In 2023, Ahlstrom embarked on an important strategic transformation project. The aim of the project was to modernize and standardize processes in the 36 plants worldwide. The company chose SAP S/4HANA Cloud. With the solution, Ahlstrom can optimize processes, improve flexibility and create the conditions for data- and AI-supported work.
Ahlstrom is a large international manufacturer of specialty materials with 36 plants worldwide and around 7,000 employees. The company’s strategy is to be a global leader in its field.
The transformation project called Stella is the largest single investment in the company’s history. It is intended to transfer all business processes – with the exception of HR and product development – to the new SAP S/4HANA cloud environment. The group’s previous system dates back to the 1990s and no longer met the requirements of global manufacturing. Ahlstrom already uses SAP Ariba solutions for procurement.
“SAP S/4HANA Cloud was clearly the best solution for us, especially for production control and planning,” says Kristiina Lammila, CIO of Ahlstrom, who is responsible for the project. “This allows us to harmonize our processes and bring all plants under a common system.”
Unify systems and data
A key challenge was the integration of different systems and the standardization of fragmented data. With modernization, processes can be streamlined, daily work becomes easier and there is more time for strategically important tasks.
“We have made significant progress with the standard solution SAP S/4HANA Cloud,” says Lammila. “We use a private cloud, so relatively flexible adjustments are possible. One plant is already live, seven more will be added next year. The goal is to complete the entire transformation within five years.”
According to Lammila, the system makes it possible to flexibly relocate production from one factory to another and optimize the supply chain worldwide.
Benefits for employees and customers
Modern cloud ERP systems bring benefits to everyone involved. Optimized production processes ensure less waste and better product quality. Harmonized purchasing brings savings. And for Ahlstrom’s customers, the most visible change is a smoother supply chain and better product availability. In addition, Ahlstrom now uses more AI and analytics functions. AI solutions that are based on data from the SAP Sales Cloud are already in use, especially in sales support.
“We can network even more closely with our customers because many of them also use SAP,” explains Lammila. “This simplifies and optimizes the flow of information between companies.”
When it comes to employees, SAP S/4HANA Cloud makes teamwork easier. For example, orders and inventory levels can be easily checked based on real-time data. According to Lammila, the updated system also strengthens Ahlstrom’s employer image, as applicants expect suitable and modern tools.
Good change management is crucial for success
Lammila advises companies planning similar projects to see such projects as a comprehensive transformation. All employees would have to be involved – including management – not just the IT department.
“It needs strong support from management and a shared vision of where you want to go and how to get there. The project needs to be managed as a deep transformation, and the end result must not be watered down due to time pressure. Because poor implementation is difficult to correct later,” she explains.
Ellen Vig Nelausen is an Integrated Communications Expert for SAP Regional Communications.
