DIGITAL TRANSFORMATION IN CHEMICALS IN ASSOCIATION WITH
CL ARIANT
DIGITAL REPORT 2020
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DIGITAL TRANSFORMATION IN CHEMICALS
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CLARIANT
HOW CLARIANT MASTERBATCHES IS USING TECHNOLOGY TO IMPROVE SPEED, EFFICIENCY, AND SUSTAINABILITY “
A
t Clariant Masterbatches we believe in a colourful world! Few people outside the plastics industry know what mas-
terbatches are. We are one of those obscure industries that are everywhere and in everything, yet no one knows of us,” says Chris Hansen, Head 04
of BU Masterbatches Asia Pacific. He, along with Gustavo Haruki Kume, Global Product Owner (InstaColr), and Sanjeev Sujan, Digital Program Leader for BU Masterbatches, are at the forefront of a digital transformation at the company. “Our business develops and produces color and additive concentrates, which are used by producers of various plastic articles with the purpose of getting the right colour and functionality,” Hansen continues. Perhaps what most characterises the company is the complexity of its operations, serving over 20,000 customers across a range of industries, with products tailored to each customer’s specific requirements. Clariant Masterbatches at any point in time maintains more than 70,000 active products which are continually changing as customer’s
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“ With InstaColr, we cut the lead time from weeks down to minutes in the best case” — Gustavo Haruki Kume, Global Product Owner (InstaColr), Clariant
update their products - from shampoo bottles to fabrics, smart phones and cars, they consequently request new colours and functionalities from Clariant. Clariant Masterbatches is very much revered for the breadth of its product portfolio and capabilities, the quality consistency, product stewardship and sustainability. However, the business has traditionally struggled to be as fast as the many small local competitors. “This need to increase our speed and make
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it faster and easier for customers to
E X ECU T I VE P RO FI LE
Gustavo Kume Gustavo is the Product Owner and has overall responsibility for InstaColr in Clariant since 2019. He joined Clariant in 2002 in Brazil as a chemist in the Home Care application laboratory. He was then invited to take care of the LATAM Regional Marketing in 2010, where he for the first time engaged with the digital world by developing digital campaigns and tools for new product launches. In 2013, Gustavo went to Switzerland as Global Marketing Leader for Home Care and in 2017, following his passion for the digital world, he joined the Digital4Clariant initiative, developing web-based software for the Home Care industry until his transfer to Masterbatches Singapore and InstaColr in 2019.
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07 do business with us was the main
“InstaColr is a customer facing project,
inspiration to start our digital journey”,
where we intend to replace our exist-
reflects Hansen.
ing product development process, our
“There are two main projects con-
color matching process,” Kume says.
stituting Clariant Masterbatches’
“In our current process a salesperson
digital transformation efforts: InstaColr
goes to a customer, talks to them,
and Smart Factory”, Sujan explains.
collects some information about the
“Individually and collectively, these two
colour and performance character-
products will set us decisively apart
istics that the customer wants, then
from other players in our industry and
passes all this to our labs.” After this,
have the potential to revolutionise the
the lab starts working on matching the
way the masterbatches industry works.”
customer’s colour and other require-
InstaColr involves a completely
ments. This often takes more than a
new approach to meeting
week to be finalised, at which point
customer’s expectations.
they go via the sales person back to w w w.c l a ri an t . com
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the customer. Not infrequently is there
the target color on the spot after which
the need to repeat the process, if the
the application engine develops up to
result is not entirely what the customer
three relevant and tailormade matches
wanted, or the requirements subse-
with associated price and specifica-
quently changed.
tions on the spot. Often, the customer
With InstaColr the company turns
just needs to know that we can do it
that process decisively upside down
and what will be the cost, so that he
and cuts the lead time from weeks
can quote his customer. This is now
down to minutes in the best case.
instantly possible. After the customer’s
“Via the InstaColr iPad app, our sales
choice, the underlying formulation
person collects all technical and
and other requirements is transferred
commercial requirements on the spot
immediately to a regional lab, which
and confirms the colour”, Kume says.
produces a corresponding sample for
“InstaColr allows the customer to adjust
the customer’s own sample production.
