SAP Agriculture and Animal Husbandry Solutions to Transform Shengmu’s Business Platform

SAP Agriculture and Animal Husbandry Solutions to Transform Shengmu's Business Platform

SAP announces that it will build an end-to-end integrated business system and a digital core platform for China Shengmu Organic Milk Limited (Shengmu), with support from Shanghai Huidu Intelligent System Co., Ltd.’s (also known as the Witium Group) ‘Wisdom Ranch’ solution. The two companies will help Shengmu build a large-scale and specialized modern breeding and organic milk management system and discover new ways of innovation to digitally transform the agriculture and animal husbandry industry.

With SAP’s world-leading solution suite, SAP S/4HANA, Shengmu aims to build a core control and business platform that will:

  • support its digital operations
  • optimize the management and control of its farm operating costs
  • improve its overall operational efficiency
  • enhance the synergy between the upstream and downstream activities along its value chain

Building an Intelligent Business with Agriculture and Animal Husbandry Smart Solutions

Yao Yizhao, Senior Vice President at SAP China said:

“The sacred mission of Shengmu is to turn hundreds of square kilometers of desert into an oasis, and the whole process of organic milk production has become its most eminent business card. Now, the era of smart agriculture is already here. SAP is very pleased to be able to work with Shengmu. Through SAP’s best practices, we will help reshape the company’s business models and business processes and enhance its industrialization capabilities.”

As China’s largest vertically integrated and ‘fully-organic’ dairy manufacturing company—with a 54.2% market share in the country—Shengmu faces several challenges, including an inefficient supply chain management system, complex cost accounting systems, and high operating costs. To be able to keep up with the rapid changes in consumer demands and effectively compete in the organic milk space, the company needs to establish a more streamlined business system. With agriculture and animal husbandry intelligent solutions from SAP, Shengmu expects to increase farming efficiencies and create a more stable and high-quality source of organic milk.

Zhang Jiawang, President and CEO of Shengmu said: 

“For [this] SAP project, Shengmu’s various system departments will unify their thinking and focus on ensuring production and operational requirements are fully implemented. Shengmu regards digital transformation as the company’s primary project, and it must strengthen learning, select elite leaders, and go all out to overcome difficulties.”

Niu Yuesheng, Vice President of Finance of Shengmu High-tech Animal Husbandry Co., Ltd. also commented:

“Providing global high-quality desert organic milk is Shengmu’s mission. SAP has nearly 50 years of industry expertise—providing core business processes for the world’s leading agricultural and animal husbandry companies and building a digital food management system from farm to table. We look forward to working with SAP to build digital business core platform to help Shengmu achieve lean operations, intelligent management, innovative development, and create the world’s leading organic dairy brand.”

About China Shengmu Organic Milk Limited

China Shengmu Organic Milk Limited is a China-based investment holding company principally engaged in the production and distribution of raw milk and dairy products. The company operates through two business segments: the Farming segment is engaged in the breeding of dairy cows to produce and distribute raw milk; the Liquid Milk Products segment is engaged in the production and distribution of organic ultra-heat treated liquid milk and organic yogurt.

Shengmu is the only organic dairy company in China that meets EU organic standards. It is also the only dairy company in China that provides 100% branded organic dairy products produced by its own certified organic farms. Shengmu succeeded in creating the only desert organic industrial system in the harsh Ulan Buhe desert.

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