Issue

Succinctly describe the issue or problem statement that this Decision addresses. Why is a decision required? What business or technical problem does it address?

Waste is currently managed offline at site level.  The tools and processes used for different sites and countries vary.  It adversely impacts data management, data integrity and reporting in relation to waste management in Syensqo.

The exception is the Paulinia site in Brazil, where a simplified SAP subcontracting process has been implemented since 2015.  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. 

Recommendation

Summarise the recommendation being made for the reader, leaving the pro/con evaluation and exact decision-making process to the subsequent sections.

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

Explain the context in which the decision is being made.

Syensqo has the responsibility to manage the generation, storage, transportation and disposing of materials deemed to be waste relevant.  SAP offers the following process:

1. Manage waste materials in SAP.
2. Waste codes are required for the creation of waste disposal documents that meet compliance requirements.
3. Manage designated business partners as waste transporters or waste disposers.  
   1. Suppliers must be qualified. Solvay has to know who is in charge of the final treatment of the waste and where.
   2. In US we use CHWMEG to secure this on Solvay's behalf.  In EU HSE teams check operating permits of our suppliers.
   3. There is not such obligation to hire qualification operators in Europe.
   4. 'Critical contractors' as classified by HSE GROUP REQUIREMENTS :
      -Working in hazardous chemical usage areas like chemical storage, waste
      treatment, waste storage, hazardous material clean up, chemical labs
      · Working with tools, machines, or systems that contain process chemicals or
      chemical wastes
4. Manage waste streams, which define the relationship between a waste product, waste generator, storage location, and the points of generation.
5. Manage disposal channels to define how products can be disposed.  They define the relationship between a waste stream and transporters and disposers. 
   1. Waste treatment can be done internally (incinerator) or externally.
6. Manage waste generator locations and waste transportation documents including permits.  Permits currently checked locally.
7. Manage waste reporting.

Colour code which parts are HSE managed and which are operational.

Currently there are HSE environment experts in each zone e.g. Asia and Europe, who follow relevant local regulations.  Managed according to permits and local regulations.  

Contract/services relating to waste mgmt procurement in line with LSR Solvay.

Sustainability best practicse: use of Solvay Waste Bank to foster synergies.

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

Waste disposal vendor mostly organises the transport.  Otherwise managed by outbound logistics. Order proper transport from authorised company, shipped to authorised waste disposal facility. 

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

Clearly describe the underlying assumptions which informed or limited the choices available, or impacted the decision: cost, schedule, regulatory requirements, business drivers, country footprint, technology, etc. Include links as necessary. This section is important because a future change in circumstances might invalidate some key assumptions, which then prompts a decision to be revisited. 

Constraints

Capture any constraints or limitations inherent to the recommended option. This could be aspects which, if changed or removed in future, could cause the decision to be revisited or invalidated. For example, a constraint might be that a new product has significant gaps in important functionality, which caused an older alternative to be recommended. If those gaps are closed in future, this might cause the decision to be invalidated.

Local regulations/requirements.

Impacts

Describe the impact of the decision on other aspects such as other processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

Group process stakeholders/ownership.

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

Options considered

List the options (viable options or alternatives) you considered. These often require a longer explanation with diagrams, or references to other documents (links are best, but attachments are also possible). Use enough detail to adequately explain what you considered so that a project or business stakeholder reviewing this decision will not come back and ask "did you think about...?"; this leads to loss of credibility and questioning of other decisions. This section also helps ensure that you considered enough suitable alternatives rather than just copy/pasting SAP's recommendations.

Option A:  Local Process only - Continuation of AS IS

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

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

Decribe the option in sufficient detail for a reader familiar with the subject matter to understand it properly

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

	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

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log

Workflow history