Leading steel company chooses West Trax

2011-09-30 10:29am

SAP optimization solution KPI Scan®in collaboration with Dell services

One of the leading steel companies worldwide with factories in over 60 countries has chosen West Trax and its SAP optimization solution KPI Scan® in collaboration with Dell services to discover optimization potential of its entire SAP landscape. The main areas of focus are business processes and best practices.

Within the steel company with headquarters in Europe, it was the finance department of the holding company’s headquarters that initiated the project with the clear goal to increase the value that the company gains from the existing SAP systems. As opposed to pure IT projects, the finance department made a case for analyzing business processes for each area in which a potential for improvement has been identified, and to create a business case for each area. Thanks to this process, the overall success of the project is transparent and quantifiable.

West Trax received the order to analyze the 25 worldwide most important SAP systems of the steel holding company and to formulate detailed recommendations as to how the business transactions, based on the existing SAP landscape, can be standardized and optimized, and to quantify the commercial advantages that derive from the recommendations.

West Trax has committed DELL Services as its local consulting partner for this project.

The project is built in such a way that each SAP installation will go through three analysis steps.

It starts with an inventory determination including benchmarking and a GAP analysis. The SAP installations of the steel giant are measured against the industry average and the best practice value of the steel industry, based on the SAP Solution Map of DELL Services in order to determine the bandwidth for improvement and to obtain the approval of local management with the help of this objective comparison. Thanks to the West Trax KPI Scan®, these analyses will be made offline and remotely, which means without time and cost intensive interactions with the local organization.

Next, the SAP consultant of DELL services take the results from the West Trax analysis and the answered survey from each SAP location and travel to the location to discuss the findings regarding the current usage behavior of the SAP systems and to validate the identified optimization areas with local management. In this phase, those business processes that are processed manually or with the help of legacy systems are analysed and discussed. The goal is to identify ways in which these processes can be meaningfully depicted with the help of SAP standard functionality. In this project phase, local management is actively integrated into the analysis.

The last part is the creation of a business case that shows the profitability of the investments for the proposed improvements.

The commercial advantages of the already identified areas for improvement not only cover the costs for the entire SAP optimization project, but in addition, an average ROI factor (return on investment) of 1:8 has been generated so far.

The project initiator on the client side said: “We are excited about the improvements that our team from West Trax and DELL services have generated for our locations. We are now able to employ best practices for our business processes as well as our IT landscape. In addition, we have discovered more areas for improvement, which allows even more value to be drawn from our SAP systems.”

West Trax CEO Emil Bohr adds: “The strategy of the steel giant offers a real advantage for each of its SAP locations, but even more so for the entire holding company, because the holding company’s sophisticated way of operating delivers competition advantages with regards to overall costs, process efficiency, productivity, performance and quality of SAP systems.”

Andreas Stein, Managing Director DELL Services says: “Besides offline analyses from West Trax, our consultants have identified possible improvements and optimization potential regarding business processes that are not currently supported by SAP. This can only be achieved on-site in conversations with local management, but at the outset of the conversations, our consultants already had a clear overview and detailed knowledge of the processes employed by SAP, and their strengths and weaknesses. That’s why these tasks can be completed within a very short amount of time on-site, which allows for very economical project costs.

All in all, I think that the combination of West Trax’s offline analyses with our consultants on-site are a good solution, and I think even the best on the market.”

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