The leading integrated refractory solutions company adopts SAP ERP to unify its business management in 17 countries
São Paulo, January 2017 – Magnesita, one of the three largest global players in industrial refractory solutions, with 27 facilities in 17 countries on four continents, recently concluded the implementation of a Global program for converging its processes and systems that involved adopting a SAP business management solutions platform.
Project Pangea, as it was baptized, adopted a global operational platform in a single SAP instance and went live in December 2013 with a complete reformulation of Magnesita’s operating model and a redesign of Global processes. After creating a standard model for processes and for SAP ERP configuration and parameters, an analysis was conducted of the necessary adaptations to arrive at the ultimate solution to be implemented.
The first go live was in the first half of 2014 with a “light” version for China. In October, the first complete go live occurred simultaneously in Argentina and China. In August 2015, the go live was in France and Germany. In November, the project arrived in Brazil. In 2016, the go lives were in Dubai in April; in USA and Mexico in July; and in Chile, Colombia and Peru in November, with the countries adopting the solution and migrating to a single management platform.
In addition to the countries where implementation has been concluded, the solution also was adopted by the company’s sales offices around the world. The project’s indicators show that the company attained 95% convergence in more than 78 macro-processes and registered continuous progress over the 36 months of the program.
“The level obtained is excellent, especially when you see that 5% of the remaining process cannot be converged due to legal issues or local specificities,” said Rui Botelho, Sales to Core Industries VP at SAP Brazil. The executive also noted that the capacity to achieve these results demonstrates Magnesita’s superior training and development in the pillars of team, processes and technology. “Mastering the various steps involved was an important advantage for the project to be considered an example of a highly successful global implementation.”
“It was a unique and challenging experience but well worth it, since we are already reaping the fruits of Pangea and embarking on a management experience that is more global, integrated, scalable and flexible, which definitely will bring efficiency gains and competitive advantages,” said Raul Godoy, CIO of Magnesita and the person in charge of the project.
To Botelho, the success of a project of this magnitude and the inherent challenges show how SAP’s business management solution truly is robust, scalable and standardized. “Companies such as Magnesita can obtain control of their businesses and ensure that their processes are standardized regardless of country or cultural and legal barriers,” he emphasized. “That’s what moves us. Helping our clients to make their businesses more efficient.”