Issue

Waste is currently managed offline at site level, which adversely impacts data management, data integrity and reporting in relation to waste management in Syensqo.  The tools and processes used for different sites and countries vary.  The exception is the Paulinia site in Brazil, where a simplified SAP subcontracting process has been implemented since 2015.  

A decision needs to be made on which waste management solution should be implemented as part of the ERP Rebuild project.

Recommendation

The recommendation is for Waste Management to be harmonised at group level for SAP related processes as a foundation for additional local requirements.

Site or country specific waste related process to support local requirements will benefit from a harmonised process for improved transparency, data integrity, data management, reporting and compliance.

Background & Context

AS IS

Syensqo has the responsibility to manage the generation, storage, transportation and disposing of materials deemed to be waste relevant.  Currently there are HSE environment experts in each zone e.g. Asia and Europe, who follow relevant local regulations, which are managed according to permits and local regulations.

In Brazil the SBS Service Center Curitiba takes the Rhodia Poliamida e Especialidades Ltda transactions operations for the “Wastes Management” on the “Provisioning and Accounts Payable process''.  The follow-up with vendors is managed by SBS Service Center. There are 11 Vendors for this process.   All other sites/countries use individual non-SAP tools and processes to manage waste.  Regulations for waste management vary by country.

The procurement strategy is to have one single supplier per site for non-hazardous waste treatment and limited number of suppliers for hazardous waste.  Waste treatment includes incineration, water processing incl waste water. 

The waste disposal vendor currently mostly organises the transport.  Otherwise transport managed internally by outbound logistics via authorised company, which ships the waste product to an authorised waste disposal facility. 

The SAP solution for Waste Management includes the following process steps:

Waste related master data in SAP is located in SAP EHS Environment Management:

1. Waste product - hazardous and non-hazardous, includes waste codes required for the creation of waste disposal documents.
2. Business partners - e.g. waste transporters or waste disposers.  
   1. Waste related suppliers must be qualified. Syensqo has to know who is in charge of the final treatment of the waste and where. 
   2. Third parties e.g. CHMWEG in US to secure qualified business partners on Syensqo's behalf.  
   3. In EU HSE teams check operating permits of our suppliers.  There is not such obligation to hire qualification operators in Europe.
   4. 'Critical contractors' as classified by HSE group requirements:
      1. Working in hazardous chemical usage areas like chemical storage, waste
         treatment, waste storage, hazardous material clean up, chemical labs
      2. Working with tools, machines, or systems that contain process chemicals or
         chemical wastes
3. Waste streams - define the relationship between a waste product, waste generator, storage location and the points of generation.
4. Disposal channels - define the relationship between a waste stream, transporters and disposers. 
   1. Waste treatment can be done internally (incinerator) or externally.
5. Waste transportation documents including permits.  Permits currently checked locally.

Waste analytics enables reporting using waste related master data.

Operational best practices (playbook):
During contract implementation:
- Orders must be placed before the service is provided. Regularizations of Orders after work are exceptional and validated by hierarchy.
- To be invoiced, any waste management work has to be accepted based on performance indicators (weight measurements, # of truck loads, personnel timesheets, …) defined in the contract.
- For each waste managed by a given supplier, follow and register the data about volume , quality and spent according to the specification sheet in the contract.
- Define clear rules to manage any out-of-spec event (communication, actions to be carried and cost impact).

Brazil:
In order to attend the business requirement of “Waste Management” project and align with the “Procurement and Logistic” best practices process, the proposal is to use the existing WP1 solution which was built based on the “MM Subcontracting Process”.

In order to send the Waste for Disposal, two dates must be informed properly in the Purchasing Requisition by the Waste ADMIN :
- Delivery Date - must be the expected date to receive the “Certificate of destruction”, ie in 60 days.
- Requirement Date - must be the date you want to send the waste for disposal. This date is what the Logistic planner will use to create the Shipment document in Transportation system.

S/4 HANA 2023 Cloud, Private Edition

Waste Management in EHS for SAP S/4HANA Cloud, private edition, you can handle the management of waste generated by an organization. It is designed to help companies comply with environmental regulations and ensure proper handling, disposal, and reporting of waste materials.
The features provide functionalities to track and manage waste throughout its lifecycle, from generation to disposal. It enables organizations to record waste generation data, classify waste types, track waste storage locations, and manage waste transportation and disposal processes.

Types of Waste: Liquid, solid, products/by-products, organic, inorganic, haz/non-haz, domestic, other

Waste disposal entities: disposal permits, disposal companies, industrial cleaning companies, certificates of destruction, disposal manifests, 

Waste transport: transport permits and waste carriers

Waste treatment: landfill, recycling, recovery for energy, incineration

Reporting: site, country, group reporting

SAP Road Map

1. Integration of waste management and purchasing and sales processes (cloud): Integration of waste management processes with other logistics processes like supply chain management and procure to pay.  Help environment managers to:
   • Procure waste disposal services
   • Pay invoices in a timely manner
   • Manage on-site waste storage and plan timely shipment of waste
2. Waste management: integration with extended warehouse management (cloud)
   1. Further integration into extended warehouse management, enabling the user to track the inventory of stored waste
   2. Obtain deeper insights into the amounts and locations of stored waste
3. Management of waste cost allocation and payments (cloud):  Manage allocation of costs associated with the transportation and disposal of waste
   1. View costs associated with the transportation and disposal of waste
   2. Allocate waste transportation and disposal costs to appropriate cost centers

Assumptions

Constraints

Local regulations/requirements.

Impacts

Group process stakeholders/ownership.

Business Rules

Options considered

Option A:  Local Process only - Continuation of AS IS

Variety of local processes specific to country or site.

Largely relying on use of local applications for data collection and reporting purposes.

No harmonisation,

Low levels of transparency and  data integrity.

Option B: Waste Management Solution in SAP

Group Process in S/4 HANA.

Maximum harmonisation supporting transparency and data integrity.

A waste management solution in SAP enables the company to establish a transparent operation that ensure and demonstrate a compliant waste management process within the entire organisation.

Capabilities:

Central repository for all waste management related 
compliance requirements 
• Streamlined processes for master data and onsite 
management, planning of shipment and transportation up  
waste disposal and reporting
 • Deeply integrated into SAP S/4HANA business data and 
processes
 • Intuitive user interface with guided procedures to support 
occasional user

Benefits:

• Reduced risk of non-compliance and penalties
• Ensure continuity of license to operate
• Reduced effort to manage waste disposal process
• Improved data accuracy and reporting transparency
• Integration to
  • Inventory Management recording goods movements (goods receipt and goods issue).
  • Transportation with dangerous goods information and transportation documents
• One global repository of transport documents for waste e.g. permits.
• Transparency of disposal channels (incl. point of generation, waste generator, disposer, disposal facility) for different waste materials.
• Global repository for waste disposers and transporters by location/area.
• Waste management compliance.  Fines tbc?
• Reporting via Waste Management Analytics.

SAP Waste Management Process:

Option C:  Group Process with Local Variations

Evaluation

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Change log

Workflow history