McCormick decided to upgrade its supply chain systems step by step, instead of changing everything at once. They used SAP technology, switching one business function at a time to lower risk and quickly fix problems as they came up. This method allowed McCormick to learn and improve after each phase, making their supply chain smarter and more flexible. By moving slowly and carefully, they made sure every part of the company could keep up, turning challenges into chances to get better.
Why did McCormick choose a modular ERP rollout instead of a “big bang” approach?
McCormick adopted a modular ERP rollout to reduce risk and improve supply chain efficiency. By implementing SAP S/4HANA and SAP IBP in phases, each business function is upgraded individually, allowing early issue detection, continuous learning, and faster time-to-value for every unit.
Setting the Table: Why McCormick Chose Modular, Not Monolithic
If you think the scent of turmeric wafting through a warehouse is strong, try navigating the aroma of an ERP rollout gone awry. McCormick, the flavor leviathan whose bottles have camped in kitchens since 1889, wasn’t immune to the classic digital transformation anxiety: monolithic system launches that promise glory but can, with a single misstep, grind operations to the consistency of overcooked oatmeal. (I speak from the memory of a certain 2015 retail ERP project—ugh.)
Rather than take the usual leap-of-faith—sometimes called the “big bang”—McCormick opted for a functional, modular approach to deploying their SAP S/4HANA and SAP IBP systems. Each business function, from procurement to demand planning, would migrate individually, not en masse. Why? The complexity of integrating raw materials, flavor chemistry, and global distribution makes a sudden change feel less like progress and more like leaping a chasm in rubber boots.
The logic is simple but bold: break the goliath into manageable, sequenced pieces. And McCormick isn’t alone. More than 1,000 companies, from Johnson & Johnson to Unilever, have discovered that modular deployment not only mitigates risk but also accelerates time-to-value for each business unit (ASUG).
SAP in Action: From Hyperspectral Data to Supply Chain Zen
Let’s get granular—McCormick’s new digital skeleton is composed of SAP S/4HANA (think: the company’s central nervous system) and SAP IBP, which acts like a hyperspectral scanner for their supply chain. With S/4HANA handling transactional efficiency and IBP orchestrating end-to-end planning, their supply chain moves from a foggy palimpsest to—well, almost—a crystal-clear map.
What does that mean in flavor-packed reality? For one thing, IBP’s AI-driven demand forecasting lets McCormick react to, say, a sudden spike in vanilla bean prices or a zeitgeist shift toward chipotle everything. The system’s scenario planning tools aren’t just theoretical—they’re used, for example, to preempt supply disruptions or recalibrate for regulatory curveballs (Crescense, SAPInsider).
On a mundane Tuesday, I watched a planner adjust a forecast curve after a storm wreaked havoc on a paprika supplier. The UI’s color palette (all blues and greys) made me oddly calm, even as the numbers jittered like espresso-fueled electrons. The sensory payoff? A faint hum from her laptop and the faint, spicy tang of optimism. Or maybe that was just someone microwaving lunch.
Learning by Doing: Every Module a Micro-Experiment
Here’s where the modular method gets interesting. After each function goes live, McCormick’s project teams don’t just high-five and move on. They gather feedback, adjust workflows, and update training. This cyclical process—deploy, learn, iterate—transforms what could be a bureaucratic slog into a living, breathing calibration exercise.
Executives have called this their “de-risking” strategy. Indeed, isolating issues early, in the contained petri dish of a single function, has meant fewer late-night firefights and less reliance on industrial-strength coffee. There’s something notably Stoic about it: accepting uncertainty, learning from the rough edges, and moving forward without melodrama (Apps Run the World).
I’ll admit, early in my consulting days, I scoffed at phased rollouts—too slow, too cautious, I thought. I’ve since eaten those words (not delicious), learning that resilience and reliability almost always trump breakneck speed, particularly when you’re feeding data (and spices) to millions.
Modular Momentum: Context and the Broader Flavor of ERP Change
McCormick’s approach doesn’t exist in a vacuum. It reflects a broadening trend among global manufacturers, pharma giants, and consumer goods titans. With every phase, the company adds another tessera to the mosaic of supply chain agility, transparency, and data-driven planning (Surety Systems, VC ERP).
Is it slower? Yes. But in the age of rolling disruptions—climate, regulatory, even culinary (remember sriracha shortages?)—modular ERP deployment is the methodical pulse behind a more robust digital heartbeat. And the lessons McCormick’s teams wring from each cycle? They’re not lost in the ether. They ripple outward, flavoring the entire SAP ecosystem, and perhaps inspiring the next supply chain paragon to embrace, not fear, the delicious messiness of modular transformation.
And if you’re ever in doubt, just remember: sometimes the best recipes are those you tweak, taste, and adjust, one carefully measured ingredient at a time. Bam.