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Customer Successes

CONSUMER PRODUCT
COMPANIES RUN SAP
50 Selected Customers’ Successes for Apparel and Footwear, Beverage,
Consumer Electronics, Durables, Food, Home and Personal Care
CONSUMER PRODUCT
COMPANIES RUN SAP
50 Selected Customers’ Successes for Apparel and Footwear, Beverage,
Consumer Electronics, Durables, Food, Home and Personal Care
Contents

INTRODUCTION
Consumer Product Companies Run SAP 8

SAP Software Abbreviation List 10

APPAREL AND FOOTWEAR
adidas-Salomon 14

adidas-Salomon 16

Mascot International 18

MAS Slimline 20

Nike 22

Wolverine World Wide 24

BEVERAGE
abi 28

Beck’s 30

Brown-Forman 32

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Cerveceria Nacional 34

Coca-Cola 36

DISTELL 38

EMPRESAS POLAR 40

SCHLOSS RAGGENDORF 42

THE EDRINGTON GROUP 44

Sociedade Central de Cervejas 46

SPAIPA 48

CONSUMER ELECTRONICS
BSH Bosch Siemens Hausgeräte 52

FUJIFILM 54

Haier 56

PHILIPS LIGHTING 58

Sony Canada 60

Sony Europe 62

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Contents

DURABLES
3M 66

ATOMIC 68

CONAIR 70

PACIFICCYCLE 72

Plast Wood 74

Pressman 76

tesa 78

Villeroy & Boch 80

FOOD
Aarhus Olie 84

Barilla-Wasa 86

Brezelbäckerei Ditsch 88

Chupa Chups 90

CJ 92

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Danone International Brands 94

fredericks DAIRIES 96

Kraft Foods 98

MARICO 100

Melitta 102

MORGAN FOODS 104

Nestle Germany 106

PERDIGÃO 108

sagit 110

HOME AND PERSONAL CARE
Beiersdorf 114

COLGATE-PALMOLIVE 116

Hawaiian tropic 118

Henkel 120

L’ORÉAL 122

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Introduction

CONSUMER PRODUCT
COMPANIES RUN SAP
SELECTED CUSTOMER SUCCESSES FOR KEY SEGMENTS
Timing, geographical strategy, and pricing are crucial for consumer product companies to launch a new
product or, moreover, to remain competitive.

In today’s fluctuating markets, that’s no easy task. To reach consumers, manufacturers have to rely on
an increasingly fragmented array of channels that encompass: traditional retailers, media outlets,
the Internet, and mobile devices. They must also focus on cost control in order to produce bottom-line
results in a mature industry. In addition, they face the fundamental problem of having to work
through a “layer” of retail partners to sell their products and get feedback from consumers.

To help your company increase market share with razor-sharp planning, SAP offers an industry-specific set of
solutions that combines solutions from mySAP™ Business Suite with functionality tailored to meet your
demands – and your product type. With over 2,000 customers in the consumer products industry worldwide,
the SAP for Consumer Products set of solutions provides best practices for closed-loop business processes
in customer relationship management, adaptive supply chain management, efficient and integrated product

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life-cycle management, and improved customer and supplier relationship management. Built on the
SAP NetWeaver™ integration and application platform, the set of solutions supports collaboration, visibility,
integration, and flexibility for critical consumer industry processes – like trade promotion management,
category management, and new product development and introduction.

This selection of recent customer success stories demonstrates how SAP has helped the consumer
products industry succeed in many segments around the world. We are sure you will find this insight into
our customers’ experiences relevant to the challenges you face.

Sincerely,

Wolfgang Peter
Vice President, Consumer Industry Solutions

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SAP Software Abbreviation List

SAP SOFTWARE
ABBREVIATION LIST
mySAP Customer Relationship Management (mySAP CRM)
mySAP ERP Human Capital Management (mySAP ERP HCM)
mySAP Product Lifecycle Management (mySAP PLM)
mySAP Supplier Relationship Management (mySAP SRM)
mySAP Supply Chain Management (mySAP SCM)
SAP Advanced Planning & Optimization (SAP APO)
SAP Apparel and Footwear (SAP AFS)
SAP Business Intelligence (SAP BI)
SAP Business Information Warehouse (SAP BW)
SAP Enterprise Portal (SAP EP)
SAP Exchange Infrastructure (SAP XI)
SAP Logistics Execution System (SAP LES)
SAP Strategic Enterprise Management (SAP SEM)

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Consumer Products
APPAREL AND FOOTWEAR
This segment includes apparel, footwear, and accessories companies that design, manufacture, buy,
distribute, and sell apparel, footwear, home textiles, lingerie, sportswear, accessories, and other fashion-
related products – such as jewelry, watches, luggage, sun glasses, and so on.

These companies are strongly affected by long and complex supply chains, the international division
of labor, as well as fickle consumers looking for a good bargain or always trying to be in vogue.


“Today, based on SAP R/3 and SAP’s supply chain solution, we have the
most integrated business processes ever and have better visibility to
information.”
Gordon Steele, CIO Nike
MSI Release – May 2004

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Consumer Products – Apparel and Footwear

adidas-Salomon
adidas-Salomon, a global leader in the sporting goods industry, is
headquartered in Herzogenaurach, Germany, with some 100 subsidiaries
and 13,800 employees worldwide.
It implemented SAP® Apparel and Footwear (SAP AFS) as an enabler for
worldwide process and system standardization.

adidas-Salomon
www.adidas-salomon.com

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“SAP AFS provides a fully integrated system to enable a single, common
view across orders, products, and inventory, enabling better customer
order fulfillment.”
Armin von Hanffstengel, Head of Application Development and Support Services, adidas-Salomon

AT A GLANCE
Solution SAP AFS; SAP BI; mySAP™ SCM; mySAP CRM; mySAP ERP HCM
Challenges – Manage business more efficiently
– Provide the possibility of flexibly changing organizational processes
as business requirements dictate
Implementation Highlights – Quick implementation with ASAP™ implementation methodology
– Implemented SAP AFS in Europe, Australia, Hong Kong, and the United
States for approx. 2,100 users.

KEY BENEFITS
– Enabled company to flexibly manage product hierarchies and characteristics
– Better customer order fulfillment

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Consumer Products – Apparel and Footwear

adidas-Salomon
adidas-Salomon, a global leader in the sporting goods industry, is
headquartered in Herzogenaurach, Germany, with some 100 subsidiaries
and 13,800 employees worldwide.
adidas-Salomon needed an effective customer relationship management
(CRM) system that would enable one-on-one customer support and
increase the competency of the customer service team, to ensure customer
satisfaction and loyalty. It considered a number of technical solutions
and finally settled on mySAP Customer Relationship Management.

adidas-Salomon
www.adidas-salomon.com

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“Automated workflow features also enable us to increase productivity without
having to hire new people, and mySAP CRM helps us deliver personalized
service to our retailers. The result is profitable business interactions . . .”
Hans Ruprecht, Sales Director and Head of Customer Service for Area Central, adidas-Salomon

AT A GLANCE
Solution mySAP CRM
Challenges – Increase competence of customer service team, to increase customer
satisfaction and loyalty
– Increase productivity of customer service team
– Make optimum use of customer service resources, to reduce costs
Implementation Highlights – One of the first in industry to implement the SAP-based interaction center
– Set up interaction center for 200 users within 6 to 7 months
Implementation Partner SAP Consulting
SAP Environment SAP R/3®

KEY BENEFITS
– More than €1 million in benefits the first 18 months, due in part to availability of detailed and
integrated customer data and the elimination of manual processes
– Ability to identify areas for cost reduction through more efficient workflow, resulting in savings
of €500,000 in 2003
– A 26% internal rate of return (IRR) on investment

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Consumer Products – Apparel and Footwear

MASCOT INTERNATIONAL
Mascot International A/S (Mascot), a midsize Danish workwear
company, designs, manufactures, and distributes a product range of
more than 1,200 workwear articles, with sales operations in
Western Europe and Scandinavia as well as production sites in
Eastern Europe and the Far East. Mascot is a privately held company,
with a staff of 170 in its main office in Silkeborg.

