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.

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As digital transformation becomes an increasingly important priority for businesses across the Asia Pacific (APAC) region, SAP is doubling its efforts to engage with partners and provide them with the tools and resources they need to enable their customers’ success. In 2020, the German tech giant enabled its partners in Thailand to deliver cloud solutions and services, supporting them as they help their customers navigate the ever-changing landscape of enterprise technology.

As organizations across the globe revisit their budgets in light of the economic headwinds, Indorama Ventures Public Company Limited and Namsiang Group have shared their transformation stories at the “Thailand SAP User Group Forum: Journey to Sustainability Development & Best Run Awards Ceremony”. These companies have made great strides in increasing their resilience against these challenges, setting a strong example for others to follow.

SAP Indochina Managing Director Atul Tuli stated that the COVID-19 pandemic has only increased the urgency with which businesses in Thailand must undergo digital transformation if they are to improve their responsiveness, speed, and ability to make data-driven decisions. He added:

“SAP has been at the forefront of leading our customers through the pandemic and I look forward to empowering our Thai customers and enriching technology ecosystems for creating sustainable growth.”

Teaming Up with SAP Thailand and Accenture

In 2020, integrated petrochemicals corporation Indorama Ventures worked with SAP and Accenture on the IVL Olympus project, with the goal of becoming a future-ready intelligent enterprise and saving $600 million by 2023. The objective of the company’s move to replace over 70 IT systems with a unified enterprise resource planning (ERP) platform is to create synergistic benefits for our businesses through a more comprehensive understanding of data and information.

During THSUG’s event, SK Agrawal, President and Program Director of Global ERP and Digital Transformation at Indorama Ventures explained that the speed with which new acquisitions can be integrated can be increased by implementing standard processes, master data, and streamlined reporting across all business activities. As planned, Indorama Ventures has become a dominant player in the high-value surfactant market after completing this year’s acquisition of Oxiteno, a Brazilian chemical solutions manufacturer.

With the recent purchase, Indorama Ventures has increased its potential for growth by entering the extremely lucrative markets of Latin America and the United States, with future expansion into Europe and Asia being a distinct possibility. Meanwhile, its “Vision 2030” strategy centers on strengthening the company’s position as a leader in the sustainable development sector.

“With our integrated business platform, we were able to increase recycled content in accordance with our sustainability goals while maintaining high package performance standards,” Agrawal revealed.

“We will continue to enhance a strong management information system and use an advanced digital platform where we can access real-time monitoring and reporting, allowing us to be more analytical in decision making and building business plans,” he further added.

Driving Digital Transformation with SAP Solutions

On the other hand, Namsiang Group, another distributor of chemical products, collaborated with SAP and Netizen two years ago to begin a thorough digital transformation project across all four locations in Thailand. The company’s ability to support the entire chemical supply chain—from trading to manufacturing to wholesale and retail—thanks to SAP S/4HANA’s single core ERP platform has allowed it to boost the accuracy of its financial analyses, the efficiency of its document processing, and the speed with which it handles transactions.

Even if an economic downturn is on the horizon, Namsiang Group Chief Operating Officer (COO) Chaiwat Klangvijit believes digital technologies will be critical in assisting the business in making necessary course corrections to pursue alternative sources of revenue growth. He stated that in the future, the company plans to boost its investment in digital technology and automated process solutions to increase efficiency and productivity in support of its expansion into the ASEAN market.

Discussing Namsiang Group’s partnership with the German tech giant and SAP Platinum Partner Netizen for the digitization efforts, Klangvijit remarked:

“The collaboration with SAP and Netizen has proved that digital transformation provides a valuable opportunity for core business functions. NSG achieved significant results in productivity, speed of document management up to 40% and data financial analysis accuracy more than 35%.”

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Indorama Ventures Public Company Limited (IVL), one of the world’s leading petrochemical producers, has been expanding its global footprint recording over 10 completed mergers and acquisitions from 2019 to present. With a growing presence across more than 35 countries, the chemicals manufacturer has tapped SAP and Accenture to design, develop, and deploy an enterprise resource planning (ERP) system with SAP S/4HANA. The strategy aims to create a single source of information across IVL’s global business.

The new ERP system is expected to enhance IVL’s operations efficiency, employee-development capabilities, and customer and supplier experiences. To ensure a successful transition to the new system, Accenture will provide IVL with enterprise-wide change management services.

Deepak Parikh, IVL’s Chief Strategy Officer, said:

“With our rapid growth over the past decade, we needed one ERP system across all our platforms, so we chose SAP S/4HANA to bring together different processes across all the parts of our business.” 

“We selected Accenture because it understands how to seamlessly integrate our processes and data into one system, so we can rely on accurate and consistent operating data across all locations and manage our business optimally,” she explained.

The Platform of Choice

Bangkok-based IVL will be leveraging Accenture myConcerto, an insight-driven, digitally integrated platform that harmonises the power of new SAP solutions and technologies, including SAP S/4HANA, and Accenture’s industry and functional expertise. The platform is anticipated to standardise and orchestrate IVL’s key business functions and will be hosted on Microsoft Azure for easy scalability.

Launched in 2018, Accenture myConcerto combines the best of SAP and Accenture to amplify business outcomes for the intelligent enterprise. The solutions embed SAP Model Company and are delivered in collaboration with SAP Value Assurance services throughout all project phases. For SAP clients, the platform also uses SAP Cloud Platform and SAP Leonardo digital innovation system to accelerate time-to-value.

SAP and Accenture Partnership

Abhishek Kahol, a Managing Director at Accenture who leads the Accenture Microsoft Business Group in the Asia Pacific, highlighted that the chemical company took a great leap forward with the strategic move to a single company-wide ERP solution.

“By embracing industry best practices using Accenture myConcerto, SAP S/4HANA, and a public cloud-based architecture from Microsoft Azure, IVL will be positioned to scale globally, create cost efficiencies, and lay the foundation for future digital capabilities,” Kahol stressed.

Furthermore, to address IVL’s goal of improving the management of customer experiences, its human resources capabilities, and time and expense management, Accenture will be deploying additional SAP cloud solutions such as SAP Customer Experience, SAP SuccessFactors, and SAP Concur.

Commenting on IVL’s recent digital strategy, recently promoted SAP Southeast Asia President and Managing Director Verena Siow said:

“Innovative chemical companies focus on developing differentiating, customer-centric business models and processes to stay ahead of their competition while striving for safe and highly efficient operations. As IVL consolidates its portfolio and grows in response to market dynamics, it plans to adopt digital technologies to transform into an intelligent enterprise. This can help innovate business models to grow revenue and transform business processes and services to enhance customer and supplier experiences.”

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