Combining Technology and Processes to Drive …fm.sap.com/data/UPLOAD/files/Nalco SAP FINAL -...

Essential Expertise for Water, Energy and Air SM

Combining Technology and Processes to Drive

Product Safety and Compliance at Nalco Company

Huw P. JonesHuw P. Jones

REACH program Director REACH program Director

James FergusonJames Ferguson

SAP EHS managerSAP EHS manager

1Essential Expertise for Water, Energy and AirEssential Expertise for Water, Energy and AirSMSM

OverviewOverview

SAP systemsSAP systems

SVT & Legal control, REACHSVT & Legal control, REACH

Regulatory approval communicationRegulatory approval communication

Hazard Communication, GHSHazard Communication, GHS

Nalco

Nalco is the world’s largest sustainability services company focused on industrial water, energy and air applications. We help our customers reduce water, energy and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line.

– Customer base is diversified across multiple industries

• Nearly 50,000 customer locations

• Business is divided into two core divisions


• Business is divided into two core divisions

– Water and Process Services (WPS)

» Water Services

» Paper Services

» Air and Emissions Control Offerings

– Energy Services (Energy)

Supplier of mixtures. Globally have 9,000 products

Mission statement

• Nalco SH&E mission is to "manage risk and protect the brand". This must be achieved against the backdrop of:

– A rapidly changing regulatory environment with the spread of copycat legislation each with minor differences in content and each requiring implementation of a regulatory compliance solution

– A changing business environment with the launch of


– A changing business environment with the launch of innovative technologies and a trend to shorter product life spans

– Data intensive regulations with burden of proof on industry - manual systems are simply not sustainable

– Internal and external Customers demanding greater proof of compliance

Regulatory Programs

SH&E have global programs which are regionally delivered and comprise the following elements:

Information technology

such as SAP

is critical to

ComplianceHazard communication


is critical to

successful deliverySubstance

support

Product Support





SAP systemsSAP systems

SAP solutions

• A number of SAP solutions are in use:

– SAP ERP 6.0 EHP4

– SAP Enterprise Extension PLM, SCM, Financials Release 604

– Legal Control and Substance Volume Tracking

– SAP EHS Regulatory Content

• Expert Rules and Templates


• Expert Rules and Templates

– Standard SAP BAPI web service

• SAP is used in several hazard communication & compliance programs and has been a critical factor in their success

• Used SAP and Technidata for Implementation Services

– Quote to Cash

• Price Management

• Quote Management

• Order Management

• Customer Interaction Center

• Service Management

• BA’s (Contracts)

• Credit Management

• Shipping & Delivery

• Available to Promise (ATP)

Overview of Core SAP

SAP Functions Supported

– Plan to Manage

• General Accounting

• Financial Accounting

• Product Costing

• Cost Center Acctg

• Controlling

• Asset Accounting

• Bank Accounting

• Dunning

• Profitability Analysis

– Plan to Produce

• Quality Management

• Inventory Control

• Warehouse & Yard Mgmt.

• Bill of Materials

• MRP

• Production Planning & Control

• Plant Maintenance

• Brazil Collaborative

7Essential Expertise for Water, Energy and AirEssential Expertise for Water, Energy and AirSMSM7 7

• Available to Promise (ATP)

• Freight & Transp. Planning

• Invoicing / Collections

• Sales Analysis

• Porta-Feed Tracking

• Product Safety

• Dangerous Goods Mgmt

• Profitability Analysis

– Recruit to Retire

• Personnel Mgmt.

• Benefits Mgmt.

• US Payroll

• Commissions

• Brazil Collaborative Planning

– Procure to Pay

• Purchase Req.

