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Sandvik Automates Export Controls and Opens New Business Opportunities with E2open
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
- Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
- Construction & Infrastructure
- Mining
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Regulatory Compliance Monitoring
- Supply Chain Visibility
- Track & Trace of Assets
Services
- System Integration
- Software Design & Engineering Services
The Challenge
As a global industrial group, Sandvik has approximately 600,000 trading partners and over 3 million shipments and orders per year that require compliance screening. The challenges of properly managing such volume and complexity are further intensified for divisions that work in highly regulated fields with fast-changing restrictions and requirements. To manage its trade compliance, Sandvik traditionally depended on manual processes and, in some of its companies, on a restricted party screening tool that had limited functionality. The manual and highly fragmented process was time-consuming and unreliable, particularly in light of Sandvik’s dynamic compliance environment. For example, new European Union (EU) regulations regarding trade with sanctioned countries meant that Sandvik had to review and assess all its trading relationships – a painstaking manual process that had to be implemented across multiple export centers. As its markets changed, Sandvik found that it was increasingly facing highly regulated and complex trade transactions that required more comprehensive compliance evaluation. Uncomfortable with its potential exposure, Sandvik decided to implement a formal trade compliance process. It needed to be able to centralize its database of all relevant information and institute automated processes for ensuring global compliance. Additionally, on a global scale, Sandvik realized that it was not fully exploiting potentially favorable trade regimes. With better, formalized export controls processes, Sandvik would be able to expand business with countries that it had not traditionally considered, and thus gain a new competitive edge.
About The Customer
Headquartered in Sweden, Sandvik® is a high-technology engineering group that develops and supplies a wide range of tools, equipment and services in five business areas: Sandvik mining, Sandvik construction, Sandvik machining solutions, Sandvik materials technology and Sandvik ventures. With representation in more than 130 countries, the company has 50,000 employees and annual revenues of more than $14 billion.
The Solution
Sandvik selected E2open’s Export Management application, a modular and scalable solution that contains trade compliance regulation information for over 180 countries and additional regulatory bodies. “The E2open solution stood out for its global coverage, its hosted solution architecture, and the comprehensiveness of its trade content,” says Mattias Lövensjö, Manager, Group Trade Compliance at Sandvik. “Scalability was also important to us as we wanted to offer this solution to the whole Sandvik group.” In the initial stage, the trade compliance functions and processes in E2open Export Management were implemented in Sandvik’s Mining and Construction business areas, focusing first on the regions with the highest perceived compliance risk. Rollout of the solution then expanded to Sandvik Mining and Sandvik Construction worldwide. The implementation included integration with legacy enterprise resource planning (ERP) systems, including modification of the ERP to enable efficient and automated responses to alerts and blocks signaled by E2open Export Management.
Operational Impact
Quantitative Benefit
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