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. Other applications, however, are either used by only one GBU or are no longer in use. 

With the transition to SAP S/4HANA, it is important to review the current labelling applications and develop a strategy to help Syensqo streamline the labelling processes, ensure the label consistency, improve the operation efficiency and reduce maintenance costs.

Recommendation

It is recommended to adopt a strategy of standardizing and simplifying 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: Evaluate how each application is used and its value to different business units. Look for common labelling requirements across different GBUs to standardize processes, reduce complexity, and implement the unified labelling application(s) across Syensqo.  

The selection of the exact labelling application(s) will be made in the Detailed Design phase, following the completion of the relevant analysises and tasks required by the above approach.

Background & Context

The table below describes the overview of the current labelling related applications identified in Syensqo.

Note:

The abbreviations in the above matrix columns stand for the following GBUs:

AP - Aroma Performance, CM - Composite Materials, NC - Novecare, SP - Specialty Polymers, TS - Technology Solutions   

Assumptions

• The selected labelling application(s) should be closely integrated with SAP S/4HANA. It is still possible for users to print the relevant labels directly from the selected labelling application(s) rather than derive information from SAP.

• 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(s) adhere 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(s) will have the flexibility to cater for required the layout. 

Constraints

System Limitations: The unified labelling application must support all required labeling 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(s) meets all regulatory requirements and industry standards is critical. There may be a need to use different labelling applications for the regulatory and non-regulatory labels. 

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 unified labelling application(s).

Scalability: Ensure that the standardized labeling 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 a 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.

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(s), but also for those currently using the unified application(s). Comprehensive trainings are required as well as updating documentation and standard operating procedures (SOPs) accordingly.

• Consolidate from multiple applications to a 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 labeling 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 OSHA (Occupational Safety and Health Administration) in US and GHS (Globally Harmonized System).
• Labels must be in the languages required by the regions where the products are distributed and use standardized symbols for safety warnings.

Options considered

Option A: Standardized and Simplified Solution

The strategy for the future labelling solution is to standardize and simplify by consolidating the company’s current labelling applications.

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

1. Assess and Inventory

   • Catalog Existing Applications: Identify and document all current labelling applications, their functionalities, user base, and integration point.

   • Evaluate Usage and Value: Assess how each application is used and its value to different business units. Determine which applications are critical, obsolete, or redundant.

2. Define Requirements

   • Gather Stakeholder Inputs: Engage with stakeholders from various GBUs to understand their 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 Standard Solutions: Explore SAP’s standard labelling solutions and features in S/4HANA, such as GLM.

4. Analyze Gaps

   • Compare Existing and Future Capabilities: Perform a gap analysis between the functionalities of current applications and the capabilities of unified 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 unified system, including required historical data and current labels.

   • 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.

The selection of the exact labelling application(s), either a single application across all functions and operations or split by regulatory requirement, will be made in the Detailed Design phase, following the completion of the relevant analyses and tasks required by the above approach.

Option B: 1 to 1 Migration Solution

1. Identify all current labelling applications and understand their functionalities, user base, and integration point.

2. Migrate all the active 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

Consolidate and unify the labeling applications helps Syensqo streamline the labelling processes, ensures the label consistency, improves the operation efficiency and reduces maintenance costs. Therefore, adopting a strategy of standardization and simplification is recommended for the future Syensqo labelling solution.

See also

Change log

Workflow history