Opportunities Afforded by the Digital Era and SAP ... · SAP S/4HANA for product compliance; SAP...

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Michael Jahn, Bollig und Kemper / Marko Lange, SAPInternational SAP Chemicals Conference Prague, October 2018

Opportunities Afforded by the Digital Era and SAP® Software in Ensuring Product Compliance: The Bollig & Kemper Story

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Disclaimer

Agenda

Bollig & Kemper Overview

Business Challenges

Product Compliance with SAP

The Bollig & Kemper Story

Company Overview

Bollig & Kemper - Profile

Founded in 1919

Headquarter: Cologne, Germany

Management: Dr. M. Hofmann, Minoru Iwamura

The B&K Group becomes 100% subsidiary of Nippon Paint Group

Supplier for Automotive Industry, e.g. VW, Mercedes, BMW and Peugeot

Business in manufacturing of Automotive Serial Coatings, Resins (waterborne electrophoretic coatings, primers/fillers, colored base paints, and clear coats

Automotive Coatings

PSA – Peugeot / Citroën

Mercedes-Benz

BMW

Volkswagen

Porsche

RENAULT - DACIA

Plastic Coatings Customers

BMW AG

Berlin, Landshut, Leipzig TEK

Faurecia North and South

Magna Decoma

SMP

Plastic Omnium

Polytec

Rehau

SPPP Megaplast

others

B&K Locations

Valencia, Spain

Distribution

Birmingham, UK

Production & Distribution

Cologne, Germany

Production & Distribution & R&D

Bratislava, Slovakia

Distribution

Grenoble, France

R&D Lab

Fleury, France

Production

Shanghai, China

Production & Distribution

International Strategy

• 2007:– Strategic partnership for powder primer

supplies to PSA

• 2008:– Joint Venture in China

• 2009:– Strategic partnership for the production

and supply of Bollig & Kemper productsin North America

• 2016: − B&K 100% subsidiary of Nippon

Paint

U.K.

TürkeiU.S.A

Australien

Indien

Indonesien

JAPANChina

Philippinen

Taiwan

Korea

Thailand

VietnamMalaysia

PakistanMexiko

Brasilien

Produktion E-coatE-coatBasislacke und/oder Kunststoff

BK&NP

Chicago, USAProduktion

Cleveland, USAProduktion

Guanajuato, MexikoProduction

Pinhata, BrasilienProduktion

NIPPON PAINT / Bollig&KemperKöln / Production

Istanbul, TürkeiProduction

Swindon, UKProduction

NIPPON PAINT Automotive Coatings Osaka, Japan / Headquarters

International Strategy – Nippon PaintGlobale Präsenz

BK & NP

Agenda

Business Challenges

Product ComplianceCurrent Trends

STAKEHOLDER DEMANDSInformation disclosure need

COMPLIANCE REQUIREMENTSGrowing number and complexity

Frequent changes

INDIVIDUALIZED PRODUCTSDistinct compliance determination

COMPLEX SUPPLY CHAINSIncreased compliance risks

RESOURCE CONSTRAINTSMore tasks with less resources

Presenter

Presentation Notes

At SAP we have an expert network that constantly monitors regulations and trends in the area of product compliance. In addition, we are working together with lots of co-innovation customers from many different industries. Based on these discussions and inputs, this slide summarizes the trends that we see in the area of product compliance. First of all, companies have to ensure that their products comply with all applicable regulations. The number and complexity of these regulations is increasing every year and they change frequently. The next trend is that more and more products are tailored to the needs of individual customers. In some areas we already speak about a lot size of one. This adds complexity to the compliance topic, as companies now have to make sure that every individualized product complies with all applicable regulations. Another observation in the area of product compliance is that besides requirements from authorities, there are demands from other stakeholders such as customers, NGOs, and the different markets. Customers demand safe products that for example do not contain chemicals that are in question but so far are not banned by law. Companies have to manage all these requirements. And they have to do this with limited and in some cases even declining resources. This means they have to do more with fewer resources. And manufacturers and retailers must manage product compliance both within their company and also in their supply chain and for example have to collect and manage compliance information about the raw materials or products they get from their suppliers. This brings me to the fifth trend which is about increasingly complex supply chains. Nowadays companies source materials and products from all over the world, which adds complexity to the compliance processes and increases the risk of compliance violations.

