The Company Headquartered in Sweden, Sandvik ® is a high-technology engineering group that develops and supplies a wide range of tools, equipment and services in five business areas: Sandvik mining, Sandvik construction, Sandvik machining solutions, Sandvik materials technology and Sandvik ventures. With representation in more than 130 countries, the company has 50,000 employees and annual revenues of more than $14 billion. The Challenge As a global industrial group, Sandvik has approximately 600,000 trading partners and over 3 million shipments and orders per year that require compliance screening. The challenges of properly managing such volume and complexity are further intensified for divisions that work in highly regulated fields with fast-changing restrictions and requirements. To manage its trade compliance, Sandvik traditionally depended on manual processes and, in some of its companies, on a restricted party screening tool that had limited functionality. The manual and highly fragmented process was time-consuming and unreliable, particularly in light of Sandvik’s dynamic compliance environment. For example, new European Union (EU) regulations regarding trade with sanctioned countries meant that Sandvik had to review and assess all its trading relationships – a painstaking manual process that had to be implemented across multiple export centers. As its markets changed, Sandvik found that it was increasingly facing highly regulated and complex trade transactions that required more comprehensive compliance evaluation. Uncomfortable with its potential exposure, Sandvik decided to implement a formal trade compliance process. It needed to be able to centralize Business Drivers • Reduce trade risks associated with international operations, particularly in respect to highly regulated areas, such as mining and construction • Ensure global compliance with international trade restrictions • Improve visibility into worldwide customs tariffs to better leverage free trade agreements and reduce costs • Gain competitive advantage by expanding business within countries where a formal export controls process is vital The Benefits • Significantly reduced international trading risk due to comprehensive, automated restricted party screening • Time and cost savings due to reduced need for manual trade compliance processes • Standardized export compliance across worldwide companies • New opportunities to expand business with countries for which a formal export controls process is needed Sandvik Automates Export Controls and Opens New Business Opportunities with E2open E2OPEN.com Page 1 CASE STUDY
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The Company Headquartered in Sweden, Sandvik® is a high-technology engineering group that develops and supplies a wide range of tools, equipment and services in five business areas: Sandvik mining, Sandvik construction, Sandvik machining solutions, Sandvik materials technology and Sandvik ventures. With representation in more than 130 countries, the company has 50,000 employees and annual revenues of more than $14 billion.
The ChallengeAs a global industrial group, Sandvik has approximately 600,000 trading partners and over 3 million shipments and orders per year that require compliance screening. The challenges of properly managing such volume and complexity are further intensified for divisions that work in highly regulated fields with fast-changing restrictions and requirements.
To manage its trade compliance, Sandvik traditionally depended on manual processes and, in some of its companies, on a restricted party screening tool that had limited functionality. The manual and highly fragmented process was time-consuming and unreliable, particularly in light of Sandvik’s dynamic compliance environment. For example, new European Union (EU) regulations regarding trade with sanctioned countries meant that Sandvik had to review and assess all its trading relationships – a painstaking manual process that had to be implemented across multiple export centers.
As its markets changed, Sandvik found that it was increasingly facing highly regulated and complex trade transactions that required more comprehensive compliance evaluation. Uncomfortable with its potential exposure, Sandvik decided to implement a formal trade compliance process. It needed to be able to centralize
Business Drivers
• Reduce trade risks associated with international operations, particularly in respect to highly regulated areas, such as mining and construction
• Ensure global compliance with international trade restrictions
• Improve visibility into worldwide customs tariffs to better leverage free trade agreements and reduce costs
• Gain competitive advantage by expanding business within countries where a formal export controls process is vital
The Benefits
• Significantly reduced international trading risk due to comprehensive, automated restricted party screening
• Time and cost savings due to reduced need for manual trade compliance processes
• Standardized export compliance across worldwide companies
• New opportunities to expand business with countries for which a formal export controls process is needed
Sandvik Automates Export Controls and Opens New Business Opportunities with E2open
E2OPEN.com Page 1
CASE STUDY
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its database of all relevant information and institute automated processes for ensuring global compliance. Additionally, on a global scale, Sandvik realized that it was not fully exploiting potentially favorable trade regimes. With better, formalized export controls processes, Sandvik would be able to expand business with countries that it had not traditionally considered, and thus gain a new competitive edge.
The SolutionSandvik selected E2open’s Export Management application, a modular and scalable solution that contains trade compliance regulation information for over 180 countries and additional regulatory bodies.
“The E2open solution stood out for its global coverage, its hosted solution architecture, and the comprehensiveness of its trade content,” says Mattias Lövensjö, Manager, Group Trade Compliance at Sandvik. “Scalability was also important to us as we wanted to offer this solution to the whole Sandvik group.”
In the initial stage, the trade compliance functions and processes in E2open Export Management were implemented in Sandvik’s Mining and Construction business areas, focusing first on the regions with the highest perceived compliance risk. Rollout of the solution then expanded to Sandvik Mining and Sandvik Construction worldwide.
The implementation included integration with legacy enterprise resource planning (ERP) systems, including
modification of the ERP to enable efficient and automated responses to alerts and blocks signaled by E2open Export Management.
The ResultsAs the first two business areas to implement the E2open solution, Sandvik Mining and Sandvik Construction have mitigated their trading risk on a global scale. They have significantly reduced the time spent on export compliance, while improving the quality and reliability of their controls.
“Implementing the E2open solution has greatly facilitated our ongoing, worldwide trade compliance,” says Lövensjö. “We are much more confident that our transactions will pass scrutiny and that on a global scale we are acting correctly to minimize our risk.”
Moving forward, the E2open solution will be implemented in additional Sandvik business areas. The phased rollout will begin with restricted party screening; after that, the plan is to expand to full export control processes.
Sandvik looks forward to taking advantage of E2open Export Management to achieve some wider business goals. With improved visibility into worldwide trade taxation, the group expects to reduce costs through better utilization of free trade agreements and import duty differentials. Additionally, Sandvik hopes to create a new competitive advantage by expanding its business with countries that, in the absence of well controlled export processes, had previously been out of reach.
About E2open
At E2open, we’re creating a more connected, intelligent supply chain. It starts with sensing and responding to real-time demand, supply and delivery constraints. Bringing together data from customers, distribution channels, suppliers, contract manufacturers and logistics partners, our collaborative and agile supply chain platform enables companies to use data in real time, with artificial intelligence and machine learning to drive smarter decisions. All this complex information is delivered in a single view that encompasses your demand, supply and logistics ecosystems. E2open is changing everything. Demand. Supply. Delivered. Visit www.e2open.com.
“Centralizing and automating our export control processes, and particularly our trade compliance, not only reduces risk for Sandvik, it opens new opportunities to do more business worldwide.
E2open, the E2open logo and Global Knowledge are registered trademarks of E2open, LLC, or its affiliates. Sandvik is a registered trademark of Sandvik Intellectual Property AB. All other trademarks, registered trademarks and service marks are the property of their respective owners.
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