What started out as an integrated SAP implementation soon expanded to include application and infrastructure outsourcing, with results that included a reduction in the company’s administrative, and general costs—and improved customer satisfaction and financial performance.
Sun Chemical, a member of the DIC group, is the world's largest producer of printing inks and pigments. It is a leading provider of materials to packaging, publication, coatings, plastics and cosmetics companies and serves other industrial markets including electronic materials, functional and specialty coatings, brand protection and product authentication technologies.
With annual sales over $3.5 billion, Sun Chemical has over 8,000 employees supporting customers across a network of more than 250 locations in 56 countries.
Following a period of rapid expansion, due to organic growth and a series of strategic acquisitions, Sun Chemical found itself with a fragmented and regionalized IT infrastructure.
Obtaining and analyzing information from different regions was difficult, which meant that getting an accurate snapshot of global operations was virtually impossible. Costs were high, and manual processes for reporting and auditing were excessive.
To address these challenges and improve marketplace competitiveness through an extensive business and IT transformation, Sun Chemical turned to us.
Sun Chemical and Accenture have a longstanding relationship that dates back to the 1990s. It has grown and developed through multiple phases of work, each building on the successes of the previous one:
SAP implementation: Beginning in 2005, Accenture collaborated with Sun Chemical to implement an integrated SAP solution, running on a Microsoft platform.
SAP application outsourcing: Following the success of the global SAP implementation, Sun Chemical asked us for help moving from the ‘run’ phase of application support to assuming full responsibility as an outsourcer for the management of all of the company’s SAP applications.
Expansion of application and infrastructure outsourcing: Prior to 2011, Sun Chemical’s support model had involved the use of multiple vendors, including Accenture. In 2011, Accenture and Sun Chemical signed a six-year contract to transition non-critical application support from two other vendors to Accenture.
Our SAP implementation and outsourcing work delivered significant results for Sun Chemical across all three phases of the program. Results included:
Improved operational efficiencies, reduced costs and improved customer service.
Real-time access to accurate information and global, standardized data, allowing for better and quicker management decision-making.
A single, consistent, global view of each customer.
Flexibility and scalability to accommodate Sun Chemical’s future growth.
An IT function that is considerably more efficient and responsive to marketplace change.
Achieving or exceeding performance levels on service agreements more than 99 percent of the time.
Having near-perfect performance on outsourcing service level agreements, Sun Chemical and Accenture have agreed to a set of contractual risks and rewards to deliver excellent performance in the short term and continuous improvements in the long term.
It is a relationship that has improved Sun Chemical’s overall IT performance significantly and has helped the company achieve cost savings and operational efficiencies by consolidating vendors for its application and infrastructure support.