The client is a Western Australia–based manufacturing company, supplying industrial materials and related products to Australian and global markets. The business also maintains a contingent workforce, engaging additional contractors during peak operational periods.
The client’s core operations centre around high-purity manufacturing processes, with several by-products also produced and sold as part of its operations.
While a major supplier to the Australian domestic market, the business is primarily export-oriented, servicing a diverse range of international markets.
Opportunity
Organisational growth in the volatile world of mining, chemical production and ESG demands, can often lead to existing IT systems and software becoming outdated, with functionality and capability no longer supporting the essential need for efficiencies, compliance, and better decision making.
Our client was facing this very same challenge. Several of its operational support systems had not changed significantly since the business commenced operations, and more often than not, required manual intervention. Further, operating within a high-risk industrial environment in terms of safety and environmental impact, the client required a new ERP solution to support its long-term sustainability, compliance, and competitiveness in both domestic and international markets.
To enable its vision, the client decided on an implementation of SAP S/4 HANA Cloud ERP, along with SAP’s supporting applications for asset management, maintenance and work safety management. Due to existing corporate and operational requirements, the client needed to retain several legacy systems supporting areas such as payroll, workforce management, and induction processes, so a seamless integration was also required.
Solution
NRI were selected to support the client’s implementation, which was to be designed and delivered based on a ‘big-bang’ approach, meaning that all relevant legacy systems and processes were replaced by the new SAP Enterprise Applications Suite at the same time.
As part of the implementation, our team at NRI underwent a Discovery Phase to capture the requirements and prepare a scope of works to be delivered. During this initial phase, the client’s requirements were defined by the following key attributes:
SAP S/4 HANA Cloud ERP
The new cloud ERP must cater for all users across the client’s core business functions, including Financial Management, Procurement, Asset Management and Maintenance, Plant Operations, Environment, Health and Safety, Sales and Marketing, Shipping, IT, and Human Resources, with the ability to scale up as required.
Environment, Health, and Safety (EHS)
Improved EHS management was a key goal, with the system required to:
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- Support the statutory requirements for consultation when drafting or reviewing EHS documents and procedures by automatically tracking and sending reminders for due dates and progress reports to stakeholders involved in EHS processes.
- Uplift the communication and visibility of matters relating to safety information by enabling efficient access to important information with notifications sent to relevant stakeholders when new information is published.
- Support site wide processes for workers to report hazards and track corrective actions.
- Support the management of inventory of chemicals across the organisation’s operations.
- Track workers compensation claims and return-to-work programs for affected employees.
- Support the monitoring of hygiene management and provide the ability to collate data from testing and trials.
- Provide a digital risk register to enable effective monitoring of site wide risks across multiple devices.
- Facilitate the governance and regulatory reporting requirements by extracting and processing data from government regulatory reporting platforms.
- Enable the effective analysis of incidents, injury and hazard data.
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Human Resource Information System
The client’s requirements had elements of HR embedded across various scope areas, and required enhanced functionality that would be delivered through the implementation of SAP SuccessFactors applications which included:
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- SAP SuccessFactors – Employee Central for visibility and governance across people and transactions, and to serve as a single repository for employees and to support compliance needs for the client’s local regulatory obligations.
- SAP SuccessFactors – Learning to enable the culture of continuous and relevant learning to support employee skill development and reduce compliance risk.
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Integration between SAP and existing applications
With several legacy systems retained, a seamless integration between these systems and the new SAP systems was a key requirement. For this purpose, SAP’s Integration Suite was used to design and implement integrations between SAP to SAP, and SAP to non-SAP scenarios.
In addition, multiple legal entities were also included within the scope of the implementation.
Outcomes
As an experienced SAP partner, we used SAP’s Activate Methodology to implement the client’s new ERP solution and applications.
Following subsequent project phases including a 5 week ‘Explore’ phase used to perform a fit-to-standard analysis to validate the solution functionality with the business requirements, and a longer ‘Realise’ phase to build and test, we deployed the new solution successfully over a course of 3 weeks.
For the client, implementing SAP forms part of a broader strategy and program to modernise its IT infrastructure and applications, and whilst the new solution is still in its infancy with further adoption planned, all performance metrics point towards the realisation of sustained lower inventory costs, reduced billing process times, and lower total cost of operations thanks to the centralisation, streamlining, and automation of processes throughout its key business functions.
Today, the organisation operates with greater business agility thanks to improved visibility across its operations, and a single source of truth across its Australian entities. As a result, decisions are now based on real-time information, whether it be related to resource capability, material inventory, machinery maintenance and downtime, or health and safety, enabling the business to respond faster and meet its stringent regulatory compliance and reporting requirements.