Product ComplianceManage Challenges Through Digitalization

STAKEHOLDER DEMANDSMake information accessible

Automate document creation and distribution

COMPLIANCE REQUIREMENTSEmbed compliance in product development

Stay up-to-date with regulatory content

INDIVIDUALIZED PRODUCTSAutomate compliance assessment

COMPLEX SUPPLY CHAINSStreamline communication

RESOURCE CONSTRAINTSAutomate compliance processes

Implement controls throughout the lifecycle

Presenter

Presentation Notes

So how can companies successfully manage the challenges described before and how can software help with that? First of all, it is important to consider compliance already in development. Software that embeds compliance in product development can help to manage the different requirements and to ensure that only products are developed that comply with these requirements. By leveraging regulatory content, you can then stay up-to-date with all applicable regulations. With the trend to individualized products, the number of different products in increasing. Therefore is important to automate processes such as the compliance assessment. Software that provides routines that automatically classify products and determine compliance and warn in case of violations supports that. Via analytics software can make this and other information accessible throughout the company. This and the automation of compliance document creation and distribution helps to fulfill stakeholder expectations. Product compliance is not limited to development; it must be ensured throughout the product lifecycle. Software that embeds compliance and controls in the corresponding business processes and automates the compliance work helps to ensure compliance and to reduce effort. And software can also help to streamline the communication along the supply chain and to manage supplier information and with that further reduces the effort for product stewards.

Agenda

Business Challenges

Product marketability and chemical complianceEnsure compliance of products and chemicals to secure the right to market, sell, and ship products

Safety data sheet and label managementManage safety data sheet and labeling requirements to ensure compliance and accelerate product introduction

Dangerous goods managementProvide safe and compliant transportation of hazardous materials to avoid delivery delays and protect brand value

Product Compliance Solutions from SAPManage Global Product Safety and Compliance Throughout the Product Lifecycle

Presenter

Presentation Notes

As explained in the beginning of this session, in the area of product compliance, companies face a lot of challenges. These are caused by an increasing number of product regulations and by increasing stakeholder expectations concerning the safety and compliance of products. This means that companies�- have an increasing effort to keep track of changed and new requirements�- have to collect more and more information internally and throughout the supply chain�- have to ensure compliance of their products to an increasing number of requirements�- and have a growing information disclosure effort.�Our product compliance solution helps customer with all of that. And it helps them to manage product safety and compliance globally and throughout the product lifecycle. The product marketability and chemical compliance solution capability for example supports and streamlines compliance processes in discrete and process industries. It helps companies to ensure that their products do not contain forbidden substances, that they have done all required registrations, and that they fulfill various other compliance requirements so that they can sell their products in different markets and do not violate regulations. With the safety data sheet and label management capability, customers can automate the classification of their components and products. They can then use this and other information to generate and ship up-to-date compliance documents, create any kind of label, and print these labels manually or automatically via logistics integration. When companies have made sure that their products comply with all applicable regulations and requirements, have created required compliance documents, and have labelled the products correctly, they still have to ensure that their products are transported and shipped safely and in compliance with the regulations. To support this, customers can use our dangerous goods management capability.

Product Compliance Solutions from SAPProducts Supporting Key Capabilities

On Premise Cloud

Product marketability and chemical compliance SAP S/4HANA for product compliance SAP S/4HANA Cloud for product

compliance

Dangerous goods managementSAP S/4HANA for product compliance

SAP EHS Regulatory Content

Safety data sheet and label management

SAP S/4HANA for product compliance

SAP EHS Regulatory ContentSAP EHS Regulatory

Documentation OnDemand

CapabilityProduct

Presenter

Presentation Notes

Here you can see the individual products that support the different key capabilities. For the Product Marketability and Chemical Compliance key capability SAP offers different products that are tailored to the specific needs of discrete and process industries. Compliance processes in discrete industries are supported by SAP S/4HANA for product compliance, an on-premise product, which is technically part of the SAP S/4HANA. The on-premise product helps customers to assess and manage the compliance of discrete products from individual parts to the whole product. For process industries, SAP S/4HANA for product compliance also provides capabilities that support different product compliance aspects, for example tracking of substance volumes, managing product registrations, and running checks integrated in logistics against different regulatory requirements and substance lists. This solution is complemented by our content product SAP EHS Regulatory content. This product contains lots of substance lists that can be downloaded from the SAP Service Marketplace into the SAP S/4HANA for product compliance solution. Examples for substance lists are the Chemical Weapons Convention list, Drug Precursor lists, lists with regional and country specific inventories, etc. The on-premise SAP S/4HANA for product compliance solution also supports the key capabilities for Safety Data Sheet and Label Management and Dangerous Goods Management. Again, the solution is complemented by our content product SAP EHS Regulatory content, and by the cloud offering SAP EHS Regulatory Documentation. Via this solution, SAP provides component information to our customers, classifies their products and creates safety data sheets for them. With this cloud solution, the valuable product stewardship resources are relieved from routine work such as component data research and safety data sheet creation and can concentrate on more important tasks. The products supporting the key capabilities for Safety Data Sheet and Label Management and Dangerous Goods Management can both be used in process and discrete industries.

