Food Industry Overview and SAP Solutions · PDF file ·...
Transcript of Food Industry Overview and SAP Solutions · PDF file ·...
Food Industry Overviewand SAP Solutions
Food Event, Romania, March, 25th
Yavuz DurgutIndustry Business Solutions – Consumer IndustriesSAP EMEA
© SAP 2009 / Page 2
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
Agenda
© SAP 2008 / Page 2
© SAP 2009 / Page 3
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
Agenda
© SAP 2008 / Page 3
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IntensifyingCompetitionIntensifyingCompetition
Globalization &Emerging Markets
Globalization &Emerging Markets
DemandingRetailers
DemandingRetailers
DynamicConsumers
DynamicConsumers
Rapid globalization viaemerging markets
Rising prices &diminishing resources –energy, ingredients andcommodities
Standards to manageglobally, agility toexecute locally
Rapid globalization viaemerging markets
Rising prices &diminishing resources –energy, ingredients andcommodities
Standards to manageglobally, agility toexecute locally
Evolving food &beverage retail formats
Compliance, food safety& sustainabilityrequirements
Speed to market withinnovative, tailoredsolutions
Evolving food &beverage retail formats
Compliance, food safety& sustainabilityrequirements
Speed to market withinnovative, tailoredsolutions
Competition on priceand process
Industry convergenceand consolidation
Selling to andcompeting with retailers
Competition on priceand process
Industry convergenceand consolidation
Selling to andcompeting with retailers
Better informed, moredemanding, e.g.nutrition and diet
Want convenience &value and health &wellness
Price / Value conscious- Quality food at fairprices
Better informed, moredemanding, e.g.nutrition and diet
Want convenience &value and health &wellness
Price / Value conscious- Quality food at fairprices
Key Trends are Driving Change in Food &Beverage in the Consumer Products Industry
Market trends are driving food & beverage companies to develop and deliver innovative go-to-market capabilities
© SAP 2009 / Page 5
Customers are demanding more flexible business models and food & beverage companies areinnovating to support them
Leverage emerging channels for engaging with food & beverageconsumersDifferentiate via comprehensive solutions for shoppers & consumers
Business networks - partner globally to deliver locallyConnect the global value chain – from ingredients to delivery at retail shelf
Enable retailer differentiation via programs tailored to retailers’ shoppersDeliver flavors, preferences and relevant lifestyle options for their shoppers
Food & beverage as lifestyle choiceDeliver quality, healthy food & beverage choices with convenience & value
Driving Food & Beverage Business ModelInnovation
IntensifyingCompetitionIntensifyingCompetition
Globalization &Emerging Markets
Globalization &Emerging Markets
DemandingRetailers
DemandingRetailers
DynamicConsumers
DynamicConsumers
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How do I…Protect margin given rising food & energy costs?
Identify new growth opportunities?
Manage food safety & compliance globally?
Deliver differentiated solutions to customers?
Understand and serve consumers?
What does this mean for your Food Industry?Typical CEO questions
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The Issue: Responding Effectively to Consumer Needs isImpossible with Disconnected Systems & Processes
In the absence of coordinated, integrated systems and processes Consumer Productscompanies struggle to serve consumers effectively
Pain: Long lead times and pooralignment; Average 15 months tolaunch a new product, and 50% -80% of new products fail
Pain: Poor coordination =ineffective spend; 65% ofCP manufacturers ratetheir sales & promotioneffectiveness “poor”
Pain: Lack of cross-functional visibilityresults in 15% - 20%average out-of-stockrates, leading to lostsales at retail
Pain: Delivering timelyanalyses while managinginternal & external data =overhead and expensive 3rd
party costs
© SAP 2009 / Page 8
The Solution: Coordinated, Integrated Systems andProcesses Enable the Consumer Driven Enterprise
Only SAP offers industry leading solutions across the entire CP value chain, enablingcoordinated, integrated business processes from strategic planning to tactical execution
Solution:Synchronize food &beverage demandwith ingredients &packaging supplyto drive customerservice excellence
Solution: Capitalize onconsumer needs to acceleratetime-to-market with compellingfood & beverage innovations
Solution: Coordinatecross-functionalcapabilities to deliverdifferentiated food &beverage solutions
Solution: Timely consumer,customer, and operationalanalyses drive go-to-marketprocesses
Improved forecast accuracy > 33%
Improved time-to-market 35%
Aligned data sources toenable consistent, standardreporting enterprise-wide
Target promotions & redirectfunds to branding; improvedconsumer take-away throughpromotions
© SAP 2009 / Page 9
SAP for Consumer Products – The MarketPerspective
Market TrendsRetailers capturingmore consumermindshare, pressureon manufacturersIntense competition –brands, private labelsIncreasing Govt.RegulationsShift in ConsumerSpending: Flat indeveloped market,Emergence of globalmiddle class
Top CEO PrioritiesDeliver Sustainable Earnings GrowthImprove Operational EfficiencyEnable Profitable Innovation
Benchmark
Industry Key Facts4096 customersglobally~10% out of total SAPcustomers worldwidebelong to ConsumerProducts+30 years of industryexperience
Market Opportunity
14%6. Supply Chain Cost (as a % of sales)
85. Inventory Turnover
18%4. SG&A Expenses (as a % of sales)
14%3. Trade Promotion (as a % of sales)
3%2. Product Development Cost
9 Months1. Time to Market
Best-In-ClassBenchmark
Opportunity Area
© SAP 2009 / Page 10
SAP for Consumer Products – The SolutionPerspective
Customers
Top ReferencesBeiersdorfBritish American TobaccoConAgraColgate PalmoliveChupa ChupsDr. Oetker
SAP’s Recent Industry InvestmentsDemand-Driven Supply Network - Responsive ReplenishmentSales Execution - Direct Store DeliveryIntegrated Sales and Marketing- Trade Promotion ManagementBest Practices: Food & Beverage; Consumer Durables; Apparel& FootwearApparel & Footwear (AFS) - adoption of ERP EhP's
PartnersIncentive & Payback
MES integrationmy Meat solutionInventory Optimization
Wine & SpiritsDemand Signal Repository
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Agenda
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
© SAP 2008 / Page 11
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Customer examplesCustomer examples
Delivered product specificationstandards, facilitating cross-functionalcollaboration
Accelerated specification development;Improved speed to market
Continuous Product and ServiceInnovation
Corporate strategy and product roadmapping
Idea and concept management
Feasibility assessment throughphase-gated NPDI processes &market launch
Integrated Product DevelopmentCore product definition & design
Recipe management and productionramp up processes leading intomarket launch
Reduce new products time-to-market by up to 50%
Enforce process control andaligned execution across allrequired enterprise functions
Improve new product successrates via cross-functionalprocess integration
Drive profitability by ensuringquality and compliance
Key benefitsKey benefitsProduct & Service LeadershipProduct & Service Leadership
Enabled visible & accuratespecifications, recipes, nutritioninformation
Streamlined new productintroduction processes
Driving InnovationDriving core innovationprocesses to deliverproducts and servicesconsumers want throughflexible, dynamic, andeffective global businesspartner networks.
