Foundation Coal: Customer Reference Video

Foundation Coal is the fourth-largest coal producer in the United States. Examine how the organization is using SAP solutions to streamline processes, improve production planning, and achieve cost control.

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    • Foundation Coal is about a $1.5 billion coal company, maybe fourth or fifth largest in the industry in the U.S., about 3,000 employees, about 500 users on SAP. We had two problems we needed to solve. First was that we needed what we call an order book. That was really we needed the ability to value our outbound supply chain. So we first started to look for a sales and marketing system, and the result of that was our implementation of SD and a product called TSW, which combined the sales and marketing functionality and the logistics. After we did our preliminary pass with SD and TSW, I think the decision was pretty easy based on the best-of-breed environment we had. SAP was the obvious product to move us forward into the integrated environment that we were really looking for. I think that the result that we're looking for predominantly would be in the area of cost control. In the mining industry, we are under extreme compliance pressure around health and environment and safety, but it is also a very cost-conscientious industry. So ultimately, we're looking for the transparency into those processes and better performance. What we attempted to improve was what I would summarize as operational excellence. We had your classic best-of-breed environment. We were looking for the streamlining of processes and reporting that an integrated system brought to us. I think in addition to that, we found that there were opportunities in processes that we had never done systematically. We introduced production planning and processes around the core normal business functionality that we had had in our old system. Our relationship with SAP has been great. I can truly say that everyone I've met in SAP has acted as an advisor. I think they've shown extreme interest in us. In addition to our sales team, we are tightly linked with the IBU out of SAP AG. And we have a lot of opportunity and a lot of folks to talk to about helping us to get where we want to be. In terms of the appropriateness of the fit of the product, it has been excellent. I think that the opportunity to put in the core system and then build off of that with the building blocks, SEM, SRM, so on and so forth is a great fit for a company our size.
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