Companies, Features, Logistics Products

Neos by Argon & Co expands SAP remit with Pan Pac

NEOS began as go-live support for Pan Pac’s SAP S4 implementation. It now manages supply chain and operations support across SAP modules.

When New Zealand-based manufacturer Pan Pac Forest Products prepared to go live with SAP S4, its internal team recognised the risks of managing a complex logistics system without specialist support. The company turned to NEOS, initially for its expertise in Extended Warehouse Management (EWM), to ensure a stable and efficient transition.

NEOS began as go-live support for Pan Pac’s SAP S4 implementation. It now manages supply chain and operations support across SAP modules.

“We didn’t have the depth of knowledge internally to respond quickly if anything went wrong at go-live,” says Lisa Jury, IT Enterprise Systems Manager at Pan Pac. “Stock systems are time-sensitive, so we needed someone with deep experience on site.”

Pan Pac operates with complex logistics requirements, including a deconstruction process in one division and dual units of measure for pulp in another. These processes required specific customisation within EWM and integration with quality, production, and procurement modules.

NEOS supplied a consultant with specialised EWM knowledge who was able to familiarise himself with Pan Pac’s customised environment. 

“They only had about a month to get across the solution before arriving on site,” Lisa says. “It wasn’t just SAP knowledge – it was understanding supply chain terminology and challenging our processes when needed.”

According to Lisa, the partnership was effective from the outset, with the NEOS consultant providing real-time support and configuration expertise across multiple operational areas. 

“They weren’t just providing answers – they were coaching our team and helping them understand how to use SAP properly,” she says.

NEOS’ involvement soon expanded beyond EWM. Within six months, it was engaged across inventory, quality, and production modules, helping Pan Pac resolve issues such as reconciliation problems between EWM and quality, and production reversals in customised processes.

“NEOS helped us identify and implement standard solution options and minimised enhancement and applied a best practice enhancement approach where a complex problem could not fit to standard,” Lisa says. “That’s where we wanted to be – avoiding risk and complexity.”

Navigating disruption

The context for the partnership’s rapid growth was made more urgent by external challenges. In early 2023, Pan Pac’s Napier site was impacted by Cyclone Gabrielle. Floodwaters submerged parts of the business under three metres of water, destroying inventory and infrastructure.

“Our go-live was pushed out by almost a year while the business rebuilt,” Lisa says. “We had to wait until production could resume, and when it did, we couldn’t afford further disruption. That’s why having the right support at go-live was so critical.”

NEOS not only helped avoid downtime but also demonstrated a capacity to stabilise processes at a vulnerable moment for the business. 

“They were responsive, clear, and calm under pressure. Our staff trusted them,” she added.

From support to strategic partnership

Following the initial success, NEOS was also asked to support procurement functionality, including taxonomy development and setup of contract management controls within SAP. This shift was part of a wider cost control initiative as Pan Pac sought to improve visibility into spending and re-establish operational discipline post-cyclone.

“They helped us implement contract functionality so we could link negotiated prices and approved contract values to real spend,” Lisa says. “That’s critical in a business where procurement affects every part of the operation.”

NEOS by Argon & Co is a supply chain systems integrator focused on bridging the gap between strategy and execution. Leveraging the resources and expertise of Argon & Co, NEOS delivers technology solutions that provide tangible business value through system integration excellence in market-leading products. 

Its core focus includes Warehouse Management Systems (WMS) and Advanced Planning and Scheduling (APS) systems, with plans to expand further into areas such as Transportation Management Systems (TMS), Procure-to-Pay (P2P), and Manufacturing.

Johnny Balich, SAP Practice Lead at NEOS, says the engagement grew naturally as trust was built. 

“We didn’t come in trying to replace everything – we supported what was there and looked for areas where we could make it better,” he says. “It’s an open and transparent relationship. We challenge each other constructively.”

That constructive approach, Johnny says, is rooted in NEOS’ experience across both consulting and operational roles. 

“None of us are career consultants – we’ve all worked in warehouses, on production lines, in procurement roles. We learned SAP from the business side,” he says.

This background helped NEOS gain credibility quickly.

Johnny Balich, SAP Practice Lead at NEOS. Image: Argon & Co

“Our production and supply chain staff have decades of experience,” Lisa says. “NEOS met them on their level. They speak the same language, and they’re not afraid to ask why a process exists.”

The case for a dual-vendor model

After stabilising post-go-live and expanding across operational modules, Pan Pac decided to reassess its support model. The business issued a request for quotation (RFQ) and received seven responses. Ultimately, it adopted a dual-vendor model – appointing NEOS as its SAP supply chain and operations partner, and another vendor to manage finance, sales, and analytics.

“We realised it was unrealistic to expect one partner to be strong in every area,” Lisa explains. “NEOS brought specialist supply chain capability and deep SAP operational understanding. That’s where we needed the most support.”

Johnny says the dual-model approach makes sense for mid-sized manufacturers with diverse needs. 

“We don’t pretend to do everything. Our job is to go deep on what we know – supply chain, warehousing, operations. That clarity is good for the client and for us,” he says.

Coaching, not just consulting

One of the contributions NEOS made, Lisa says, was in capability building. Rather than operating behind the scenes, NEOS made a point of showing Pan Pac staff how the system worked, the best practice enhancement approaches and how decisions were made.

“We didn’t want a black box solution. NEOS showed us the ‘how’ behind every decision, from configuration changes to reporting logic,” she says. “That turned every support call into a coaching moment.”

The outcome has been a more confident in-house team, with better understanding of how to operate and adapt the SAP system over time.

Supply chain operations in motion – NEOS supported Pan Pac through complex SAP go-live and beyond. Image: Login/stock.adobe.com

Looking ahead: upgrades and continuous improvement

The next step in the relationship is Pan Pac’s first SAP upgrade under the S/4HANA environment. 

“It’s a bit daunting,” Lisa admits. “It’s a different discipline and change adoption challenge, as HANA requires you to stay current and keep solution version functionality updated.” 

NEOS is already conducting a review of Pan Pac’s current SAP landscape, identifying areas where the solution could be simplified, standardised, or improved. 

“We’ve seen pockets where it could be done better,” Johnny says. “We’re compiling that into a structured proposal, free of charge.”

That continuous improvement mindset, Johnny adds, is part of NEOS’ commitment to being a long-term partner. 

“We don’t wait for the client to find the problem – we’re always looking for where things can be better,” he says.

For Lisa, the value of the relationship lies in how NEOS has embedded itself as both a problem-solver and a process challenger. 

“They bring external insight into how other businesses operate, and they’re not afraid to suggest we do things differently,” she says. “It’s not just about keeping the lights on. It’s about raising the bar.” 

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