Mascot International
www.mascot.dk

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“. . . SAP Internet Sales is a perfect fit for our needs, giving us a quickly implemented
solution that creates real value and convenience for our retail customers and
reduces sales and service costs. Had the Christmas holidays not delayed the process,
the implementation would have taken less than five weeks.”
Michael Grosbol, Managing Director, Mascot International A/S

AT A GLANCE
Solution SAP R/3; SAP AFS; mySAP CRM; SAP Internet Sales packaged solution
Challenges – Deliver high-quality, innovative products at the lowest cost
– Streamline CRM-related business processes
– Provide management visibility into the organization
– Use CRM to support strategic globalization and cost-saving objectives
Implementation Highlight By utilizing SAP’s packaged solutions and best practices, Mascot was able to
implement mySAP CRM in five weeks, resulting in lower implementation costs
and immediate turnaround on its investment

KEY BENEFITS
– Increased year-to-year sales growth in revenues by 7.5%, thanks to better and more-accurate
information available in real time, enabling up-selling and cross-selling
– Reallocating 2% of employees to more-strategic roles
– Annual growth rate of 20% – 25% without additional personnel
– Reduction in total cost of ownership (people and hardware) of 28.3%

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Consumer Products – Apparel and Footwear

MAS SLIMLINE
Since its inception, Slimline has been very successful, growing rapidly
from a $6 million venture employing 700 directs into a $50 million
company employing 2,200 directs.
Slimline implemented SAP Apparel and Footwear to try and ensure
even better service for demanding customers and also to drive further
expansion.

Slimline Ltd.

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“The strategic advantage offered to us by SAP has been tremendous
and I firmly believe that the system aptly equips us for the challenges of
the future.”
Dian Gomes, CEO, Slimline

AT A GLANCE
Solution SAP AFS
Challenges – Develop realistic forecasts
– Create global sourcing processes
– Optimize labor-intensive and outsourced production methods
– Meet higher quality standards
– Manage complex SKUs

KEY BENEFITS
– Increased production efficiency from 56% to 61%
– Reduced off-standard hours from 5% to 2%
– Reduced stock holding periods from 51 days to 42 days and stock write-offs from 1.37% to 0.65%
– Order-fulfillment cycle has been cut from 90 days to 45–60 days after strike-off approval

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Consumer Products – Apparel and Footwear

NIKE
Nike, Inc., based in Beaverton, Oregon, is the world’s leading
designer and marketer of authentic athletic footwear, apparel,
equipment, and accessories for a wide variety of sports and fitness
activities. Wholly owned Nike subsidiaries include Bauer NIKE Hockey
Inc., the world’s leading manufacturer of hockey equipment; and
Cole Haan®, which markets a line of high-quality men’s and women’s
dress and casual shoes; and NIKE Team Sports, Inc., which markets
a full line of licensed apparel.

Nike
www.nike.com

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“Today based on SAP R/3 and SAP’s supply chain soltuion, we have the most
integrated business processes ever and have better visibility to information.”
Gordon Steele, Nike CIO

AT A GLANCE
Solution SAP R/3; SAP AFS; SAP BI; mySAP SCM; SAP EP; mySAP SRM
Challenges – Visibility of complete supply chain in a very complex and flexible environment
– Improve manufacturing lead times
– Increase the performance of Nike supply chain
– Reduce cash flow through reduced inventory
Implementation Highlights – Pilot implementation and then global rollout with now 25 countries live
with more then 6000 users
– Single instance approach
– Live with over 120,000 Stock Keeping Units
Implementation Partners SAP US Professional Service, IBM Business Consulting and other Partners

KEY BENEFITS
– Visibility to more than 350 plants across the globe
– Return on invested capital is nearly 20%
– Better match of supply and inventory strategies to our go-to-market strategies
– Increased visibility and traceability to the factory for inbound logistics
– Present a more consistent face to retail customers

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Consumer Products – Apparel and Footwear

WOLVERINE WORLD WIDE
Wolverine World Wide, Rockford, Michigan, markets a global portfolio
of footwear brands to consumers in more than 130 countries.
This list of popular brands includes CAT® Footwear, Bates®, Harley-
Davidson® Footwear, Hush Puppies®, Merrell®, Stanley® Footgear,
and Wolverine®.

Wolverine World Wide
www.wolverineworldwide.com

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“. . . Beginning with our initial deployment of SAP AFS, SAP has provided
us with the breadth of solutions and the integration capabilities to leverage
our IT investments and progressively increase the effectiveness of our entire
enterprise, from order to fulfillment . . .”
Jim Weston, CIO, Wolverine World Wide, Inc.

AT A GLANCE
Solution – mySAP Business Suite, SAP AFS
Challenges – One information technology platform to centralize and consolidate its
operations across all of its brands
– Real-time, fully integrated information and analysis capabilities in a globally
competitive industry driven by consumer preference

KEY BENEFITS
– Plan accurately for customer demand and fulfill orders on time
– The ability to absorb new businesses and flexibly assimilate these businesses
– SAP AFS provides industry-specific best practices
– Ability to see real-time information down to size, color, and width level

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Consumer Products
BEVERAGE
The Beverage segment includes companies involved in the manufacturing as well as the distribution and
sale of alcoholic and non-alcoholic beverages.

Breweries and soft-drink makers such as concentrate producers, bottlers, and distributors as well as table
water companies and distillers, face problems like handling complex distribution processes – while trying to
succeed in a dynamic, growing market.


“SAP offers us more than 30 years of industry expertise, broad global
business support, financial strength, and the significant return we are already
seeing from our use of mySAP Business Suite solutions.”
Pat Mannelly, Senior VP and Chief Financial Officer, Coca-Cola Enterprises
Press Release – April 19, 2004

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Consumer Products – Beverage

abi
Amalgamated Beverage Industries Ltd. (abi) is the largest Coca-
Cola bottler and distributor in Africa, with sales of 5.6 billion rand
(US$800 million) and 3,700 employees.
abi selected the mySAP Supply Chain Management (mySAP SCM)
solution to enable the forecasting and planning processes.
mySAP SCM was viewed as a proven forecasting and planning
solution that could handle requirements unique to the beverage
industry.

Amalgamated Beverage Industries Ltd. (ABI)
www.abi.co.za

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“. . . The mySAP Supply Chain Management solution (mySAP SCM) enabled
these new business processes and helped us achieve results.”
Mike Hoy, Supply Chain Director, abi

AT A GLANCE
Solution mySAP SCM
Challenges – Expand market share in the non-carbonated drink market through new
product introductions
– Grow revenues by expanding distribution to underserved market segments
– Increase customer satisfaction levels by achieving more reliable order
fulfillment, consolidating information, and keeping it up-to-date
– Increase return on equity by reducing investment in manufacturing plants
and equipment
Implementation Highlight Implementation was started in July 2000 and went live in October 2001
with the demand planning capabilities of mySAP SCM.

