Chemicals leader sees new future through

Huntsman Tioxide invests in global solution to improve productivity

LondonOne of the world’s leading chemical manufacturers is standardising its global operations on SAP via a £35million investment focused on business improvement.

The project is on target to deliver cost savings of £8.5million in the first full year of operations and deliver full return on investment within four years. With a significant organisational impact worldwide, the project is a major change
management challenge.

Huntsman Tioxide is part of Huntsman International and produces white pigments for paints, plastics, inks, paper, textiles and cosmetics. It is creating a global operational model that will improve collaboration between manufacturing, sales and supply chain activities. This will greatly increase overall business efficiency through unified reporting, better access to corporate data, and the automation of standard business processes.

The platform being implemented includes SAP’s Financial, Logistics, SCM and CRM solutions.

It is being implemented in partnership with KPMG Consulting at nine sites worldwide, including the UK, US, France, Italy, Spain, Malaysia and South Africa and will eventually be used by almost 3,300 staff and contractors.

“In the next two years, we will transform the way we work from an international group of businesses to a truly global company,” said Doug Coombs, president at Huntsman Tioxide. “There are significant economies of scale to be gained by ensuring the whole business works more closely together.”

“The platform is the ideal vehicle for this programme as it gives us a solid foundation on which to build our improved processes and customer service, including e-business with customers, partners and employees alike. With a UK ‘go live’ on time ten months after launch, on scope, on cost and ahead on benefits, we’re very pleased with progress to date,” he added.

“The key driver for this project was to deliver greater business efficiencies across Huntsman Tioxide’s global practices,” said Martin Metcalf, managing director at SAP UK and Ireland. “The business environment has changed and in times like these companies are seeking to make technology investments that deliver tangible business benefits, fast. Huntsman Tioxide estimates the efficiencies delivered by using will result in substantial savings.”

“Using, the company is able to develop and exploit common manufacturing and commercial business processes in its operations around the world,” Metcalf continued. “Huntsman Tioxide is introducing an advanced global supply chain to bring all areas of the business much closer together, and is synchronising activities worldwide. The benefits of working in this way will impact much of the company and its supporting communities.”

“One of the major factors in the success of this project was the ownership and commitment of the senior management team at Tioxide, starting at the top with president Doug Coombs,” said Paul Bray, lead SAP partner at KPMG Consulting UK.
“Doug and his team worked very closely with us and were quick to buy-in to the fact that the project was about business change and ROI, rather than being purely technical,” he continued.