“ By optimising and synchronising process steps and resources via the Smart Scheduler, we will move much closer to a performance frontier and consequently reduce both lead times and cost” — Sanjeev Sujan, Digital Program Leader for BU Masterbatches, Clariant
This sample is with the customer within two to three days. The chief benefit is time saved, and time is money.” InstaColr launched in the middle of last year in Southeast Asia. To date, 25 sales colleagues have undergone training and certification to become InstaColr Consultants. This process has been important, as the role of our sales representatives changes significantly with InstaColr. As indicated by their title, they go from selling to color consulting. “This binds us closer to our customers,” emphasizes Kume.
E XE CU T I VE PRO FI LE
Sanjeev Sujan Sanjeev is global Digital Program Leader for Clariant Masterbatches. An ardent technology lover, he has been with Clariant since 2013. He started as Clariant Production System Change Leader for Asia Pacific & IMEA. He subsequently took over Operations of IMEA before taking up his current role in Asia Pacific. Prior to joining Clariant, Sanjeev worked with McKinsey & Company from 2009 to 2013, working across oil and gas, manufacturing and technology, covering lean optimisation and strategy. Sanjeev holds a Master’s degree in Finance and IT & Operations from the Indian School of Business, Hyderabad, in India. w w w.c l a ri an t . com
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The electronic capture of customer
is to roll it out to more than 50 sites
requirements has also allowed the
globally. Smart Factory spans every-
centralization of the sample produc-
thing from the receipt of customers’
tion into one regional lab, which allows
purchase orders to the final shipment
scale advantages and yet faster sam-
of the corresponding products to
ple delivery to customers throughout
the customer. “Our aim is to make
South East Asia. Clariant is now pre-
everything along this process smart
paring the roll-out of InstaColr to other
or smarter than today – thus the title
regions, which will commence over the
Smart Factory,” Says Sujan. “We
course of 2020 and 2021.
do this by digitising, streamlining
Where InstaColr ends, Clariant’s
and automating process steps. This
Smart Factory begins. Smart Factory
includes automating previously
is currently running as a pilot project
manual SAP processes as well as
in Singapore. Subsequently the plan
digitising the shop floor’s information
“ 2019 was the year where sustainability became a real topic for our customers” — Chris Hansen, Head of BU Masterbatches Asia Pacific, Clariant
flow by leveraging user-friendly tablet interfaces and linking up the back-end manufacturing execution system with the physical production equipment and programmable logic controllers. We thus get data into and out of equipment, control the equipment and track material flows via Radio Frequency Identification (RFID).The transparency and insights are the basis for direct process improvements and support a more effective performance follow-up and corrective actions.” 13
E XE CU T I VE PRO FI LE
Chris Hansen Chris Hansen is Vice President and Head of Clariant Masterbatches in Asia Pacific since 2015. In addition, Chris is the global executive in charge of the digital strategy programme within Clariant Masterbatches. Chris has a passion for rethinking traditional approaches and driving impactful changes throughout the business. Chris joined Clariant in 2009. His first role was to build and roll-out a standardised Clariant Production System for the business unit’s more than 50 sites globally. Prior to joining Clariant, Chris was an Associate Principal with McKinsey & Company. He holds a Master’s degree in Economics and Management from Aarhus University in Denmark. a s ia . b uwswin w.c e slsacrihie an tf.. ccom om
CLARIANT
ACCEN T U RE
“Accenture played a key role in the InstaColr development. As a chemical company, we had never developed an iPad app before, or any software system. That’s why we decided to go with a reliable company like Accenture. They taught us how to develop the software and how to work in an agile way using scrum methodology. “They came in with their developers, with a scrum master and with IT managers. We learned as much as possible from them before hiring our own developers, with a handover period where Accenture helped to stabilise the system.” - Gustavo Haruki Kume, Global Product Owner (InstaColr), Clariant 14 ARCST O N E
