Operations
As
part of the reorganization already mentioned, specific operations,
responsible for production and the supply chain, have been transferred
to the divisions to achieve closer proximity to the customer and give
the divisions more responsibility for their own actions. Delivery times
were once again shortened considerably in comparison to the previous
year. A scorecard system documents the monthly performance of all
relevant supply chain parameters to identify problems as early as
possible and solve them without delay. A modern management approach
known as total production maintenance (TPM) helps preserve performance
progress and promotes the systematic continuation of the improvement
process.
Symrise has production facilities at numerous locations worldwide. The largest capacities are in Germany (Holzminden, Nördlingen and Braunschweig) and in the USA (Teterboro). The facilities at Holzminden and Bushy Park also have major chemical production plants available. The Group also has large production facilities in Singapore, Chennai (India), Shanghai (China), Cuautitlán lzcalli (Mexico), and Sao Paulo (Brazil). The other locations are focused on sales activities and have either relatively small mixed operations or no production facilities at all. As of December 31, 2007, Symrise employed 2,108 people in global manufacturing and technology.
Symrise operates a modern warehouse system at all of its major locations. Raw materials, intermediate products, and finished goods are stored at the relevant production sites or nearby. Symrise has continuously improved inventory management in recent years and reduced the average replacement time considerably in the last two years.
Efforts remain focused on reducing odorous emissions, resource consumption, and the number of accidents as well as continued optimization of the working conditions in the Group. To maintain high standards, Symrise relies on an integrated management system that has been certified in accordance with the ISO 9001 and 14001 standards.
Steps have begun toward the global standardization of the Management Information Systems currently in use at the local companies. The aim is to harmonize the system landscape and introduce SAP globally. At the present, work is being done at the Group’s head office to develop a standard that will be implemented by the end of 2009 in all Group companies that do not use SAP.
Focus on Core Competencies
The most important organizational change in operations is the separation of various infrastructure functions either by outsourcing or spin-offs. The affected functions are IT, Engineering/Environment, Logistics and Corporate Communications. This separation facilitates the management of these functions and promotes entrepreneurial activity in these areas. It also allows the divisions to focus on their core competencies.
Flavor & Nutrition and Scent & Care are thus the two remaining operating business divisions within the Group and each has its own production, procurement, quality assurance, sales, and research and development functions. Human Resources and Finance, Controlling and Legal are corporate center functions for both divisions.