Textile Rubber and Chemical Company: Driving Cost Savings with SAP Business Suite powered by SAP HANA

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1 2015 SAP SE or an SAP affiliate company. All rights reserved. Textile Rubber and Chemical Company: Driving Cost Savings with SAP Business Suite powered by SAP HANA To consolidate and integrate key business systems, Textile Rubber and Chemical Company implemented SAP Business Suite powered by SAP HANA to strengthen analysis and reporting. The results were impressive. Executives gained self-service analysis and ad hoc, real-time reporting on financial, operational, and sales data, providing significant cost savings across the company.

2 Company Textile Rubber and Chemical Company Inc. Headquarters Dalton, Georgia Industry Chemicals Products and Services Rubber, latex, polyurethane, and specialty chemicals Employees >500 Web Site Partner Decision First Technologies Inc. BUSINESS TRANSFORMATION The company s top objectives Maximize cost savings across the company Improve decision making with instant insight across all available information Simplify IT and reduce total cost of ownership The resolution Deployed the SAP ERP application to consolidate and integrate key business systems Migrated to SAP Business Suite powered by SAP HANA for real-time business processes Partnered with Decision First Technologies to implement SAP HANA Live for self-service analysis and reporting The key benefits Provided real-time profit and loss, sales, manufacturing, production planning, and inventory reports Allowed management to drill down to document level details Uncovered product line inefficiencies in real time for immediate savings Read more Without the real-time analysis and reporting capabilities of SAP Business Suite powered by SAP HANA, we couldn t have found a product line inefficiency that was costing the company thousands of dollars a day. Chris Horton, CFO, Textile Rubber and Chemical Company Inc. TOP BENEFITS ACHIEVED 4X 6X Improvement in report performance 50% Fewer resources required to operate the enterprise resource planning environment 2 3 weeks Cut from lead times for all monthly financial statements See more metrics 2 / 6

3 Consolidating systems for deeper insight and better decisions Textile Rubber & Chemical Company (TRCC) began as a small latex firm in Dalton, Georgia, in Today, it has grown into a multinational chemical and technology company doing business on five continents, with manufacturing facilities worldwide. Following an extended period of growth and expansion, the company found itself faced with 22 independent Sage enterprise resource planning (ERP) systems and databases nearing the end of life. The situation was further complicated by the adoption of multiple third-party add-ons over the years. This siloed infrastructure required TRCC to use painstaking manual processes to generate many key reports. In some cases, it took several weeks just to produce a monthly financial report for the company s CEO. This meant that by the time the report was completed, the information was already out-of-date. To overcome these unacceptable performance issues, TRCC knew it needed to find a way to better integrate and unify its disparate systems. As an important part of this process, the company was looking to deploy a new ERP system capable of consolidating all of its mission-critical operational and transactional data. TRCC also realized that a migration to a more agile business intelligence (BI) environment was imperative to enabling timely decision making. The ultimate goal: provide self-service, on-demand access to financial, operational, and sales information at a highly detailed level across the enterprise. 3 / 6

4 Transforming operational decisions with real-time data access As a first step in consolidating and integrating its key business systems, TRCC moved forward with deploying SAP Business Suite applications specifically the SAP ERP application. This allowed the company to reap immediate benefits in operational efficiency, along with significant performance gains in its order processing and inventory management systems. Impressed with these improvements, TRCC executives challenged the IT team to find a system with the processing power to provide more granular, real-time reporting. TRCC initially looked at traditional data warehousing solutions, but it was quickly determined that the management complexity of these dual online analytical processing and online transaction processing systems would likely overwhelm the company s four-person IT staff. Looking for a more streamlined solution, TRCC ultimately chose to migrate SAP Business Suite to the SAP HANA platform, providing the company with a single source for operational and analytical workloads. In addition to SAP Business Suite powered by SAP HANA, the company decided to use SAP HANA Live with its more than 850 virtual data models to deliver expanded real-time operational analysis. To help lay out the road map for a successful BI environment, TRCC partnered with Decision First Technologies to implement best practices using SAP HANA Live. After selecting the SAP BusinessObjects Business Intelligence platform as the BI client, Decision First Technologies built custom dashboards for TRCC that provided executives with a consolidated view of key performance indicators using real-time financial, sales, and operational data. 4 / 6

5 Gaining an edge with SAP Business Suite powered by SAP HANA Within weeks of implementation, TRCC saw report performance improve four to six times, with the added ability to view summary financial reports by profit center, month-over-month sales by representative, and production efficiencies by plant. Plus, executives and managers can now drill down to the document level to get to the source of issues faster when analyzing variance, comparison, and trend reports. TRCC production managers can now determine if the company has been profitable on a daily, weekly, KEY BENEFITS or monthly basis by looking at real-time profit and loss, sales, manufacturing, production planning, and inventory reports. And they can forecast profitability prior to the close of the fiscal period. Thanks to customizable visualization tools and dashboards, critical business metrics are now easier to understand and digest. For instance, TRCC was able to immediately uncover and remedy a particular product line inefficiency, saving the company thousands of dollars per day. 4X 6X Improvement in report performance 50% Fewer resources required to operate the ERP environment 2 3 weeks Cut from lead times for all monthly financial statements 5 / 6

6 Textile Rubber and Chemical Company The future for BI at TRCC looks bright. In addition to the benefits that real-time operational reporting provides, the company s custom dashboard, built using SAP HANA Live, allows for simple modifications and future growth. The company s IT team stands ready for the next BI task, knowing they have the right capabilities and right BI environment to keep TRCC ahead of its competition (15/02) 6 / 6

7 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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