• Purchasing

• Accounts Payable

• Bank EDI

SAP Portal (NalcoDirect)

Business Intelligence (Dashboards, Operational & Analytical Reporting)

SAP EHS Processes

• SAP Components enabled at Nalco

– Product Safety

– Global Label Management

– Dangerous Goods

– Substance Volume Tracking

– Legal Control


• Other SAP EHS Components

– Waste Management

– Occupational Health

– Industrial Hygiene and Safety

– Hazardous Substance Management

EHS IT Overview SAP CRM/Portal

ECC

CustomerCHARMS

3ESDS Distribution

ECC EHS

SAP

Sales & DistributionPurchasing & LogisticsProduction

SalesOrder

Delivery

StockTransfer

Order

PurchaseOrder

ProcessOrder

Order EntryPPE Sheet BOL

SAP BI

SharePoint

SDS Online

Specification

Master

DMS

R&A

SVTDG

Material

License

Custom Reports

CustomerPortal

Mobile App

Analytics

GenerationServers

GLM





SVT & Legal control, REACHSVT & Legal control, REACH

Product Compliance – Legal Control & SVT

Our compliance strategy has benefitted from the use ofSAP Substance Volume Tracking (SVT) & Legal Control

Initial Project Drivers

– European REACH Regulation

– Integrated, Consistent, Global Approach for Inventory


– Integrated, Consistent, Global Approach for Inventory Control and Biocide Sales Management

– Integrated, Consistent, Global System and Process for Export Control - Chemical Weapons and Drug Precursors

Product Compliance – Legal Control

Legal Control Module

Contains basic control data by material / destination country and is

used to trigger:

– Country controls

– Material based – chemical weapons, drug precursor, dual use

– Anti-boycott checks

– Embargo checks

– Used to trigger regulatory review for exports (Licenses, End Use

Certificates, Drug Precursor notifications)

– Reporting and oversight critical part of compliance program


– Reporting and oversight critical part of compliance program

Material Master:

– Tariff codes and ECCN classifications in SAP

– Product Introduction Process – includes review and assignment of trade compliance regulatory data

Customer Master

– Restricted Party Screening - hybrid approach using a download of SAP customers for a monthly batch review (~100,000 / month), then customers blocked as needed

Business Benefits: Compliance in a business critical area

Product Compliance - SVT

• Volume Based Tracking and Checks

– REACH, Canadian NDSL, Australian NICNAS

• Volume tracking for substances which are imported into or are produced in the EU

• Volume tracking for specific substances which are imported into or are produced in Canada and Australia

• Off-line monitoring and report

• On-line checks and blocks in production and purchasing

• Non-Volume Related Checks


• Non-Volume Related Checks

– Notification Status Checks chemical inventory lists (REGCHECK)

• E.g. US TSCA, Australian NICNAS

– Registration Check (NEGCHECK)

• Various Canadian CEPA Checks, Austrian Poison Checks

• On-line order checks and blocks

– Biocide Checks

• US: FIFRA, EU: BPD, Canada: PCP, Mexico: COFEPRIS

• On-line order checks and blocks

Product Compliance – REACH Case Study

REACH SVT allows real time decisions to be made allowing proactive management of risk

• Reviews data real time and alerts staff for review prior to processing of orders

• Provides advanced warning and allows time for an appropriate decision to be reached


appropriate decision to be reached

• Issues: Legal compositions can differ markedly from other regulatory compositions e.g. impurities and required detailed and time consuming review to analyze and input - allow time. No solution in place for tracking customer import volume

Product Compliance in practise

E Mail alerting

Order blocking


Order blocking

Year to 8/31/2011:

~ 470,000 orders

~ 800,000 items

Reviewed globally

SVT triggered:

~ 5,000 email notifications

for ~ 2,000 orders

Product Compliance in practise

• SVT is a critical element providing real-time monitoring to prevent non compliance

• Automatic block & flag for review of any order


• In perspective there has been 500,000 screened transactions in EAME YTD Business Benefits:

SLEEP





Regulatory approval communicationRegulatory approval communication

Hazard Communication - Case study

Nalco complies with over 115 different product registration & approval schemes globallyOur project was how to make this information more readily available

. Registration / approval – food contact / establishment Country

FDA, GRAS, National Organic Program (NOP) United States

Federal Institute for Risk Assessment (BfR), DVTO Germany

ANVISA Brazil

Argentina National Service for Food Quality and Health Argentina


Argentina National Service for Food Quality and Health Argentina

NZFSA, AsureQuality New Zealand

GB9685 China

CFIA, Health Canada Canada

Kosher Multiple

Food contact registration Denmark

Process in Aids for food production France

Food approval Poland, Russia,

Hungary


The Challenge

• Some Registration and Approval (R&A) information maintained in

SAP

• Sales teams are frequently asked to provide regulatory profiles by

our customers

• It is not easy for groups outside SHE to access this data

• Some local databases

• BI reports, difficult to update and difficult for non-users to use


The Solution

• Integrating SAP and SharePoint, allowed Nalco to the develop a

flexible, easy-to-use and easy-to-update solution that could not be

achieved through SAP alone.

