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BorsodChem Starts Using SAP S/4HANA ERP System

Innovation

BorsodChem Zrt. was the first subsidiary of the Wanhua Group in Europe to switch to the SAP S/4HANA ERP system, according to a press release sent to the Budapest Business Journal.

At the beginning of 2022, one of Europe’s leading chemical companies, a plastic raw material and inorganic chemicals producer – based in Kazincbarcika, Hungary – and SAP started a joint project to replace the firm’s old R3 ERP system with the latest version, which is also enhanced with artificial intelligence.

Wanhua-BorsodChem's predecessor, Borsodi Vegyi Kombinát (BVK), was founded in 1949 and since then the company has grown to become Hungary's leading chemical company and one of Europe's leading manufacturers of plastic raw materials and specialty chemicals. Continuous development requires companies to review their digital infrastructure from time to time and take the necessary steps to modernize and BorsodChem's IT team has been working with SAP Hungary on various cloud-based projects year after year.

The selection of the ERP system was preceded by a lengthy evaluation at the company, in order to match the needs and possible solutions. The switch to S/4HANA also includes the introduction of a cloud-based Robotic Process Automation, the so-called iRPA package, which will enable BorsodChem to automate repetitive, manual processes using artificial intelligence. The company plans to complete the full implementation and go live in the first quarter of 2023.

„The current SAP system was launched at BorsodChem in 1997, so it was high time to implement a new system that could support us on our way to the new future with efficiencies and better-qualified information. After a comprehensive internal discussion and investigation, with deep consultation with SAP experts, the SAP S4HANA conversion was chosen via keeping the 25 years of business data and core processes. Besides the conversion, we are planning further process optimization and new function implementation to provide better forecasting and costing system on the advanced new S4HANA platform”, explained Wang Zhenhua, IT director of BorsodChem.

The modernization of R3 ERP systems could not be delayed because the official support for SAP Business Suite 7 will last until the end of 2027. Support for the suite's applications (ERP 6.0, CRM 7.0, Supply Chain Management 7.0, Supplier Relationship Management 7.0) will therefore be available at extra cost from January 2028 until December 2030.

"In Hungary, this process is currently affecting hundreds of companies, so considering the partner capacities available on the market, it is becoming increasingly urgent for them to migrate to the latest S/4HANA system, which they can do most efficiently within the framework of our Rise with SAP package", said Szabolcs Pintér, managing director of SAP Hungary in connection with the implementation.

With more than 1,300 companies worldwide using the Rise with SAP package, SAP says it will continue to support its customers in the long term with similar solutions that reflect both local and global specificities to help them successfully transform their business. SAP is guaranteeing support for its next-generation, cloud-based S/4HANA enterprise management solution until 2040.

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