Deliver Product & Service LeadershipDriving Food & Beverage Innovation, Performance and Profitability
© SAP 2009 / Page 13
Customer examplesCustomer examples
Able to target promotions andredirect funds towards branding;improved consumer take-awaythrough promotions
Customer Business Management
End-to-end sales processmanagement, from strategic planningto tactical execution
Coordinated & integrated withfinancials and supply chain
Sales Execution
Activity planning, store reporting,order management, and territorymanagement
Direct Store Delivery (DSD)
Store-level service & delivery
Enable coordinated marketing& promotions, aligned withfinance & supply chain
Deliver best programs at mostacceptable costs
Improve spend efficiency,track actuals v. plan and makeadjustments real-time
DSD: Increase revenue andimprove market intimacy
Key benefitsKey benefitsSuperior Customer ValueSuperior Customer Value
Improved data tracking enablesKPI's for customer and productprofitability analysis for ongoinginvestment planning
Delivering DifferentiatedValue
Enabling food & beveragecompanies to deliver superiorcustomer value by linkingglobal strategies to customerprogram execution, integratedwith financials & supply chain
Deliver Superior Customer ValueMaximize Food & Beverage Go-to-market Effectiveness
© SAP 2009 / Page 14
Enable Responsive Supply NetworksTimely and Profitable Response to Dynamic Consumer Demand
Customer examplesCustomer examples
Improved days in inventory, store in-stock, forecast accuracy and case-fill on-time metrics
Replaced 11+ supply chain planningapplications with one from SAP
Collaborative Demand and SupplyPlanning
Synchronize demand & supply viaend-to-end, cross-functional planningprocesses
Logistics & Fulfillment Management
Efficient distribution while reducinginventory & logistics costs
Manufacturing Planning & Execution
Integrating manufacturing planning &execution
Exceed target customerservice levels
Balance inventories across thenetwork
Reduce total supply networkcosts
Reduce capital lock-up
Key benefitsKey benefitsResponsive Supply NetworksResponsive Supply Networks
Maintain 12 inventory turns peryear @ 99%+ customer servicelevels
Reduced forecast error by 33%
Synchronizing Demand &Supply
Empowering food & beveragecompanies with fluctuatingdemand and high productcomplexity to sense andrespond faster and smarter toglobal demand and supplydynamics.
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Driving Enterprise IntelligenceBridging the Gap Between Execution and Strategy
Customer examplesCustomer examples
Aligned internal and external datasources to enable consistent,standard reporting enterprise-wide
Visualization and Reporting
Interactive data visualization &enterprise class reporting
Enterprise Query, Reporting &Analysis
Web-based, data agnostic query &reporting solutions for businessanalysts
Data Integration & Data QualityManagement
Efficient connectivity to multiple, highvolume data sources in food &beverage (e.g. shipments, POS)
Provide scalable, flexiblereporting while meetingperformance standards
Manage BI and reportingwithin IT governanceguidelines
Provide standard reporting toinformation workers on keyline of business topics
Enterprise Agility - Easy andfast connectivity to multipledata sources
Key benefitsKey benefitsStrategic ITStrategic IT
Flexible, standard analytics measureretail performance at store level,identify poor performers, andestimate opportunity costs
Enabling ActionableInformation
Leverage the SAP andBusiness Objects businessintelligence platform to monitorexecution and business events,implement process changesrequired for optimization, andexecute quickly and easilyacross the business network
© SAP 2009 / Page 16
R&D,Analyze& Plan
Procure & Manufacture
Market Sell Deliver & Service
Product & Service Leadership
Responsive Supply Networks
Operational Excellence
Superior Customer Value
Procure & Manufacture
Market & Consumer Insights
Best People & Talent
Financial Excellence
Strategic IT
SAP Delivers a Comprehensive,Integrated Solution for Consumer Products
Leverage pre-integrated, cross-functional best practices to lower risk and increase time to value
© SAP 2009 / Page 17
SAP Delivers a Comprehensive,Integrated Solution for Consumer Products
Marketing & Consumer Insights
Consumer-Driven
Best People & TalentSupply the enterprise with an adaptive workforce
ResponsiveSupply
Networks
SuperiorCustomer
Value
Product &Service
Leadership
Financial ExcellenceFund operations, financial compliance and monitor risk & compliance
Strategic ITBuild the Foundation for Integration, Collaboration and Analytic Insights
Leverage pre-integrated, cross-functional best practices to lower risk and increase time to value
© SAP 2009 / Page 18
Customer-based communities share best practices and create a network effect in the Food & Beverage Ecosystem
Driving Innovation with our Customers
Industry advisory council for CP includes:Top 9 CP Food customers
Top 11 CP Beverage customers
Business process expert communityCP industry forum
2500+ expert contributors
Enterprise services communitiesEnterprise SOA influencer council
Over 300 customers and partners
SAP Developer Network1 million+ members worldwide
Consumer Products Advisory Council
Communities of innovationCommunities of innovation
Communities
Industry Standards
© SAP 2009 / Page 19
R&D,Analyze& Plan
Market Sell Deliver & Service
Product & Service Leadership
Responsive Supply Networks
Operational Excellence
Superior Customer Value
Procure &Manufacture
Market & Consumer Insights
Best People & Talent
Financial Excellence
Strategic IT
Driving innovation with our partners
Incentives, Promotions &AgreementsIncentives, Promotions &Agreements
Manufactuiring visibilityand control
Inventory optimization
Manufactuiring visibilityand control
Inventory optimization
Demand SignalRepository
POS Data Integration
Systems Integration
Demand SignalRepository
POS Data Integration
Systems Integration
Flexibility, Agility, ExtensibilitySAP offers an open & flexibletechnology platform supported by aservice-oriented architectureStrong network of partner solutionsseamlessly extend SAP food &beverage solutions
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Food /BeverageCompany
Raw/PackagingMaterialSupplier
(Commodities,Intermediate materials)
ServicesSupplier
(eg. Packaging Design,Research, Service
Partners)
Co-Packer/Bottler
(can be outsourcedpackaging, product
finishing)
DistributionCentre
3rd PartyLogistics
(Logistics ServiceProviders)
Hotel,Restaurant,
Food Service
Retailer(Retailers, Massmerchandisers)
Consumer
Wholesaler(Typically for smaller
Food companies)
The Food & Beverage Industry Eco-System
Supply Distribute/Deliver Retailer ConsumerProduce
Government Regulations (Taxes, Compliance, Trade Restrictions, Import/Export rules)
© SAP 2009 / Page 22
LifecycleData
Management
CustomerRelationshipManagement
SupplyChain
Planning
Lifecycle management ofTechnical assetsWork Clearance managementMobile Asset ManagementPreventive & PredictiveMaintenance Execution
OpportunitymanagementMarketing programmanagementChannel managementMulti-channel salesCustomer Interaction center forsales & serviceCRM Analytics
CustomerMarketingSalesServiceChannel
Self-service Req. forMROContract and OrderManagementFast data entrySupplier Selection,Qualification &EvaluationSubcontracting / TollProcessingUnit-of-MeasureConversionNon-Ferrous MetalPricing
Procure-to-Pay
Collaborative ForecastingDemand PlanningVMI / SMIFlexible Planning using salescharacteristics
Order-to-Cash
Total value potential can only be achieved by seamlessly integratingall critical business processes
Enterprise AssetManagement
Project Planning & ExecutionDesign CollaborationCollaborative ProjectManagementDocument ManagementSystem Interfaces (e.g. forCAD, PDM, DMF, SCADA)Change & ConfigurationManagementGuided procedures / AdobeInteractive forms
Integration to Other Key Business Processes
© SAP 2009 / Page 23
Reviewing the Packaged Solution Approach
SAP ERP
SAP Best Practices
SAP ERPPackaged Solution
++
FastProvenReliable
Lower Risk Reduced Timeline
SAP ERPPackagedSolution
Fast ROI
• SAP’s next generation ERP solution• Powered by SAP NetWeaver• Fully integrated within the SAP Business Suite
Services
• Best-in-class expertise built into SAP ERP• Predefined end-to-end processes• Industry-specific documentation• Preconfigured System
•Preconfiguration settings•Master Data•Configuration documentation•Test catalogs
++• Deep food & beverage industry knowledge• Focus on value creation and risk reduction• Delivery excellence
Implementation
© SAP 2009 / Page 24
Food & Beverage Packaged Solution:The Components
Best-in-class industry expertise built into
Predefined end-to-end processes
Use of customer language
Industry-specific documentation
Documented Business know how
SAP ERP
Subset
Preconfigured System
PreconfigurationsettingsMaster DataConfigurationdocumentationTest catalogsWorkshopcontent
Solution Manager Knowledge Repository & Tracking
Rapid Implementation Tools & Methods
© SAP 2009 / Page 25
What are SAP Best Practices?
