Finance &
Controlling
Procurement
Sales &
Distribution
Production
Plant
Maintenance
CRM
Quality
Management
Business
Analytics
Human Resource
Management
Supply
Chain Management
Logistics &
Warehousing
Fast Moving Consumer Goods (FMCG) Companies face constant pressures to stay lean and profitable, which is why it is key for manufacturers to stay ahead of constant changes. Shrinkages in product development and replenishment lifecycles, shifts in buying patterns, and tightening profit margins are challenges that FMCG Companies face today, making it imperative for them to have visibility across the business value chain. Additionally, the industry also requires strong marketing, promotion and account management capabilities to manage strategic retail partners and develop digital platform capabilities.
Thus FMCG companies look for solutions that empower them to truly put consumers at the centre of their business strategy: Utilizing consumer demand trends to produce the right products in the right quantities and efficiently supplying them through the right distribution channels; Leveraging consumer insights to meet unfulfilled needs, uncover new product delivery mechanisms and strike non-traditional channel partnerships.
Benefits offered by SAP for
the FMCG Industry
- Gives visibility across the supply chain: From Sourcing & Procurement, Production and Inventory Control to Customer Demand Management, Sales & Distribution and Cashflow Management.
- Manages Inventory in multiple units of measure and enables seamless processing of units in terms of quantity conversions and pricing.
- Manages customer mix and product portfolios to provide options for supply chain cost optimization and profit margin maximization.
- Streamlines product lifecycle management from R&D, to sourcing, production, supply and disposal in a coordinated, and well-planned manner.
- Manages simple to complex customer pricing structures based on product characteristics, customer categorization, accounts, and distributor channels.
- Streamlines Direct, Indirect (Brokers), and B2B and B2C sales processes on a single platform.
- Real-time reporting and analytics enables a quicker assessment of yield and profitability and enables better decision-making capabilities.
SAP for the FMCG Industry
Evolve
- Enables the transition from traditional sales order, inventory and dispatch management to an integrated end-to-end supply chain planning and execution system with online order confirmation, real-time purchase requisitioning and production, minimized inventory stock, streamlined warehousing, outbound delivery, transport planning, dispatch, and in-transit tracking.
- Gives complete visibility into the FMCG business flow and supply chain helps to meet demand, reduce stock-outs, inventory carrying costs and logistics costs and improve customer service.
Connect
- Provides a framework to effectively connect with all consumers and channel partners over a cloud-based omnichannel platform, and ensure a consistent and unified message across all routes.
- Enables companies to streamline sales and marketing efforts across all channels, distributors, retail chains, and online networks. Connected operations help them understand factors affecting consumer experience, revenue and profitability, and spot new opportunities faster.
- Companies can segment consumers and retail customers, and provide an optimized buying experience for each segment with optimal price points and inventory fulfilment cycles, product variations, personalization, etc.
Analyse
- Provides a deeper understanding of sales, demand, and profitability by brand and channel.
- Companies can utilize cloud-based technology to record and transmit consumer data in real-time with all concerned, which would help refine and optimize all functions, including product delivery and customizations.
- Companies can support retail partners with insights on consumer preferences, price points, delivery formats and effectiveness of promotional initiatives.
Innovate
- Provides an iterative framework to identify winning product concepts and bring them to market faster
- Offers an end-to-end R&D process to design and produce personalized products at low incremental costs.
- Companies can leverage data intelligence to understand product usage, unmet needs, and values that consumers resonate with. This equips them to respond with new engagement and service initiatives, enter new categories and open up new revenue streams.
