Issue

Syensqo currently has over ten different labelling applications across different domains, such as logistics, EHS, warehouse management, QM and transportation etc. Some of them, such as SAP GLM (Global Label Management), are actively used across multiple GBUs, including Aroma Performance, Composite Materials and Technology Solutions etc. Other applications, however, are either used by only one GBU or are no longer in use.

With the transition to SAP S/4HANA, SAP GLM is not on the roadmap for the future and will be replaced by a partner solution. Refer to SAP Label Management Future Direction & Vision in section See also below.

Therefore, it is important to review the current labelling applications and develop an approach to help Syensqo streamline labelling processes, ensure label consistency, improve operational efficiency, and reduce maintenance costs.

Recommendation

It is recommended to standardize and simplify labelling applications across all Syensqo businesses using the following approach:

• Assessment and Inventory: Identify and catalog the current labelling applications with understanding the functionalities, user base, and integration points.
• Requirements Definition: Engage with stakeholders from various GBUs to understand their labelling needs and preferences during detailed design phase. Make sure the requirements are clearly documented, and the labelling aligns with ERP Rebuild solution designs.
• Standardization and Simplification: Use SAP Partner Label Solution for all ERP Rebuild in-scope labels. Other labelling applications fall outside the scope of the ERP Rebuild Project, as they operate independently of SAP. This approach will standardize labeling processes, reduce complexity, and ensure an unified labelling solution across various business units.

• • Label data, label determination and process integration will be managed in SAP S/4HANA.
  • Label design and printing will be managed through a partner solution, such as Loftware or Eurosoft-Plus, including the integration between the partner solution and S/4HANA. Given Loftware's extensive use across multiple Syensqo operations, it is a strong candidate for the unified labelling solution. However, the final choice of the labelling partner will be determined during the Detailed Design phase, after a thorough analysis.

Background & Context

Based on the information gathered during the As-Is Analysis and follow-up interviews, the table below provides an overview of the current labeling applications within Syensqo. For each identified application, the table details the category and type of labels managed, in scope of ERP Rebuild Project or not, and which GBUs are currently utilizing it.

Note: Some relevant information is still pending. It will continue to be collected through the Detailed Design phase.

Assumptions

• Dynamic labels generated using data from SAP, as part of process which sits in scope of ERP Rebuild Project. Others fall outside the scope of the project, as they operate independently of SAP.

• The standardized labelling application should be closely integrated with SAP S/4HANA. 

• The standardized labelling application is able to interface with all of the existing label printers, or the printers can be replaced to make them compatible. 
• The decision will be made during detailed design phase whether the selected labelling application needs to be integrated with other non-SAP applications.

• The selected labelling application adheres to regulatory requirements relevant to Syensqo industry, and allows for easy updates to accommodate new regulatory requirements or changes in labelling standards.

• The selected labelling application will have the flexibility to cater for the required layout, including the special customer requirements such as the specification for labels in Composite business.  
• For simpler labels, in addition to the selected labelling application, Syensqo might consider using SAP standard tools such as SAP BTP (Business Technology Platform) Forms Service.

Constraints

System Limitations: The unified labelling application must support all in-scope labelling functions and features previously covered by various third-party applications. It can be challenge to replicate the same functions. Therefore, it is important to identify and address any gaps that require custom developments to fill.

Regulatory Compliance : Ensuring that the unified labelling application meets all regulatory requirements and industry standards is critical.  

User Adaptation: Users accustomed to different labelling applications may face difficulties adapting to a new, standardized application. Comprehensive training will be necessary to ensure that all users are proficient in the selected labelling application.

Scalability: Ensure that the standardized labelling solution can scale with future growth and adapt to new requirements or technologies.

Impacts

Implementing a standardized and simplified labelling solution in a SAP S/4HANA project involves several potential impacts, both positive and challenging.

Operational Efficiency

• A unified labelling solution can streamline labelling processes across different business operations, including logistics, warehouse management, EHS and transportation etc.

• A unified solution ensures consistency in label formats, designs, and compliance across different departments and locations, which helps reduce redundancy and improve operation efficiency.

Label Consistency

• Label formats and structures may vary among different label applications. Mapping and transforming data from these diverse formats into a consistent format for the unified application(s) can be complex.

• If historical labelling information in multiple applications need to be migrated to the unified application(s), ensure that relevant historical information remains accurate and accessible.