WITH SAPBEST PRACTICES
TRADITIONAL PROJECT
TIME AND EFFORT SAVINGS
Working CRM prototype
Get a living and fully documentedprototype within days that youcan rapidly turn into a productivesolution
Get a living and fully documentedprototype within days that youcan rapidly turn into a productivesolution
Demonstration of a solution that iseasy to:Demonstration of a solution that iseasy to:
Identify withImplementAdapt to specific requirements
Enable fast and easy implementationof mySAP Business SuiteEnable fast and easy implementationof mySAP Business Suite
Identification and anticipation of reusable business processes and project activities.
© SAP 2009 / Page 26
Analyze,Plan, andDevelop
Procure Manufacture Marketand Sell
Deliver andService
Bus
ines
sO
bjec
tive
s Define businessstrategy andgoals
Understandcompanyperformance andprofitability
Realize savingsin aggregatepurchasing
Improvepurchasingefficiency
Ensure trackingand traceability
Improvemanufacturingefficiency
Ensure qualitymanagement inmanufacturingprocess
Establish closercontact withcustomer
Enhance controlover deliveryprocess
Improve marketingeffectiveness
Increase saleseffectiveness
Description… Focuses on key business processes that create a baseline for future growth
… Delivers immediate benefits by solving the problem of system heterogeneity
… Enables significant business process automation
Key Performance IndicatorsPurchased Raw Materials Volume
Production Adherence
Warehousing/Distribution Costs
Gross Profit/Total Net Sales
Net Case Growth
Inventory Turns
Complete logistical and financial integration
SAP™ ERP Packaged Solution for the Food & BeverageIndustry
© SAP 2009 / Page 27
Suppliers & Partners Customers (e.g.Retailers) & Channel
Partners
Analyze, Plan &Develop
Procure Manufacture Market & Sell Deliver & Service
SAP ERP Food & Beverage Packaged Solution
Sourcing & ProcurementProcurement
ManufacturingManufacturing
Sell & DeliverSales Order Processing
Direct Store Delivery (DSD)Indirect Sales
Returns
Operational End-to-End ScenariosTraceability & Food Safety
Inventory ManagementQuality Management
Cross Company Transactions
Enterprise Management & SupportFinancialsControlling
Powered by
SAP NetWeaver
© SAP 2009 / Page 28
SAP ERP AddressingOperational Pain Points
Increasing competitive pressure from retailing/growthof private labels
Short-term notice of customer demand
Variable demand due to seasonality
Difficult management of production planning andexecution due to high product complexity
Transparency in yield and cost on a timely base
Multistage complex production environment
Traceability throughout production
Reducing time-to-market in food manufacturing
Ensuring quality checks over the entire manufacturingprocess
Managing expiration dates
Improving manufacturing efficiency
Improving purchasing activities’ efficiency
Realizing savings in purchased value
Allowing visibility on vendors’ conditions and services
Ensuring tracking and traceability
Ensuring quality of all materials and components usedin manufacturing food
Pain Points
Improve transparency in food production
React flexibly to fluctuating demand
Realize higher demand accuracy
Reduce operating costs and increase efficiency byefficient production processes
Calculate and monitor production costs seamlessly
Production Planning andExecution
Create and modify bill of materials and receipts easilyand quickly
Identify quality-noncompliant lots by defining productinspection lots and related usage rules
Manage expiration dates through automatic batch-number generation
Calculate and monitor production costs
Manufacturing
Automate operational tasks
Improve vendors’ selection and prices comparisonthrough quotation handling
Formalize agreements by introducing contractmanagement and relating it to quotations
Introduce batch management for raw materials trackingand traceability
Guarantee quality check through goods receiptinspections
Procurement
SAP Business BenefitsOperational Area
© SAP 2009 / Page 29
SAP ERP AddressingOperational Pain Points
Obtaining usable and relevant data about customersthrough third-party wholesalers
Allocating promotional spend efficiently
Securing correct rebate processing across a complexsupply chain
Succeeding in the face of intense competition betweenbrands
Establishing direct contact with customers, such asretailers, restaurants, and pubs
Improving operational efficiencies in a complex system
Managing variable pricing conditions by differentcustomer/product combinations
Shortening order cycle times
Meeting customers’ requests for improved services(e.g., order fulfillment, invoicing, and payments methods)
Pain Points
Understand better those customers that are serviced bya third-party wholesaler due to improved data quality andavailability
Allocate promotional spend more efficiently bycollecting and analyzing valuable customer information
Process rebates and commissions correctly due toimproved data quality and availability
Indirect Sales
Improve customer service through better service levelsand multiple points of access
Increase revenue by improving order fill rate andreducing shrinkage
Reduce operating costs and increase efficiency byreducing administrative functions
Lower working capital by reducing inventory carryingcosts
Direct Store Delivery(DSD)
Define standard and ad hoc price lists easily andquickly
Improve sales execution timeline by implementing aseamless process and the timely availability of keyinformation
Improve order fulfillment through stock availabilitychecks
Provide the customer with alternative services andmethods for invoicing and payments
Sales Order Processing
SAP Business BenefitsOperational Area
© SAP 2009 / Page 30
SAP ERP AddressingOperational Pain Points
Implement an enterprise resource planning (ERP)solution fully compliant and continuously updated withlocal legal and fiscal requirements
Improve efficiency in accounting activities due to aseamless process integration across the business thateliminates double-checks and redundancies
Enhance company profitability analysis through profitand loss calculation by customer and brand
Meeting local legal and fiscal requirements
Improving administrative activities efficiency
Maintaining focus on most profitable customers andbrands
Financials andControlling
Slow and inefficient product development
Changing consumer tastes and requirements
Increasing demand for new products
Maintaining low inventory levels
Avoiding out-of-stock situations at retailer shelves
Establishing visibility to inventory levels throughout theentire supply chain
