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Sappi: Efficiently Managing Variable Production Costs
with SAP® Manufacturing Integration and Intelligence
Company
Sappi
Headquarters
Johannesburg, South Africa
Industry
Mill products
Products and Services
Paper products, pulp, specialized
cellulose, and forest and timber
products
Employees
12,800
Web Site
www.sappi.com
Partner
EOH Mthombo (Pty) Ltd.
www.eoh.co.za
Large-scale mill and forest product producer, Sappi needed a new IT system that would
provide greater visibility into consumption and cost against budget. Working with EOH, it
quickly deployed the SAP® Manufacturing Integration and Intelligence (SAP MII) application
across all its mills in South Africa. Now it can better manage costs and improve profitability.
Objectives
 Replace legacy system reporting with a standard SAP® solution for manufacturing at all mill production plants
 Provide a platform for continuous behavioral improvement
 Improve cost visibility to measure consumption and cost across plants
Why SAP and EOH
 Ability of SAP MII, based on the SAP ERP application, to manage consumption and costs against budget
 Real-time transparency into consumption cost, helping prevent nonconformance
 Fast implementation and quick wins by leveraging a generic toolset
 Platform for recipe and bills of material refinement
Real-time
Visibility into consumption and
costs
Fast
Reaction to nonconformance
Better
Budgeting and recipe
management
Benefits
 Better decision making based on real-time cost insight
 Improvement in profitability analysis and budgeting
 Standardized solution that enables enterprise-wide reporting
 Fast and simple rollout across mills in South Africa
“In a competitive market with ever increasing input costs, it is crucial that we
actively manage our production costs. With SAP MII, we have achieved real-time
insight into our consumption and costs against budget – enabling us to effectively
manage and control our variable costs and improve profitability.”
Joanne Boyd, Project Lead, Sappi
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