KEY BENEFITS
– Greatly improved forecast accuracy, despite an increase in SKUs from 120 to 285
– Raised on-time delivery rate to 92% from previously lower levels
– Reduced lost sales due to stock-outs by 5%
– Reduced inventory levels by 26%, reduced days of inventory from 16 to 11, and reduced inventory
carrying costs by 26%
– Reduced product overstocks by 15% by eliminating seasonal overstocks and obsolete inventory

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Consumer Products – Beverage

BECK’S
The Beck & Co brewery, based in Bremen, Germany, is Germany’s
leading export brewery.
In February 2003, the company switched its Internet sales platform
to a new system in order to better integrate Internet sales and
conventional sales processes. It chose mySAP Customer Relationship
Management (mySAP CRM) to relaunch its Internet site.

Beck & Co
www.becks.de

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“The new mySAP CRM–based Web shop was popular and successful
right from the start. The shop is customer friendly in terms of design and
offers a wide selection of merchandising products.”
Rüdiger von Ohlen, Head of Merchandising, Beck & Co

AT A GLANCE
Solution mySAP CRM
Challenges – Gather customer data
– Increase customer base and loyalty
– Reduce order-processing and customer-service costs
Implementation Highlights – Went live in just three months in collaboration with nordIT
– Easily integrated solution
– Builds upon the functionality of the existing SAP system environment
Implementation Partner nordIT
SAP Environment SAP R/3

KEY BENEFITS
– Streamlined order processing
– Provided customer service without integration gaps and manual data transfer
– Increased customer service
– More efficient and transparent business processes

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Consumer Products – Beverage

BROWN-FORMAN
Brown-Forman Corp. is one of the largest Amercian-based companies in
the wine and spirits business. The company also manufactures and
distributes consumer durables, such as fine china dinnerware, linens, and
luggage. With revenues of $2.2 billion in fiscal 2002, Brown-Forman has
7,400 employees and sales in more than 130 countries.
Brown-Forman selected mySAP Supply Chain Management (mySAP SCM)
and SAP Business Information Warehouse (SAP BW) to enable its
reengineered planning and execution processes.

Brown-Forman Corp.
www.brown-forman.com

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“In mySAP SCM, we believe we have a strong base to do the things we want
to do – now and in the future.”
Jim Hutchinson, Senior Vice President and Director of Supply Chain Integration, Brown-Forman

AT A GLANCE
Solution mySAP SCM including SAP APO, SAP BW
Challenges – Enhance service to distributors – Reduce stock-outs
– Improve production efficiency – Lower procurement costs
– Reduce cycle-time to create new packaging
Implementation Highlight SAP APO went live in only six months
Implementation Partner Accenture
SAP Environment SAP R/3

KEY BENEFITS
– Decreased global inventory by 23%, which resulted in a 21% increase in inventory turns
– Maintained product availability at more than 99,9% and sustained high service levels while inventory
was reduced
– Minimized transportation costs by reducing the number of carriers from 140 to 35
– Stabilized plans provided to production units, suppliers, and distributors

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Consumer Products – Beverage

CERVECERIA NACIONAL
Cerveceria Nacional, Panama’s leading producer of beer and other
beverages, had achieved substantial growth since its beginnings
in the early 1900s. With 2002 sales of US$130 million, the company
employs about 1,700 people and operates two production facilities
in Panama.
It selected SAP R/3 and mySAP Supply Chain Management
(mySAP SCM) to enable its new processes.

Cerveceria Nacional

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“After we implemented SAP, everything changed. Now, we always know the
exact costs, and we are very careful in allocating our capital.”
Gabriel Precidao, Sales Director, Cerveceria Nacional

AT A GLANCE
Solution mySAP SCM
Challenges – Improve market share by achieving high product availability and
optimal pricing
– Respond quickly to changing demand to improve service to customers
– Enhance margins and cash flow by reducing production, inventory, and
distribution costs
Implementation Partner SAP Consulting
SAP Environment SAP R/3

KEY BENEFITS
– Contributed to business growth of 22% without increasing sales and marketing expenses
– Reduced stock-outs by 78%, while inventory was lowered by 21% and inventory turns improved by 24%
– Reduced glass bottle purchases by 15%
– Maintained a price premium to retailers of beer at 28% over the price of competitive products
– Reduced unit transportation costs by 15% for shipments from plants to the warehouses, and by 20%
for shipments from warehouses to retailers

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Consumer Products – Beverage

COCA-COLA
The Coca-Cola Company is the world’s largest beverage company,
marketing four of the world’s top five soft-drink brands to consumers in
nearly 200 countries.
Coca-Cola wanted a single environment for making financial data
readily accessible to executive management worldwide.

Coca-Cola
www.coca-cola.com

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“mySAP [ERP] Financials, along with SAP Business Intelligence, allow us to
compare one part of the world to another, one brand to another, to answer crucial
questions about our business, and continually improve our competitive position.”
Becky Glenn, SAP Global Integration Manager, Coca-Cola

AT A GLANCE
Solution mySAP ERP Financials; SAP BI
Challenges – Enhance planning, reporting, and decision making
– Global consolidation of data
Implementation Highlights – Launched implementation in Jan 2000 and went live in Feb 2001
– More than 6,500 end users in more than 20 countries
– SAP SEM® integrates tightly with the transaction system
Hardware IBM servers
Software – Operating system: AIX
– Database: Oracle

KEY BENEFITS
– Enhanced information handling capabilities
– Improved competitive position
– Integrated actual data into planning process
– Provided foundation for dynamic business-strategy models

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Consumer Products – Beverage

DISTELL
Distell is a leader in the South African alcoholic beverages industry,
with sales of 4.9 billion South African rand (US$600 million),
11,000 customers, and 4,300 employees.

Distell Group Ltd.
www.distell.co.za

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“We were able not only to combine the two companies’ business processes, but we
also achieved integration between data from mySAP SCM and our SAP R/3 execution
systems. We met the project goals on time and within the implementation budget.”
Theuns van Zyl, Project Manager, Distell

AT A GLANCE
Solution mySAP SCM
Challenges – Improve customer service levels
– Reduce supply chain costs
– Implement an integrated forecasting and production planning process
– Develop a comprehensive measurement and reporting system
Implementation Highlights – Rationalization of the products offered in the South African market
– Increased emphasis on new product development for the international market
– Redesign of the supply chain network, including the closure of 3 bottling
plants and the closure of 16 of 43 warehouse locations
– Integration between data from mySAP SCM and the SAP R/3 execution systems

KEY BENEFITS
– Doubled international on-time delivery performance to 100%, which contributed to a 37% increase
in export sales
– Improved forecast accuracy by 20% in the local market
– Improved adherence to production plans from 43% to 82%
– Built a foundation for future supply chain network design improvements

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Consumer Products – Beverage

EMPRESAS POLAR
Empresas Polar is the largest private industrial company in Venezuela.
Its business centers on food and beverages, and its main products
include beer and malt beverages, soft drinks, mineral water, flour,
margarine, corn oil, rice, pasta, sauces, frozen seafood, ice cream,
wine, pet food, and snacks.
Polar developed a high-level management information system based on
SAP Strategic Enterprise Management (SAP SEM) and SAP Business
Information Warehouse (SAP BW) for data warehousing.

Empresas Polar
www.empresas-polar.com

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“Today, more than 80% of our operations are running on SAP solutions, and
the results have been very satisfactory.”
José Anzola, MCI Project Leader, Empresas Polar

AT A GLANCE
Solution SAP SEM; SAP BW
Challenge Manage the systematic electronic recording of transactional information on the
various operational, administrative, and commercial activities of the company
Implementation Highlights – One of the largest projects ever carried out in Latin America by an
SAP customer
– More than 100 Polar employees assigned to the project, together with
experts from SAP and consultants from PricewaterhouseCoopers
Implementation Partner PricewaterhouseCoopers
SAP Environment SAP R/3

KEY BENEFIT
Possibility to generate key performance indicators (KPIs), which enables effective tracking of
business transactions to help the company achieve its management objectives

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Consumer Products – Beverage

SCHLOSS RAGGENDORF
Schloss Raggendorf Sekt- und Weinhandel AG, based in Raggendorf,
Austria, was founded in 1956 by Erwin Klenkhart, Sr. In addition to
its high-end sparkling wine products, Schloss Raggendorf’s
product range also includes other sparkling wines and carbonated
nonalcoholic drinks.
The company selected a cost-effective outsourcing solution from
SAP outsourcing partner unit-IT.