“Arcstone is a Singapore-based company that we have been working with for the last two years now. They’ve played a major role in our Smart Factory development. Arcstone comes with an ecosystem of existing MES modules that it has been tailoring for us with specific processes. They’ve ensured that it works based on our specific requirements. “Equally important is the fact that we work very closely in terms of collaboration. It’s not a vendor and a customer relationship in this case - we share our office space, as often as we can and, if not, they remain available to work remotely with us when we have any urgent issues.” - Sanjeev Sujan, Digital Program Leader for BU Masterbatches, Clariant
“The core engine of our Smart Factory is the Smart Scheduler,” Sujan says. “The minimum viable product is already on the shop floor. In the next version we will be able to dynamically schedule all tasks, equipment and manpower for a synchronised and optimised end-toend workflow both within a site and across geographies. Also, the Smart Scheduler will allow us to quantify and thus decide on the specific trade-offs between service, cost and working capital on a continuous basis.” “By optimising and synchronising process steps and resources via the Smart Scheduler, we will move much closer to a performance frontier and consequently reduce both lead times and cost,” emphasises Sujan. At the same time, the measures will further improve Clariant’s industry leading safety record by reducing firefighting and rushing stress levels amongst the staff. Alongside the focus on technology, sustainability is a very central topic for Clariant and has been so for the last seven years at least, with many specific efforts and recognitions as a result. That’s due not only to a sense of moral responsibility, but because it w w w.c l a ri an t . com
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CLARIANT
is good for the business. “2019 was the year where sustainability became a real topic for our customers,” says Hansen. “In the years before, it was often a final, courtesy agenda point at customer meetings. Now, it is more often than not the first and primary agenda point.” There is huge pressure on the plastics industry from governments, consumers and NGOs. “Topics like the circular economy, recycled polymers and the whole issue of ocean plastic waste are very high on everybody’s agenda,” 16
Hansen explains. “This is our opportunity. We have the capabilities and solutions to help our customers.” Clariant backs up these words with actions. Specific projects undertaken in
again allows us to help our customers
the sustainability space include looking
very specifically on how to improve the
into achieving more consistent colours
sustainability of their products.
with recycled polymers, as well as
Developing and implementing digital
building sustainability options such as
solutions in a traditional manufacturing
recyclability and compostability into its
company is not an easy journey. Clariant
InstaColr app to help customers make
Masterbatches spent considerable
informed decisions. Clariant is also pilot-
effort in building up its in-house Digital
ing a recycling plant in Italy known as
Innovation Center team. “Initially, candi-
CycleWorks, as Hansen explains: “That
dates are skeptical, as our environment
plant is, for example, doing extensive
is very different from that of, for exam-
testing on how colourants and additives
ple, an IT company. What in the end
impact the recyclability of plastics. This
attracts and continues to excite people,
1995
Year founded
CHF4,399m Revenue in Swiss francs
17,000 Number of employees
though, is that we remain a small team
and takes away past flexibility and
where everyone plays a central role in
autonomy - either real or perceived.
trailblazing game-changing new ways
Our experience is that one needs a
of working in our business. People real-
lot of positive encouragement and
ize that they are having a real impact”,
support, but in cases also the threat
explains Hansen.
of consequences if people do not line
While it is a lot of work to develop the
up behind the new way of working,”
new digital solutions, the biggest effort
explains Sujan. This is all about change
and success is to actually make the
management and that is how InstaColr
organisation at large adopt and change
and Smart Factory is driving true
their way of working around the new
impact within Clariant Masterbatches.
solutions. “Digitalisation fundamentally changes previous ways of working w w w.c l a ri an t . com
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