Being fully compliant with food regulations, such as EU(Article 18 of Regulation 178/2002), U.S. (TheBioterrorism Act of 2002), HACCP (Hazard Analysis andCritical Control Points)
Addressing growing food-safety concerns fromconsumers
Pain Points
Reduce development cycle time & costs
Ensure company-wide consistent product information
Reduce time-to-market to gain competitive advantage
Product Developmentwith RecipeManagement
Reduce working capital by keeping inventory levels low
Increase sales by reducing out-of-stock situations
Improve consumer retention due to product availability
Inventory Management
Minimize risk of losing customer trust by professionallymanaging a possible recall of a defective batch
Minimize risk of noncompliance with food regulations
Enable effective batch-specific returns processing
Monitor materials planning, sales and distribution,procurement and production
Traceability & FoodSafety, QualityManagement
SAP Business BenefitsOperational Area
© SAP 2009 / Page 31
Perceptions of SAP
*source: AMR, Jim Shepperd, FKOM 2005, Barcelona
Expensive to purchase
Very complex
Designed for very large companies
Difficult to implement
Requires a large IT staff
Inflexible
Hard to integrate with otherapplications
Smaller companies have no influence
MythsCompetitive pricing
SAP Best Practice
>1200 mid-market F&B clients
Proven methodology
Fully integrated system
Netweaver is the foundation of thelatest myERP technology stack
ASUG provides the opportunity toinfluence development
Reality
© SAP 2009 / Page 32
Agenda
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
© SAP 2008 / Page 32
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Why Food & Beverage Companies Choose SAPLeveraging 30+ Years of Consumer Products Experience
Industry leading solution is the standardacross the entire food & beverage value chain
Comprehensive business processes based onproven best practices for food & beverage companies
SAP enables Business Network Transformation
Lower risk via open & flexible technology platformsupported by strong ecosystem of industry partners
Complete end-to-end enterprise support for food &beverage companies
© SAP 2009 / Page 34
1. The Consumer Products Food & BeverageValue Chain Runs SAP
Wholesaler /Distributor
Retail CustomersFood / BeverageManufacturer
PackagingSupplier
Food & BeverageIngredients
8 of the Top 10 FoodIngredientscompanies run SAP
10 of Top 10 Foodcompanies run SAP10 of Top 10Beverage companiesrun SAP
Food & beveragedistribution fastestgrowing wholesalesegment for SAP
1500+ food andbeverage retailersworldwide run SAP
© SAP 2009 / Page 35
Industry Business Scenarios Select Customers
Financial Excellence
Responsive Supply Networks
Superior Customer Value
Product & Service Leadership
Strategic IT
2. SAP Delivers Comprehensive Solutions toFood & Beverage Companies
93% of Top 500 global CP companies run SAPFood & Beverage Industry leaders are leveraging SAP beyond ERP to address high-value industry scenarios
© SAP 2009 / Page 36© SAP 2008 / Page 36
3. SAP drives Business NetworkTransformation
DisparateApplications
Departmentalanalytics
SiloedEnterprise
EnterpriseResourcePlanning
Corporate Portal
OperationalAnalytics
Business Suite
User centricCollaboration
PerformanceManagement
Business ProcessPlatform
CommunityNetworks
Business NetworkPerformance andRisk Management
IntegratedEnterpriseIntegratedEnterprise
ExtendedEnterpriseExtendedEnterprise
BusinessNetworkBusinessNetwork
ProcessEnablement
PeopleInteraction
InformationAnalysis
Companies are moving beyond internal execution to optimize performance across a dynamicnetwork of partners and realizing value at each step to fund their further transformation
*Source: MIT Research, 2007 and St. Gallen Research, 2008
Competitive Advantage
+10% laborproductivity
+15% assetutilization
+10-30%processefficiency*
+37% laborproductivity
+13% inventoryefficiency*
© SAP 2009 / Page 37
4. SAP Business Suite Optimizes Business andIT for Efficiency, Flexibility and Insight
SAP Business Suite
NetWeaverIntegration
NetWeaverComposition
EHP
SRM CRMSCMPLM ERP
EHP
IndustrySolutions
Harmonized UI increasesend user productivity
End-to-End processesimprove business
effectiveness and ITefficiency
Enhanced application andidentity management improvesTCO and control
EnhancementPackages providesnon-disruptiveinnovation withlower TCO
SOA enablement forprocess flexibility andbusiness agility
Embedded analyticsfor business insight
Built in industry best practicesimproves core process
performance
Continuous innovation resultsin improved performance for
all lines of business
The SAP Business Suite enables companies to drive flexibility and insight withoutreducing efficiency
© SAP 2009 / Page 38
SAP provides the most comprehensive enterprise support offering
Single point of contact foryour SAP enterprise platformand beyond
Reduce risk through proactiveand reactive support services
24x7 service provided througha global support backboneincluding SAP and Partners
…Global supportbackbone…
…Missioncritical support
and …
… Delivered viarun SAP,…
SAP enterprise supportManages innovation and integration in SAP solution landscapes
Innovation andProtection of investment…
… Enabled byend-to-end solution operations…
… in collaboration with the SAP Ecosystem
5. Reduce Risk with End-to-end EnterpriseSupport
© SAP 2009 / Page 39
Industry Expertise30 + years of consumer productsexperienceFood & beverage best practicesaccelerate time to valueIndustry partner ecosystem to developand implementResource industry expertise to reducerisk and enable project success
Trusted PartnerInstalled in the top 10 food companies & thetop 10 beverage companies93 % of global 500 CP companies run SAPExecutive commitment and involvement inyour success7x the mission critical apps run by SAP thanany other company
Enable business strategyService enabled to innovate withoutdisruptionCustomer advisory boards leadingindustry developmentBenchmarking & best practices leadershipOpen business and development networkBusiness network transformation
Lowest Cost of OwnershipFlexible, proven implementationmethodologyShared service expertiseOpen platform scales to support growthBuilt-in value identification and valuedelivery
Why SAP?SAP Delivers Value for Food & Beverage Companies
© SAP 2009 / Page 40
Agenda
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
© SAP 2008 / Page 40
© SAP 2009 / Page 41
Strategic Goals and Opportunity Areas forFood & Beverage
Key Areas of Opportunity (highlighted)Strategy
“To become one ofthe top suppliers of
branded foodproducts”
Offset cost pressureand generate funds tobe reinvested to fuelcontinued volume andsales growth.
“…through productinnovation and brand-building investment.”
