In this issue we are going to talk to Sri Trang Agro – Industry PCL. (STA). STA is the world’s largest fully integrated natural rubber company with a market share of 9% of global consumption. STA offers a variety of natural rubber products, including Technically Specified Rubber (TSR), Ribbed Smoked Sheets (RSS), and Concentrated Latex, with a total capacity of 1,200,000 tons per year. Sri Trang’s 23 rubber processing plants are located in Thailand and Indonesia. Sri Trang or STA also made several joint ventures with foreign companies to produce finished products including gloves manufacturing operation of which Sri Trang is Thailand’s largest and world’s fourth largest manufacturing company. They are also Thailand’s largest producer of high-pressure hydraulic hoses, which are widely used in the industrial sector.
With the coming of ASEAN Economic Community (AEC), Sri Trang has many expansion plans to increase business capacity and to penetrate ASEAN markets. Managing and generating the lowest TCO are the primary strategies that they have to make.
For large organizations, one major way to minimize the TCO is directly related to IT. It is unbelievable how STA can manage/lower organization’s IT costs by switching from the traditional Closed Platform to Opened Platform run on SAP Cloud. Today Sri Trang will share with us about how their organization changed into a better direction with SAP Cloud.
Q: What was the “Turning Point” for Sri Trang to use SAP Cloud?
Khun Pornchira Sawasdee, Head of IT – Sri Trang group of Company: “Sri Trang previously used SAP run on large enterprise platform which resulted in higher investment costs and more human resource deployed for this close platform management. The organization did not invest on its own data center and infrastructure. The existing office building in Hat Yai, Songkhla province located in the southern part of Thailand still lacks in many points of full IT capability such as facility, reliability, and stability. Also Sri Trang found that human resource was their concern. This was because with Head Quarters in Hat Yai, Songkhla, a far southern part of Thailand, it was difficult to seek for professional SAP engineers. Besides, building its own data centers and hiring engineers would unnecessarily make Sri Trang have higher investment costs. To summarize, because of 1) Inefficient building facility 2) Lack of professional engineers and 3) Higher investment costs made them seek for other alternatives.”
Q: Were the results impressive after the migration to SAP Cloud?
A: “Of course, Sri Trang could operate the businesses more efficiently with results categorized as follow:
Convenience – from using SAP Cloud in Financial module, Sri Trang can manage the task more efficiently especially on the internal process and operation, proven by less time consumption for staff (more peace of mind).
Cost effectiveness – from using the new SAP Cloud, it could switch the organization’s Capital Expenditure (CAPEX) to Operating Expenses (OPEX) resulting in cash outlay over a period of time instead of one time huge payment.
Professional manpower – from outsourcing TCCT in replacement of using in-house IT, Sri Trang did not have to increase more manpower or IT staff but it could enjoy the enrichment of existing staff’s skills.
Scalability – from expanded operation which is in Indonesia (increase of SAP users in Indonesia plant), Sri Trang could scale its business capacity with investment only in necessary part.”
Experience the new SAP Cloud, find out how it will help your organization grow today! Visit www.tcc-technology.com or e-mail firstname.lastname@example.org for more information.
Khun Adisak Chabtalay, Head of Managed Services Business Unit, T.C.C. Technology Co., Ltd. (TCCT): “TCCT SAP Cloud Innovation Project is based on SAP Cloud platform capability, with Red Hatฎ technologies, to help migrate its IT system without negative effect/impact towards the business. This is proven by the success story of Sri Trang Agro – Industry Public Company Limited (Sri Trang Group).
A great platform must be run on premium data centers with secured and reliable infrastructure. Data centers are fortified with connectivity. Redundancy (back up) services are also necessary to mitigate the risks of data loss. Experienced engineers are also required to support 24/7.”