When SCA Hygiene, a multinational enterprise who produces personal care and tissue products in over 100 countries, found that they were no longer capable of fulfilling their day-to-day operations it became clear that the outdated technology needed to be replaced in order to better satisfy business demands and position themselves for future market demands.
They turned to SAP to gain greater control and flexibility over their organization and SEEBURGER to enable the communication to their business partners by uniting under a single platform and resulted in streamlined, more efficient operations with a lower Total Cost of Ownership (TCO).
Find out not only what enhancements are coming with the SAP NetWeaver product line, but also how SCA Hygiene is leveraging SAP NetWeaver and SEEBURGER to consolidate their businesses globally and give them better control over their business partner trading processes.
Learn:
• The advancements to the SAP NetWeaver product line and future product roadmap
• How SCA Hygiene leveraged their SAP investment to satisfy all business demands from a single platform
• Learn how to configure a successful global consolidation project or SAP NetWeaver implementation
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CASE STUDY: How SCA Hygiene Leveraged SAP NetWeaver for Global Consolidation
1. CASE STUDY:
How SCA Hygiene Leveraged
SAP NetWeaver for Global Consolidation
Ken Tsai
Director, SOA Middleware, SAP
Mark Ritter
IT Services, SCA Hygiene Products
Stefan Hilpp
Managing Consultant, SEEBURGER
2010
21. SCA – a global consumer goods
and paper company
Forest 15%
23%
Personal Care
Publication papers Incontinence care
Solid-wood Baby diapers and
products skincare
Pulp and timber Feminine care
25%
Packaging Tissue
Transport and Toilet paper, kitchen rolls,
consumer packaging 37% facial tissue and napkins
Industrial packaging AFH (Away-From-Home)
Containerboard hygiene concepts
Total sales 2009: 10.5 billion EUR
21 SCA Personal Care Europe
22. Essentials for everyday life
Millions of people use our products,
every day
Our 50,000 employees worldwide are
committed to developing and
improving our customers‟ and
consumers‟ everyday lives
We operate our business in over 100
countries, with sustainable principles
22 SCA Personal Care Europe
23. Leading brands and businesses
World‟s third
Europe‟s largest World number one largest
supplier of for incontinence care supplier of
consumer tissue with a 26% global AFH tissue
market share
One of Europe‟s
leading full-service
suppliers of
packaging solutions
Europe‟s
largest forest
Leading regional owner
positions around
the world in baby
diapers and
feminine care
23 SCA Personal Care Europe
24. Sustainability matters
“ Ranked among top 100 most
sustainable companies.
Ranked 2nd greenest
company in the world.
Ranked among world‟s most
ethical companies.
Almost all of SCA‟s products mainly contain renewable raw materials
Continued shift from coal and oil to biofuel and natural gas
SCA plants three trees for every one harvested
24
“ SCA is one of the world‟s
largest suppliers of FSC
certified products
“ SCA‟s forests absorb as
much carbon dioxide as
emitted by the Group‟s
production facilities
SCA Personal Care Europe
25. Our environmental goal
SCA will reduce its carbon dioxide emissions by 20%
by the year 2020, with 2005 as a reference year
25 SCA Personal Care Europe
26. Legacy B2B/EDI Infrastructure Diagram
Sending / Receiving via VAN (GEIS, IBM, X400), Internet (AS2), email,
Trading Partners
•Other platforms used :
• Harbinger USA ,
Web- • EDIWIN (Spain)
Orders • INFLUE (France)
• Legacy B07 ( UK)
AMTrix WinElke
XI
Excel
Orders
BizTalk
CHEP SCA Mailbox
Pallets
SOP
SAP SCA Mailbox Oracle
* SCA mailbox facilitates
data exchange between internal SCA
Systems (Amtrix to SOP, Excel to SOP etc.) Other
Also used by Packaging and Forest Products
26
27. Legacy B2B/EDI Environment
AmTrix (Axway) / IBM Mainframe main engine for
EMEA & North America (PC). AmTrix with Oracle &
IBM components (DB2/CICS/Cobol) , in-house
developed system
WinElke (SEEBURGER) for selected German EDI
messaging
EDIWIN used in Spain
Harbinger (Inovis) in North America (AFH/CT)
27
28. Background : Legacy B2B/EDI
environment
Legacy software : AMTrix in conjunction with IBM Mainframe/Oracle,
SCA Mailbox. SEEBURGER in Germany (Invoicing). Not in a position
to satisfy all customer/business requests. Installed in 1994.
EDI interfacing with SCA application systems such as SAP, SOP,
DUOLINE, PAM, SMS and Extranet Web applications.
Main messages used : Most messaging related to Orders, Ordrsp,
Desadv, Invoice, Recadv, Invrpt, Slsrpt, Iftmin, Remadv.
