Indorama Ventures Implements SAP’s Taulia to Improve Supply Chain Resilience
Bangkok, 24 September 2024 — SAP today announced that Indorama Ventures Public Company Limited, a global sustainable chemicals company, has partnered with Taulia to optimize its working capital under the company’s program to transform its global manufacturing operations, reduce costs, and enhance competitiveness. Acquired by SAP in 2022, Taulia is a leading provider of working capital management solutions and aims to help SAP customers generate billions of dollars of free cash flow and improve resilience and sustainability in supply chains.
Headquartered in Bangkok, Thailand, Indorama Ventures is one of the world’s leading petrochemicals producers, with about 140 manufacturing sites across five continents. As part of the company’s IVL 2.0 and Procurement 4.0 transformation programs, free cash flow was identified as a key goal across the business. Under Taulia’s early payment program, which went live in August 2024, Indorama Ventures will offer suppliers early payment options at preferential rates, aimed at improving supply chain liquidity and optimizing working capital while supporting business growth through a unified global solution. Indorama Ventures’ global suppliers are expected to benefit progressively from this program.
Through the implementation of Taulia, Indorama Ventures will be able to reduce payment cycle times for suppliers, hence improving the financial health of the Micro, Small & Medium Enterprises (MSME) industry in Asia, where payments are typically made after 60 to 90 days. Taulia’s ‘multifunder’ model will enable Indorama Ventures to access an ecosystem of financial institutions, providing flexibility and risk mitigation through diverse funding sources, while suppliers will have access to a stable source of liquidity for outstanding invoices. This integration will empower Indorama Ventures’ finance and procurement teams to benchmark their working capital against global peers while driving efficiency and automation in their working capital management processes.
Indorama Ventures started its digital transformation journey in 2020 by implementing tools including the SAP S/4HANA ERP platform. In the next phase of its journey, the company is rolling out a range of digital and AI solutions that create value and build excellence across key operational areas including manufacturing, commercial, procurement, sales, supply chain, and finance excellence.
Sanjay Ahuja, Chief Strategy and Transformation Officer at Indorama Ventures, said, “Indorama Ventures selected Taulia due to its strong track record in the specialty chemicals industry, as well as unified integration with SAP, multi-bank ecosystem, 90-second supplier onboarding, and extensive network of millions of suppliers. Collaborating with SAP and implementing Taulia will help streamline our financial operations and enhance our IT goals and cashflow management. This initiative aims to help strengthen our supplier relationships by ensuring faster payments, which is vital for their growth and stability.”
Kulwipa Piyawattanametha, Managing Director SAP Indochina said, “Indorama Ventures’ implementation of Taulia is a significant step forward for Thai businesses. By accelerating payment cycles and enhancing financial processes, they will be able to provide local suppliers with the liquidity they need to grow and thrive. This initiative also aligns with our commitment to supporting the Thai economy and government initiatives aimed at strengthening the nation’s supply chain resilience. Together, we are building a more robust economic foundation for the future.”
Rene Ho, Chief Financial Officer, Taulia said, “We are thrilled to announce our collaboration with Indorama Ventures as they pursue their free cash flow objectives under the IVL 2.0 initiative. We understand the vital role that the supply chain plays in their success. Through Taulia’s early payment program, we are committed to helping suppliers of all sizes access the liquidity they need through a carefully designed strategy and framework. This initiative also marks a significant step in our ongoing expansion across Asia, where we continue to support Asian corporates in their growth and strengthen local supply chains.”
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