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, 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.  

The lack of harmonisation and transparency down to site level has an adverse impact on regulatory compliance and reporting requirements.  A decision needs to be made on which waste management solution should be implemented as part of the ERP Rebuild project.

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.

Due to the nature of waste management and its integration with other logistics processes to enable regulatory reporting and compliance it is most feasible to do so using SAP standard functionality.   

Background & Context

Explain the context in which the decision is being made.

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 Syensqo Operational Best Practices (playbook) stipulates that 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).'

TO BE

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.
   1. Types of commercial waste include: 
      1. liquid
      2. solid
      3. products/by-products
      4. organic
      5. inorganic waste.  
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.
   2. Types of waste treatment can include landfill, recycling, recovery for energy and incineration.
5. Waste transportation documents including permits.  Permits currently checked locally.

Waste analytics enables reporting using waste related master data per site/country/region.

SAP Road Map (see references) cloud by 2024, private edition thereafter

1. Integration of waste management and purchasing and sales processes (cloud by 2024, private edition thereafter):
2. 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
3. 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
4. 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. 

The solution scope is for commercial waste only.

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.

Domestic waste is not in scope.

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.

The implementation of the harmonised waste management solution for Syensqo requires the implementation and ownership of a group process with support of the relevant stakeholder in all countries/regions.

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:  Continuation of AS IS

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

The continuation of large number of variations of local processes and systems specific to country or site would stand against the alignment of project principles including simplification and harmonisation that guide the ERP Rebuild project.  It would largely relying on use of local solutions inside and outside SAP for data collection and reporting purposes.

It would counteract to the required level of accuracy for regulatory reporting and compliance as well as the efforts required to adhere to group reporting requirements due to low levels of transparency and data integrity.

Due S/4HANA not featuring SAP BW in its scope, all BW based waste related reports would need redeveloping.  

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

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.

Waste Management in EHS is designed to support compliance with environmental regulations and ensure appropriate handling, disposal, and reporting of waste materials.
The functional features enable tracking and managing waste throughout its lifecycle from generation to disposal.  It enables the recording of waste generation data, classification of waste types, tracking waste storage locations and managing of waste transportation and disposal processes.

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.
• Alignment Waste Management with Procurement and Logistics best practices.

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 - Continue As Is	Option B - S/4HANA
Criterion 1	Pro Con	Pro Maximum harmonisation supporting transparency and data integrity. Pro
Criterion 2	Pro Con	Con
Criterion 3	Pro	Con

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.

SAP Road Map for SAP EHS Waste Management (SAP Environment Management) SAP-Road-Map-Explorer-20240829172949.xlsx

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