Schloss Raggendorf Sekt- und Weinhandel AG
www.schloss-raggendorf.com

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“One of the major benefits for us is that everything is processed cleanly
within one system, from the first time a delivery note is entered right down to
the last posting.”
Norbert Klenkhart, CEO, Schloss Raggendorf

AT A GLANCE
Solution mySAP All-in-One
Challenges – Industry-specific adjustment of solution
– Outsourcing options
Implementation Highlight Implementation within three months
Implementation Partner unit-IT

KEY BENEFITS
– Faster lead times with reduced effort
– Improved response to changing market conditions
– Clean processes in one system from delivery to the last posting

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Consumer Products – Beverage

THE EDRINGTON GROUP
The Edrington Group is Scotland’s leading independent whisky
company; its key brands include Famous Grouse, Cutty Sark,
the Macallan, and Highland Park. The company employs around
800 people.
Edrington chose mySAP All-in-One, implemented by VAR Chelford
Group (formerly Notability Solution), to help control its business
processes.

The Edrington Group
www.edringtongroup.com

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“SAP has a strong pedigree in the marketplace and the solution will support
us in line with the business growth of our whisky brands.”
Alan Carlile, Director of IT, The Edrington Group

AT A GLANCE
Solution mySAP All-in-One
Challenges Integrate customer service units and purchasing departments with
production planning in plant
Implementation Highlight Several immediate benefits after implementation
Implementation Partner Chelford Group

KEY BENEFITS
– Seamless view of the ordering process
– Reduction in reporting deadlines
– Ability to analyze demand according to different brands
– Improved efficiency through automatic billing

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Consumer Products – Beverage

SOCIEDADE CENTRAL
DE CERVEJAS
Sociedade Central de Cervejas, headquartered in Vialonga, Portugal,
employs 800 people. It has an annual revenue of €270 million and holds
nearly 40% of Portugal’s beer market.
To gain better control of its customer servicing system, it implemented
mySAP Customer Relationship Management (mySAP CRM).

Sociedade Central de Cervejas
www.centralcervejas.pt

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“mySAP CRM keeps us focused on our customers at all times, challenging
us to do everything within our reach to meet their rightful expectations.”
Nuno Pinto de Magalhaes, SCC Executive Board Advisor, Sociedade Central de Cervejas

AT A GLANCE
Solution mySAP CRM; SAP APO; SAP BW
Challenges – Improve customer interaction center
– Improve operational processes for technical services
Implementation Highlights – Brought customer interaction center in-house
– Integrated multiple interaction tools ranging from computer telephony
integration (CTI) to PDAs
– Deployed PDAs to service technicians with links to mySAP CRM for
improved service request management.
– Integrated service data to control inventory and maintenance

KEY BENEFITS
– Increased customer satisfaction and service response time
– Reduced inventory and technician costs
– Improved productivity, communications, and operational efficiency of employees

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Consumer Products – Beverage

SPAIPA
Spaipa S-A is a Coca-Cola Company franchise in Brazil. It operates
25 business units serving 114,000 customers and 14.6 million end
consumers, and generates annual sales of $355 million.
Spaipa turned to mySAP Supply Chain Management (mySAP SCM) to
get its supply chain under control.

Spaipa S-A
www.cocacolabrasil.com.br

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“As a result of mySAP SCM demand-planning implementation, we increased
the accuracy and flexibility of our forecasts . . .”
Claudio Fontes, Information Technology Manager, Spaipa S-A

AT A GLANCE
Solution mySAP SCM
Challenges – Reduce the cash-to-cash life cycle
– Improve assets efficiency
– Reduce raw material inventory and stock of finished products
– Reduce costs and improve customer service
– Enhance decision making
SAP Environment SAP R/3

KEY BENEFITS
– Improved forecast accuracy
– Improved data flow into production planning, supply planning, and finance
– Improved decision making for long-term investment

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Consumer Products
CONSUMER ELECTRONICS
Consumer Electronics consists mainly of two major groups: consumer entertainment companies
and home appliance manufacturers. Consumer entertainment companies design, create, and
sell products such as televisions, DVD players, video recorders, audio equipment, camcorders, digital
cameras, and the like. Companies in the home appliance segment – traditionally known as white
goods manufacturers – create, distribute, sell, and service products such as washing machines, dryers,
vacuum cleaners, kitchen appliances, and so on. The life cycle of these products is greater than
1 year – usually 5 to 7+ years.


“mySAP SCM will enable us to increase the ‘velocity’ with which
we make decisions around inventory optimization. This will allow us to be
more proactive in achieving our revenue-enhancement and inventory-
reduction goals.”
Vara Gollakota, Solutions Leader for Pan-Asian Supply Chain Project, Sony Marketing Asia Pacific
SAP Customer Success Story Sony Marketing Asia Pacific

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Consumer Products – Consumer Electronics

BOSCH SIEMENS
HAUSGERÄTE
BSH Bosch und Siemens Hausgeräte GmbH ranks among the world’s
top manufacturers of home appliances.
BSH picked mySAP ERP Financials and its treasury and risk
management capabilities to centralize financial management across
its worldwide organization.

BSH Bosch und Siemens Hausgeräte GmbH
www.bsh-group.de

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“It is very important to harmonize and centralize the financial processes
of this global business. SAP provides a suitable solution to support
our strategy.”
Kai Schrickel, Head of Corporate Finance Division, BSH

AT A GLANCE
Solution mySAP ERP Financials
Challenges – Harmonize and centralize all financial processes
– Optimize financial management
Implementation Highlights – Implementation finished in only three months
– Upgraded the existing SAP R/3 treasury system to mySAP ERP Financials
Implementation Partner SAP Systems Integration AG (SAP SI)
SAP Environment SAP R/3

KEY BENEFITS
– Reduced transaction costs
– Allowed for better rates by means of streamlined, straight-through processing and a truly global
investment and debt management system

53
Consumer Products – Consumer Electronics

FUJIFILM
Fujifilm de Mexico is committed 100% to quality and service. With
more than 220 employees and experience in the Mexican market that
dates back three decades, the company today is one of the leaders
in its field.
Fuji evaluated several firms and ultimately selected SAP based on its
ability to meet the company's technological and operational demands.

Fujifilm de Mexico
www.fujifilm.com.mx

54

“More than just a change, implementing mySAP CRM is an improvement,
and everyone at Fuji is enthusiastically committed to starting it up
completely, as soon as possible.”
Salvador González, Systems Manager, Fujifilm de Mexico

AT A GLANCE
Solution mySAP CRM
Challenges – Increase market share
– Expedite customer-centric processes
– Provide more powerful integration
Implementation Highlights – The SAP solution met nearly 100% of the company’s needs
– Implementation within five months
SAP Environment mySAP ERP

KEY BENEFITS
– Increased market share through superior customer service
– Bigger sales

55
Consumer Products – Consumer Electronics

HAIER
The Haier Group is the largest manufacturer of “white electrical
appliances” in China, and the fifth largest in the world. With
annual sales of RMB 71.1 billion ($8.6 billion), the Qingdao-based
company manufactures 13,000 different products, employs over
30,000 people, and sells its products in 160 countries.
After a thorough analysis of the alternatives, Haier chose
mySAP Supply Chain Management (mySAP SCM) and related
mySAP Business Suite solutions.