Total connections : Approximately 300 EDI Partners
Communication : VANS (GXS(IIE), X400, FTP, OFTP, AS2 (various
solutions).
28
29. Background existing B2B/EDI
Supported by : IT employees, external consultants, Regional IT &
Customer Support.
Skill-set : Main legacy platform required knowledge of AmTrix, IBM
mainframe (DB2/JCL/Cobol), Oracle. Other local solution required
software specific consultants and internal support.
XML in production : Various solutions including XI or external service
provider to convert XML to EDIFACT.
29
30. Background existing B2B/EDI
Summary
Competence required on several applications / systems
Large and complex infrastructure
Many points of failure to monitor and track
Disparate platforms and fragmented business processes
Complex change management
30
31. Why Consolidating B2B/EDI ?
Ability to satisfy all demands from business and be a leader in Ecommerce
trends
Reduce the number of systems and interfaces to make processes more uniform
Reduce the TCO of SCA Hygiene„s B2B/EDI environment and, at the same
time, increase the service level
Quicker turnaround time for trouble-shooting, maintenance, enhancements and
new development.
Central „end-to-end“ monitoring of internal and external processes
Increase B2B/EDI connectivity with trading partners
Reduce the number of manual processes
ALL OF THE ABOVE ARE ALIGNED WITH THE OVERALL IT STRATEGY OF
“COORDINATED DEVELOPMENT / HARMONIZATION OF SYSTEM
PLATFORMS” AND “AVOIDING DUPLICATION OF EFFORTS AND COSTS”.
31
32. Consolidation Project Phases
Define Scope
Evaluation of Products
Pilot as “Proof of Concept”
Rollout
Post-mortem
* “PRIME” project management approach used (Phases, Tollgates, Common
Project Language etc.)
32
33. Consolidation Project Phases
Define Scope
Project Charter – “Improve on the current EDI environment by replacing
the existing legacy platforms with new software to better position SCA
Hygiene for handling all types of EDI formats. In addition, evaluate all
facets of the EDI lifecycle, from development to implementation and
production support, with the aim of making the overall process more
efficient.”
SCA Hygiene Europe + PC business North America
Focus on putting the process in the application as well as
Improved monitoring and support capabilities
33
34. Consolidation Project Phases
Evaluation of Products
PI compared against non-SAP software and PI and the SEEBURGER EDI adapter software
selected because:
It was a very big advantage in terms of cost and effort, that we already had PI in-house
(and an exist group with knowledge and experience supporting it).
SAP-centric Integrated solution.
SEEBURGER certified by SAP, and its adapters are sold by SAP worldwide.
SEEBURGER solutions are 100% compatible with the entire SAP product portfolio
Large pool of IT professionals available to support XI & SEEBURGER EDI processes
Good feedback from Gartner analysts and companies already using PI.
SCA IT Team did a comparison study and we saw no advantages in using another
integration product at SCA. In addition, we did not want to create a second integration
platform.
34
35. Consolidation Project Phases
Pilot as “Proof of Concept”
The pilot should define, configure and test the new EDI platform to
ensure SCA Hygiene is positioned to meet the criteria defined in the
project charter *.
“Improve on the current EDI environment by replacing the existing
legacy platforms with new software to better position SCA Hygiene for
handling all types of EDI formats. In addition, evaluate all facets of the
EDI lifecycle, from development to implementation and production
support, with the aim of making the overall process more efficient.”
35
36. Pilot Execution Plan
Decision and approval to start development
Basic Installation and configuration + Implementation of pilot partner scenarios
SEEBURGER EDI Adapter / MT Testing/ Monitoring configuration
Go-live & Pre-study for rollout projects
36
37. Rollout Plan
Sub-projects by Region : Nordic, Central (DE-AT-CH), South (ES-IT-PT) etc.
Each region has its own special requirements and Regional IS personnel to
support.
Same standards used for all regions - Naming conventions, mapping functions
etc.
The rollout team consisted of internal and external developers, local IT, SAP
specialists (for ABAP user-exit programming for example). PI support from the
Infrastructure Team as required.
Challenge was to keep the momentum going on the migration while supporting
existing EDI production environment and new development such as new
partner connections, supporting other projects (R3 migration, P&G acquisition,
SAP upgrade)
No "Big-Bang“, but a partner by partner migration.
Less Risk / Higher quality , but longer to complete migration.
37
39. Challenges
Difficult for some to give up legacy platforms (strong central support from senior
mgmt key to push the project)
Other project activity where the B2B team as well as regional support was also
involved, took away time and resources
Waiting on external customers. For example if a communication switch was
required waiting for weeks or months on partner.
Testing externally was avoided. We had the results from the legacy systems to
compare against.
SAP and SEEBURGER upgrades during the project required regression testing and
support for installation and production monitoring.
39
40. Success List Summary
Migration was completed without any major incidents. Incidents
encountered were handled quickly by the team.
