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What ADP®
clients are saying
www.adp.comHR. Payroll. Benefits.
SNAPSHOT
MANUFACTURER & DISTRIBUTOR OF INDUSTRIAL GASES & CHEMICAL PRODUCTS
ADP’s global solution aligns
Air Products’ global business
support services and Human
Capital Management strategy
Air Products and Chemicals, Inc. provides atmospheric, process, and specialty
gases – as well as performance materials, equipment, and services – to clients
in more than 50 countries worldwide. Headquartered in Allentown, Pennsylvania,
USA, Air Products operates 600 production facilities worldwide, over 600 miles
of industrial gas pipelines, and 130 hydrogen-fueling stations in 19 countries. Its
products serve a wide range of industries from steelmaking to healthcare.
Geographically, Europe is one of Air Products’ largest markets, and where many of
its employees reside.
Local “silos” replaced by global shared services
Faced with the need to grow the business, company leadership discovered many
of its support systems and processes impeded efficient expansion, due to their
decentralized nature and a lack of standardization across the business. Local
systems had become isolated “silos” of solutions that were never designed to
serve the company as a whole. The company had 34 different order-entry systems
and separate payroll solutions in every country where it had employees.
Senior management arrived at the conclusion that efficient, long-term growth
depended on a company-wide strategy that focused on standardization in every
location where the company did business. To address that business need, Air
Products created a shared services organization, Global Business Support
Services (GBSS) in 2009. GBSS was established with the explicit goal of delivering
high-value, scalable, global support services that allow the business to stay close
Client:
Air Products and Chemicals, Inc.
Allentown, Pennsylvania, USA
Description:
Supplier of atmospheric gases, process and
specialty gases, performance materials,
equipment and services
Workforce:
More than 21,000 employees
in greater than 50 countries
Website:
www.airproducts.com
Continuous improvement and compliance is a key driver
From a payroll perspective, Air Products established service
improvements as its top goal through high-quality delivery of
accurate and timely pay to employees, and accurate and timely
adherence to government compliance requirements, which have
become very complex throughout all of Europe. Each country
has its own employment and tax laws. Moreover, many of Air
Products’ employees in Europe are union members, especially
those who work at production facilities and drive transports.
As a result, union contracts add another layer of complexity to
payroll. “One of the key reasons we went forward with our Global
Business Support Services strategy is to improve our level of
quality for the administrative services we deliver,” says Dragtstra.
He acknowledges that compliance requirements that vary from
country to country are one of the most pressing issues facing
Air Products. “In Belgium, for instance, you must pay your
employees on the 25th day of every month. In other countries, the
social security payments for employees must be paid by a certain
date – and, of course, the dates vary from place to place,” he
says. “Lateness and inaccuracy cause penalties to be paid.”
ADP®
is a proven strategic partner
“ADP has proven to be a great partner for our Global Business
Support Services. Both of our organizations have strong
service cultures that focus on great service and continuous
improvement,” Dragtstra adds. “In Europe, we were able to
get a new system and processes up and running fast. We have
done mergers and divestitures and ADP supported us.” That
experience, in turn, gave Air Products the confidence to extend
ADP’s global payroll solutions to its operations in Asia, where
implementation has commenced.
“The bottom line is that we implemented transformative
capabilities in 10 countries within the relatively short span of 18
months with ADP,” he notes. “That is quite an accomplishment by
any method of measurement.”
His advice to other companies that are looking to implement
a global shared services vision is simple: To achieve the best
results when it comes to implementing an effective global
strategy, your goals, processes, and expectations must be
aligned. “If you are going to centralize your payroll operations
within a global shared services structure, as we have, ADP is a
very good resource. They will be ready for you when you are ready
to implement your global solution.”
