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Company Information Headquarters United States Industry Packaging Industry Web site www.Novolex.com Novolex™ is one of North America’s leaders in packaging choice and sustainability, serving retail, grocery, food service, hospitality, institutional, and industrial markets with over $3.5 billion revenue. With more than 10,000 employees, Novolex™ manufactures packaging products at 61 locations across the U.S, Canada, Mexico, the U.K and the Netherlands. Novolex™ sustainable products focus on source reduction, energy and water conservation, and end of life product planning and management. Novolex™ will leverage SAP S/4HANA as an intelligent enterprise platform to: Drive towards ‘One Novolex’ customer experience Reduce overall process deficiencies to decrease SG&A costs Consolidate business processes and replace obsolete ERP systems and solutions Support the entire Novolex (Paper and Plastic) business units Modernize plant maintenance and advanced production planning tools Reduce sources of company meta data – sales, production, purchasing information Simplify consolidated financial reporting and enable SOX implementation / controls ©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2 Digital Innovation & Business Transformation using SAP S/4HANA Novolex Challenge “With the company’s accomplished Over the years, Novolex’s M&A activity has introduced more than eleven independent ERP platforms, which hyper-growth and to become an have presented inefficiencies between business units and at the corporate level. Limiting the ability to transform industry leader in packaging the business model from a holding company to a ‘One Novolex Enterprise’ to better serve the customers. solutions, Novolex has embarked on a global business Solution transformation program, Project Optimus, ‘Optimize + Transform’. A large scale Business Transformation program with an objective to optimize current businesses and transform the company into a futuristic ‘Enterprise’. Implemented SAP S/4HANA as a single ERP with SAP HANA We partnered with TCS in building Enterprise Cloud as a platform of choice leveraging SAP Model Company for time to value implementation. a futuristic ‘Optimus’ solution that will enable us to be an ‘Intelligent Outcome Enterprise’. Using SAP S/4HANA as a digital core supporting both The strategic outcome of the program includes realization of ‘One Novolex’ vision; business expansion and our Paper and Plastic businesses, industry leadership position. The financial outcomes include overall efficiencies in SG&A, improved visibility of the Optimus project is set to bring business performance, and faster time to market. great business results.” Don Ray One-time OPEX Manufacturing Faster month Optimus Program Executive Novolex > 14% plus ongoing SGA > 12% Productivity 3X end and quarter savings Improvements end close ©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 Participating Partner Information Tata Consulting Services Business Transformation and Systems Integration Partner “Novolex Optimus program required comprehensive, innovative and accelerated business solution that drives operational efficiency, business agility and market expansion goals. An excellent orchestration of strengths from Novolex, TCS and SAP resulted in a successful first of a kind solution delivery. Novolex executive commitment tremendously helped in business adoption, change management with external business partners, and setting up new business functions to support the accelerated implementation. A trusted TCS and SAP partnership on this greenfield SAP S/4HANA implementation with new business practices across the enterprise ensured that Novolex Optimus solution is value driven, innovative and scalable.“ Kiran Yelamaneni Solution Delivery Executive, TCS ©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4 Business Challenges and Objectives Novolex’s M&A activity has introduced more than eleven independent ERP platforms, which have presented operational inefficiencies between business units and at the corporate level. Disparate ERP platforms and distinct processes causing Challenges going to market with one face to the customer Operational inefficiencies between systems (i.e., Buy/Sell, Sourcing, Rebates) Impediments on realizing operational and functional synergies across business units Inability to perform consolidated data analytics Novolex embarked on a very large-scale Business Transformation program to reduce the current ERP footprint and support continued company growth. with an objective to combine and optimize business processes and transform the company into a futuristic ‘Intelligence Enterprise’, the transformation program will achieve the following objectives. A global solution to support all Novolex’s Paper and Plastic business units ‘One Novolex’ customer experience and enable SG&A transaction efficiencies Modern technology tools and a scalable cloud-based ERP platform by replacing obsolete ERP systems Support change management and develop learning solutions with continuous improvements Company-wide meta data such as sales, production, finance and purchasing information etc. ©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5 Project or Use Case Details The project goal is to drive business transformation with ERP consolidation and implementation of SAP S/4HANA, the next generation business suite. Business objectives demanded a comprehensive and innovative solution with accelerated implementation achieving time-to-value without disrupting the current businesses. The Optimus program will enable: • Customer Excellence - Standardized order management transitioning from eight separate ERP systems (One Novolex) and help setup profitable contracts, better pricing, timely reporting with intuitive analytics tools • Finance, Accounting and Controlling - Standardize and streamline all finance and accounting processes with SAP S/4HANA as the single source for consolidated reporting, real-time cash management, faster month-end closes with robust controls • Procurement and Sourcing - Ability to analyze supplier spend more easily, parts consolidation across business, electronic purchase requisitions, guided buying channels with approved supplier catalogs • Production Planning - Single SOP process, better forecast accuracy, improved demand planning, advanced scheduling • Production Execution - Utilize discrete manufacturing with batch management for lot traceability, improved inventory accuracy with real-time production confirmation, and RF scanning for efficient warehouse operations • Equipment Reliability - Plant Maintenance aligned with world class methods, increased OEE, and organized store rooms The Novolex Optimus solution is developed using the following components: SAP S/4HANA SAP Fiori Apps (only Fiori for end users) PPDS, EWM SAP Ariba Vistex SAP Enable Now Embedded Analytics SAP Data Services SAP Solution Manager SAP Test Suite Nice Label SAP Model Company ©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
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