Indorama Ventures Public Company Limited, a global chemical company based in Thailand, is implementing SAP Taulia to optimize its working capital and improve supply chain resilience.
SAP Taulia, a key solution within SAP’s ecosystem, offers working capital management services designed to enhance cash flow and strengthen supply chains. SAP acquired Taulia in 2022, further integrating its platform into SAP’s broader suite of solutions. Through Taulia, businesses like Indorama Ventures aim to drive sustainability, operational efficiency, and cash flow improvement. This move is crucial as companies navigate an increasingly volatile global supply chain landscape, where resilience and liquidity are essential for growth.
Indorama Ventures, one of the largest petrochemical producers globally, operates in over 140 manufacturing sites across five continents. The company has been actively pursuing a digital transformation strategy under its IVL 2.0 and Procurement 4.0 initiatives. A central focus of these programs is improving free cash flow, which is now being addressed through Taulia’s early payment program.
Indorama’s partnership with Taulia reflects its commitment to enhancing the liquidity of its supply chain, particularly benefiting suppliers through early payment options at competitive rates. This initiative aligns with the company’s goal to improve working capital and support business growth. By leveraging Taulia, Indorama Ventures is not only optimizing its internal processes but also supporting its global suppliers, many of whom are small and medium-sized enterprises (SMEs) across Asia.
The implementation of Taulia is expected to significantly reduce payment cycle times for Indorama Ventures’ suppliers. In regions such as Asia, where payments often take 60 to 90 days, this solution is vital for improving supplier financial health, particularly for MSMEs. By offering early payments, Indorama Ventures will strengthen its relationships with these suppliers, ensuring they have quicker access to the capital needed to sustain and grow their businesses.
Taulia’s multi funder model plays an important role in this strategy. Through access to a network of financial institutions, Indorama Ventures can mitigate risks by diversifying funding sources. Suppliers, in turn, benefit from consistent liquidity for outstanding invoices. This program not only addresses immediate financial needs but also supports long-term supplier stability, enhancing overall supply chain resilience.
Kulwipa Piyawattanametha, Managing Director of SAP Indochina, recognizes the broader impact of Indorama Ventures’ decision to implement SAP Taulia. The accelerated payment cycles will contribute to the growth and stability of local suppliers, fostering a healthier supply chain within Thailand and aligning with national economic development efforts. By supporting the financial health of these businesses, SAP and Taulia intend to build a more robust foundation for the local economy.
Indorama Ventures’ Digital Transformation with SAP Taulia
Indorama Ventures’ partnership with SAP Taulia is part of the company’s larger digital transformation journey, which began in 2020 with the implementation of SAP S/4HANA. As the company continues to modernize its operations, it is incorporating digital and AI-driven solutions to streamline processes across its global business. This approach impacts vital operational areas such as procurement, sales, supply chain management, and finance, helping the company achieve greater efficiency and competitiveness.
Sanjay Ahuja, Chief Strategy and Transformation Officer at Indorama Ventures, highlights the decision to select Taulia as a strategic move aimed at enhancing both IT and financial operations. By leveraging SAP Taulia’s integration with the company’s existing SAP infrastructure, Indorama Ventures intends to achieve greater efficiency in cash flow management. This approach is critical to fostering stronger supplier relationships, particularly as faster payments become a vital component for supplier growth and stability.
For SAP Taulia, the partnership with Indorama Ventures also represents a significant milestone in its expansion across Asia. The company’s commitment to providing liquidity solutions for businesses of all sizes is a key aspect of its strategy. Rene Ho, Chief Financial Officer at Taulia, underscores the importance of supply chain resilience in achieving Indorama Ventures’ free cash flow goals under the IVL 2.0 program. Taulia intends to support this transformation by enabling suppliers to access liquidity through its early payment program.
