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The value of SAP HANA for the chemical industry – Part 1

The need for a platform that can quickly and efficiently capture, process, and analyze big data in today’s market  is evident. As companies grow and systems mature the amount of data captured in all lines of business is massive. With current platforms this mountain of data can take hours, or even days, to analyze and filter, creating many problems for companies. Today companies need to be able to process and analyze company data “on the fly” to stay competitive. With the implementation of SAP HANA companies are able to do just that. In this short blog series I will explore 5 cases where SAP HANA offers benefits for customers in the chemical industry.

Product Compliance

To decrease the potentially hazardous risks with chemical operations countries have created legal initiatives to restrict the use of chemicals and asses them according to risks. Starting in the European Union with REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals), this initiative has spread to countries all over the world (e.g. Canada China, Japan, Malaysia, Switzerland, Turkey, and the United States). However, these restrictions have led to many business issues for chemical companies including:

  1. Large number of registrations (thousands or even tens of thousands) that need to be managed
  2. Increase in product compliance costs (registration fees, dossiers, risks assessments, etc.)
  3. High risk of non-compliance due to unregistered substances or incomplete coverage of registrations
  4. Increased communication up and down the supply chain to determine uses and exposures of scenarios

Most customers today will select various logistical reports and import the materials lists into EHSM software to find which substances relate to the materials.
Unfortunately, this process is time consuming, hard to handle, and has a high risk of missing data.

SAP HANA provides rapid access to the data in the EHSM specifications database and – combines with sophisticated compliance-check algorithms – run a compliance check in seconds. This platform also allows companies to combine cost and profitability analysis data with substance information. This helps save time during product development and the decision making process (i.g. the decision to keeping an existing substance or replace it). With the power to harness, process, and analyze compliance data quickly, SAP HANA gives companies the platform to meet compliance standards.

Boosting Operational Excellence Through Real-Time Visibility

Every chemical company needs to achieve operational excellence in order to be competitive. Companies measure operational excellence by defining key financial targets, customer satisfaction goals, safety targets or even environmental benchmarks. However, due to the nature of the industry safety targets are always at the top of the list. What has hindered many companies from achieving operational excellence is the fact that operations produce an extremely large amount of data, which historically wasn’t able to be analyzed in a timely manner.

With the SAP HANA platform corporations can correlate the sources of operational data (data historians, engineering, reliability, maintenance applications, and so on) with business data (supply chain, capital projects, and enterprise resource planning applications) to produce meaningful information about operations. Offering a comprehensive view of all operational data in real-time allows companies to improve capacity controls and predict future operations. SAP HANA also makes this information available to everyone in the corporation who needs it. This enables everyone to have the same up-to-date information which enhances cross-functional activities.

Share your thoughts below: How has SAP HANA helped you meet product compliance and meet operational excellence?

Or send us your thoughts to @SAP4Chemicals.

Come back for part two where I will explore the benefits of SAP HANA in S&OP, margin simulation with real-time material prices, and profitability analysis.

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