Henkel is a global leader in Consumer Goods and Industrial Chemicals with a diverse portfolio of well-known brands. As a pioneer in Sustainability, the company is committed to solutions that meet its economic and “climate positive” goals across all its activities along the entire value chain. Working with AVEVA, the Laundry & Home Care division deployed a digital backbone to capture a “single source of truth” to help manage its sustainability and OEE performance.
“When we introduced AVEVA MES in 2013 we had a normal run-rate of 3% energy efficiency savings on every ton of product produced. After we had installed the AVEVA system, we clearly saw the energy efficiency increased. Taking half a percent out equates to almost €500,000., so we are saving €8 million per year six years into the program. We spent around €8-10 million on the system, so you can see the ROI over time is excellent, and we are using the system to generate many other efficiency gains throughout our operations, on top.”
Dr. Dirk Holbach
CSVP, Global Supply Chain
Henkel Laundry & Home Care
Goals
- Reduce specific energy consumption and confirm ISO 50001 certification for all Laundry & Home Care production sites
- Improve supply-chain resource efficiency on the production side by 5-6% annually
- Become three times more efficient by 2030
Challenges
- Improvements were needed in the collection, use and communication of consumption and emissions data across the length of Henkel’s global supply chain
Results
- Solution support for growth and sustainability strategies has resulted in incremental reduced year-on-year energy consumption, by up to 16% in 2020, on top of other on-going reduction measures, such as investing in more sustainable process and automation equipment
- Annual energy cost savings are growing, reaching an incremental €8 million, driven by digital analytics in 2020
- Energy cost savings to date have topped €37 million
- Exponential ROI delivered: full payback delivered within four years; quadrupled ROI after eight years
- Reduction in filling line waste and elimination of all incorrect labeling resulting in 100% label quality
- Improvements of 15% in overall equipment effectiveness (OEE) after just two years
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