News | April 1, 2008

BWA Water Additives, A Leading Specialty Chemical Producer, Reports Improved Performance After Global Implementation Of CDC Software's Ross Enterprise ERP Applications

Atlanta GA - CDC Software, a wholly-owned subsidiary of CDC Corporation and a provider of industry-specific enterprise software applications and business services, announced recently that BWA Water Additives (BWA), the world's leading provider of specialty water solutions for industrial water treatment, desalination, pulp and paper, oilfield and other process industries, has reported improved performance levels since implementing the Ross Enterprise ERP (Enterprise Resource Planning) applications at plants in the U.S. and the U.K.

After reviewing the applications from CDC Software, and two other leading ERP solutions, BWA determined CDC Software's Ross Enterprise provided the best fit based on its vertical functionality for the chemical industry and its ability to meet the company's specific requirements quickly. This was very important due to the timetable related to its private equity buyout described below. The manufacturer also liked the fact that CDC Software demonstrated extensive global experience in ERP deployments, a critical attribute since BWA needed to run the ERP system concurrently in the U.S. and U.K., and manage operations in more than 90 countries.

"Since implementing Ross Enterprise, we have exceeded our targets for working capital, inventory turns, and days sales outstanding," said Paul Turgeon, president and chief operating officer, BWA Water Additives. "With Ross Enterprise, we also now have a deeper and broader view of the business than we did with our previous systems."

Over the years, BWA developed a strong-performing business, led by a lean, highly-skilled team, with production operations in the U.S., Canada, China, England, Taiwan, Italy, Japan, and Saudi Arabia. Attracted by its strong financial performance, proven leadership, an established global market presence and long-term growth prospects, Close Brothers Group - a British private equity firm - purchased BWA in May 2006 from BWA's parent company, Chemtura, a global manufacturer and marketer of specialty chemicals.

Since Close Brothers is an investment group, not a manufacturer, they faced an early challenge in setting up the necessary support infrastructure. BWA was responsible for implementing an information systems backbone that would enable the execution of its plan which included moving out of its parent's premises, implementing its own ERP system, and building the rest of its IT and telephony infrastructure. All of this had to be done quickly, and the rapid deployment of Ross Enterprise was crucial since Chemtura planned to assess BWA a costly monthly maintenance fee for use of its own ERP platform, a combination of SAP and Adage systems. "While we could have implemented the same systems that we were familiar with from our parent company, it was critical that we chose a solution like Ross Enterprise that fit our chemicals business by design and therefore could be deployed quickly and cost effectively," Turgeon noted.

Since May 1, 2007, when the systems went into production, the company has experienced impressive results. "Rolling out an ERP system in 120 days, in two different countries, is quite an accomplishment," said Turgeon. "This out-of-the-box, cost-effective and vertical-focus application enabled us to boost our operational effectiveness under some very challenging conditions, allowing us to perform at peak levels."

"The impressive results measured by BWA since their implementation of Ross Enterprise underscore the unique value we create for our customers through our high degree of specialization and expertise in the specialty chemicals industries," said Eric Musser, president and chief executive office, CDC Software. "Their successful transition during the private equity buyout also illustrates how Ross Enterprise is an ideal solution for chemicals manufacturers because it provides full industry-specific functionality with cost effective, fast deployments and low maintenance overhead."

SOURCE: CDC Software