IncreasingCompetition:
Become Supplier ofChoice
Downward marginpressure: Improve
OperationalExcellence
Constraint RevenueGrowth: Need to
develop new growthopportunities
Key Strategic Enablers
Marketing and SalesMaximize Promotion effectivenessIntegrated end-to-end processes to orchestrate all market facingfunctions
Support Processes:Support for standard management processes.Financial analysis and consolidated management reportingIncreased visibility to decrease DSO, working capital requirementsand ability to absorb acquisitions.Compliance including SOX and food safety
Sourcing and ProcurementReduce fixed costs (F2F) though better sourcingImprove Supply QualityReduce maverick spend
Time to MarketLinking of product design with sourcing, supply and launchIdea and concept management to capitalize on new product ideas
Supply Chain & Manufacturing:Improve days in inventory, store in-stock, forecast accuracy and case-fill on-time metricsIncrease visibility of market demand.Respond more flexible to demand for innovative products and fordemand fluctuations due to trade promotions
A
B
C
D
E
© SAP 2009 / Page 42
Supply Chain & ManufacturingSAP’s Contribution and References
A
Economic ImpactAreas of Action Areas of Action
Consensus forecast based weekly and monthlyplanning – linked to detailed scheduleManage daily business transactions effectively andefficientlyAchieve real-time visibility at all levels – across theorganization and across the supply chainQuickly adapting plans and execution for demand orsupply variabilityExtend demand forecasting to include channels andretailersReduce DII “days in inventory” and inventoryspoilage
Incorporate promotion plan into demand forecast &create a demand plan on any level of detailIntegrate key customers into demand plan withcollaborative planning, forecasting and replenishmentProvide real-time demand forecast visibility acrossthe organization and supply chainIntegrate procurement, production, distributionrequirements and transportation for comprehensivesourcing decisionsSimulate constrained supply, production andinventory deployment plans – perform “what-if”scenariosProvide vendors gross demand updates for supplyplanning and replenishmentOptimized production schedulingReduce inventory levelsReduce lead times to customersProactive alerts timely enough to reactOptimize logistics planning and execution
Improved PlanningProductivityImproved Quality:Reduced ScrapImproved WarehouseProductivityReduced Inventory -Carrying costsReduced InventorySpoilageReduced InventoryStock-outReduced ObsoleteInventoryReduced TransportationCosts
KPI
© SAP 2009 / Page 43
Sourcing & ProcurementSAP’s Contribution and References
B
Economic ImpactAreas of Action Areas of Action
Reduce fixed costs (F2F) though better sourcing ofindirect and consumables, better compliance withframework contracts and through more efficientprocurement processMitigate raw material, energy and packaging costinflation through global sourcing and better suppliercollaborationRationalize and manage supplier base to reducepurchasing costs and improve supply quality -incorporating supplier Performance dataAutomate transactional supplier interactions to focuson exception management
Increase contract complianceEnables spend aggregationReduced supplier qualificationBetter performance monitoringAuction determined pricingSingle repository of all spendImproved aggregation informationWorkflow & task automationReduced maverick spendSourcing per Inventory planIncreased Preferred Supplier & Part UsageStreamlined invoice processing and disputeresolutionEnables exception based inventory managementStandardized connectivity via integration broker
Procurement StaffEfficiencyReduced direct SpendingReducedMaverick/UnmanagedSpend
KPI
© SAP 2009 / Page 44
Time-to-MarketSAP’s Contribution and References
C
Economic ImpactAreas of Action Areas of Action
Drive sales and margin with new concepts andproduct extensionsShorten the time from idea to concept to launchMaximize portfolio returns while optimizing use ofscarce resourcesManage project to schedule and costs, react tomarket activity, meet customer and market needsMeet project and product goals through effectivecross-functional workflows
Insight into performance of current and newlylaunched productsEnd-to-end coverage of idea-to-cash linking ofproduct design with sourcing, supply and launchIdea and concept management to capitalize on newproduct ideasSpecification management for enhancedcollaboration and product structure managementDevelop product recipes and prototypes, maintainingproduct specificationsPlan and execute cross-functional, inter-dependenttasksR&D costs and resources are captured for entireproject
Increased revenue(growth) share from newproductsImproved R&D EfficiencyReduced Time to Market
KPI
© SAP 2009 / Page 45
Marketing and Sales ExecutionSAP’s Contribution and References
D
Economic ImpactAreas of Action Areas of Action
Low visibility into customer profitabilityCumbersome process for making price changesSales management does not have visibility into keyaccount, opportunity and activity detailsIneffective sales forecastingSales channels lack access to critical customer,product, pricing, and order data while on the roadHigh percentage of sales time exerted onadministrative tasksOrder processing requires manual interventionCustomers lack ability to directly place ordersMinimal use of mobile devices and automation byfield sales organization
Perform detailed customer valuation analysesManage pricing based on customer, product orcontract characteristicsCommunicate marketing campaigns, sales actions,product launches, etc. - to all sales channelsBuild the total volume forecast with sales force inputReduce order processing costsProvide customer self-service, and cross-sell and up-sell capabilityEnable real time Availability-to-PromiseIncrease invoice accuracyShorten the entire order-to-cash cycle
Improved SalesproductivityReduced Order-to-Invoice Cycle TimesImproved CustomerSupport efficiencyImproved ExportManagement - Partner &Embargoed CountrySales at RiskImproved Global TradeOperation productivity
KPI
© SAP 2009 / Page 46
Marketing and Sales Go-to-MarketSAP’s Contribution and References
D
Economic ImpactAreas of Action Areas of Action
Integrate promotions management with otherprocessesLeverage a complete view of the customer to growrevenue and reduce unauthorized deductionsEncourage customers to use lower cost and selfserve form of sales and supportDrive cross-channel marketing to gather customerinsights and reduce customer acquisition costs
Measure brand performance, equity and intangiblesExecute marketing campaigns and monitor successaccording to defined KPI’sDefine consumer-driven hierarchies to analyze, planand execute category management strategiesMonitor category plans toward target performancePlan a total volume forecast account by accountAssess the impact of various types of promotionalactivitiesField validate the execution of current promotionconditions and competitive activities
Improved MarketingEffectivenessImproved TradePromotion effectiveness
KPI
© SAP 2009 / Page 47
Human ResourcesSAP’s Contribution and References
E
Economic ImpactAreas of Action Areas of Action
Efficient, harmonized and transparent processes withhuman resource managementFocus on high value processes (career planning etc.)Automation of low value processesFacilitate internal consolidation
Efficient HR process-support by easy to use solutionse-recruitment, e-learningEmployee self-serviceMangers self-serviceBonus calculation
Enhanced Employee SelfServiceEnhanced Manager SelfServiceImproved HR Efficiency
KPI
© SAP 2009 / Page 48
Finance and PlanningSAP’s Contribution and References
E
Economic ImpactAreas of Action Areas of Action
Enhance consolidation, eliminate manual tasks andbreaksProactive exception reporting, executive dashboardsand drill down capabilityScalability on the path to global company in variedmarketsIntegration of financial planning and forecastingStreamlined strategic planning processCompliance with IFRS and SOX
Efficient consolidationRole specific reporting and access to informationDeploy performance management tools that analyzeyour entire enterprise and its resourcesHarmonized and standardized integrated processesCompliance
Reduced DSOFinancial PlanningFunction EfficiencyGeneral accountingFunction EfficiencyCompliance FunctionEfficiency
KPI
© SAP 2009 / Page 49
Information TechnologySAP’s Contribution and References
E
Economic ImpactAreas of Action Areas of Action
Manage international expansionWork at maximum efficiency (low TCO)Fast provisioning of IT for unique processes andprocess integration
Provide integrated yet modular platformTools and framework for development of individualprocessesSupport of international standards and cross-countryreportingEnhance value of company through SAP brandingSOA Platform
Reduced IntegrationCostsReduced DevelopmentCostsDecreased IT StaffingCosts
KPI
© SAP 2009 / Page 50
Driving the Customer’s Roadmap
Step 2Focus on integration
of planning andexecution processes
Step 3Focus on
integration ofpartners
Step 1Focus on
transactional andIntegration backbone
AnalyticsAnalytics
ERPERP
Demand &Supply
Planning
Demand &Supply
PlanningS&OPS&OP
DesignCollaboration
DesignCollaboration
Integr. Portfolio Mgmt& Product Definition
Integr. Portfolio Mgmt& Product Definition
SharedScorecards
SharedScorecards
MRPMRP
Distribution &Transport. Pl.