• Provides a greater ability to use one system to maintain data, but

still provide a user friendly access interface. The solution has

allowed Nalco to design a real-time and “open ended” reporting

systems i.e. can be designed for multiple, changing purposes,

rather than generating a fixed report.

• Adopting a SCRUM project delivery

All registrations and approvals now maintained in SAP and captured to a Global R&A SharePoint Site





Business Benefits:

• Real-time

• On-line

• One source

• Easy to use

• SH&E resources spend

less time on low value

add activities





Hazard Communication Hazard Communication -- GHSGHS

Hazard Communication

Overview

• In the last 12 months, approximately 45,000 SDS created or

amended globally

• Classification to local requirements in 15 different

countries/regions

• SAP SDS formats for 53 different countries, now working on

eSDS for EAME.

• Label formats in SAP for over 93 countries


• Label formats in SAP for over 93 countries

• Tremcards 3 countries

• Dangerous goods information for shipping documents, mixed

loading rules

• New SDS online portal – all Nalco can access SDS /Tremcards

• Linked to extranet (currently updating process)

Big change is GHS

Hazard Communication - GHS

Country / Region Substance /

Mixture

Implementation

Date

Details SAP as primary ERP

system

Japan Both 2008 GHS SDS & Label Templates

Expert Rules

No

New Zealand Both 2008 GHS SDS & Label Templates

Expert Rules

Yes

South Korea Both 2008 GHS SDS & Label Templates

GHS Labels Templates

No

One challenge has been the rapid global spread of GHS regulations, sometimes with short lead-times – Resource issue


GHS Labels Templates

Expert Rules

Taiwan Both 2008 GHS SDS & Label Templates No

China Both 2009 GHS SDS & Label Templates No

Vietnam Both 2009 GHS SDS & Label Templates Yes

(Fall 2011)

Indonesia Both 2010 GHS SDS & Label Templates No

Singapore Substances Only 2010 GHS SDS & Label Templates Yes

European Union Substances Only 2010 GHS SDS & Label Templates

Expert Rules (2011)

Yes

Brazil Substances Only 2011 GHS SDS & Label Templates

Expert Rules (2012)

BR in an SAP live country.

Yes

Product Compliance Platform Will Allow for Scale


GHS Implementation Solution

Nalco has utilized SAP to meet this challenge and is increasingly

benefiting from shorter implementation cycles with concurrent reduction

in IT and SHE resources. This has been achieved by:

• Creating new templates using SAP EHS Include functionality

• Leveraging the usage of SDS templates - Adherence to standards (where possible)

• Templates, Documentation & Knowledge globally managed and available

• Our GHS approach allows update of multiple templates at once, while still allowing regional data


• Leveraging knowledge built in one region to allow easier implementation elsewhere. Early communication between all groups, clear processes and teamwork key! GHS starter package end 2012 for new rollouts.

Business Benefits: Discharging our hazard communication obligations

• GHS implemented across Asia and EAME – YTD 42 countries• Speedier build for each new country - meet tight implementation dates

• Reduction in IT & SHE resource

Business Benefits: SAP EHS Management Solutions

Protect revenue

• Comply with growing and changing industry product safety requirements,

such as REACH, GHS

• Support customer-specific substance restrictions

• Faster time to compliance, respond to customer requests, market entry

Reduce Risk, protect brand

• Transactions are checked , blocked or verified in real time

• Awareness, continuity of the supply chain.

Reduce the cost of compliance


Reduce the cost of compliance

• Streamline the exchange of supply-chain data, reduce compliance check

time, and scale compliance support.

• Detect hidden waste and potential supply-chain disruptions

Rely on one source of credible, auditable compliance data

• Generate disclosure reports for authorities, supply-chain partners, and

customers, gain visibility of product compliance to the substance/material.

• Confidence to use for any request – classification, registration, MSDS,

labeling, customers, audits, etc

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