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Company Information
Headquarters United States
Industry Packaging Industry
Web site www.Novolex.com
Novolex™ is one of North America’s leaders in packaging choice and sustainability, serving retail, grocery, food service,
hospitality, institutional, and industrial markets with over $3.5 billion revenue. With more than 10,000 employees, Novolex™
manufactures packaging products at 61 locations across the U.S, Canada, Mexico, the U.K and the Netherlands. Novolex™
sustainable products focus on source reduction, energy and water conservation, and end of life product planning and
management.
Novolex™ will leverage SAP S/4HANA as an intelligent enterprise platform to:
Drive towards ‘One Novolex’ customer experience
Reduce overall process deficiencies to decrease SG&A costs
Consolidate business processes and replace obsolete ERP systems and solutions
Support the entire Novolex (Paper and Plastic) business units
Modernize plant maintenance and advanced production planning tools
Reduce sources of company meta data – sales, production, purchasing information
Simplify consolidated financial reporting and enable SOX implementation / controls
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Digital Innovation & Business Transformation using SAP S/4HANA
Novolex
Challenge
“With the company’s accomplished Over the years, Novolex’s M&A activity has introduced more than eleven independent ERP platforms, which
hyper-growth and to become an have presented inefficiencies between business units and at the corporate level. Limiting the ability to transform
industry leader in packaging the business model from a holding company to a ‘One Novolex Enterprise’ to better serve the customers.
solutions, Novolex has embarked
on a global business Solution
transformation program, Project
Optimus, ‘Optimize + Transform’. A large scale Business Transformation program with an objective to optimize current businesses and transform
the company into a futuristic ‘Enterprise’. Implemented SAP S/4HANA as a single ERP with SAP HANA
We partnered with TCS in building Enterprise Cloud as a platform of choice leveraging SAP Model Company for time to value implementation.
a futuristic ‘Optimus’ solution that
will enable us to be an ‘Intelligent Outcome
Enterprise’. Using SAP S/4HANA
as a digital core supporting both The strategic outcome of the program includes realization of ‘One Novolex’ vision; business expansion and
our Paper and Plastic businesses, industry leadership position. The financial outcomes include overall efficiencies in SG&A, improved visibility of
the Optimus project is set to bring business performance, and faster time to market.
great business results.”
Don Ray One-time OPEX Manufacturing Faster month
Optimus Program Executive
Novolex > 14% plus ongoing SGA > 12% Productivity 3X end and quarter
savings Improvements end close
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Participating Partner Information
Tata Consulting Services
Business Transformation and Systems Integration Partner
“Novolex Optimus program required comprehensive, innovative and accelerated business solution that drives operational
efficiency, business agility and market expansion goals. An excellent orchestration of strengths from Novolex, TCS and SAP
resulted in a successful first of a kind solution delivery.
Novolex executive commitment tremendously helped in business adoption, change management with external business
partners, and setting up new business functions to support the accelerated implementation.
A trusted TCS and SAP partnership on this greenfield SAP S/4HANA implementation with new business practices across the
enterprise ensured that Novolex Optimus solution is value driven, innovative and scalable.“
Kiran Yelamaneni
Solution Delivery Executive, TCS
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Business Challenges and Objectives
Novolex’s M&A activity has introduced more than eleven independent ERP platforms, which have presented operational
inefficiencies between business units and at the corporate level. Disparate ERP platforms and distinct processes causing
Challenges going to market with one face to the customer
Operational inefficiencies between systems (i.e., Buy/Sell, Sourcing, Rebates)
Impediments on realizing operational and functional synergies across business units
Inability to perform consolidated data analytics
Novolex embarked on a very large-scale Business Transformation program to reduce the current ERP footprint and support
continued company growth. with an objective to combine and optimize business processes and transform the company into
a futuristic ‘Intelligence Enterprise’, the transformation program will achieve the following objectives.
A global solution to support all Novolex’s Paper and Plastic business units
‘One Novolex’ customer experience and enable SG&A transaction efficiencies
Modern technology tools and a scalable cloud-based ERP platform by replacing obsolete ERP systems
Support change management and develop learning solutions with continuous improvements
Company-wide meta data such as sales, production, finance and purchasing information etc.
©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
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Project or Use Case Details
The project goal is to drive business transformation with ERP consolidation and implementation of SAP S/4HANA, the next
generation business suite. Business objectives demanded a comprehensive and innovative solution with accelerated
implementation achieving time-to-value without disrupting the current businesses. The Optimus program will enable:
• Customer Excellence - Standardized order management transitioning from eight separate ERP systems (One Novolex)
and help setup profitable contracts, better pricing, timely reporting with intuitive analytics tools
• Finance, Accounting and Controlling - Standardize and streamline all finance and accounting processes with SAP
S/4HANA as the single source for consolidated reporting, real-time cash management, faster month-end closes with robust
controls
• Procurement and Sourcing - Ability to analyze supplier spend more easily, parts consolidation across business, electronic
purchase requisitions, guided buying channels with approved supplier catalogs
• Production Planning - Single SOP process, better forecast accuracy, improved demand planning, advanced scheduling
• Production Execution - Utilize discrete manufacturing with batch management for lot traceability, improved inventory
accuracy with real-time production confirmation, and RF scanning for efficient warehouse operations
• Equipment Reliability - Plant Maintenance aligned with world class methods, increased OEE, and organized store rooms
The Novolex Optimus solution is developed using the following components:
SAP S/4HANA SAP Fiori Apps (only Fiori for end users) PPDS, EWM
SAP Ariba Vistex SAP Enable Now
Embedded Analytics SAP Data Services SAP Solution Manager
SAP Test Suite Nice Label SAP Model Company
©2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
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