Saudi Paper Manufacturing Company (SPMC)
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.
Saudi Paper Manufacturing Company (SPMC)
SR 757 million (US$202 million)
Number of Employees
Run Simple, Run Live, Clean Planet & Climate Change
Dammam, Saudi Arabia
Line of Business
Manufacturing, Sales, Supply Chain, Sustainability
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
Customer Snapshot: Business Model
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.
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.
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
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
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
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.
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.