Flexibility - Other project activity was successfully completed (even
unexpected work, such as new business acquisition and subsequent
IT integration).
Good cooperation within the B2B team (internals and externals) as
well as local IT and customer support.
M&S personnel from the legacy systems contributed to the
development of the new platform and resumed their production
control roles in the new environment.
Reduced overall FTE in the B2B team. This helped to justify (along
with the other aforementioned benefits) the cost for the consolidation
project
Documentation was greatly improved. Partner documentation.
40
41. Key Learning Points
Pilot followed by migration
Opportunities for improvement to the process were discovered early on
Moving the Global Location Number determination
process to SAP
Reduces redundancies and allows customer service to have real-time
changes in the customer master with minimal map or table updates
Communication
Sitting together with RIS and customer service representatives throughout
Europe is always beneficial. Periodic EDI reviews held with different
countries
41
42. Benefits & Conclusions
By moving SCA Hygiene‟s legacy B2B/EDI systems
to an SAP XI with SEEBURGER‟s embedded
B2B/EDI solution SCA Hygiene can:
Satisfy all business demands from one platform
Have simplified & more efficient operations
Have Higher Business Process Visibility
Be well-positioned for future market demands
By consolidating SCA can meet the goals of
reduced TCO and at the same time increase
the quality of service
42
43. Future possibilities for B2B at
SCA
Global Harmonization:
Australasia, Americas,
Europe
New technical
Target EDI with solutions
suppliers
43
44. SAP’s Strategic B2B & EDI Partner
SEEBURGER‟s solutions are certified
28 certified adapters
OEM-partnership for SAP GTS & Global
Customs Integration
44
45. SEEBURGER SAP NetWeaver PI Offering
The 3 C’s of the Adapter Framework
Conversion – Transformation Agent (BIC)
Communication
Components
Add-On’s
Message Tracking an Operational Dashboard for PI
Trading Partner Management
B2B Gateway for PI
Manage even the most challenging B2B integration scenarios with
SEEBURGER‟s BIS
45
46. SAP NetWeaver Process Integration
Single integrated product for comprehensive business SOA
Enterprise Services
Software
Repository & Registry Business
Lifecycle Process
BAM Task
Security User Orchestration
Management SOA Management
Management
Administration
Configuration
Pre-packaged Integration Content
Service Bus Monitoring
Services Registry
Optimization
Connectivity Security
Scalability, (3rd Party
Reliable Dynamic
Protocol Trans- High Applications,
Message & Routing / Technologies,
Switching formation Availability
Queuing Mediation Middleware,
Archiving
B2B…etc)
Integrated process development for total business context and complete visibility
High performance and secure end-to-end transactions
Pre-integrated repository and registry for centralized service provisioning and governance
47. SEEBURGER adapter solutions on SAP
NetWeaver
SAP NetWeaver Process Integration
SAP NetWeaver PI + SAP Solution Manager - Monitoring and Alerting
Integrated within SAP NetWeaver XIPI monitoring and CCMS
SAP NW PI Adapter Framework
SAP NetWeaver PI Integration EDI components
Engine
module
SAP Adapter syntax library
protocols
conversion
for compress/
OFTP,
AS2,
EDI <-> decompress,
Backend SEEBURGER Business Content XML-EDI split/analyze,
VAN FTP,
P7/X.400,
Integration XML-EDI <-> XML-IDOC Mappings converter encryption, ..
...
SAP NetWeaver PI Repository and Directory
support of acknowledgement processing (997, CONTRL, APERACK), mass data handling and configuration, …
SEEBURGER Industry Adapters for SAP NetWeaver PI are
industry specific business packages
47
48. Key Benefits:
SEEBURGER & SAP NetWeaver
Reduce costs for licensing, support, monitoring, hardware, software,
etc.
Utilize same skill set for all integration requirements
Need of consolidated integration approach in growing landscapes
Replace isolated integration systems
Improve business transparency
Improve business agility
Use SAP NetWeaver PI as a central Enterprise Service BUS (ESB)
integration platform for all internal or external integration needs
Leverage pre-configured solutions that are based on open standards and provide
business processes, mappings, etc.
Establish SAP NetWeaver PI as SOA middleware providing ONE platform for central
design, configuration, monitoring, alerting
50. SAP PI –Partner Management (Envelope
Management)
Centralized Trading Partner Management for PI
Support of all common EDI standards
Store detailed contact information by Trading Partners
Manage SAP envelope information
50
51. Questions & Answers
Mark Ritter Ken Tsai Stefan Hilpp
IT Services Director, Managing Consultant
SCA Hygiene Products SAP NetWeaver Platform SEEBURGER
www.sca.com SAP s.hilpp@seeburger.com
ken.tsai@sap.com
52. For More Information
For more roadmap and product related information, check out:
http://www.sap.com/platform/netweaver/components/pi/index.epx