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Strategy: China’s Chemicals Market Heats Up

June 23, 2014 by Chi Wang 0

Biz-united Consulting uses SAP quality standards and best practices available from SAP Partner Service Delivery to guide its ERP project for customer Shindoo.

For companies in China’s fertilizer industry, the road ahead couldn’t be tougher. With international markets surging, prices of raw materials remaining volatile, industry risks continuing to accumulate, and industry profit margins trending downward, these companies are experiencing greater difficulties. As the already sizable number of fertilizer companies expands even further, China is developing a huge overcapacity problem and market competition is increasingly intense.

Chengdu Shindoo Chemi-Industry Corporation Ltd. (Shindoo) has taken a pragmatic approach to the situation and crafted its enterprise development strategy accordingly. Already established among China’s Top 500 Chemical Industry Enterprises, Shindoo is a leading supplier of high-quality NPK fertilizers, ammonium chloride, anhydrous sodium sulphate, and soda ash, as well as both edible and industrial salts.

Shindoo knows it will face more intense market competition in the near future. The company, however, remains ambitious and is positioning itself to take the lead in a crowded marketplace through careful planning of its strategic objectives, with the expectation that it will enter a phase of rapid development where added agility will be key to staying ahead of the competition.

Addressing challenges of scale

Comprising 15 subsidiaries spread throughout China to serve both domestic and foreign customers, Shindoo has experienced growing pains through the expansion of its production scale and industrial chain, as well as more and more varied products and complex processes. Recently, the internal management of Shindoo also put forward higher requirements, challenging the traditional management model.

As a result of these external and internal pressures, Shindoo recognized that it required a new IT solution that addressed its enterprise scale, while refining its internal management, reducing operating costs, and generating greater value for its shareholders, customers, and employees.

Casting a wide net in search for an ERP solution

Rather than rely on a traditional approach to labor management or island-based information systems unable to meet its bigger and more challenging development requirements; Shindoo decided to build a comprehensive, integrated enterprise information system as a means to achieve its larger corporate strategic objectives.

During its ERP product selection process, Shindoo visited Stanley Fertilizer and Chongqing International Composites. Shindoo management came away with an understanding that SAP can fully meet requirements in these enterprises and effectively support the businesses’ innovation and meticulous management models. After nearly a year and several rounds of competition, Chengdu Biz-united Information Technology Company Limited eventually won the deal and became the implementation partner for Shindoo’s ERP project.

Biz-united Consulting brings quality to customer project

As an SAP services partner, Biz-united Consulting Corporation provides implementation services for SAP ERP, CRM, business intelligence (BI), and mobile solutions to IT planning for the chemicals, consumer products, and machinery manufacturing industries. Biz-united Consulting has sales and delivery centers in Chengdu and Beijing, as well as its R&D department in Hangzhou, to cover its business throughout China.

Biz-united Consulting also has developed a series of proprietary products, including sales platforms that integrate with SAP, dealer platforms, Channel Management and Inventory System, Marketing Expense Management System, and salesforce automation (SFA) mobile applications.

By aligning with SAP and undergoing a series of stringent quality reviews, Biz-united Consulting obtained accreditation from the SAP Partner Quality program in July 2013. This program is one of a range of quality programs and services provided by SAP Partner Service Delivery to ensure project delivery excellence on behalf of SAP partners through the application of the SAP 10 quality principles in customer projects.

Leveraging the project management templates and quality management tools in the Partner Quality Kit from the SAP Partner Quality program, Biz-united Consulting standardized its project management methodology and integrated SAP best practices to drive quality and mitigate risks in its customer projects.

Biz-united also shared regular status updates from its project for Shindoo with the SAP Partner Quality program and discussed the project risks and mitigation plan with an SAP Partner Quality Advisor quarterly. This approach helped Biz-united control the project risks efficiently and ensured the delivery quality.

Winning with greater transparency and faster decision making

Phase I of the project was closed successfully in 2013 with the implementation of the SAP ERP solution in Shindoo’s salt division and three fertilizer subsidiaries. Phase II, completed just this month, also produced excellent results with Go-Live status at all of Shindoo’s fertilizer subsidiaries.

Mr. Kailu Lin, CIO of Shindoo, says he is impressed by the SAP solution and implementation service by Biz-united Consulting. “Shindoo already benefited from SAP by standardizing business processes, improving enterprise management level, and enhancing the core competitiveness,” he says. “After the system Go-Live, Shindoo integrated marketing, sales, procurement, production, inventory and financial management in one system to build up an efficient platform to manage our supply chain.”

Mr. Lin also highly evaluated the solution provided by Biz-united Consulting and emphasized that Biz-united Consulting helped Shindoo build up the core system to support its business from end-to-end, and also used mobile and BI solutions to achieve the information management integration successfully. Now the senior management team can analyze the business status and make faster decisions based on accurate analytical reports – and win greater success.

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