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Customer Snapshot: Overview

Cut IT costs by 50%

The Middle Eastern desert seems an unlikely place for a paper company, with the region’s scarcity of water and wood fibers – two raw materials vital for classical paper production – but Saudi Paper Manufacturing Company (SPMC) has thrived through their eco-friendly use of water reclamation and recycling initiatives.

Company
Saudi Paper Manufacturing Company (SPMC)

Revenue
SR 757 million (US$202 million)

Number of Employees
2,000

Industry
Mill Products

Visionary Themes

Run Simple, Run Live, Clean Planet & Climate Change

Headquarters
Dammam, Saudi Arabia

Customer Website
www.saudipaper.com/

Line of Business
Manufacturing, Sales, Supply Chain, Sustainability

SAP Solutions
SAP ERP, SAP ERP powered by SAP HANA, SAP HANA Enterprise Cloud

 

When managing the supply chain became too cumbersome, SPMC decided to start fresh with a new ERP system that could master their advanced production planning. They found the silver lining to their challenges in the cloud with SAP.

They could bring water to the desert but needed help managing the process from there.

Customer Snapshot: History

Creating a Financial Oasis in the Desert

SPMC was founded in 1989 by Prince Abdullah bin Mosaad bin Abdulaziz Al Saud – the grandson of Saudi Arabia’s late King Abdulaziz.

Customer Snapshot: Business Model

Because Everyone Needs Paper
The company’s mission is to be among the fastest growing companies that contribute to the enrichment of shareholders' wealth and the preservation of the environment through enterprising in various regional tissue paper companies. The aim is to be the regional leader of the paper industry through integration and participation in rewarding and lucrative markets.
 
SPMC’s commitment to holistically developing their activities and manufacturing capabilities has enabled them to operate at the various levels in the paper industry, grouped under waste paper collection, recycling, manufacturing, and converting.

Customer Snapshot: Success Strategy

Investing in Conservation and Expansion

One of the primary activities of SPMC is the collection of waste paper, which has a positive impact on the environment and society as a whole. SPMC is committed to continuously increasing their reliance on waste paper as a major factor of production in their manufacturing operations. They have clearly demonstrated this through their investments in paper de-inking technology and waste paper collection centers that are dispersed throughout the Arab world.

SPMC is a leading Saudi Arabian enterprise in the tissue paper industry. The company’s operations are concentrated in Saudi Arabia & the Gulf Cooperation Council (GCC) countries to meet the needs of local, regional, and international markets. During 2008, SPMC began establishing fully-owned subsidiaries throughout the Arab world, specializing in waste paper collection to help in the achievement of SPMC's strategic objectives of continued growth and supply chain integration.

The Challenge

The Ability to Grow While Conserving Resources
 

SPMC had been operating on a large-scale for some time. When the company announced their new strategic objectives to capitalize on opportunities by gathering demand and consumption data, the team realized the current ERP wasn’t up to the task.

A lot was riding on the decision to select a new solution.

Enter SAP

 

A Clear Choice

SPMC chose SAP for their prowess in handling large-scale manufacturing planning and for their SAP HANA Enterprise Cloud service offering which would enable SPMC to cut their implementation time in half, hastening the time to reap the benefits of the new system including increased efficiencies across the board.

SPMC contracted a third party consultant who listened to their needs and evaluated proposals from ERP vendors that included proofs of concept, which displayed their products’ prowess in advanced production planning.

Making an important decision…

Enter SAP: The SAP Experience

24/7 Support

Adopting the cloud-based solution granted Saudi Paper Manufacturing Company access to full-time support from SAP professionals and tools, eliminating the need for costly technology upgrades and proving more cost-effective than a resource pool of niche talents.

When we compared SAP HANA Enterprise Cloud with other cloud-based ERP services, we found that SAP was best prepared to provide the technology, functionality, and support we needed. – Fahed Alfarah, Group IT Manager, Saudi Paper Manufacturing Company

Better Business

A Pause-Free Production Cycle
 

With the real-time insights provided by the new data management solution, decision-making has never been simpler or more effective for SPMC. These improvements come at a critical time for the company, as consumer demand for their products is growing and they can’t afford a production lag. With supplies coming in and finished products going out as needed, SPMC can Run Simple.

Decision-making made simple helps the whole business run more smoothly.

Better Business: Benefits

Business Moving in the Right Directions

With the new solution in place, on-time order fulfillment is up, while errors are down. Innovations are up, while IT costs are down. Servers are up 24/7, while hardware and software costs are down.

Better Business: Run Simple

 

Gains in Speed and Efficiency

Once the solution was implemented, the team discovered that the SAP HANA Enterprise Cloud solution was able to adopt to innovations faster in the cloud by 80%, while being less expensive by approximately 30%. Furthermore, IT costs are 50% lower.

SPMC's new solution reduced complexity through one Run Simple solution.

Journey Ahead

Getting and Staying Ahead of Demand

With the efficiencies gained through their new IT solution, Saudi Paper Manufacturing Company is considering adding a new element to include prepopulated reports and expand their existing business suite to improve business insights, reporting, and predictive analytics. SAP S/4HANA is on their radar to help put all of these initiatives into place and keep supply ahead of demand in the short and long-term.

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