Haier Group
www.haier.com

56

“. . . we selected mySAP SCM because the solution could be adapted to
support our emerging business processes.”
Li Zhan, Information Technology Manager, Haier Central Logistics Division

AT A GLANCE
Solution mySAP SCM; SAP R/3; mySAP SRM
Challenges – Needed to accelerate expansion into foreign markets to ensure continued
high growth rates
– Had to differentiate by offering greater value at each price point
– Wanted to reduce capital and inventory costs associated with decreasing
product life cycles
Implementation Highlights – Increased competitiveness
– Boosted sales by 50% after implementation
Implementation Partner The Performance Measurement Group, LLC

KEY BENEFITS
– Increased overall sales by 50% and decreased days of supply for raw materials
– Lowered relative cost of goods sold by 5.3% to 75.7% of revenue ($4.7 million annual savings)
– Attained on-time delivery-to-commit rate of 99.6%
– Lowered inventory days of supply from 26.7 days to 6.4 days
– Reduced cash-to-cash cycle time from 21.8 days to 11.7 days

57
Consumer Products – Consumer Electronics

PHILIPS LIGHTING
With more than 2.4 billion incandescent lamps produced every year,
Philips Lighting brightens the lives of millions of people around
the world.
By implementing SAP Exchange Infrastructure (SAP XI), the company
now has an efficient, reliable, flexible, standards-based product for
enterprise-application integration that helps integrate business
processes.

Philips Lighting
www.lighting.philips.com

58

“Having a single, open integration platform from SAP, the same company
that provides us with our business solutions, leverages our existing
know-how and reduces our total cost of ownership.”
Paul van der Poel, IT Architect and Information Planner, Philips Lighting’s Lamps Group, Europe

AT A GLANCE
Solution SAP XI
Challenges – Integrate an even wider range of both SAP and non-SAP systems within
IT landscape
– Get systems operational as quickly as possible
– Gain ability to handle multiple systems in different locations
Implementation Highlights – The SAP system supports about 50 operational sites with 7,000 users
– Increased functionality and control for interfacing with SAP and
non-SAP systems
SAP Environment mySAP ERP; mySAP CRM; SAP APO; SAP BW

KEY BENEFITS
– Reduced total cost of ownership
– Leveraged existing know-how
– Reduced maintenance costs
– Enabled better monitoring

59
Consumer Products – Consumer Electronics

SONY CANADA
Sony of Canada is a widely diversified company that provides
industry-leading products from electronics to computers. Wholly
owned by Sony Corporation, Sony of Canada began operations in
1955 as the first market for Sony products outside Japan.
It used mySAP Customer Relationship Management (mySAP CRM)
campaign-management capabilities to target select customers
and launch a series of marketing campaigns via e-mails and physical
mailings.

Sony of Canada Ltd.
www.sony.ca

60

“Campaign management with mySAP CRM is very quick and easy to use.
This reduces our dependence on the IS department and enables
business user themselves to develop and execute marketing campaigns.
Sony of Canada is getting results from those campaigns.”
Ayako Komoto, Group Marketing Manager of Sony Style, Canada

AT A GLANCE
Solution mySAP CRM
Challenges – Strengthen customer relationship marketing and direct communication
with customers
– Increase customer satisfaction and ability to communicate
Implementation Highlight Implementation went live within three months
SAP Environment SAP R/3

KEY BENEFITS
– Made it possible for marketing managers to launch customized campaigns on their own
– Integrated all customer contact and communication

61
Consumer Products – Consumer Electronics

SONY EUROPE
Sony Europe, with its corporate headquarters in Berlin, is
responsible for the company’s European electronics business with
consolidated sales of €8.62 billion for the fiscal year ending
March 31, 2003.
Sony Europe needed a self-service mechanism for its 1,800+ dealers.

Sony Europe
www.sony-europe.com

62

“SAP Biller Direct enables dealers to check their account status and
make payments electronically. This frees our customer accounts team to
improve collections and resolve disputes, enhancing cash flow.”
Matthew Jepp, General Manager Finance Applications, Sony Information Systems & Solutions Europe (ISSE)

AT A GLANCE
Solution mySAP ERP Financials; SAP Biller Direct
Challenges – Support online account management in Sony’s DealerNet portal
– Enable electronic invoicing
– Give customer accounts team the time to improve collections and
resolve disputes
Implementation Highlight Quickly slashed call-center volume for account status inquiries by 300%

KEY BENEFITS
– Enhanced cash flow
– Reduced cost of customer care
– Enhanced ability to service distributors
– Increased volume and speed of collections
– Automated invoicing and enhanced customer care

63
Consumer Products
DURABLES
Companies in the consumer durables segment make, sell, and distribute products such as household
furnishings, tableware, kitchen articles, lawn and garden equipment, jewelry, silverware, plated ware,
musical instruments, toys, games, sporting and athletic goods, and so on. Durables are products which do
not have to be purchased frequently and are usually not destroyed by use. They are expected to last for three
or more years.


“mySAP CRM has enabled us to improve our customer service and
increase productivity and turnover. With the SAP solution, we can penetrate
the market more fully and provide more efficient support in the acquisition
of new customers.”
Reinhold Jacoby, Project Manager of Sales Support at Villeroy & Boch

65
Consumer Products – Durables

3M
3M introduced its products in Israel 30 years ago and then opened
3M Israel in 1996. It now employs 45 people to import, market, and
distribute the company’s products.
It needed an integrated financial management system with the power
and flexibility to help seamlessly manage its steady growth.

3M Israel
www.3m.com

66

“SAP Business One will be the central component in managing 3M Israel’s
accounts. It is easy to use and provides the functionality that all our users –
dedicated and occasional – need to complete their tasks quickly and
efficiently.”
Kobi Tsaban, Chief Financial Officer, 3M Israel

AT A GLANCE
Solution SAP Business One
Challenges – Provide highest level of office automation
– Implement the system on a Microsoft Windows platform
– Have an integrated financial management system
Implementation Highlights – Rapid one-month implementation
– Rapid ROI
Software Microsoft Windows platform

KEY BENEFITS
– Provided functionality that users needed to complete their tasks quickly and efficiently
– Helped company to manage its continuous growth

67
Consumer Products – Durables

ATOMIC
Winter sport fanatics all know ATOMIC. The name epitomizes the
ultimate in quality and innovation for winter sports equipment.
ATOMIC, which is based in Altenmarkt near Salzburg, Austria,
belongs to the Finnish Amer Group.
The company implemented a mobile scanner solution based on the
logistics execution system, a component of mySAP Supply Chain
Management.

ATOMIC Austria
www.atomic.at

68

“Efficient inventory management means more flexible production. SAP’s
radio scanner solution is an important milestone for us as we move toward
an integrated paperless information flow.”
Dr. Michael Schineis, CEO, ATOMIC Austria

AT A GLANCE
Solution mySAP SCM; SAP LES
Challenges – Improve inventory management processes
– Expedite stock turnover in the material warehouses
Implementation Highlights – Implementation completed within three months
– Mobile hand scanners are linked by radio with the SAP console and
exchange all data online with the back-end system
Implementation Partner Flexus AG
SAP Environment SAP R/3

KEY BENEFITS
– Ensured efficient use of material stock with first-in, first-out principle
– Eliminated a lot of time-consuming and redundant steps with online transmission of all movement
of goods
– Enabled the company to handle data more effectively
– Improved quality and increased speed and productivity

69
Consumer Products – Durables

CONAIR
Conair Corporation is a worldwide producer of trend-setting health and
beauty products, as well as kitchen and electronic appliances.
The company implemented mySAP Supply Chain Management
(mySAP SCM) to align its inventory position with customer requirements
on a global basis.

