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

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1. Industry context2. SAP solution overview3. Why SAP? Top reasons4. Strategic Value of SAP to Food Industry5. SAP customers

Agenda

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Agenda

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IntensifyingCompetitionIntensifyingCompetition

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

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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



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

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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

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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

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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


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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

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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

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Enable Responsive Supply NetworksTimely and Profitable Response to Dynamic Consumer Demand


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


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

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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

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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

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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

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R&D,Analyze& Plan

Market Sell Deliver & Service



Operational Excellence


Procure &Manufacture

Market & Consumer Insights

Best People & Talent


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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SAP ERP for Food Industry

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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)

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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

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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

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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

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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.

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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

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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

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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

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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


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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


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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

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Agenda


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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 /

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

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Industry Business Scenarios Select Customers





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

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3. SAP drives Business NetworkTransformation

DisparateApplications

Email

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 /

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 /

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 /

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 /

Agenda


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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 /

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 /

Sourcing & ProcurementSAP’s Contribution and References

B


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

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Time-to-MarketSAP’s Contribution and References

C


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 /

Marketing and Sales ExecutionSAP’s Contribution and References

D


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 /

Marketing and Sales Go-to-MarketSAP’s Contribution and References

D


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 /

Human ResourcesSAP’s Contribution and References

E


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 /

Finance and PlanningSAP’s Contribution and References

E


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 /

Information TechnologySAP’s Contribution and References

E


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 /

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 /

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

http://www.nutricom.ro/

© SAP 2009 /

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

http://www.nutricom.ro/

© SAP 2009 /

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.

http://www.alexandrion.ro/

© SAP 2009 / © 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

http://www.alexandrion.ro/

© SAP 2009 /

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 /

“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

http://www.hersheys.com/

© SAP 2009 /

“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

http://www.generalmills.com/

© SAP 2009 /

“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

http://www.conagrafoods.com/

© SAP 2009 /

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

http://www.brown-forman.com/

© SAP 2009 /

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 /

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!

mailto:[email protected]

http://www.sap.com/

© SAP 2009 /

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