Perstorp: Creating a Winning Formula for Product and Substance Compliance with SAP Software

Transcription

1 Partner Perstorp: Creating a Winning Formula for Product and Substance Compliance with SAP Software Product and substance regulations can create burdensome costs and effort for chemicals companies. How did Perstorp Group convert stringent compliance regulations into a valuable business opportunity? Deploying the SAP Environment, Health, and Safety Management application, the firm reduced costs, increased productivity, and mitigated compliance risk.

2 Company Perstorp Group Headquarters Perstorp, Sweden Industry Chemicals Products and Services Specialty chemicals for the aerospace, marine, coatings, chemicals, plastics, engineering, and construction industries Employees 2,200 Revenue 1.6 billion Web Site Partner Capgemini Business Transformation The company s top objectives: Comply with the regulations for Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) for substance tracking and reporting Increase client and supplier satisfaction by providing access to current product and substance information Create single platform for compliance data and processes The resolution: Deployed the SAP Environment, Health, and Safety Management (SAP EHS Management) application in just 8 months, on time and within budget Met REACH regulatory requirements Chose SAP because of parent company s use of SAP ERP application, support for chemicals industry best practices, and migration simplicity The key benefits: Automated collection, processing, and assessment of compliance data Reduced time needed to update safety data sheets and exposure scenarios Improved product stewardship by enhancing data integrity Read more Not having an automated REACH compliance system is inconceivable to us now. Without SAP EHS Management, we couldn t manage our compliance obligations. Edith Cerbelaud, Product Stewardship Manager, Perstorp Group Top Benefits Achieved 75% Reduction in IT operating costs 10% Productivity gain on REACH-related tasks 100% Avoidance of compliancerelated trial costs See more metrics 2

3 Change reaction Perstorp Group manufactures, imports, and uses specialty chemicals in coatings, aerospace, marine, engineering, and construction industry applications. A market leader for more than 130 years, the Swedish company must comply with the product and substance regulations known as Registration, Evaluation, Authorization, and Restriction of Chemical substances (REACH). This legislation requires chemicals companies to gather data on the physiochemical, toxicological, and ecotoxicological properties of substances. Perstorp must also identify how these substances are used, assess any associated risks, and describe safety measures used to reduce risk. To help customers understand the dangers of company products and appropriate handling processes, Perstorp must provide essential regulatory data for all commercial products whether or not they are deemed dangerous. Every user of our products must have access to the latest version of the related safety data sheet before handling our products, explains Edith Cerbelaud, product stewardship manager for the company. Recently spun off as an independent subsidiary of Rhodia, Perstorp was still using the SAP ERP application of its parent corporation. Company executives viewed the REACH mandate as an opportunity to not only support compliance requirements but also to gain autonomy, build a centralized compliance solution, and improve communications with clients and suppliers. By deploying our own environment, health, and safety solution, we could adapt our software to our size, business, and cost structure. Pierre Gicquiaud, IT, IS, and ERP Manager, Perstorp Group 3

4 Gaining control with SAP EHS Management With the company s familiarity with SAP ERP, executives quickly saw the value of deploying the SAP Environment, Health, and Safety Management (SAP EHS Management) application to support Perstorp s REACH compliance efforts. The integration of SAP EHS Management with SAP ERP was a major factor in our decision, says internal EHS specialist David Elvira. Supported by implementation partner Capgemini, the team deployed the software in the coating additives group in just eight months on time and within budget. To increase the chances for success, the team limited its project scope to cover approximately 80% of the total business needs. Following the ASAP methodology, the team built management rules, configured the software, and migrated the data. The software was deployed in phases, to allow incremental user adoption to change. The chemicals industry best practices supported by the SAP EHS Management software and the preconfigured settings helped accelerate the deployment. Following a two-month software-tuning period, the application went live with 59 substances initially registered. 59 Number of substances initially registered To lower the total cost of ownership, Perstorp retired obsolete software and consolidated several databases to improve IT efficiency. No customized interfaces were permitted. As Perstorp s needs change and the business grows, the team will enrich the compliance solution. We continue adding new management rules to meet the needs of the 5 key product stewardship users, says Elvira, as well as the 200 employees from maintenance and production who access the data. 4

5 Science of creating new value Perstorp achieved REACH product and substance compliance a few months ahead of schedule. Using SAP EHS Management, the company automated data collection, processing, and assessment. With enhanced control, the company improved productivity and reduced the risk of supply chain disruption. We can exchange information electronically with authorities, suppliers, and customers, says Elvira. The software increases our competitive advantage by making it easier for us to share the compliance status of materials. Perstorp distributed REACH information to customers via information letters, safety data sheets, and exposure scenarios. The software also provides a practical tool to address regulatory requirements in logistics operations. We use it to manage the transport of dangerous substances, checking that we have the necessary information throughout the order, says Cerbelaud. We can even print supporting documents automatically. Key benefits 75% Reduction in IT operating costs 100% Reliability of safety data sheets submitted 10% Productivity gain on REACH-related tasks 150,000 Annual savings from dangerous goods claims 100% Avoidance of compliancerelated trial costs 5

6 Perstorp Formula for success Perstorp plans to continue enhancing its product and substance compliance efforts with the help of the SAP software. The company is already prepared to face coming rounds of REACH deadlines. The centralized ingredients database helped Perstorp improve data integrity and the productivity of its product stewardship team. The intuitive interface of the software allows worldwide access to our data, says Elvira. We can quickly answer any compliance questions about our products. But regulatory compliance is not just a critical business requirement. It also reflects Perstorp s identity as a responsible corporate citizen. Because we are committed to a sustainable development ethos, we are planning to continue rolling out the SAP software to other parts of the company, says Gicquiaud. With the help of SAP EHS Management, we can diligently pursue our operations with the utmost respect for our environment. CMP16771 (12/01) Copyright/Trademark Privacy Impressum 6