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YUNNAN YUNTIANHUA INTERNATIONAL

SAP® BUSINESS ALL-IN-ONE HELPS


INTEGRATE PROCESSES FOR MORE
EFFICIENCY
QUICK FACTS
“SAP Business All-in-One brought Company Implementation Highlights
• Name: Yunnan Yuntianhua International • Phase-by-phase deployment
significant changes to managing Chemical Co. Ltd. • Carefully prepared implementation by the
our business processes. . . . By using • Location: Yunnan, China consulting partner
• Industry: Chemicals
SAP Business All-in-One, we’ve • Products and services: Manufacture of Why SAP
chemical fertilizers • Strong brand and global acceptance
optimized processes for greater • Revenue: US$2.9 billion • Incorporation of best practices in supply
• Employees: 8,000 chain management
productivity, leveraged industry best • Strong integration capability and
• Web site: www.ynphos.com
practices, and created new efficient • Implementation partner: Digital China comprehensive functionalities
Management System Limited • Fast and predictable deployment
processes.”
Challenges and Opportunities Benefits
Qingyi Zhou, IT Director, Yunnan Yuntianhua • Achieved financial visibility for tighter
• Support company’s mission to become a
International Chemical Co. Ltd. control and better-informed decision
world-class enterprise
• Facilitate integration projects in the wake making
of restructuring • Optimized business processes for greater
• Enhance operational excellence and productivity
increase productivity • Achieved information transparency across
all entities
Objectives • Increased efficiency in managing inventory
• Build a unified information platform to and logistics due to live information
integrate business processes across the
entities Existing Environment
• Increase financial visibility • Use of local enterprise resource planning
• Achieve information transparency to solution at one subsidiary
sharpen insight and foster better-informed • Basic office tools at other subsidiaries
decisions Third-Party Integration
SAP® Solutions and Services • Database: Oracle
SAP® Business All-in-One solution • Hardware: IBM
• Operating system: Windows 2003
Server SP2

SAP Customer Success Story


Chemicals – Fertilizer Manufacturing
Located in Yunnan, in southern China, Yunnan Yuntianhua International decided to invest in building a new
state-of-the-art ERP platform in order
Chemical Co. Ltd. (Yuntianhua International) is a shareholding to support the company’s mission
subsidiary of Yuntianhua Group, an industrial group renowned to achieve operational excellence and
enhance competitiveness.
throughout China. As a leading chemical manufacturer in the country,
Yuntianhua International has an annual production capacity of Powering Up with SAP Business
All-in-One
5.1 million tons of high-concentration phosphate compound fertilizers.
In its industry, this capacity ranks the company first in Asia and After careful evaluation of the available
options – especially after leveraging
second in the world. knowledge of ERP from Three Circles
Chemicals – Yuntianhua International
identified SAP Business All-in-One as
Yuntianhua International, with five large Chemical Co. Ltd., Yunnan Jiangchuan the best-fit enterprise management
manufacturing entities, employs a Tainhu Chemical Co. Ltd., and Yunnan platform to support its mission-critical
total of 8,000 people and in 2007 had Yunfeng Chemical Industry Co. Ltd. processes.
revenues approaching US$2.9 billion.
The company’s goal is to develop The crucial task for the new organiza- According to Qingyi Zhou, IT director of
into the leading global producer of tion was to integrate the business pro- Yuntianhua International, there were
phosphate fertilizers with a target cesses of the holding company with the several factors leading up to the decision
output of 10 million tons by 2010. five separate entities – for improved in favor of SAP Business All-in-One.
operational efficiency and competitive- Apart from SAP’s proven success
Yuntianhua International strives to ness. A series of initiatives followed to and global orientation, Yuntianhua
realize its goal through its advantage in integrate the different corporate cul- International was particularly interested
the scale of its production capacity, tures, business models, and informa- in leveraging SAP software’s support
technical innovation, and brand man- tion platforms. The biggest integration for best practices in supply chain
agement. Its recent investment in the project was to establish a unified enter- management. On top of that, the
SAP® Business All-in-One solution set prise management platform to consoli- company felt that the solution’s
an important milestone in its journey to date disparate systems and to stream- powerful integration capability and
become a world-class enterprise. line and standardize business its quick and predicable deployment
processes across the enterprise. would outperform other alternatives.
Integration Imperative
In regard to the complexity and risks in- Yuntianhua International has set clear
In 2006, amid rapid business expansion volved for such a big integration proj- objectives for its ERP implementation.
and with its growth strategy for the ect, Yuntianhua believed that only a The company will build a unified
future well underway, Yuntianhua Group proven, comprehensive, and integrated information platform and streamline
restructured its five large manufacturers solution with functionality supporting business processes along the entire
of phosphate and compound fertilizers industry best practices would be able value chain. At the same time, the
as one joint-stock company called to perform the job. Although one of the company will achieve centralized
Yuntianhua International. The five manu- subsidiaries – Three Circles Chemical – management at the level of the
facturers were Yunnan Furui Chemical had been running a local enterprise re- holding company and standardize
Industry Co. Ltd., Yunnan Three Circles sources planning (ERP) solution for management procedures across
Chemical Co. Ltd., Yunnan Honglin some years, Yuntianhua International the entire enterprise.
“SAP Business All-in-One helped us automate our accounting process.
We are now much faster and more accurate in processing our financial
reports and analytics. With real-time visibility of financials in the six
companies, we have gained stronger control and are able to make better-
informed decisions.”