Protect marketability with embedded product and chemical compliance Central data and product compliance

information management Integrated regulatory content Automated compliance assessment Integrated marketability and registration

checks Substance volume tracking and

compliance monitoring Self-service compliance information app

Product Marketability and Chemical Compliance

Marketability status overview

Presenter

Presentation Notes

Now I would like to explain to you the 3 key capabilities. I will start with the Product Marketability and Chemical Compliance solution capability. This capability helps to manage requirements from many different regulations such as REACH, RoHS, Chemicals Weapons Convention, Biocides and Cosmetics Directives, etc. You can centrally manage all compliance information including information on usage and exposure scenarios and roll-up compliance information from individual substances, ingredients, and parts to the whole product. You can determine and set the compliance status against different regulations. You can determine substance volumes and track them against allowed quantities. The solution can be used to manage and check registrations and notifications. The system can automatically determine compliance and with integrated compliance checks in sourcing, manufacturing, sales, and distribution, you can then automate compliance processes, monitor volumes and compliance. Overall, the solution mainly helps you to ensure the marketability of your products and to accelerate the introduction of your products into new markets.

SAP S/4HANA for product complianceStep-by-Step Provisioning of New Capabilities

Simplified S/4HANA solution

2018 2019 2020 2021 2022 2023 2024 2025 20262017

Product Marketability & Chemical Compliance

Dangerous Goods Management

Safety Data Sheet and Label Management

“Classic” capabilities“Classic” and selected new capabilities

Scope:

New capabilities

SAP S/4HANA Cloud for product complianceStep-by-Step Provisioning of New Capabilities

Product Marketability & Chemical Compliance

Dangerous Goods Management

Safety Data Sheet and Label Management*

2018 2019 2020 2021 2022 2023 2024 2025 2026

Selected capabilitiesFull scope

Scope:*) via integration with SAP EHS Regulatory Documentation.

Outlook: Machine Learning in Product Compliance

Dangerous Goods Classification Crucial expert-driven process step Many decisions are industry or customer specific. Deep learning can automate important classification

steps and learn from previous expert decisions.

Substance Group Assignments Many regulations refer to generic substance groups

like lead compounds instead of specific substances. Deep learning can propose relevant substance

groups and regulations.

Train model

Apply model

Real life data

Data preparation

Machine Learning allows to scale automation rapidly.

Learning is performed from real life products.

Product development and engineering Integrated product marketability checks

SAP S/4HANA for product compliance business integration: compliance falls into all key business processes

Delivery and transportation Integrated product marketability and

dangerous goods checks Automated safety data sheet distribution Integrated substance volume tracking

Sales and customer support Self-service compliance information

application Integrated product marketability and

dangerous goods checks Automated safety data sheet distribution Integrated substance volume tracking

Procurement Ensure that supplier materials meet

compliance requirements with integrated marketability and dangerous goods checks

Ensure that purchased materials do not exceed regulatory limits with integrated substance volume tracking

Manufacturing Integrated substance volume tracking to ensure

that manufactured products do not exceed regulatory limits

SAP EHS Regulatory Documentation OnDemandOverview

Reduce effort and risk with SAP’s product safety content & authoring cloud solution

Provision of component information Creation of product classification and label & supporting

data Generation of client-specific SDSs Automatic updates to keep current with changes in

regulations and new products & markets

SAP ERD process layer

SAP EHSM Product Safety

SAP EHS Regulatory Content

SAP ERD Factory

SAP Customer SAP ERDSupplier

Product Composition Data, Supplier SDSs

Customer-specific SDS, Label text, compliance data

Supplier SDSs

Agenda

Business Challenges

Processing the SAP ERD Component Data Request

Customer requests

•Shared / Private Component

•Submits Customer known Component information

•Componentidentification

SAP processes

•Comprehensive Data Collection

•Data Assessment & Document Creation

Customer consumes

•Data in S/4 HANA for Product Compliance

•Full business process integration

Raw Material Supplier SDS

Component

Processing the SAP ERD Product Request

Customer submits

•Standard Composition

•Type of product•Use of product•PhysChem

Properties•Safety Related

Properties

SAP provides

•Safety Data Sheet (>110 countries)

•Product -Classification

•Dangerous Goods Classification

•Hazard Label Text Information

Customer uses Data and Documents

•SDS Distribution•Labelling•Dangerous

Goods Mgmt.•etc.

Component

Product

Product and Component Data requestingvia SAP ERD Portal option

Customer makes request for Product Management Selects product and supporting data Selects countries for SDS and sends to SAP ERD Receives confirmation from SAP ERD SAP ERD validates completeness of data

Product Request Initiation via SAP ERD Portal

Start Product Request creation

Upload Product input data file

Select desired SDS countries/languages and submit to SAP ERD

Presenter

Presentation Notes

Direct Interface: OnDemand service with OnPremise logistics integration Standard interfaces for fast connectivity Full data exists at all times in customer system Portal Intuitive user experience for compliance requests Ideal for non-SAP EHS customers and those with stable product portfolios

Welcome in the future – ERD Online

https://erd.hana.ondemand.com

https://support.sap-bcs.com/secure/Dashboard.jspa

https://erd.hana.ondemand.com/

https://support.sap-bcs.com/secure/Dashboard.jspa

Thank you for your kind attention