SAP Business One Implementation for Ship Recycling Ltd.

Aug 2021 to Dec 2021

1. Executive Summary

Ship Recycling Ltd. is a specialized company engaged in dismantling decommissioned vessels and extracting reusable materials like steel, copper, aluminum, and machinery. The industry is complex, involving procurement of ships, hazardous material handling, inventory recovery, and auction-based sales. A comprehensive SAP Business One implementation was carried out over five months to digitize and standardize operations, enhance traceability, and ensure compliance with environmental and safety regulations.

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2. Client Background

They operates a large ship-breaking yard where entire vessels are disassembled manually and mechanically. The company deals with:

• Purchasing decommissioned ships through auctions.

• Planning and executing dismantling operations.

• Managing recovered materials (metals, components, oils).

• Complying with international safety and environmental laws.

Prior to SAP B1, they used spreadsheets and legacy systems with limited process integration.

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3. Project Scope and Objectives

The SAP B1 implementation aimed to:

• Track dismantling projects and their financial performance.

• Automate inventory of scrap, salvageable parts, and hazardous waste.

• Manage procurement and subcontracting.

• Improve compliance with safety and environmental standards.

• Enable auction-based sales and customer traceability.

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4. SAP Business One Modules Implemented

• Financial Management: Cost tracking by project, asset accounting, budgeting.

• Purchasing: Auction bidding records, vendor management, material procurement.

• Inventory Management: Real-time scrap and parts inventory, bin management.

• Sales & Distribution: Auction sales, contract customers, invoicing, logistics.

• Production (Modified): Used to manage disassembly as a reverse-BOM process.

• Environmental Compliance (via UDFs and alerts): Material classification, hazardous tracking, disposal scheduling.

• Reporting & Analytics: Profit/loss per ship, inventory turnover, regulatory compliance logs.

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5. Implementation Methodology

Phase 1: Project Preparation

• Stakeholder engagement

• Compliance requirements documentation

Phase 2: Business Blueprint

• Mapping ship dismantling lifecycle

• Defining project structure, cost centers, and inventory categories

Phase 3: Realization

• Customization for ship disassembly workflows

• Hazardous waste tracking system built using UDFs

• Integration with weighing systems and yard scanners

Phase 4: Final Preparation

• Master data import (ship records, vendor lists, inventory categories)

• User training and simulation of ship dismantling

Phase 5: Go-Live and Support

• Live with a newly acquired vessel project

• Monitoring and fine-tuning operational dashboards

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6. Key Business Processes Covered

Ship Procurement to Dismantling

• Auction participation

• Ship acquisition

• Survey and dismantling planning

• Resource allocation and job costing

Material Recovery and Sales

• Categorization of materials (steel, copper, machinery, etc.)

• Scrap yard allocation

• Sale through direct contracts or public auctions

• Invoice and dispatch documentation

Environmental and Safety Compliance

• Material safety data sheets (MSDS) tracking

• Disposal of oils, asbestos, and paint waste

• Inspection alerts and documentation

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7. Sample Metrics and Achievements

• Inventory Recovery Accuracy improved to 98% through automated scrap tagging.

• Cost per Project Visibility enabled real-time profit tracking per dismantled vessel.

• Compliance Documentation Time reduced by 70%.

• Auction Sale Cycle reduced from 10 days to 4 days.

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8. Key Benefits Delivered

• Unified system for dismantling project tracking and accounting.

• Real-time visibility of recovered materials and hazardous stock.

• Stronger compliance with maritime recycling regulations.

• Improved profitability through auction sales insights and scrap yield reporting.

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9. Conclusion

The SAP Business One implementation at Ship Recycling Ltd. delivered a scalable and efficient digital ecosystem for managing highly complex ship recycling operations. It helped the organization become more compliant, transparent, and profitable in a highly regulated industry.