The Goal

Arizona’s IT Strategy was to implement a single SAP installation for all its sites worldwide. In parallel it was decided to implement a Single Business Entity (SBE) model in Europe, in which its Dutch Headquarters would be designated as the SBE.

As such the Dutch SBE would own all Arizona stock in Europe with other manufacturing countries acting as tolling agents and sales agents as required. This consolidation of stock ownership enables reduction of non value adding activities and simplification of core activities. For the customer, they now have a single contract with Arizona, a single supplier identity and a simplification of the purchase ledger. For Arizona, they now have improved management information, elimination of transfer pricing within Europe and improved visibility of working capital with a clearly coordinated logistics process.

The Approach

Arizona approached Voorne Partners to help them in clearly targeted areas of the project:

• To review and confirm the SAP Enterprise Model to support the European SBE
• To prepare a high level plan for the non SAP activities of the implementation to ensure complete coverage
• To assist with the definition of the legal and fiscal structure (proposing options for the feasible structures with the implications of each)
• Delivering the legal contracts required to support the model
• Preparing business education packs and external communications
• Supporting Arizona with the VAT implications of the change

The Result

An SBE is a cost effective and efficient operating platform which increases management information and control, reduces inter-company complexity, simplifies financial reporting requirements and enables processes to be standardised across Europe. Once established, the SBE offers enhanced simplicity, but getting there is a more complex process; Voorne Partners were delighted to be able to offer their knowledge and experience in this area to help make the project a success!

As Gustavo Gomez, the European Finance Director and SBE Project Director said: “The practical assistance and guidance that Voorne Partners gave us helped us to achieve our project targets on time and in full. The team felt well supported and that Voorne Partners would deliver on their promises which they invariably did”.

The legal and fiscal work was carried out in cooperation with our partner Fisconti Tax Consulting.

Arizona Chemical is the leading producer and refiner of pine chemicals. It’s products are used in thousands of everyday products including fragrances, personal care items, plastics, household cleaners, inks, paints and rubber products, and help make the world healthier, cleaner, safer and more efficient. Arizona’s mission is to optimise the forest products value chain by transforming pine chemicals from pulp and paper into high-value end products.