The information provided herein is general and not intended as
tax or legal advice. Should you have questions, you should consult
with your tax or legal advisor. The ADP logo, ADP, ADP GlobalView,
ADP Streamline and In the Business of Your Success are registered
trademarks of ADP, Inc. All other trademarks and service marks are the
property of their respective owners. Copyright © 2013 ADP, Inc.
to both internal and external customers and provide the ability to
employ best practices globally. The result would be consistently
improved service levels – through better global processes,
product innovation, and centralized processing combined with
local support.
Shared services centralization drives standards and quality
Air Products identified a number of critical requirements for
processes and applications that would migrate to the shared
service model. Among them, workload and workforce scalability
to drive economies of scale, standardization and the utilization
of industry-leading practices, continuous improvement in
process, and the deployment of key performance indicators
and success metrics.
Among the early targets for centralized administration were
invoicing, collections, contract management, information
technology – and global payroll. Air Products centralized its
European payroll operations at its Global Business Support
Services shared services center in Barcelona, Spain, replacing
individual country payroll centers.
Under the company’s previous payroll operations model,
local payroll specialists and semi-manual solutions drove the
processing of Air Products’ European payrolls. Some specialists
processed payroll in-house, while others partnered with
local service bureaus to ensure monthly payroll processing.
Accuracy and timeliness of payroll output was erratic, and data
and formats of reports were not aligned, making it virtually
impossible to use information to drive business decisions.
Breaking away from established ways of doing things was an
inevitable challenge that Air Products recognized, and squarely
and proactively addressed. “Avoiding the use of legacy tasks that
cannot be standardized globally can be difficult, but must be
done if your global strategy is going to succeed,” notes Ferdinand
Dragtstra, Global Manager of HR Services for Air Products.
Today, the ADP Human Capital Management (HCM) solution
combines people, process, and technology to meet the unique
and evolving needs of Air Products. Using ADP GlobalView®
and
its multilingual, multicurrency payroll outsourcing capabilities
with ADP Streamline®
helps to ensure a consistent level of
service through a centralized global approach for Air Products’
largest and small-population countries.
www.adp.com
“The bottom line is that we implemented
transformative capabilities in 10 countries
within the relatively short span of 18 months
with ADP.”
“ADP has proven to be a great partner for
our Global Business Support Services. Both
of our organizations have strong service
cultures that focus on great service and
continuous improvement.”

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Mnc case study_air_products_2013

  • 1. What ADP® clients are saying www.adp.comHR. Payroll. Benefits. SNAPSHOT MANUFACTURER & DISTRIBUTOR OF INDUSTRIAL GASES & CHEMICAL PRODUCTS ADP’s global solution aligns Air Products’ global business support services and Human Capital Management strategy Air Products and Chemicals, Inc. provides atmospheric, process, and specialty gases – as well as performance materials, equipment, and services – to clients in more than 50 countries worldwide. Headquartered in Allentown, Pennsylvania, USA, Air Products operates 600 production facilities worldwide, over 600 miles of industrial gas pipelines, and 130 hydrogen-fueling stations in 19 countries. Its products serve a wide range of industries from steelmaking to healthcare. Geographically, Europe is one of Air Products’ largest markets, and where many of its employees reside. Local “silos” replaced by global shared services Faced with the need to grow the business, company leadership discovered many of its support systems and processes impeded efficient expansion, due to their decentralized nature and a lack of standardization across the business. Local systems had become isolated “silos” of solutions that were never designed to serve the company as a whole. The company had 34 different order-entry systems and separate payroll solutions in every country where it had employees. Senior management arrived at the conclusion that efficient, long-term growth depended on a company-wide strategy that focused on standardization in every location where the company did business. To address that business need, Air Products created a shared services organization, Global Business Support Services (GBSS) in 2009. GBSS was established with the explicit goal of delivering high-value, scalable, global support services that allow the business to stay close Client: Air Products and Chemicals, Inc. Allentown, Pennsylvania, USA Description: Supplier of atmospheric gases, process and specialty gases, performance materials, equipment and services Workforce: More than 21,000 employees in greater than 50 countries Website: www.airproducts.com