Conair Corporation
www.conair.com

70

“With mySAP SCM, we have visibility into forecasts, inventory, and
production, which will enable us to turn off the tap quicker and reduce
obsolete goods.”
Paul Sullivan, General Manager for Conair Canada

AT A GLANCE
Solution mySAP SCM
Challenges – Achieve a 100% fill rate with customers
– Get inventory position in line with customer requirements on a global basis
– Have items for customers in stock 100% of the time
Implementation Highlight Implementation encompassed 150 major customers and 5,000 SKUs

KEY BENEFITS
– Strengthened collaborative planning with customers
– Increased visibility into forecasts, inventory, and production
– Improved customer service

71
Consumer Products – Durables

PACIFIC CYCLE
Pacific Cycle LLC is a $400 million company and the largest importer
of quality bicycles in America.
It turned to the set of solutions offered by SAP for Consumer Products
to integrate all operations and make its supply chain, distribution,
and customer-service processes more efficient.

Pacific Cycle LLC
www.pacific-cycle.com

72

“We were able to incorporate two new businesses, Schwinn and GT, within
two months of going live . . . SAP for Consumer Products helps us to do more
business with the same amount of people. That’s really our goal here.”
Ed Matthews, Director of Information Systems, Pacific Cycle

AT A GLANCE
Solution SAP for Consumer Products
Challenges – Streamline the supply chain model
– Make supply chain, distribution, and customer service more efficient
Implementation Highlight Implementation finished in only 77 days with ASAP implementation
methodologies
Implementation Partner SAP Consulting
Hardware Dell servers
Software – Operating system: Microsoft Windows NT
– Database: Microsoft SQL Server

KEY BENEFITS
– Achieved a more efficient supply chain
– Helped to accelerate business processes in the company
– Made it possible to generate daily sales reports

73
Consumer Products – Durables

PLAST WOOD
Using magnets to create original toys, Plast Wood is a Sardinian
company with agents in more than 30 countries and 115 employees
worldwide.
To support its international expansion strategy, the company
needed a worldwide management system that could be implemented
in all its branches – producing real-time, reliable reports and
providing constantly updated information. It found the answer in
mySAP Business Suite.

Plast Wood S.r.I., Italy
www.plastwood.com

74

“Since we have branches and distributors worldwide, we needed a
management system able to link all our branches and act as a shared
platform through which to exchange information.”
Egidio Pirodda, General Manager, Plast Wood

AT A GLANCE
Solution mySAP Business Suite (financial and tax accounting; CRM; controlling;
treasury; materials management; and warehouse management capabilities)
Challenges Provide support for the company’s international expansion
Implementation Highlight The implementation only took three months
Implementation Partner SAP Italia Consulting

KEY BENEFITS
– Streamlined warehouse management
– Facilitated data collection without duplications
– Improved branch office operations
– Optimized management of consolidated group reports – including area views and real-time
checks of international performance

75
Consumer Products – Durables

PRESSMAN
Pressman Toy, based in New Brunswick, New Jersey, is the third-
largest manufacturer of games in the United States.
It used SAP Best Practices for Consumer Packaged Goods (CPG) to
drive a rapid rollout of mySAP Business Suite solutions.

Pressman Toy Corporation
www.pressmangames.com

76

“With mySAP Business Suite, we are hoping to quickly and easily identify
what needs to be changed to respond to the marketplace.”
Alan Novick, Director of Information Services, Pressman Toy

AT A GLANCE
Solution mySAP Business Suite
Challenges – Respond to the market quickly and easily
– Increase automation and provide tighter integration with the supply chain
Implementation Highlight First phase was implemented in only three months
Implementation Partners Answerthink; IBM Global Services
Hardware IBM AS/400
Software – Operating system: OS 400
– Database: IBM DB2

KEY BENEFITS
– Increased sales opportunities
– Reduced obsolete inventory
– Provided the possibility of growing with the company

77
Consumer Products – Durables

TESA
Headquartered in Hamburg, Germany, and a member of the Beiersdorf
Group, tesa AG ranks as one of the world’s leading suppliers of
self-adhesive products.
tesa AG needed a basis for standardized sales reporting. Managers
wanted access to critical sales information from masses of company-
wide data, all at the touch of a button.

tesa AG
www.tesa.com

78

“In order to avoid integration problems and an excess of interfaces, we
wanted a solution from one source. SAP had the most attractive package for
use on an international level.”
Maria Tamasiuk, SAP BW Project Manager, tesa

AT A GLANCE
Solution SAP BW
Challenges – Centralize compilation, processing, and evaluation of huge amounts of data
– Handle large quantities of data
– Process data quickly and efficiently
Implementation Highlights – The SAP BW implementation took place in only 250 days, and at a
relatively low cost.
– The amount invested for outsourcing SAP at Siemens Business Services
turned out to be considerably lower than for other comparable projects.
Implementation Partner Siemens Business Services
SAP Environment SAP R/3

KEY BENEFITS
– Made it possible to process enormous quantities of data on a daily basis
– Secured efficient sales reporting
– Gave users the ability to create a variety of transparent standard and ad hoc reports

79
Consumer Products – Durables

VILLEROY & BOCH
Villeroy & Boch is a home interiors manufacturing company with a long
tradition of product excellence, innovation, and market leadership.
Already SAP R/3 reliant, Villeroy & Boch decided mySAP Customer
Relationship Management (mySAP CRM) was the optimum front-end
solution for its CRM initiative.

Villeroy & Boch
www.villeroy-boch.com

80

“My goal was to deliver a solution that facilitated collaboration among sales
reps, and to integrate those front-end sales processes with our back-office
environment, which runs SAP R/3.”
Thomas Ochs, Chief Information Officer, Villeroy & Boch

AT A GLANCE
Solution mySAP CRM; SAP BW
Challenges – Improve visibility across entire distribution chain
– Infuse customer insight into a product-driven business model
– Empower sales reps with customer insight
– Increase cross-sell and up-sell opportunities
– Improve customer service by streamlining processes
Implementation Highlights – The core functionalities of mySAP CRM and the integration with SAP R/3
were up and running in 11 months
– The company’s initial investment of €15 million was on target with anticipated
costs and tracked closely to the phased project plan
– 30% internal rate of return
Implementation Partner SAP Consulting

KEY BENEFITS
– Streamlined mail on demand and increased call center activity
– Ensured more accurate, complete, and efficient data collection
– Improved accuracy of mailings and inside sales efificiency

81
Consumer Products
FOOD
Food companies are involved in the manufacturing as well as the distribution and sales of food, food
products, and ingredients.

Manufacturers in this segment face many issues with respect to how they market and sell their
products to consumers. Many of these products are purchased on a regular basis (every 1–3 weeks) and
velocity management is a key driver of profits from a consumer point of view. For some, it is more
profitable to utilize distributors to deliver the finished goods to the retailer. Freshness is a major issue –
a matter of a few days – and having products available in the right store, at the right time, for the
right price is critical to the company’s success in its chosen markets.

“By choosing to implement a single, integrated technology platform from
SAP, we can more rapidly achieve the benefits of the combined organization
and provide Tyson with a strategic and competitive advantage going
forward.”
Jeri Dunn, CIO, Tyson Foods, Inc.
Press Release – May 11, 2004

83
Consumer Products – Food

AARHUS OLIE
Aarhus Olie ranks among the biggest global producers of vegetable oil
and specialty fats for food applications.
The company implemented the process industry production planning
capabilities of mySAP Supply Chain Management (mySAP SCM)
to extend their leadership position in the market.

