Case Study: Rapid CDMO Site Integration via SAP Template

In this case study, we explore how one CDMO took a bold step by designing a new SAP S/4HANA template from the ground up to a new site; and then successfully deploying it to another newly acquired site in just ten months.

Enabling scalable growth through strategic SAP transformation

This CDMO group has clear strategic ambitions: to drive growth through targeted acquisitions, expand its presence in global markets and provide integrated services across the pharmaceutical lifecycle. But as the organisation scales, so too does the complexity of maintaining operational cohesion. Especially across a network of sites running disparate ERP systems with varying levels of maturity.

Background: Multi-site CDMO expansion

The group was operating already across multiple established manufacturing sites, each running a different ERP system, including one that was previously poorly implemented with S/4HANA for instance. As part of its strategic growth plan, the organization acquired a new site in Asia from a global pharma company, initiating the need for rapid integration under a 12-month Transition Services Agreement (TSA).

The newly acquired site ran a highly customized version of SAP ECC. Faced with the decision to either adapt existing systems or start fresh, the organization chose to take the opportunity to build a new, scalable SAP S/4HANA template. Designed in collaboration with Tenthpin and grounded in Life Sciences best practices, the new template was built to be robust, compliant, and easily extendable to future sites.

This decision was soon validated, as the CDMO acquired a stake in another manufacturing site in Scandinavia, creating the ideal scenario to execute the first rollout of the new SAP core.

This integration brought added complexity. Unlike a greenfield implementation or a classic system upgrade, the project had to address the nuances of a site with entrenched legacy systems, additional regulation requirements (e.g. serialization), well-established processes, and its own organizational culture.

Why pursue this integration?

• Strategic imperative: A globally integrated core ERP system, like SAP, is fundamental for providing unified visibility, standardized reporting, and consistent quality and compliance management across all operating sites. Fragmented ERP systems limit scalability and increase the risk of inefficiencies and non-compliance.
• Leveraging investment: By expanding the newly developed SAP template to the acquired site, the organization avoided reinventing the wheel. This approach enabled faster deployment, reduced total cost of ownership, and ensured alignment with established best practices; turning an initial investment into a scalable strategic asset.

Challenge overview: Integration under pressure

While multi-site transformations in the CDMO space often involve intricate dependencies (shared supply chains, intercompany transactions, or overlapping processes) this integration was distinct. The newly acquired site operated independently, with no direct transactional ties to existing sites. Its complementary technology stack and market focus reduced the typical complexities of multi-site rollouts.

Still, the project presented notable challenges:

• Legacy system complexity: The site relied on a different and also heavily customized SAP ECC system. A carefully designed carve-out and clean data migration strategy were essential to ensure a smooth transition to the new S/4HANA template.
• Process alignment: Though the site operated autonomously, it needed to adopt group-wide standardized processes (especially across finance and procurement) without disrupting its core operations.
• Compliance requirements: The implementation had to meet rigorous Life Sciences standards, including GxP, computerized system validation (CSV), and integration of serialization and quality management processes tailored to the site's manufacturing model.
• Compressed timeline: With just ten months from kick-off to go-live, timing was critical. The team had to execute validation and testing milestones, including Operational Qualification (OQ), on schedule. All without compromising on system readiness or compliance.

This combination of legacy complexity, data integrity challenges, and time pressure became a proving ground for the SAP S/4HANA template’s flexibility and for the project team’s ability to deliver under real-world conditions.

Implementation approach: Fit-to-Template rollout

To manage complexity without compromising on quality or timelines, the team adopted a Fit-to-Template rollout strategy, anchored by a clear Minimum Viable Product (MVP) scope for go-live. This approach allowed the project to remain focused and aligned with regulatory expectations, crucial in a challenging CDMO environment.

What is Fit-to-Template?

Rather than redesigning processes from scratch or replicating legacy logic, the methodology builds on SAP’s standard capabilities and industry best practices refined by Tenthpin’s deep Life Sciences experience. This minimizes customization, reduces project risk, and accelerates delivery by focusing effort where it matters most.

By starting with a robust template based on prior transformations, the team avoided unnecessary complexity and ensured consistency with future possible rollouts across the CDMO’s global network.

How was it applied?

• Prioritization of critical functions: The implementation targeted essential business processes e.g. finance, procurement, inventory, manufacturing, and quality management. This ensured the site could operate effectively from day one.
• MVP scope discipline: Non-essential or complex requirements were deferred to post-go-live enhancement phases, maintaining project focus and avoiding scope creep.
• Lean governance: A streamlined governance model empowered decision-makers to act quickly, facilitating issue resolution and keeping the timeline on track.

This disciplined, best-practice-driven approach delivered a fully compliant, operationally ready solution in just ten months without sacrificing quality, traceability, or regulatory integrity.

Fast-tracking implementation: Tenthpin’s accelerators

Meeting the aggressive timeline required more than strategic clarity. It demanded executional speed. That’s where Tenthpin’s industry accelerators played a vital role. 

• The role of accelerators: Implementation accelerators are pre-configured solutions, validated templates, process models, testing scripts, data migration tools, and established methodologies designed for specific industries or processes. We at Tenthpin have developed accelerators based on deep industry experience and SAP best practices.
   

• Streamlining deployment: By leveraging relevant accelerators, the team could significantly reduce the time spent on baseline configuration, process design workshops, documentation (especially for validation), and testing. This freed up resources to focus on the unique integration challenges and site-specific requirements, directly contributing to meeting the aggressive timeline and reducing implementation risk.

The use of accelerators dramatically increases efficiency, reduces implementation risk, and helps the project meets ambitious timelines without compromising on business readiness or regulatory requirements.
 

Role of Organizational Change Management (OCM)

Technology alone doesn't guarantee success. Integrating a new site involves significant human elements.
 

• Why OCM is critical: In any SAP transformation, especially one involving acquisition integration, OCM is vital for ensuring user adoption, minimizing operational disruption, and achieving the project's intended business benefits. Resistance to change, lack of understanding, and insufficient training can derail even the best technical implementations.
• Enabling alignment and buy-in: A structured OCM approach focused on: 
  o    Clear and consistent communication tailored to different stakeholder groups (at both existing and new sites).
  o    Active engagement of key users and site leadership from the acquired entity throughout the process.
  o    Comprehensive training programs addressing both system usage and new standardized processes.
  o    Establishing feedback mechanisms to address concerns proactively.
•  Handling cultural & operational shifts: OCM was instrumental in bridging potential cultural gaps between the acquiring group and the new site, fostering a sense of shared purpose, and smoothing the transition to standardized global processes while respecting necessary local expertise.

 
Key achievements of a successful SAP transformation

This strategically managed transformation, blending a template roll-out approach with specialized accelerators and robust OCM, delivered significant results:

• Rapid deployment: Go-live was achieved within 10 months, with successful completion of Functional Testing and Operational Qualification.
• Scalable foundation: A robust, standardized S/4HANA template has been proven and ready to support future site integrations with minimal disruption.
• Strategic insights: The MVP-focused, Fit-to-Template model provided a repeatable blueprint for similar projects.
• Power of partnership: The collaboration with Tenthpin was central to success, bringing in proven tools, deep expertise, and the momentum to drive transformation at pace.

This case shows how midsize CDMOs can leverage bold decisions, best practices, and expert partnerships to transform complexity into capability. Building the digital backbone needed to thrive in a fast-moving Life Sciences market.