SAP for the Consumer Packaged Goods (CPG) industry is a highly developed, proven, and widely implemented tool for enterprise management.
Consumer packaged goods manufacturers must collaborate closely with a complex, interconnected network of business partners, including raw material suppliers, professional services companies, logistics and inventory management firms, retail chains, and consumers.
The main challenges faced by CPG companies, based on years of developing and implementing ERP solutions, include:
- Shorter Product Life Cycles: Demand fluctuations.
- Increased Influence of Retail Chains and Wholesalers.
- Price Wars Among Manufacturers.
- Aggressive Marketing by International Companies.
- Fast Depreciation of Assets: Continuous need for upgrades.
- Mergers & Acquisitions: Frequent changes among active market players.
Companies affected by these market forces must constantly adapt their business models and set new strategic goals. Key management initiatives typically include continuous cost reduction, increasing business visibility, and developing sales channels. Success in these areas helps increase the company’s value, as in consumer goods manufacturing, company value is often linked to employee performance rather than natural resources or budgets.
SAP’s solution for consumer goods manufacturers covers all types of management activities, from company strategy development and portfolio planning to manufacturing processes at the workshop level. The holistic approach in the SAP solution ensures process integration, data consistency, and maximizes IT efficiency within the company. The implementation plan for a specific enterprise can be tailored based on priority management tasks and the issues most relevant to the company’s IT department.
Key areas addressed by SAP for the Consumer Packaged Goods industry include:
- Business Planning and Analysis
- Product Development and Launch
- Sales and Commodity Circulation Planning (with involvement of distributors and retailers)
- Manufacturing and Material Demand Planning
- Procurement Management
- Manufacturing Process Control
- Marketing and Customer Loyalty Management
- Sales Channels and Product Distribution Management
- Financial Management and Accounting
- Human Capital Management
- Industry-Specific Considerations
The successful development of the business is the logical outcome of implementing SAP for Consumer Packaged Goods. The comprehensive solution optimizes overall business processes by providing specialized solutions for specific departmental needs. Competitive advantages for companies using SAP effectively are achieved through key departments as well as company-wide streamlining of end-to-end processes across all functional areas.
SAP creates a unified information space within the company, including remote departments. This integrated system unifies corporate management procedures, operations management, and business development opportunities.