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Tomorrow’s
Answers Today™

100's

of brands worldwide—
one global company with one vision

 

Often people achieve only incremental progress, because their view of tomorrow is determined by what they see today. AkzoNobel knows that what is good for their customers today is not necessarily good enough for them tomorrow, so it strives to meet consumers’ unspoken needs by sustaining future competitiveness.

 

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One global company with 3 divisions

Company

AkzoNobel Chemicals B.V.

Headquarters

Amsterdam, Netherlands

Customer Website

www.akzonobel.com

Revenue

€15.7 billion

Number of Employees

57,200

Implementation Partners

Zanders Treasury and Finance Solutions

Line of Business

Finance

Industry

Chemicals

Featured Products

SAP Treasury and Risk Management

History

With operations in more than 80 countries and 55,000 employees around the world, AkzoNobel is committed to excellence and delivering Tomorrow’s Answers Today™. Since its inception in 1646 AkzoNobel has constantly delivered technical and product innovation.

   

  • 1946Bofors Forge founded in Sweden
  • 1953 ICI’s Dulux paint enters the retail market
  • 1984KemaNobel merges with the company Bofors to form Nobel Industries
  • 1998Akzo Nobel acquires Courtaulds. Best known brand: International
  • 2008Akzo Nobel acquires ICI and changes name to AkzoNobel

Business Model

Hundreds of brands: One company,
one mission, one vision

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A global conglomerate

AkzoNobel has traditionally been a global conglomerate, buying and selling off businesses and operating at local levels with fragmented multi-systems. Since acquiring ICI and becoming the world’s largest decorative paints company, the company made a wholehearted commitment to set up one common system worldwide.

Success Strategy

Connecting with every stakeholder

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Strategy for success

Gaining transparency to know all the
customers’ needs.

 

The Challenge

Keeping the wholehearted commitment

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Competing at a multi-local level

While being excited and passionate about the vision and commitment to set up one common global system—the company was faced with a complex reality of vast proportions throughout their multi-local businesses and their disparate array of treasury systems.

 

On top of that, the legacy environment, which included multiple interfaces, was partly based on obsolete technology and was difficult to maintain.


Not having reliable information to aggregate
was like working in the dark.

 

Enter SAP

SAP is the heart of future global application

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Meeting the local business requirements with global systems.

The objective of AkzoNobel was to create one global company with one mission, one vision, one strategy, one organization, with one information flow. For this reason the company chose SAP, to move from multi-local systems to one global system.

Running Better

Meeting the four core requirements

AkzoNobel had fundamental requirements that had to consistently be met in order to succeed in such a monumental set of endeavors.

 

Among all other vendors, SAP was best suited by providing:

  • Corporate standard of excellence
  • Software suitable for a global organization
  • Leading treasury applications
  • Reasonable annual maintenance costs

 

World-class operational support

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Running better

The Amsterdam, Netherlands–based Fortune 500 company chose treasury applications from SAP to handle the mission, with the SAP Treasury and Risk Management application playing the leading role. The company wanted to establish integrated, standardized, and effective treasury processes group wide and create a world-class treasury department that ranked in the top 25% of its peers.

 

Finding best practices through system wide
repeatable models.

 

Benefits

Expected and unexpected gains

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A new high-sense of inventory transparency creates a huge ripple effect of savings.

By getting speedy and accurate data to aggregate, integrated business planning and innovations were implemented across sales, marketing, supply chain and distribution channels globally.

 

This enabled a 40% net inventory reduction.
That’s a massive savings otherwise unattainable.

 

Lessons Learned

Leveraging SAP’s experiential learning

Neil Sutton, AkzoNobel, Global Supply Chain Director

“The role of SAP in the vision is an enabler role, but it also stretches us out in terms of bringing experiences from other companies, who have been through similar journeys and are actually ahead of where we are and therefore we, by using SAP, can leverage that experience as well. ”

Today

Speeding cash flow and lowering operating costs

The company removed multiple manual steps from the payments process after implementing SAP Treasury and Risk Management.

 

As a result, the treasury department can now see near real-time payment status, and it has just one interface with all its banks. Besides a better insight and transparency, the streamlining also reduced costs. Thus the company can now monitor and manage their money better and at the same time save money, too.

 

For companies like AkzoNobel that have the SAP ERP application as the backbone for their business processes, treasury solutions from SAP should be the first choice due to ease of integration and a lower total cost of ownership.

Journey Ahead

Changing the game with SAP

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The future

The most important things

AkzoNobel looks to leverage what they’ve built on a real-time global level in every way imaginable. Building dashboards and good reporting systems while planning mobility solutions are just a few of the ways that SAP HANA will help in the future.

 

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