Aarhus Olie
www.aarhusunited.com

84

“With the production planning capabilities offered by mySAP SCM,
we now have a system that is powerful, dynamic, and interactive enough
to handle our complicated planning environment . . .”
Asger Johnsen, IT Project Leader, Aarhus Olie

AT A GLANCE
Solution mySAP SCM; SAP data access component
Challenges – Better communication during the production process
– Improve decision making through more reliable cost calculations
– Enhance traceability to fulfill increasing customer demands
– Needed clear visibility in production costs
Implementation Highlight Real-time link to process control systems

KEY BENEFITS
– Gained more flexibility for process changes
– Improved communication within the company
– Increased reliability of registrations

85
Consumer Products – Food

BARILLA-WASA
Headquartered in Cologne, Germany, Barilla Wasa Deutschland GmbH
unites the Mediterranean pasta and Nordic baked goods spectrums
under one roof. Around 350 employees supply various trade channels
with pasta and crispbread, some of which are manufactured at Barilla’s
production facility in Celle, Germany.
Barilla Wasa’s goals are clear: They want to be market leaders, and this
target shapes their every action. Supporting this goal is a high-
performance IT system, with a back end based on an SAP application
landscape and run centrally at the SAP Competence Center in Celle.

Barilla Wasa Deutschland GmbH
www.barillagroup.de

86

“Both our business targets and our strategic IT goals were best served with mySAP CRM.”
Heinrich Buchholz, IT Director, Barilla Wasa Deutschland GmbH

AT A GLANCE
Solution mySAP CRM
Challenges – Increase efficiency in external sales force
– Increase transparency
– Integrate new CRM applications with the SAP back-end infrastructure
Implementation Highlights – Implementation completed within a year
– Reduced IT costs compared to legacy systems (licenses, maintenance,
administration, consulting, interfaces)
– Everything was right on budget
Implementation Partners SAP Consulting and Atos Origin
SAP Environment mySAP BI; mySAP ERP

KEY BENEFITS
– More accurate planning through more structured processes – meaning a higher service level,
less out-of-stock goods, and optimization of warehouse, transportation, and distribution costs.
– Increased process efficiency in customer service, sales and demand planning, key account
management, and external sales force/regional sales manager processes
– Better planning and the sale of certain quantities of goods at strategically low prices, promoting
revenue growth

87
Consumer Products – Food

BRETZELBÄCKEREI DITSCH
Ditsch Bakery, headquartered in Mainz, Germany, was founded by
Wilhelm Ditsch in 1919. Now, there are more than 190 Ditsch branch
stores in Germany operating as independent franchisees.
Thanks to the mySAP All-in-One solution, the Ditsch bakery from
Mainz succeeded in connecting over 190 of its branches with its
head office.

Brezelbäckerei Ditsch GmbH
www.ditsch.com

88

“We wanted a system that could participate in the future growth of
the company. The SAP industry solution maps our business processes
very realistically.”
Michael Roche, Production and Technology Manager, Brezelbäckerei Ditsch

AT A GLANCE
Solution mySAP All-in-One solution
Challenges – Connect branches
– Connect freezer warehouse
– Franchise accounting
Implementation Highlights – Implementation completed within 4 months
– Connected over 190 branches with the head office
Implementation Partner command AG

KEY BENEFITS
– Made controlling much easier
– Guaranteed growth

89
Consumer Products – Food

CHUPA CHUPS
With its central headquarters in Barcelona, Chupa Chups is a group
of companies that manufactures innovative confectionery with
a universal appeal.
Chupa Chups wanted to reorient its manufacturing processes – from
make-to-order to make-to-stock. mySAP Supply Chain Management
(mySAP SCM) provided the company with the advanced demand-
planning tools it was looking for.

Chupa Chups
www.chupachups.com

90

“We are confident that SAP will help us to simplify all the necessary
processes so that we can achieve the objectives that we have set for the
Chupa Chups group.”
Guillerme Franquesa, Operations and Systems Manager at Chupa Chups

AT A GLANCE
Solution mySAP SCM; SAP APO demand planning
Challenges – Reduce inventories – Anticipate customer demand
– Synchronize planning and execution – Foresee bottlenecks
– Integrate suppliers to avoid possible delays
Implementation Highlights – Restructuring of the entire logistics model
– Defining start dates that minimized downtime
Hardware Sun Microsystems Enterprise 420
Software – Operating system: Solaris 8
– Database: Oracle 8.1.6

KEY BENEFITS
– Enhanced planning cycle and reduced cycle times
– Increased reliability for sales forecasting
– Maximized the company’s ROI
– Faster reaction time to changing market conditions and customer requirements

91
Consumer Products – Food

CJ
CJ is the largest food company in Korea with fiscal year 2001 revenues
of 1.96 trillion Korean won ($1.7 billion).
CJ selected SAP software as its enterprise system foundation because
of the well-developed business process orientation of SAP solutions.

CJ (formerly Cheil Jedang)
www.cj.co.kr

92

“The SAP solution provided a framework for implementing business processes
for our diversified consumer goods portfolio that meet the standards of
global best practices.”
Yong Bum Kim, Senior Manager, Digital Nervous System Team, CJ

AT A GLANCE
Solution SAP R/3; mySAP SCM; SAP BW; mySAP CRM
Challenges – Enhanced reaction rate to demand shifts
– Improve delivery performance while reducing inventory
– Pursue global growth across diverse businesses
– Reduce costs of offshore procurement of raw materials
Implementation Highlight The SAP solution allowed CJ to avoid costly software customization
Implementation Partner SAP Consulting

KEY BENEFITS
– Increased gross margin by 2% as a result of the complete set of cost reductions
– Lowered finished goods inventory by 15.4% and raw-material inventory by 18.5%
– Improved response time to customer claims by 50%
– Reduced procurement costs by 5%
– Reduced stock-outs by 41.2%

93
Consumer Products – Food

DANONE INTERNATIONAL
BRANDS
The Danone Group (DIB) is the food industry’s world leader in fresh
dairy products, bottled water, and is number two in cookies and
crackers.
DIB realized it needed to strengthen relations with its network
of importers/distributors and chose mySAP Customer Relationship
Management (mySAP CRM) – with its Internet sales capabilities –
to help meet this challenge.

Danone International Brands
www.dib.com

94

“We opted for the mySAP CRM solution, reassured by SAP’s stability and
its strong R&D potential.”
Agnès Simard, Information Systems Manager, DIB

AT A GLANCE
Solution mySAP CRM and its Internet sales capabilities
Challenges – Improve managing some 400 distributors and importers spread around the
globe in several different time zones
– Setting up a B2B site where customers can consult product catalogs, place
and follow up orders, and take advantage of sales offers online
– Strengthen relations with customers
Implementation Highlights – Close integration with the company’s future back-office system
– Within 4 months the site was open to all DIB’s export customers
Implementation Partner Computer Sciences Corporation (CSC)

KEY BENEFITS
– Helped the company to meet customer expectations of flexibility and availability
– Increased customer loyalty
– Optimized business processes
– Reduced administrative tasks significantly
– Promoted greater efficiency and cooperation between departments

95
Consumer Products – Food

FREDERICKS DAIRIES
Established in 1896, Fredericks Dairies is the third-largest ice cream
manufacturer and distributor in the UK. The company is based in
Skelmersdale, Lancashire and employs more than 180 people.
Fredericks Dairies has never had a dedicated IT department, and in
keeping with this, selected to have its preconfigured SAP solution
delivered through an ASP.