Cost Implications

• Initial costs for implementing an unified labelling solution can be significant, including software, integration, and training expenses etc.

• Over time, standardization and simplification can lead to long-term cost savings through reduced maintenance, support, and licensing fees for multiple applications.

• To optimize costs, for make-to-order process, the selected labelling application should be able to print labels in required local languages as needed, without having to wait until the shipping stage. For make-to-stock process, re-labelling will be required due to the relevant information will be known only at later stage. 

Change Management

• There will be a learning curve and adaptation period for end-users not only requiring to change over to the unified labelling application, but also for those currently using the selected application. Comprehensive trainings are required as well as updating documentation and standard operating procedures (SOPs) accordingly.

• Consolidate from multiple applications to an unified system can be disruptive and time-consuming. A support framework should be established to assist users during the transition and address any issues promptly.

• Stay informed about advancements in labelling technology and consider periodic reviews to incorporate new capabilities or improvements.

Business Rules

• Labels need to adhere to specific industry standards and containing relevant safety information, such as hazard symbols and safety instructions.
• Regulatory labels must include regulatory compliance information according to standards such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) in EU and GHS (Globally Harmonized System).
• Labels must be in the languages required by the regions where the products are manufactured and distributed and use standardized symbols for safety warnings.

Options Considered

Option A: Standardized and Simplified Solution

The approach for the future labelling solution is to Standardize and Simplify by consolidating the company’s current labelling applications.

Transitioning from multiple labelling applications to an unified solution fully integrated with SAP S/4HANA environment is a significant task that involves careful planning and execution.

1. Assess and Inventory
   • Define In-Scope: Dynamic labels generated using data from SAP as part of process sits in scope of ERP Rebuild Project. Others fall outside the scope of the project, as they operate independently of SAP.

   • Catalog Existing Applications: Identify and document all in-scope applications, their functionalities, user base, integration point and how each application is used.

2. Define Requirements

   • Gather Stakeholder Inputs: Engage with stakeholders from various GBUs to understand their in-scope labelling needs and preferences.

   • Document Requirements: Define clear requirements for labelling that align with SAP S/4HANA capabilities and business needs.

3. Standardize and Simplify Applications

   • Identify Common Needs: Look for common labelling requirements across different GBUs to standardize processes and reduce complexity.

   • Leverage SAP Partner Solutions:

     • Label data, label determination and process integration will be managed in SAP S/4HANA.

     • Label design and printing will be managed through a partner solution, such as Loftware or Eurosoft-Plus, including the integration between the partner solution and S/4HANA.

     • Due to Loftware's current adoption in Syensqo, its advanced design and customization options, and its support of regulatory compliance, it stands out as a strong contender for the unified labelling solution. However, it will be helpful to explore other SAP’s partner solutions to determine the most suitable labelling application for Syensqo. 

4. Analyze Gaps

   • Compare Existing and Future Capabilities: Perform a gap analysis between the functionalities of current applications and the selected labelling solution.

   • Determine Customization Needs: Identify any gaps that require custom development to fill.

5. Implement and Deploy Unified Solution

   • Migration: Ensure that data and labels from legacy applications are accurately migrated to the selected labelling solution, including required historical data and current labels. For example, there are some specific format used in current SAP GLM in Aroma business that need to be included in the standardized application. 

   • Go-Live and Post Support: Prepare for a smooth go-live and support teams are ready. Offer ongoing support and address any issues that arise after the transition to ensure stability and user satisfaction.

Option B: 1 to 1 Migration Solution

1. Identify all in-scope labelling applications and understand their functionalities, user base, and integration point.

   • In-scope: Dynamic labels generated using data from SAP as part of process sits in scope of ERP Rebuild Project.

2. Migrate identified applications in future SAP S/4HANA environment. If application requires data from SAP or feed the data back to SAP, consider to establish interface between the labelling applications and SAP.

Evaluation

Based on five different criteria, the matrix below compares the pros and cons of the potential options for future Syensqo labelling solution.

As shown in the matrix, standardizing and simplifying the labeling applications helps Syensqo streamline the labelling processes, ensures the label consistency, improves the operation efficiency and reduces maintenance costs. Therefore, adopting standardization and simplification is recommended for the future Syensqo labelling solution.

See also

1. SAP Label Management: Future Direction & Vision

Change log

Workflow history