Goodbye complexity: how SAP DRC modernized Mastrotto's tax issuance

Mastrotto, one of the largest leather producers in the world, with operations in Brazil focused on exporting the product to the Asian and European markets, faced challenges in its electronic invoice management. With a relatively small but high-value invoice issuance, the company used SAP GRC (Governance, Risk and Compliance), a robust solution, but with a highly unfavorable cost-benefit ratio, especially for companies with a low volume of invoices issued.

As SAP GRC approached its end of life, scheduled for 2025, Mastrotto was looking for a more cost-effective and efficient alternative to manage its tax processes. It was in this context that Homine Tecnologia introduced SAP DRC (Document and Reporting Compliance), a natural evolution of GRC, to the company. This case study details the steps and benefits of this implementation.

Challenges and need for modernization

Mastrotto found itself in a challenging situation: although its operations in Brazil were relatively simple — involving the purchase of leather in Brazil and the export of the finished product to international markets — the IT environment was complex. Using SAP GRC required its own infrastructure and integration with the SAP ECC ERP, which generated high costs for licenses, hardware maintenance and support. In addition, the operation involved logging into two different systems, which complicated the routine of issuing invoices.

“With the introduction of DRC, the complexity has ended. It has greatly simplified the invoice issuing routine, making the operation safer, with lower costs, less hardware maintenance and less use of ERP support services”, explains Manoel Messner, Solutions Architect and Technical Manager at Homine, responsible for implementing the DRC.

SAP DRC implementation

Homine implemented SAP DRC at Mastrotto, a solution that replaced GRC. DRC, as a cloud-based solution, brought a series of immediate benefits. In addition to allowing the deactivation of six hardware devices that were required to run GRC, DRC already includes Process Integration (PI), eliminating the need for separate systems for integration with SAP ECC.

“Mastrotto decommissioned six pieces of hardware that were used for GRC, and PI was also decommissioned, which resulted in a significant reduction in total cost of ownership (TCO)”, details Manoel.

Replacing GRC with DRC was challenging due to the need to implement around 300 SAP notes in Mastrotto's ERP, a critical update to ensure compatibility with the new system. This step involved SAP itself, and despite the complexities, the Go Live was successfully carried out on August 10, 2024.

Manoel reinforces that the implementation of the DRC is quite simple and quick in situations where the ERP is updated and close to the version standard. “In general, the implementation and activation of a DRC in an S/4HANA system is done in 5 days, with an additional 4 weeks of testing”, he adds.

Benefits and results

The implementation of SAP DRC provided Mastrotto with a series of advances in its tax operation:

Testimony from Elenilton Mota, IT specialist at Mastrotto

“Replacing GRC with DRC brought significant benefits to Mastrotto, especially in terms of cost savings and efficiency. With DRC, we eliminated the need for physical servers, reducing expenses with energy, infrastructure, SAP and Windows licensing. In addition, the simplification of the invoice issuance process was notable, as recurring problems with batch locking and failures in the integration with PI disappeared, making communication between the ERP and Sefaz more stable and reliable. For end users, the change was transparent, maintaining the same processes but eliminating interruptions.

I would also like to highlight Homine’s performance in the project. The team demonstrated deep technical knowledge and was decisive in overcoming unexpected challenges such as the initial incompatibility between the DRC and our version of the ECC. Homine’s close monitoring and technical capacity were essential to ensure the success of the implementation, delivering a more efficient and cost-effective solution that fully met our expectations.”

Warning to companies: don't leave it until the last minute

Migrating to SAP DRC was a strategic decision by Mastrotto, not only because of the savings it would provide, but also because of the need to adapt to the changes imposed by SAP, with the discontinuation of GRC in 2025. Companies that have not yet begun this transition need to pay attention to the necessary updates in their ERPs, as Manoel Messner explains: “Companies that are last will have to apply the Enhancement Pack, which updates SAP in its entirety, which generates more costs with regression testing in all company processes and with team training”, alert.

Final considerations

The implementation of SAP DRC, led by Homine, is a clear example of how modernizing systems and adopting cloud solutions can bring significant benefits, both in terms of cost reduction and operational improvements and data security in the cloud. Homine's experience, combined with the technical knowledge of its team and ongoing dialogue with Mastrotto's IT team and SAP, was fundamental to the success of the project, ensuring Mastrotto a smooth transition and a more efficient and integrated IT environment, in addition to simpler, more economical and safer operations.

To learn more about this case and how Homine can support your company in migrating to SAP DRC, ensuring savings and tax modernization, contact us: https://homine.tech/contato/