SAP Business Transformation StudyChemicals

BETEK PAINT AND CHEMICALINTEGRATING E-INVOICING PROCESSES TO MAXIMIZE EFFICIENCY

Betek Paint and Chemical Industries Inc. has led the Turkish paint and coatings market since 2001. The firm used SAP NetWeaver® Process Integration technology to enable e-invoicing processes, the first such use in Turkey. Betek now sends and processes over 45,000 electronic invoices every month to customers and suppliers via the SAP® ERP application, complying with govern-ment regulations and saving the firm considerable time, effort, and cost.

Key Challenges• Comply with government regulation for

electronic signatures• Integrate e-invoicing solution with SAP®

ERP application • Implement solution as cost-effectively and

efficiently as possible

Implementation Best Practices• Adherence to proven project management

and methodology practices• Strong recognition of e-invoicing benefits

for both Betek and its customers• Close communication between Betek

business and IT units, Turkish authorities, and SAP implementation partner

• Effective change management

Financial and Strategic Benefi ts• Accelerated process innovation using

enterprise services • Achieved compliance with regulatory

requirements for electronic signatures• Increased efficiency and improved cus-

tomer and supplier satisfaction through e-invoicing processes

• Increased invoice accuracy through inte-gration with SAP ERP

• Improved visibility of invoice status • Reduced invoicing cost, effort, and con-

sumption of paper

Why SAP Was Selected• Low total cost of ownership • Ability to integrate SAP and non-SAP

software• Proven effective due to service-oriented

architecture middleware• Strong existing relationship

Low Total Cost of Ownership• Minimized the IT support role related to

customer requests for reports • Adopted flexible solution adaptable to

future business needs• Leveraged existing IT investment• Minimized implementation costs with a

fast rollout• Realized a favorable return on investment

within 6 months

Operational Benefi ts Key Performance Indicator Impact

Cost per invoice -70%

Time needed to retrieve data for -80%regulatory compliance

Manual intervention -80%

Visibility of potential delinquencies +75%

QUICK FACTS

Industry Chemicals

Revenue TL 535 million (2010) – about €215.7 million

Employees Over 1,000

Headquarters Istanbul, Turkey

Web Site www.betek.com.tr

SAP® Solutions and Services SAP NetWeaver® Process Integration technology and SAP solution for e-invoicing

Implementation PartnerFIT Consulting

www.sap.com/contactsap“SAP NetWeaver Process Integration minimized the complexity of integrating

e-invoicing functionality into our solution landscape. We could speed up the

implementation and realize a return on investment within six months.”

Ismail Polat, Chief Officer of Finance and Accounting, Betek Paint and Chemical Industries Inc.

Finding the Right Formula to Streamline Invoicing

Manufacturing paints and coatings that have lasting beauty and durability requires faithful adherence to precise formulas. For Betek Paint and Chemicals Indus-tries Inc., leader in the Turkish paint and coatings market, it meant establishing a similar level of precision with its invoicing processes.

Betek sends approximately 45,000 invoices to more than 5,000 points of sale each month. The firm uses the SAP® ERP application for its core business processes and manual, paper-based processes for invoicing. To streamline this effort and comply with Turkish tax regulations related to electronic signa-tures, Betek embarked on an e-invoicing project. Since the use of electronic sig-natures for business transactions was new to the market, Betek was working in uncharted territory. “Part of our role was to champion the benefits of e-invoicing,” says Ismail Polat, Betek’s chief officer of finance and accounting.

E-Invoicing with SAP NetWeaver® Process Integration

Betek identified an e-invoicing solution through its implementation partner, FIT Consulting and used SAP NetWeaver® Process Integration (SAP NetWeaver PI) technology to put it into practice. “We’ve had positive experience with SAP,” says Feza Avci, Betek’s chief information officer. “SAP NetWeaver PI would enable us to use service-oriented architecture to integrate the new func-tionality efficiently and cost-effectively.”

Betek worked with an FIT team that adhered to solid project management principles and kept the communication lines open. When configuration was nearly complete, some of the government regulations changed and the solution had to be rede-signed. “We worked very closely with the government to clarify the regulations,” Avci adds. “SAP NetWeaver PI simplified adapting to these changes because the architecture centralizes application integra-tion information instead of using point-to-point connections.”

Betek tested the functionality by issuing invoices among its lines of business and then to business partners until its entire business network was connected. The project took four months, including the creation of change management documen-tation and training for internal resources, clients, and business partners.

Maximizing the Benefits of an Integrated Landscape

Betek now sends electronic invoices to customers and performs automatic invoice processing from suppliers directly from SAP ERP. “The solution automates the data exchange between our back-end software and the government’s tax admin-istration system,” Polat says. “We’re more efficient and accurate with our invoices, which has enhanced customer satisfac-tion. Plus, it keeps e-invoices and account status visible and accessible throughout the processing cycle.”

The reengineering of Betek’s invoicing pro-cesses has led to operational improvements as well. “We’ve cut IT support effort relat-ed to accounting disputes because the software’s validation rules alert users to

potential problems before they occur,” Avci says. “We can also retrieve data for the government more quickly.” By adopting greener, e-invoicing practices, Betek is realizing a 70% reduction in cost per invoice and saving considerable time and effort compared to paper-based invoicing.

Empowering Betek for Future Growth

Performing the first e-invoicing-compliant project in Turkey, Betek is considered an innovator. “By leveraging SAP technolo-gy, we’ve accelerated the adoption of e-invoicing in Turkey, which has empow-ered us and our business partners,” Polat says.

Implementation PartnerFIT Consulting, with offices in Turkey, the Netherlands, Cyprus, and Morocco, helps firms innovate by implementing SAP software, leveraging service-oriented architecture, and integrating

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