Accelerating Corporate Carve-Outs:
Building a New Digital Foundation with Cloud ERP
Corporate carve-outs present a unique operational challenge: establishing a completely new technological foundation under intense time constraints. When PureTech Scientific LLC was carved out of a global chemical conglomerate in 2023, they faced a strict timeline to set up operations. As a leader in the organic synthesis of ultrahigh purity alpha hydroxy acids for the life sciences and specialty chemical industries, the company needed a technology infrastructure built for speed, efficiency, and scalability.
The Operational Roadblocks of a Carve-Out
Establishing a standalone entity from scratch requires overcoming significant organizational hurdles. Backed by a private equity sponsor, PureTech Scientific operated under a transition service agreement (TSA) that gave them limited time to establish new operations. The newly formed 50-employee organization faced several distinct challenges:
- They lacked an internal IT department and had zero existing technology infrastructure.
- The company possessed no legacy processes to rely on from the get-go.
- While the core team had deep knowledge of the glycolic acid business, they possessed limited institutional knowledge regarding the transactional flow of the enterprise.
The SAP Cloud Solution: Predefined Processes and Scalability
To meet their ambitious growth plans and operate with a fit-to-standard mindset, growing enterprises need proven best practices from day one.
- Rapid Deployment via GROW with SAP: PureTech Scientific adopted SAP S/4HANA Cloud Public Edition, utilizing built-in leading business practices to focus on research, development, and manufacturing rather than architecting core finance workflows from scratch.
- Comprehensive Standard Workflows: The system enabled the digitalization of order-to-cash, procure-to-pay, and record-to-report business processes, covering everything from sales to plant maintenance and asset management.
- A Clean, Scalable Core: Starting with clean data on a modern public cloud infrastructure simplifies moving to the next level of growth and acquiring other companies.
- Extended Functionality: The company also moved forward with the SAP Sales Cloud portfolio for customer relationship management and the SAP Digital Manufacturing solution to gain deeper insights into their supply chain and meet changing market needs.
Value-Driven Results
By relying on SAP S/4HANA Cloud Public Edition, PureTech Scientific successfully met the tight terms of its TSA and achieved a complete go-live in just 15 weeks. Within the first two weeks of operation, the newly deployed system successfully fulfilled US$5 million worth of orders without any challenges.
By operating with a leaner IT department, employees are empowered to add value and innovate instead of simply managing solutions. Through real-time analytics and dashboards, executives now have immediate, phenomenal visibility into daily production, supply chain performance, and cash flow management. Furthermore, the company plans to utilize AI capabilities through the Joule copilot to mine their ecosystem data and identify the most effective sales campaigns in natural language.
Ready for a Seamless Transition?
While PureTech Scientific’s journey highlights the agility of SAP’s cloud solutions during a critical transition, your business requires an integration strategy tailored to your specific goals. RS Integrators is your dedicated partner for implementing SAP S/4HANA Cloud Public Edition and beyond.
Not sure if you’ve outgrown your system? A Fit-Gap Analysis is a short, structured conversation with our team. We compare your current process to SAP GROW FAST’s standard model, show you exactly where the gaps are, and tell you plainly what it would cost and take to close them.
Book a free consultation or get a free audit with us today to start building a solid, flexible enterprise management system designed for rapid growth.