Customer
Sociedad Química y Minera
Industry
Mining
Key technologies
Go-live
December 2023
Country
Chile
Sociedad Química y Minera (SQM), one of the world’s largest lithium producer based in Chile, partnered with Westernacher to optimize its warehouse operations using SAP solutions (EWM, PP, and QM). The project automated key processes like storage, tracking, and inventory management, delivering full visibility, zero HU storage errors, faster data access, and reduced container preparation time. SQM attributes the project success to Westernacher’s expertise and support in managing technical and organizational challenges of this large-scale transformation.
Founded in 1968, Sociedad Química y Minera (SQM) is a global mining company based in northern Chile. As one of the world’s largest lithium producer, SQM supplies essential materials such as plant nutrients, iodine, lithium, and industrial chemicals to markets around the globe.
To meet the growing global demand for lithium, SQM sought to modernize its warehouse operations by transitioning from manual processes to a fully SAP controlled system. The company partnered with Westernacher to implement the SAP Extended Warehouse Management (EWM) solution, which now manages all lithium storage operations at their facility.
The SAP lithium project consisted of the implementation of several SAP modules: the Production Planning (PP), Extended Warehouse Management (EWM), and Quality Management (QM).
Regarding the implementation, it was a long learning process with very good collaborators from Westernacher, where we learned many things, about projects as complex as this one, where many areas of the company were involved.
Pedro López, IT Project Manager, SQM
Optimizing warehouse operations for maximum efficiency.
According to Fernando Frederick, SAP Project Manager at SQM, the implementation of SAP EWM has significantly optimized key warehouse processes, including product storage, location tracking, and container loading, resulting in greater operational efficiency and reduced costs.
“The operators know exactly where to store each product because the handheld device clearly displays the location on screen,” Frederick explained.
When it comes to executing shipments, whether transporting cargo to an intermediate warehouse or directly to the port for export, typically to markets in Asia, operators can easily locate every product. “They know the precise square meter where each bulk bag is stored, allowing for quick and accurate loading into containers,” he added.
Real results: zero errors, faster dispatch, and instant inventory insights.
In addition to process optimization, the SAP lithium project delivered several other significant benefits: complete visibility from packaging to dispatch, higher accuracy in handling units (HUs) storage, streamlined picking operations, real-time inventory data downloads, and automated batch release.
We went from having 15 to 20 HUs stored incorrectly to none. Our current rate of incorrectly stored HUs is zero.
Fernando Frederick, SAP Project Manager, SQM
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