  • 2. Continuous improvement and compliance is a key driver From a payroll perspective, Air Products established service improvements as its top goal through high-quality delivery of accurate and timely pay to employees, and accurate and timely adherence to government compliance requirements, which have become very complex throughout all of Europe. Each country has its own employment and tax laws. Moreover, many of Air Products’ employees in Europe are union members, especially those who work at production facilities and drive transports. As a result, union contracts add another layer of complexity to payroll. “One of the key reasons we went forward with our Global Business Support Services strategy is to improve our level of quality for the administrative services we deliver,” says Dragtstra. He acknowledges that compliance requirements that vary from country to country are one of the most pressing issues facing Air Products. “In Belgium, for instance, you must pay your employees on the 25th day of every month. In other countries, the social security payments for employees must be paid by a certain date – and, of course, the dates vary from place to place,” he says. “Lateness and inaccuracy cause penalties to be paid.” ADP® is a proven strategic partner “ADP has proven to be a great partner for our Global Business Support Services. Both of our organizations have strong service cultures that focus on great service and continuous improvement,” Dragtstra adds. “In Europe, we were able to get a new system and processes up and running fast. We have done mergers and divestitures and ADP supported us.” That experience, in turn, gave Air Products the confidence to extend ADP’s global payroll solutions to its operations in Asia, where implementation has commenced. “The bottom line is that we implemented transformative capabilities in 10 countries within the relatively short span of 18 months with ADP,” he notes. “That is quite an accomplishment by any method of measurement.” His advice to other companies that are looking to implement a global shared services vision is simple: To achieve the best results when it comes to implementing an effective global strategy, your goals, processes, and expectations must be aligned. “If you are going to centralize your payroll operations within a global shared services structure, as we have, ADP is a very good resource. They will be ready for you when you are ready to implement your global solution.” The information provided herein is general and not intended as tax or legal advice. Should you have questions, you should consult with your tax or legal advisor. The ADP logo, ADP, ADP GlobalView, ADP Streamline and In the Business of Your Success are registered trademarks of ADP, Inc. All other trademarks and service marks are the property of their respective owners. Copyright © 2013 ADP, Inc. to both internal and external customers and provide the ability to employ best practices globally. The result would be consistently improved service levels – through better global processes, product innovation, and centralized processing combined with local support. Shared services centralization drives standards and quality Air Products identified a number of critical requirements for processes and applications that would migrate to the shared service model. Among them, workload and workforce scalability to drive economies of scale, standardization and the utilization of industry-leading practices, continuous improvement in process, and the deployment of key performance indicators and success metrics. Among the early targets for centralized administration were invoicing, collections, contract management, information technology – and global payroll. Air Products centralized its European payroll operations at its Global Business Support Services shared services center in Barcelona, Spain, replacing individual country payroll centers. Under the company’s previous payroll operations model, local payroll specialists and semi-manual solutions drove the processing of Air Products’ European payrolls. Some specialists processed payroll in-house, while others partnered with local service bureaus to ensure monthly payroll processing. Accuracy and timeliness of payroll output was erratic, and data and formats of reports were not aligned, making it virtually impossible to use information to drive business decisions. Breaking away from established ways of doing things was an inevitable challenge that Air Products recognized, and squarely and proactively addressed. “Avoiding the use of legacy tasks that cannot be standardized globally can be difficult, but must be done if your global strategy is going to succeed,” notes Ferdinand Dragtstra, Global Manager of HR Services for Air Products. Today, the ADP Human Capital Management (HCM) solution combines people, process, and technology to meet the unique and evolving needs of Air Products. Using ADP GlobalView® and its multilingual, multicurrency payroll outsourcing capabilities with ADP Streamline® helps to ensure a consistent level of service through a centralized global approach for Air Products’ largest and small-population countries. www.adp.com “The bottom line is that we implemented transformative capabilities in 10 countries within the relatively short span of 18 months with ADP.” “ADP has proven to be a great partner for our Global Business Support Services. Both of our organizations have strong service cultures that focus on great service and continuous improvement.”