Distribution &Transport. Pl.
ProductionPlanning
ProductionPlanning
VMIVMI Demand DrivenS&OP
Demand DrivenS&OP
Distr. ManufacturingDistr. ManufacturingMasterDataMgmt
MasterDataMgmt
POS AnalyticsPOS Analytics
Project, Resource& Cost Mgmt
Project, Resource& Cost Mgmt RFIDRFID
Global DataSynchronisation
Global DataSynchronisation
Customer ServiceCustomer Service
Category ManagementCategory Management
Sales Force ManagementSales Force Management
Consumer InsightsConsumer Insights
Retail ExecutionRetail Execution
Strategic SourcingStrategic Sourcing
Integrated Sales & Marketing
Demand Driven Supply Network
New Product Development & Introduction
Forecast & Promotion CollaborationForecast & Promotion Collaboration
High Level Capacity PlanningHigh Level Capacity Planning
Responsive ReplenishmentResponsive Replenishment
Supplier Inventory CollaborationSupplier Inventory Collaboration
Integrated New ProductDevelopment& Introduction
Integrated New ProductDevelopment& Introduction
Brand ManagementBrand Management
Trade Promotion MgmtTrade Promotion Mgmt
Digital Asset ManagementDigital Asset Management
Step 4Increase real world
awareness andresponsiveness
Campaign MgmtCampaign Mgmt
© SAP 2009 / Page 52
Agenda
1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers
© SAP 2008 / Page 52
© SAP 2009 / Page 54
NUTRICOM an expert in agro-food uses SAP CatchWeight Management in order to optimize costs andproductivity
NUTRICOM SA OltenitaIndustry: Agro-foodNumber of employees 500Products: fodder,pigs and poultry growth,slaughter, butcheringwww.nutricom.roSolution: SAP Catch WeightImplementation partnerINTEGRATOR SA
“ Complete transparancy in allFNC's domains, animalgrowth, slaughter,butchering, allows us amanagement in real timecompared to market requestsand a great flexibility andprecision for pricing”
Executiv e Nutricom SA
Challenges and opportunitiesIntegration from cereals up to choppedpieces in a unique, integrated systemin real timeProduction processes synchronizationin two measurement units for fodder,animal growth, slaughter and butcheringFull automation in data processingwithin all the production processesphases
Why SAP?A solid database in order to perform agreat number of complex operationsin all the production domainsmanagementCapacity to register simultaneously intwo units of measurement for all thelogistics transactions in fodder, animalgrowth, butcheringMultiple integrated modules in oneworkflowExtended opportunities of automation
ObjectivesPerformance of all NUTRICOM'sproduction phasesTransparent system, that can be queriedin real time for each type of information;information integrity and reactivitysecurityReports for all Nutricom's activitiesPrecise control of production costsSimplification of accounting operations
Implementation explanationPerformance through workflows andprocesses reorganization simultaneouslywith SAP implementation
BenefitsReal time visibility for purchasing,production orders and planningprodEarly identification of errors in theintegrated flow: purchasing, clients'orders, fodder production, animalgrowth, slaughter, butchering.Control of balance differences forlogistics and production processesSimplification, visibility andcertitude for all the accountingregistrations of the logisticsmovementsSole database for all the operationsand activitiesMultiple pertinent reports for all thebusiness aspects
© SAP 2009 / Page 55
NUTRICOM specialist in industria agro-alimentarafoloseste SAP Catch Weight Management pentrueficientizarea costurilor si cresterea productivitatii
NUTRICOM SA OltenitaIndustria: Agro-alimentaraNumar de angajati 500Produse: nutreturi,crestere porci si pui,abatorizare, transarewww.nutricom.roSolutia: SAP Catch WeightPartener de implementareINTEGRATOR SA
“Transparenta completa pe toatedomeniile FNC, Crestere animale,Abatorizare, Transare, ne permite opilotare in timp real fata de cerereapietei si o mare flexibilitate si preciziein stabilirea preturilor”
Elie DaherDirector GeneralSC NUTRICOM SA
Provocari si oportunitatiIntegrarea de la cereale pana la pieseletransate intr-un sistem unic, integrat, intimp realSincronizarea proceselor de productiein doua unitati de valoare in domeniile:furaje, crestere animale, abatorizare sitransareDorinta de automatizare completa inoperarea datelor in toate fazeleproceselor de productie
De ce SAP?O baza de date solida pentru adesfasura un numar mare de operatiicomplexe din toate domeniile gestiuniide productieCapacitatea de a inregistra simultanin 2 unitati de masura toatetranzactiile logistice din domeniilenutret, crestere animale, transareMultitudinea modulelor integrate intr-un singur flux de lucruCapacitati extinse de automatizare
ObiectiveObtinerea eficientei in ansambluloperatiilor din domeniile de productieNUTRICOMSistem transparent, interogabil in timpreal pe fiecare tip de informatii sisiguranta integritatii si reactivitatiiinformatiei continute in sistemRaportari in ansamblul activitatilorNUTRICOMControl precis al costurilor de productieSimplificara operatiilor contabile
Aspectele implementarii• Performanta data de reorganizarea
fluxurilor de lucru si a proceselor,simultan cu implementarea SAP
BeneficiiVizibilitate in timp real pentruachizitii, comenzi si planificareproductieIdentificarea timpurie a anomaliilorin fluxul de achizitii,comenzi clienti,fabricatie furaje, crestere animale,abatorizare, transareControl al diferentelor de cantar inprocesele logistice si de productieSimplificare, claritate si certitudinein ansamblul inregistrarilorcontabileBaza de date unica pe ansamblulproceselor si activitatilorMultitudine de raportari pertinentepentru toate aspectele afacerii
© SAP 2009 / Page 56
Alexandrion Group uses SAP BeverageSolution to support its global business
Alexandrion Group Romania• Headquarters: Otopeni, Romania• Industry: FMCG (Beverages)• Employees: 400• Products and services: 25 brands
(Brancoveanu, Alexandrion,Kreskova, Cava d’Oro etc.)
