Ask Approyo: How can SAP S/4HANA transform the Paper and Packaging Industry?

August 8, 2017

The global paper and packaging industry is in a state of transition as it considers how to survive and thrive in this age of digital media and paperless technology. The traditional focus on increasing output volumes is no longer sufficient. New business models and processes can illustrate a successful path into the future. Organizations are aiming to design a system that better balances demand with production, focuses on profitability, and yields more efficient operations. This transformation requires use of real-time digital information and control in a digital paper and packaging enterprise.

 

Transformation Drivers

The pulp, paper, and packaging industry value chain is transforming, driven by various global trends. These trends include higher customer expectations, for example, for greener packaging. Or the trend in smarter equipment that can help cut paper mill production costs and support more specialized lot sizes, Another trend is finding and retaining a skilled workforce. Each of these transformation drivers is forcing companies to reimagine how they do business and run their businesses.

 

New Business Models

In response, companies are considering new business models to extend or reinvent their business. These models can involve disinter-mediation of sales channels, more individualization with smaller lot sizes, or collaborating with customers to create new, innovative products and add-on services. For example, a new business line could be textile fibers being made from wood as an alternative to cotton or polyester in clothing or sheets.

 

New Processes

Implementing new business models calls for a change in operational processes, like better managing and recruiting talent, making practical use of smart machinery, or restructuring R&D processes to result in faster collaborative innovations. To execute on this transformation, firms will not only need to re-engineer their business processes, but they will also have to evaluate if they have the right technology platform that can deliver on that vision.

 

This platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes, and, at the same time, allows for flexibility in areas where change is happening on a constant basis. The digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with Big Data, and connectivity to line-of-business extensions that enable supporting processes such as talent sourcing or networks.

 

SAP S/4HANA was developed specifically to represent the digital core in this “bi-modal IT architecture.” It provides paper and packaging firms with a proven framework to adopt industry best practices while attaining operational excellence –specifically across core financial, sales, and manufacturing processes.

 

SAP S/4HANA: Sources of Value

The value from SAP S/4HANA comes through simplification of the user experience, architecture, and process.

 

Simplified user experience: across all devices

SAP S/4HANA empowers front-line users with a user-centric, consumer-grade experience because, for paper and packaging firms, it’s both the front-line and back-office employees that add value to clients. SAP is driving simplification and innovation in how business users work with a role-based, consistent user experience available on any device.

 

Simplified architecture: no aggregates –no redundancies

The simplified data model of SAP S/4HANA delivers an advanced digital data architecture that provides, in real time, a single source of the truth for both transactions and analytics. This enables extensive flexibility to adapt to changing business models, such as simulating the impact of business reorganizations in minutes rather than days.

 

Simplified processes: key industry capabilities of SAP S/4HANA:

 

Sales and Order Fulfillment 

 

  • Accounting and financial close

  • Accounts payables and invoice management

  • Cash and liquidity management

  • Enterprise risk and compliance management

  • Financial planning and analysis

  • Procurement

  • Supplier evaluations and procurement analysis

  • Sales order management and processing

  • Bid and proposal management

  • Sales monitoring and analytics

  • Goods issues/receipt

  • Warehouse management

  • Inventory management

  • Transportation management

  • Billing and invoicing for physical goods

 

Manufacturing and Operations

 

  • Material requirements planning

  • Production control

  • Asset strategy and planning

  • Maintenance planning and scheduling

  • Maintenance execution

  • Incident management

  • Health and safety management

 

SAP S/4HANA is The Next Generation Business Suite For A Digital World
The opportunity exists to transform business processes and achieve the digital transformation of your business with more automation and real-time visibility. Our SAP S/4HANA, SAP HANA and Big Data solutions address these important needs and more. Let us show you today! Set up a free consultation. 

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