SCA BECOMES MORE EFFECTIVE WHEN GLOBAL PROCESSES ARE INTEGRATED IN ONE SYSTEM WITH SAP PI QUICK FACTS The client • Client: SCA AB • SCA has 52 000 employees in 60 different countries • Industry: paper products • Business: SCA offers personal hygiene products, soft paper, packaging, print paper and sawing timber in over 90 countries. • Net profit sales 2008 was SEK 110 billion (€11.5 billion). • SCA is quoted on OMX Nordic Stock Exchange Stockholm, Large Cap. Website • www.sca.com Greatest challenges “By consolidating to SAP PI, SCA can meet the business goals for lower total costs and increased service levels.” Mark Ritter, responsible for the migration at SCA Hygiene • Competence was required on several applications / systems • Large and complex infrastructure • Many points of failure to monitor and track • Disparate platforms and fragmented business processes • Complex change management • High Costs and desire to improve Service SCA’s customers started to centralize their purchase processes whereas SCA Hygiene had different systems to manage supplier and customer demands. To continue being a competitive supplier SCA Hygiene needed to integrate three of their most important platforms to one system, without interrupting the ongoing activity and new customer sales. Objectives • Decrease costs and increase the quality of service • Reduce the number of systems and interfaces to make processes more uniform. • Reduce the number of people involved in maintaining the integration landscape • Reduce the number of manual processes • Ability to satisfy all demands from business and be a leader in Ecommerce trends from one solution • Quicker turnaround time for trouble-shooting, maintenance, enhancements and new development SAP Case Study • Central “end-to-end“ monitoring of internal and external processes • Increase B2B/EDI connectivity with trading partners SAP solution and services • SAP PI (Process Integration) with integrated B2B/EDI functionality from SAPs partner SEEBURGER Why SAP • SCA already uses PI as a tool between different SAP-modules, so competence about the platform already existed internally. • With PI SCA could integrate the different platforms without adding another system. All competence focused on one system. • SCA uses SAP as a strategic partner. • PI counterpart SCA’s global demands internally and externally on the cost front. • PI could be used for integration of both SCAs internal and external platforms. • A platform change is a long-term investment and SAP was a stable and secure choice. A leading product gives the customer comfort that product development will continue in the future. • A comparative study showed that there were no advantages with alternative products. Roll out • SCA chose SAP PI in the summer of 2006 and the project started in October 2006. Most partners and countries had been migrated to the new platform by December 2008. Benefits • Reduce the costs and increase the quality of service. Partner • Seeburger • www.seeburger.com SCA BECOMES MORE EFFECTIVE WHEN GLOBAL PROCESSES ARE INTEGRATED IN ONE SYSTEM WITH SAP PI SCA’s customers centralized their purchasing processes while SCA had 10 different systems that managed supplier and customer demands within the group. SCA Hygiene used 5 different platforms and to continue to be a competitive supplier, SCA Hygiene needed to integrate three of their most important platforms to one system, without interrupting the ongoing activity and new customer sales. With the assistance of Seeburger, SCA managed to migrate the old systems into one with SAP PI. ”We have improved our processes and changed the way we work. The feedback we have received from customer support is that the new model has saved them a considerable amount of time”, says Mark Ritter, SCA. The need The global consumer goods and paper company SCA grew rapidly during the 1980s and 90s through for example acquisitions. As new companies were integrated into the business, the number of different integration platforms at SCA increased, which was manageable when processes were decentralized. But as customers became more and more global, the complexity in handling information increased dramatically. Customers had different demands on the purchasing processes and when their purchases got more standardized, SCA was stuck with several systems that handled the same tasks. SCA Hygiene had a total of 5 different tools to manage supplier and customer demands in the form of invoices, payments and other business documentation that flow between companies. It meant that if a problem occurred, it was complicated and time consuming to localize and solve it. Another disadvantage was that when new demands came from suppliers or customers, SCA had to develop solutions for several platforms for the process to work. The total cost was high and the service quality was not sufficient. The solution In 2006, SCA Hygiene chose to consolidate three of the systems to one platform with the help of the systems integration platform SAP PI in order easily monitor and manage all processes. SCA already used SAP PI as a tool to connect different SAP modules so the internal competence was already in place. In addition, PI was the only platform that effectively could integrate all systems and processes. The roll-out Seeburger was contracted as a strategic advisor for the global EDI strategy, global and local implementation strategy and managed both the migration and new projects in parallel. The project started in October 2006 and the migration of existing platforms was completed in December 2008 for most partners and countries, within time and budget. The migration included SCA Hygiene in Europe and parts of North America. During this period, SCA had also acquired a division from another company and the new business was included in PI with maintained quality of the main migration plan. This was done without any notable problems within three months. The result The implementation of SAP PI resulted in big cost savings as SCA can get rid of several systems that generate costs for licenses, hardware etc. Since competence was required within several systems and applications, SCA had previously had employees assigned to each system. From now on, the number of support staff could be reduced since a globally distributed competence group could now handle the same work. Because focus was now on only one system, the team was able to increase their knowledge of PI www.sap.com /contactsap and the total service quality levels increased. It was also possible to give support to different local PI-projects because all employees in the group had knowledge of the same platform. Since processes often are local and the different sales offices need transparency in the business processes, SCA implemented the Professional Message Tracking module, so that customer support could easily trace and monitor problems within different processes. The system is very user friendly so customer support has better possibilities to quickly evaluate and solve issues themselves, instead of having to contact IT support. ”We have improved our processes and changed the way we work. The feedback we have received from customer support is that the new model has saved them a considerable amount of time”, says Mark Ritter, SCA. B2B/EDI had previously been a strain on the business, but it has now been turned in to an opportunity when SCA negotiated for new customers. SCA can meet customer demands quicker and offer advanced integration with both suppliers and customers, to the benefit of all parties. The future The consolidation project has been completed, but SCA continues to investigate how IT processes can support main business goals. For example, SCA plans to consolidate the two remaining systems with SAP PI. There is still a need to continue the harmonization processes in other geographies and divisions within SCA. PI and B2B/EDI will continue to be vital for continued good communication with existing customers and suppliers, as well as when SCA aim to win new business. 50 xxx xxx (YY/MM) ©20YY by ©2010 by SAP SAP AG. AG. All All rights rights reserved. reserved. SAP, SAP, R/3, R/3, mySAP, ­ mySAP, ­m mySAP.com, ySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. 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