Customer case: Ahlstrom Business transformation, TIPS Better business with superior industry knowledge How to succeed in the waves of transformation? Ahlstrom, founded in 1851, has a long and successful history in the global manufacturing industry. During the past 10 years the company has been going through a major transformation to chrystallize and enhance its strengths in the global market. This means outsourcing of certain businesses, focusing on core competence areas and creating a unified organization and harmonized processes to be able to benefit from a new level of efficiency, quality and high performance. “Change is an every day task in our business – therefore the most important thing is to see the interdependencies of all changes. Together with Tieto we can see things in a longer perspective. Experience creates trust – and openness and competent people with good ideas drive things to the right direction.” Mr. Kari Suominen, Vice President, Information Solutions, Ahlstrom Today, Ahlstrom focuses on high performance fiber-based materials – with over 180000 products in their portfolio. Speed is the key – the customer interface with more than 30 plants and about 30 sales units worldwide calls for highly efficient global processes as well as flexibility. In this challenge, the close partnership with Tieto has added value both in the stages of business transformation and in delivering IT solutions and services helping to harmonize business critical processes. Strong partnership adds value – both in transformation and daily operations The collaboration between Ahlstrom and Tieto started in 1996. The first joint goal was to integrate Tieto´s industry based IT solution Tieto Integrated Paper Solution TIPS to support Ahlstrom´s manufacturing execution – bringing efficiencies both to the factory floor operations as well as to order & sales processes. During the years Tieto has been actively growing their competencies to meet the changing customer needs driven by the dynamic global business environment. For Ahlstrom, the key competence of Tieto is an outstanding combination of industry knowledge and end-to-end business process understanding – supported by innovative IT solutions and Customer case: Ahlstrom reliable monitoring services. Continuous harmonization and transformation require rapid agility and scalability. All business development projects benefit from Tieto´s flexible resourcing – offering always a dedicated team with the optimal competence. Ahlstrom runs OrderPlan, based on Tieto TIPS - bringing superior efficiency in sales and production Running 32 plants globally requires a well crafted and proven manufacturing execution system to manage the complexities of the business critical production, order and sales processes. Matching the versatile and individual needs of Business transformation, TIPS the modern end customers is also critical. To do this successfully and benefit from the efficiencies of a unified process in all their plants, Ahlstrom uses OrderPlan, based on innovative industry based solution Tieto Integrated Paper Solution TIPS. It is an end-to-end solution – offering the smooth management of the whole order-to-cash value chain with direct integrations to SAP. OrderPlan combines the user driven functionalities and the best practices of Tieto’s over 30 years of experience in delivering leading IT solutions for the pulp and paper industries. Since 2011 Ahlstrom has also outsourced the OrderPlan monitoring services to Tieto to guarantee 24/7 service availability in a global level. Customer benefits: • Significant working capital effectiveness improvement: from average of 81 days (2008) to average of 39 days (end 2010). Current 39 days implies release of ~210 MEUR • Significant improvement in delivery measure OTAPIF (On Time As Promised In Full) • Average 10 % delivery capability improvement in pilot factories • Improved waste reduction • Improved flexibility with successful harmonization • Faster and easier implementation of business driven changes • Business benefits for all units • Future-proof OrderPlan solution with continuous lifecycle management • Higher service availability 24/7 with outsourcing Ahlstrom • Ahlstrom, founded in 1851, is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. The products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, wall coverings, flooring, labels and food packaging. • More than 30 plants and about 30 sales units worldwide, 5200 employees in six continents • Business areas: Building and Energy, Filtration, Food and Medical, Label and Processing • Listed on the NASDAQ OMX Helsinki since 2006 Want to know more? Contact Arto Malkki + 358 20 726 0499 TIPS-UserCommunity@tieto.com tieto.com Working capital effectiviness improvement from 81to 39 days 10% delivery capability improvement “Our business is global and it means that we need to be able to be proactive on the markets. Effective and well designed IT fuels the operation. Tieto´s TIPS-based OrderPlan is at the heart of action – supported by high availability Tieto Managed Services 24/7.” Ahlstrom & Tieto Partnership since 1996: •Business transformation and harmonization • OrderPlan solution globally on 32 mills – connected with SAP • OrderPlan 24/7 monitoring (Tieto Ostrava) • 45 OrderPlan rollouts made since 1996