• Website: www.alexandrion.ro• SAP solutions and services:
SAP ERP ECC 6.0ARIS SmartPath for Beverages
• Implementation partner:
Architected Business Solutions SRL
“At Alexandrion, we provide quality in what
we are and what we do.
The SAP system will further enable us to have
the right products, in the
right place, at the right time.”
Claudia Popovici
CFO Alexandrion Group Romania
Challenges and OpportunitiesLegacy systems unable to support expandingGroup’s businessLack of cost-effective managementinformation in order to make accurate decisions.
Why SAPSystem able to support Business Processesbased on best practices used in FMCG industrySingle, reliable and scalable source ofinformation for the businessIntegration with existing corporate applicationto improve productivity.
ObjectivesDeliver an integrated system solution,which enables efficient andeffective management of informationEnsure that opportunities for business processre-engineering are taken advantage of,including administrative effectiveness fromnew methods of working.Provide full traceability of products and ingredientsthrough the whole supply value chainReduce the costs by eliminating repeatingtasks performed by different departments.
Implementation HighlightShort implementation duration: 12 months(from kick-off to go-live)
• Process driven implementation using ARISSmartPath for Beverages andARIS Value Engineering (AVE) methodologyExtension of initial project scope to includeQuality Management (QM) module aspart of the value chain.Strategic outsourcing for IT and ISRoll out to Alexandrion GmbH (Germany) andgo live one month after Romania.
Benefits• Accelerating time-to-market globally by
integrating SAP with business process• Centralized and easily accessible data for
decision making:• Improved data consistency and accuracy• Real-time inventory• QM system integrated• Profitability analysis per product
• Outsourcing non-core activities• Reliable platform for future business
development• Automated accounting records for
alcohol excise.
© SAP 2009 / Page 57© SAP 2009
Alexandrion Group foloseste SAP BeverageSolution pentru sustinerea activitatii globale
Alexandrion Group RomaniaSediu: Otopeni, Romania
Industria: Productie bauturi alcoolice
Angajati: 400
Produse: 25 marci (Brancoveanu,
Alexandrion, Red Bowler, Kreskova,Cava d’Oro etc.)
Website: www.alexandrion.ro
Solutia SAP implementata:
SAP ERP ECC 6.0
ARIS SmartPath for BeveragesPartener implementare:
Architected Business Solutions SRL
Provocari si oportunitatiSistemul informatic anterior nu asigura suportulnecesar strategiei de extindere globala a GrupuluiLipsa de informatie manageriala eficienta necesaraproceselor decizionale corecte si rapide.
De ce SAP?Sistem informatic capabil sa sustina procesele deafaceri dezvoltate dupa cele mai bune practicifolosite de companiile care activeaza in industriabunurilor de consumAsigurarea unei surse centralizate, robuste siscalabile de informatiiPosibilitatea de integrare cu aplicatiile existentepentru cresterea productivitatii.
ObiectiveDezvoltarea unui sistem integrat care sa permitagestionarea eficienta si efectiva a informatiilorAsigurarea fructificarii oportunitatilor legate deremodelarea proceselor de afaceri, inclusiv eficientaoperationala rezultata din noile proceduri de lucruAsigurarea trasabilitatii produselor si ingredientelor peintregul lantul logisticReducerea costurilor prin eliminarea activitatilor repetitiveasigurate de diverse departamente.
Aspectele implementariiDurata scurta de implementare: 12 luniImplementare orientata pe procese prin folosireaARIS SmartPath for Beverages si a metodologieide implementare ARIS Value EngineeringExtinderea scopului initial al proiectului: dezvoltareafunctionalitatii QM (Quality Management), ca parteintegranta a lantului valoricExternalizare strategica a sistemelor IT si IS.Roll-out in cadrul Alexandrion GmbH (Germania) ladoar o luna de la finalizarea implementarii inRomania.
BeneficiiReducerea timpului de raspuns la cerintele pietei
globale prin integrarea proceselor de afaceri in
sistem
Informatie centralizata si acccesibila rapid si usor
pentru sustinerea procesului decizional:
Imbunatatirea consistentei si acuratetei datelor
Vizibilitate in timp real asupra stocurilor
Integrarea managementului calitatii in sistemul
de gestiune
Dezvoltarea analizei de profitabilitate pe
produs.
Externalizarea activitatilor suport
Platforma scalabila si flexibila pentru sustinerea
dezvoltarii ulterioare a activitatii
Automatizarea inregistrarilor privind acciza pe
alcool.
“Noi la Alexandrion sustinem calitateain tot ceea ce suntem si ceea ce facem.Sistemul SAP ne va permite si pe viitorsa oferim clientilor nostri produse decalitate la momentul si locul potrivit.”
Claudia PopoviciCFOAlexandrion Group Romania
© SAP 2009 / Page 58
SAP Driving Customer Value:Selected Food & Beverage References
SAP New Product Development & Introduction for Consumer Products35% improvement in time to marketSignificant increase in sales of new products as percentage of total sales
SAP Product Lifecycle Management, SAP Recipe ManagementBetter speed to market; faster specification development through object reuseReduced redundancy for better data consistency and accuracy
SAP Account & Trade Promotion Management for Consumer ProductsImproved consumer take-away through promotionsRedirected residual trade funds towards branding initiatives
SAP Supply Chain ManagementReduced forecast error rates by 33%Maintain 12 inventory turns per year @ 99%+ customer service levels
SAP Mobile xAppTM Direct Store DeliverySKUs with increase in activity: +60%; Avg. increase in sales activity +195%Collection-to-Cash (AR Processing time) reduced > 50%
© SAP 2009 / Page 60
“The capabilities of SAP’s recipemanagement solution exceeded ourexpectations. We now have oneintegrated view of all of our productdata.”
Devin MosierDirector, Manufacturing, R&D and HR SystemsThe Hershey Company
Proven ResultsHershey’s
Challenges and OpportunitiesDifferent legacy systems and 12duplicate data entry points made it verytime consuming to develop andmaintain recipes and labelinginformation.
ObjectivesCreate “one source of the truth” forproduct specifications, formulas,nutritional labeling, and exportdocumentation data by providing oneintegrated system to support targetedproduct development
Implementation HighlightsERP 2004 implementation used a “thinslice” approach that initially took a smallsubset of products through the entirerecipe management lifecycle process.The 14-month thin slice implementationis being followed by a one-year projectto load all specifications, formulas, andnutritional labels for the globalenterprise.
Why SAPThe integrated recipe managementfunctionality in ERP 2004 met most ofHershey’s requirements and requiredminimal customization.
