Tufail Chemical Industries embark on their Digital Transformation Journey with SAP

Tufail Chemical Industries Ltd., one of the largest manufacturers of industrial chemicals in Pakistan, partnered with SAP to implement SAP’s S/4 HANA as a part of the company’s wider business transformation strategy.

Tufail Chemical Industries Ltd. and SAP implementation partner, Abacus, remotely implemented all the core modules of S/4 HANA within the allocated time, despite the hurdles faced by the COVID-19 pandemic.

Tufail Chemical Industries Ltd. was using a homegrown system prior to opting for SAP’s solutions. The company chose to work with SAP because of the company’s capabilities and experience in the manufacturing and chemical industry. The implementation of SAP S/4 HANA will provide Tufail Chemical Industries Ltd. with process standardization, accurate and timely management reporting, increased financial controls and better insight into operational and commercial trends.

During this digital transformation journey, Tufail Chemical Industries Ltd. expects to save between PKR 150m to PKR 200m annually in operational costs as a direct result of using SAP solutions. This saving will be derived from better spend controls, more effective inventory management, a more robust production control and plant maintenance process, and improved billing and cash collection.   

Speaking about the reason behind the shift to SAP S/4 HANA, Adeel Shahid, Finance and Transformation Director, Tufail Chemical Industries Ltd, and the lead Project Sponsor said: “The main aim behind our strategy was to build a more lean and flexible organization. An organization which is better capable of unlocking the true potential of the business, and can more easily adapt to the changing needs of the market. Having a complete and robust ERP like SAP was a crucial step in our transformation journey. We have been live for 2 months now and have already seen a marked improvement in our plant maintenance activities, where the SAP PM module has allowed our team to do better preventive maintenance and tracking of incidents, and in our sales order process, where a significant amount of manual work has been eliminated allowing for more timely invoicing and cash collection. In the long run we aim to add other more targeted solutions to maximise the overall value we can derive from SAP.”

“The successful and remote implementation of SAP S/4 HANA at Tufail Chemical Industries Ltd. is another feather in our cap,” said Saquib Ahmed, Managing Director, SAP Pakistan. “In challenging economic times, it is vital for companies to be equipped with robust and proven innovations that give them greater control over their operations, and our S/4 HANA solution provides organizations with this ease of doing business and real-time insight into their day-to-day operations.”

In addition to delivering latest technologies, the SAP implementation project has also helped Tufail Chemical Industries Ltd. upskill their staff in terms of leading practices and tools while creating a mind-set of simplification, target oriented activity, and continuous process improvement. 

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