OSTCHEM Group introduces SAP ERP system

OSTCHEM Group (owned by OSTCHEM Holding AG, Vienna, Austria) which consolidates a number of large chemicals businesses in Eastern and Central Europe including Ukraine, Estonia, Russia, Germany, Switzerland, Italy and Tajikistan has selected SAP as a strategic partner in Ukraine.

OSTCHEM Group and SAP started their cooperation in March 2008 at the JSC Crimean Soda Plant, one of the leading chemical industry Ukrainian enterprises. JSC Crimean Soda Plant is the first business within OSTCHEM Holding to implement the SAP ERP (enterprise resource planning) system.

The first stage of the project is the implementation of the enterprise resource planning system aimed at reducing operational costs, improving performance indicators of operational management as well as making business processes of planning, controlling and analysis more transparent.

Implementation of this SAP solution should bring to the Crimean Soda Plant:

- Reduced operational expenditures;

- Increased operational efficiency due to improving quality, reliability and accessibility of management data;

- Integrated system for business assets performance analysis;

- Optimization of financial processes, logistics and supply chains;

- Standardization of operations, creation of centralized technological platform for business processes;

- Creation of SAP Competence Center to support implementation of SAP solutions at OSTCHEM Group.

«Thanks to integrated management system we will be able to improve business operations and reach tangible economic outcome, says Alexander Khalin, CEO of JSC Crimean Soda Plant. – Introduction of SAP software allows the management to receive timely information for faster decision making and financial growth. We anticipate a return on investment in the short term and believe that competitive advantages of SAP ERP will strengthen OSTCHEM Group in local and global markets.”

Implementation of ERP system is being conducted by a project group consisting of more than 70 specialists of JSC Crimean Soda Plant, SAP consultants and representatives of Conim Group. SAP ERP project scope includes applications for sales order, production planning, inventory and warehouse management, financial supply chain management, and controlling.

Alexander Melnikov, Managing director of SAP Ukraine: “OSTCHEM’s choice of SAP as strategic business partner is determined by the understanding of importance of the best business solutions for efficiency of executive decision-making by OSTCHEM Holding management. Board of Directors of OSTCHEM Holding is the primary future users of SAP business solutions, and they give thorough support to the project”.

The implementation of a management information system is being carried out according to SAP methodology. In June 2008, the phase of conceptual design of the project was completed. The current phase of realization started in August 2008. The ERP system pilot launch is planned for December 15, 2008.