Benefits“One source of the truth” – visible andaccurate specifications, recipes,nutrition informationComprehensive platform for globalproduct development, innovation, andcomplianceStreamlined new product introductionprocesses, while providing morecapabilities for “what if” evaluationsduring development
QUICK FACTSLocation: Hershey, PennsylvaniaIndustry: Consumer ProductsProducts: Snack Foods such asReese’s, Hershey’s, Kisses, IceBreakers, Payday, Twizzlers, andJolly RancherRevenue: $4.8 BillionEmployees: 13, 000Web Site: www.hersheys.comSAP Solutions and Services: mySAP™ Product Lifecycle Management,SAP Recipe ManagementPartner: SAP Services andEnteGreat
© SAP 2009 / Page 61
“We integrated two companies ontoone common SAP platform byproviding standardized content,process, and functionality forspecification management. SAP PLMhelped us eliminate over a dozenlegacy systems.”Bonnie WelshonsQRO Director, General Mills, Inc.
Proven ResultsGeneral Mills
Challenges and OpportunitiesMerging of different systems from twoseparate, large R&D organizationsToo much time spent developing andintroducing new and improved productsComplex variety of products
ObjectivesDefine, develop, and deliver anintegrated system solution, whichenables efficient and effectivemanagement of core productinformation from the initial introductionthroughout the complete lifecycle
Implementation HighlightsImplemented recipe management 1.0based on R\3 4.6c and went live in April2003—including ingredients,packaging, finished productspecifications, and formulasImplementation of recipe managementalong with engineering changemanagement, document management,and workflowCompleted upgrade to ERP 2004 inJuly 2005
Why SAPGeneral Mills already runs SAPsystems for finance, HR, purchasing,and manufacturing
BenefitsEliminated over a dozen legacysystemsBetter speed to market; fasterspecification development throughobject reuseClear definition of content ownership;more complete product dataCommon language for productspecifications, a big step towardcommon culture; facilitates cross-functional collaborationReduced redundancy for better dataconsistency and accuracyPower for meeting current and futurebusiness needs; enables fasterintegration to future acquisitions
QUICK FACTSLocation: Minneapolis, MinnesotaIndustry: Consumer ProductsProducts/Services: Food companywith brand names such as BettyCrocker, Häagen-Dazs, Pillsbury,Green Giant, Old El Paso, andCheeriosRevenue: $12.5 billionEmployees: 28,000Web Site: www.generalmills.comSAP® Solutions and Services:mySAP™ Product LifecycleManagement, SAP RecipeManagementPartner : SAP Services andTechniData
© SAP 2009 / Page 62
“Our SAP software and SmartOpsinventory optimization solutionsupport our strategy to drive supplychain efficiencies, enhance planning,and improve our ability to meetcustomer needs.”Bob MaschingVice President, Sales and Operations PlanningConAgra Foods, Inc.
ConAgra FoodsOptimizing Inventory with Software from SAP & SmartOps
Challenges and OpportunitiesImprove revenue, earnings and ROIReduce operating costs and workingcapitalMigrate from 8 planning organizationsto an enterprise structure with a single,unified strategy
ObjectivesImprove days in inventory, store in-stock, forecast accuracy and case-fillon-time metricsReplace 11+ supply chain planningapplications with 1
Implementation HighlightsCompleted SmartOps implementationin 7 months, on schedule and withinbudgetUsed proven implementationmethodology from SmartOps andConAgra Foods
Why SAPLeadership in the consumer packagedgoods industryEnd-to-end supply chain managementand planning platformSuperior functionality for inventoryoptimization
BenefitsLeadership in the consumer packagedgoods industryEnd-to-end supply chain managementand planning platformSuperior functionality for inventoryoptimization
QUICK FACTSLocation: Omaha, NebraskaIndustry: Consumer productsProducts and Services: Consumerpackaged foodsRevenue: US$12 billionEmployees: 24,500Web Site: www.conagrafoods.comSAP® Solutions and Services: SAP®ERP and SAP Supply ChainManagement applications; SmartOpsMultistage Inventory Planning &Optimization, a Qualified SAPBusiness All-in-one partner solutionImplementation Partners: IBM,SmartOps
© SAP 2009 / Page 63
Challenges and OpportunitiesAssimilate partners andacquisitions fasterTap emerging global marketsReduce inventory levelsImprove customer service
ObjectivesEstablish global positions forpremium brandsIntroduce more premium brandbeveragesExpand business withoutsignificant additional headcount
Implementation HighlightsMinimal customizationTightly managed project scopeAccelerated implementationwithin budget
Why SAPSuperior integration of supply chainplanning with inventory and ordermanagementAbility to support Brown-Forman’sglobal supply network practicesViability of SAP as a company
BenefitsFinished goods inventory 40%Material inventory 20%Total inventory excluding barreledwhiskey 40%Forecast error 33%Maintain 12 inventory turns/year 99%+ customer service levelsAccelerated on-boarding for globaldistribution partnersAdopted global sales and operationsplanning processIncreased number of products whilemaintaining service levels withoutadding inventory
QUICK FACTS
Brown-Forman CorporationHeadquarter: Louisville, KentuckyIndustry: Consumer products – beverageProducts/Services: Fine wines and spiritsRevenue: US$2.4 billion (2006 gross)Employees: 3,750Web Site: www.brown-forman.comSAP® Solution and Services: SAP SCMImplementation Partner: Accenture
“With SAP SCM, Brown-Formanincreased the number of combineditem/locations offered in some regionswhile maintaining 12 inventory turnsper year and 99%+ service levels.Brown-Forman met their long-terminventory targets within a few monthsof start-up.”Jim HutchinsonSenior Vice President of Supply Chain ManagementBrown-Forman Corporation
Proven ResultsBrown-Forman
© SAP 2009 / Page 64
SAP® Software Helps Empresas Polar Hone itsCompetitive Edge
Challenges and OpportunitiesGrowing operational complexityIncreasing margin pressureRedundant data, applications, andprocesses
ObjectivesInstall integrated solution to support go-to-market (GTM) strategyProvide optimal support for key currentand future operational requirements
Implementation HighlightsPhased approach using knowledgefrom previous deploymentsLinkage of new processes to overallcompany value chain, ensuringoptimum cooperation and support fromend users
Why SAPSeamless integration with SAP®
softwareScalable functionality at low total costof ownership
BenefitsFlexibility to review, configure, andredeploy GTM strategyReal-time accurate view of demandand inventoryOrganized and streamlined orderprocessingSKUs with increase in activity: +60%Average increase in sales activity forSKUs mentioned above: +195%Time spent on administrative activities(sales personnel): –50%Collection-to-cash (AR) processingtime: –50%
QUICK FACTSLocation: Caracas, VenezuelaIndustry: Consumer productsProducts and Services: Beer, wine,beverages, and moreRevenue: US$3+ billionEmployees: 25,000Web Site: www.empresas-polar.comSAP® Solutions and Services: SAPfor Consumer Products solutions;SAP® xApp™ Mobile Direct StoreDelivery composite applicationImplementation Partners:Accenture; SAP Consulting; SAPCustom Development
“The integrated SAP softwarehelped us differentiate ourselvesfrom all other competitors inVenezuela.”
Ramón A. CastilloProject Manager, Food Business UnitEmpresas Polar
© SAP 2009 / Page 66
Yavuz DurgutIndustry Principal
Consumer Products/Life Sciences
SAP EMEA - Industry Business SolutionsT +90/212/317 5139M +90/533/651 6839
mail to: [email protected]://www.sap.com/
Thank you!
© SAP 2009 / Page 67
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