Separation success: Kalmar carve-out from Cargotec with SNP
KalmarSNP powers Kalmar’s smooth transition to independence from Cargotec
In March 2023, Cargotec, a global manufacturer of cargo handling machinery for ships, ports, terminals, and local distribution, embarked on a bold strategic move. The company decided to separate its businesses – Kalmar, Macgregor, and HIAB – into three independent companies. The move set the stage for each business to chart their own paths toward long-term, profitable growth.
Kalmar’s carve-out: Big bang go-live, zero disruptions
For Kalmar, the transition into a standalone company was both exciting and complex. As the provider of the world’s broadest range of heavy material handling equipment and services, Kalmar needed to be split from its parent organization without disrupting its global operations.
The project required handling a large 10 TB system within a tight timeline. To achieve this, Kalmar partnered with SNP to lead the SAP carve-out process, with Tata Consultancy Services (TCS) providing the solution design and best-fit technical architecture.
Working hand in hand, SNP and TCS developed a comprehensive carve-out approach using Kyano CrystalBridge.
By selectively migrating only the data that was truly required, SNP reduced the overall volume by 70%. This not only shortened the downtime during the transition but also delivered a smaller, cleaner target system for Kalmar.
The project team adopted a big bang go-live approach, executing the migration of 37 company codes and legal entities across multiple geographical regions in a single weekend. To safeguard the business, fallback plans were prepared in case of disruption, but the cutover went ahead smoothly. SNP also created a clean SAP ECC shell to ensure the new system was ready to support Kalmar’s operations from day one.
Our partnership with TCS
Through the strategic global partnership, SNP and TCS jointly conceptualize, build and help enterprises transform with an automated and software-based approach by using SNP’s Kyano data transformation platform. TCS leverages its contextual knowledge and expertise in digital technologies to augment Kyano and accelerate customers’ business transformation journeys.
Result
The outcome was a seamless transformation. Over one weekend, 3 terabytes of data were successfully migrated, and more than 40 applications connected to SAP were synchronized to support a flawless go-live. In total, 37 legal entities across 26 countries were transitioned without interruption.
Despite the complexity and tight deadlines, SNP and TCS delivered 100% business continuity from the moment of the IT go-live. The project accelerated Kalmar’s exit from its Transitional Service Agreement, freeing up the company to operate independently sooner than planned.
Today, Kalmar is positioned for sustainable growth as its own legal entity, equipped with a modern, efficient system landscape that supports its global ambitions.
Benefits
- Enabled an accelerated exit from the TSA agreement
- 100% of operations across 26 countries were maintained during the go-live weekend
- Kalmar are left with a clean, efficient system
Key facts
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Challenge
Carve-out
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Solution
Kyano CrystalBridge
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Data volume
3 TB
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Go-live
September 2024
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Countries involved
26
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Total system downtime
48 hours
Partnering with SNP and TCS allowed us to complete an incredibly complex carve-out faster than we thought possible. The migration was smooth, business continuity was maintained, and we are now positioned for long-term growth as an independent company.
Tero Lehtonen
Vice President & CIO of Kalmar
About Kalmar
Kalmar is a global leader in sustainable cargo handling solutions, helping ports, terminals, and distribution centres worldwide operate more efficiently. With decades of innovation and expertise, Kalmar are committed to shaping the future of logistics through smart technologies and reliable equipment. Their mission is to drive innovation and sustainability in cargo handling, ensuring their customers are always prepared for the challenges of tomorrow.
