Chemical firm to unite under mySAP umbrella in hope of £35m saving

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Chemical firm to unite under mySAP umbrella in hope of £35m saving

Antony Adshead
Chemical company Huntsman Tioxide is to embark on a £35m mySAP implementation aiming for savings of £8.5m in the first year and full return on the investment over four years.

The software will link the company's manufacturing, sales, financial and supply chain operations in nine countries.

The project signals a growing maturity in businesses' approach to enterprise resource planning (ERP). Savings will result from internal efficiencies and job cuts.

President Doug Coombs said, "Huntsman Tioxide was made up of a lot of acquisitions. We took the decision to move from being a collection of business units to having a global perspective.

"We were careful not to go for a bespoke design. We went for common processes, simplified as much as possible, and did our best not to vary things between sites," he said.

Manufacturing IT analyst Simon Bragg, of ARC Consulting, said users were showing greater maturity in ERP implementations. "Six years ago ERP suppliers were claiming payback inside a year. Companies may have implemented the same package in each unit but set up different cost centres, material codes, and processes. The result: only moderate benefits," he said.

Users are now phasing implementation over several years and using the same structures codes and processes, he said. "The benefits are not quick, low value wins. Achieving payback takes longer, but thereafter the returns are much greater," Bragg said.

antony.adshead@rbi.co.uk

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