system had to be created that could be operated entirely on-premises.
The solution
abat chose a greenfield approach with SAP S/4HANA. Best practices were used based on the SAP Activate method. The new system covers all relevant business areas, including Asset Management, Finance, Human Resources, Service, Supply Chain, and the Defense & Security industry solution.
Particular emphasis was placed on introducing SAP Central Finance, SAP EWM for warehouse logistics, and SAP SuccessFactors for HR management. Additionally, the SAP Business Technology Platform (BTP) was used to securely and efficiently connect mobile scanners and devices. A specially developed diagnostic tool allows for paperless maintenance recording directly on the vehicle. The Fiori First strategy ensures users can work via modern, intuitive interfaces.
With this solution, HIL was able to standardize processes, drive digitalization, simplify day-to-day work, and optimize the system landscape.
The project
After receiving the go-ahead at the end of 2021, the first few months were dedicated to conceptualization. HIL's requirements were recorded in the Fit2Standard analysis and compared with SAP best practices. The goal was to adhere closely to the SAP standard while meeting the defense technology sector's specific requirements.
Implementation began in May 2023. During this phase, the system was adapted to HIL's needs. A decisive milestone was the first go-live on January 1, 2025, which included the introduction of SAP Central Finance and the initiation of productive master data processes. This enabled all financial documents to be processed and consolidated in the new system, even those originating from the old system. In February 2025, the next step was taken: general procurement and invoicing went live in the S/4HANA system.
The "Service" line of business will be implemented in August 2025. At the same time, over 90 percent of the interfaces will be connected to the new system. The biggest logistical challenge lies in migrating around 80 plants and bases. A staggered approach was chosen for this. All plants will be connected to the new system in four rollout waves by the end of the year.
Each rollout includes a regional group of bases and at least one large plant. Operating both the old and new SAP systems in parallel during this phase was particularly challenging. This minimized the risk of complete failure.
At its peak, the project team consisted of approximately 130 people, including about 80 consultants and developers from abat. HIL and abat worked closely together, characterized by open communication and a clear focus on problem solving. Although decision-making processes in public organizations often took longer, they always collaborated to implement solutions quickly. A compliance training course at the start of the project ensured that everyone was on the same page regarding rules of conduct – an experience that left a lasting impression on abat. For instance, HIL managers explained that an invitation to a meal was perfectly acceptable, as was a currywurst, but a meal at a Michelin-starred restaurant was not. At the next project meeting in Bremen, this rule was put into practice at a food truck.
Outcome
Significantly faster recording and processing of maintenance orders using mobile devices.
More precise warehouse management with SAP EWM and storage bin logic instead of storage location logic.
Improved transparency for orders and costs thanks to order-related procurement processes.
Greater system stability and future-proofing thanks to the modern SAP S/4HANA architecture.
The results
Today, HIL has a modern, stable, and future-proof SAP S/4HANA environment. The introduction of mobile devices and new reporting tools has significantly streamlined daily work in the workshops. Work hours and activities are recorded directly on the vehicle. Long journeys to terminals and paper forms are a thing of the past.
Materials management has also become much more efficient. With the implementation of SAP EWM, spare parts can now be managed precisely at the storage bin level. Search times have been greatly reduced. Spare parts orders are order-related and system-controlled, preventing the accumulation of uncontrolled stock levels. Meanwhile, integrated cost control ensures maintenance measures are checked early if cost limits are exceeded.
SAP BTP guarantees a secure connection for mobile devices without endangering sensitive data. Maintaining parallel systems is no longer necessary. The Fiori First strategy simplifies processes for new employees and promotes acceptance of digitalization.
For HIL, the new SAP system means a significant increase in efficiency and transparency. It also provides an important foundation for future growth and helps ensure the Bundeswehr's operational readiness in the coming years.
I have managed many projects in the IT field, but never with such a large number of consultants and developers. I was particularly impressed by how quickly the abat project manager could make additional qualified employees available when personnel bottlenecks arose. It was challenging for me to keep up with the speed of the abat consultants, who often answered before I had finished speaking. Nevertheless, I have grown fond of the project. I am proud of our success so far, and I am confident that we will succeed in the final stages as well.
Thomas Zenker,
Deputy PL of the S4 project at HIL GmbH