Qingyi Zhou, IT Director, Yunnan Yuntianhua International Chemical Co. Ltd.

Phase-by-Phase Deployment companies and departments with a mized processes for greater productivity,
unified information platform to manage leveraged industry best practices, and
The company carried out the deploy- procurement, production, sales, created new efficient processes.”
ment in two phases in collaboration inventory, logistics, and finance. With
with Digital China Management System SAP Business All-in-One going live, Another breakthrough was the informa-
Limited, an SAP channel partner. Yuntianhua International is powered by tion transparency across the enterprise,
The implementation team made the a modern, integrated, and efficient which led to increased efficiency in
first deployment in the holding company management platform, which has made many aspects of the business. The
and Three Circles Chemicals; the sec- significant contribution in speeding logistics center is one example. Running
ond phase of the project covered the up another two integration projects – SAP Business All-in-One, staff working
implementation across the remaining culture and business model integration. for logistics can now retrieve real-time
four subsidiaries. information on inventory and can track
Yielding Results goods in transit with ease. “Everything
“It was a very challenging project for is now in the system, and we’ve become
us, as the deployment involved so “SAP Business All-in-One helped us more efficient in managing inventory
many departments and so many com- automate our accounting process. We and logistics,” adds Zhou.
panies, some of which had not had any are now much faster and more accurate
ERP experience before,” says Zhou. in processing our financial reports and Describing the overall experience of
Facing the challenging situation, analytics. With real-time visibility of deploying and running the SAP solution,
Digital China carefully prepared the financials in the six companies, we Zhou says, “SAP Business All-in-One
has well-defined, built-in functionality
supporting processes and industry
“SAP Business All-in-One has well-defined, built-in functionality supporting best practices. Compared with local
ERP solutions, SAP Business All-in-One
processes and industry best practices. Compared with local ERP solutions, has proven to be more stable and
SAP Business All-in-One has proven to be more stable and faster in faster in deployment. It has a stronger
integration capability and offers the
deployment. It has a stronger integration capability and offers the breadth breadth and depth of functionality we
and depth of functionality we need.” need. These are clear advantages and
outweigh the necessary investment.”
Qingyi Zhou, IT Director, Yunnan Yuntianhua International Chemical Co. Ltd.

implementation, with each process have gained stronger control and are
being supported with detailed blueprints, able to make better-informed decisions,”
forms, and specifications. The collabor- says Zhou.
ative efforts – plus the commitment
from the company’s top management – “SAP Business All-in-One brought
led to the SAP Business All-in-One significant changes to managing our
solution going live with around 2,000 business processes,” adds Zhou.
users in just 10 months. “Before, our processes were not
standardized and streamlined, resulting
The deployment of the SAP solution in manual and repeated work. By using
has realized the integration between SAP Business All-in-One, we’ve opti-
www.sap.com /contactsap

Reap More Benefits

Yuntianhua International has realized


that, in order to reap more benefits
from the investment, they will devote
further efforts to exploring additional
functionality. “It is not enough to just
run the system. Our ultimate goal is to
bring the operations to a new level of
efficiency. The SAP platform will help
us to achieve that.”

The company has several development


projects in the pipeline. It will further
enhance process automation and
explore the functionality of the portal
that is part of SAP Business All-in-One.
The company will also optimize infor-
mation intelligence and increase
the capability for analytics, to further
enhance business agility.

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