Fredericks Dairies, UK
www.fredericksdairies.com

96

“Using the hosted solution, we can let someone else take responsibility
for IT. We are still able to retain all the functionality of the SAP system as if
we purchased it outright. What’s more, when SAP issues a product
upgrade, we can take advantage of it without going through any reinstallation
procedures. For a small business, this is an ideal option.”
Anne Allcock, Financial Director, Fredericks Dairies

AT A GLANCE
Solution mySAP All-in-One
Challenges – Needed scalable system for timely and accurate information
– Had to provide quick implementation for immediate benefits
Implementation Partner i-fusion

KEY BENEFITS
– Improved stock information
– Increased working capital
– Optimized credit control

97
Consumer Products – Food

KRAFT FOODS
Headquartered in the United States, Kraft Foods International Inc.
is the largest branded food and beverage company in the United States
and the second largest worldwide.
Kraft Foods International implemented WebSAPConsole to connect
next-generation Intermec graphical RF bar code scanners to its
SAP R/3 system.

Kraft Foods International
www.kraft.com

98

“For the first time, we’ve connected Intermec RF scanners with graphical
displays to the network and SAP R/3 – in fact, we were one of the very first
companies worldwide to do so.”
Harald Ahlden, Project Lead, Kraft Foods International

AT A GLANCE
Solution WebSAPConsole (in conjunction with Intermec Color 750 handheld
computers and SAP R/3)
Challenges – Minimize paperwork
– Reduce manual effort and increased productivity
– Automate warehouse processes to eliminate errors
Implementation Highlights – Pilot application activated after less than 60 working days
– Connected Intermec RF scanners with graphical displays to the network
and SAP R/3 for the first time
Implementation Partners Intermec, SAP, SAP Labs, Praceus and Jaeger
Hardware Compaq Proliant
Software Microsoft Windows 2000

KEY BENEFITS
– Enabled higher productivity – Had far fewer errors
– Minimized paperwork – Reduced manual effort

99
Consumer Products – Food

MARICO
Marico Industries Ltd. is a leading India-based consumer goods
company with sales of Rs 6.96 billion (approximately $142 million) for
the fiscal year ending March 2002.
Marico selected mySAP Supply Chain Management (mySAP SCM) to
enable the associated planning and execution processes.

Marico Industries Ltd.
www.maricoindia.com

100

“The implementation produced quick results. By early 2002, forecast accuracy
was improved by 14%, and the levels of shipment activity through each third of
a month had become more even (25%, 32%, and 43%).”
Source: Case Study 50 059 358; Marico

AT A GLANCE
Solution mySAP SCM; SAP BW; SAP R/3
Challenges – Maintain market-share growth – Reduce total delivery cost
– Enhance long-term value of company brands
– Scale supply chain operations to sustain customer service
Implementation Highlights – ASAP methodologies used to ensure rapid implementation
– Scope included all company factories, warehouses, and business offices
– Implementation achieved systems integration
Implementation Partners SAP Consulting; Siemens Information Systems Ltd.

KEY BENEFITS
– Decreased stock-outs associated with distributor sales to retailers by 33%
– Reduced lost sales due to stock-outs by 28%
– Lowered excess distributor inventory by 33%
– Reduced late deliveries to distributors by 37.5%
– Reduced costs associated with supply chain exceptions by 25%

101
Consumer Products – Food

MELITTA
Melitta, a global company with 3,800 employees, is famous for its
coffee-making products.
By selecting SAP Enterprise Portal (SAP EP), Melitta’s employees now
have role-based access to predefined portal contents, applications,
information, and services.

Melitta Unternehmensgruppe
www.melitta.de

102

“We have succeeded in streamlining our business processes and
increasing productivity. Ultimately, our customers benefit from faster
delivery times and improved support.”
Dr. Frank Deges, Head of New Media, M-Portal Project Manager, Melitta

AT A GLANCE
Solution SAP EP
Challenges – Streamline business processes
– Improve access to information
Implementation Partners – SAP Consulting
– Siemens Information Systems Ltd.

KEY BENEFITS
– Improved reporting, project management, and collaboration
– Avoided redundant work
– Reduced project duration
– Optimized sharing of knowledge

103
Consumer Products – Food

MORGAN FOODS
Morgan Foods, based in Austin, Indiana, is a family-owned business
striving to be a leader in the food processing industry. One of the
hallmarks of Morgan Foods is its implementation of a state-of-the-art
IT system that optimizes the overall efficiency of multiple business
processes. Currently, Morgan Foods employs approximately
500 people and sells to 35 customer groups, including Wal-Mart
and Save-A-Lot.

Morgan Foods
www.morganfoods.com

104

“Morgan Foods looked at many software packages, and as we continued
looking and continued learning, we were very amazed at SAP’s breadth
of technology and capabilities to control.”
Dan Slattery, Vice President and Chief Financial Officer of Morgan Foods

AT A GLANCE
Solution mySAP All-in-One
Challenges – Maintain product quality
– Improve customer service
– Lower costs of raw materials and finished goods
– Improve cash position
Implementation Highlights – 125% return on investment (ROI)
– 62% internal rate of return (IRR)
– Six month time-to-solution
Implementation Partner Computer Sciences Corporation (CSC)

KEY BENEFITS
– Product planning and scheduling savings of $80,000
– Total employees reallocation savings of $230,000
– Product recall savings of $500,000
– Shipping charges reduced by $150,000
– Cash flow improvement of $90,000

105
Consumer Products – Food

NESTLE GERMANY
Since its foundation by Henri Nestlé in 1866, Nestlé has grown into the
world’s largest food company.
Today, mySAP Product Lifecycle Management (mySAP PLM) provides
the company with an automated system for accessing, distributing,
and storing information, and managing workflows.

Nestlé Germany
www.nestle.de

106

“Thanks to mySAP PLM, we have been able to implement a solution to
improve transparency and intensify the involvement of all our employees in
development projects.”
Oliver Klinge, Project Leader at Nestlé Germany

AT A GLANCE
Solution mySAP PLM
Challenges – Increase efficiency and improve communication
– Coordinate project team members and supply them with the data needed
– Integrate easily with existing information systems
Implementation Highlights – Implementation completed within 12 months
– Return on investment (ROI) within two years
Implementation Partner IDS Scheer AG
Hardware Hewlett-Packard servers; Dell workstations
Software HP-UX, Microsoft Windows NT

KEY BENEFITS
– Improved transparency
– Intensified involvement of all employees in development projects
– Improved data integrity and process reliability

107
Consumer Products – Food

PERDIGÃO
Perdigão is one of the largest food companies in Latin America
and one of the principal meat processors in the world. Its core
business is refrigerated and frozen products, ready-to-eat pastas,
and vegetable dishes.
After careful analysis, Perdigão chose mySAP Customer Relationship
Management (mySAP CRM) based on its core functionality and the
ability to tightly link up with the SAP R/3 back end.

Perdigão
www.perdigao.com.br

108

“We believe that almost all of the incremental sales increase is attributable
to mySAP CRM and our accompanying strategy for São Paulo.”
Luiz Carlos Campagnola, National Sales Director, Perdigão

AT A GLANCE
Solution mySAP CRM
Challenges – Needed to recover lost sales
– Wanted to increase revenue
– Needed to track complaints
– Had to factually support product and process improvements
Implementation Highlights – Integrated smoothly with SAP R/3
– Perdigão now plans to roll out mySAP CRM throughout Brazil
SAP Environment SAP R/3; SAP BW; SAP Business Workflow

KEY BENEFITS
– Increased market share in São Paulo from 14.5% to 22%
– ROI Review calculated an internal rate of return (IRR) of 52% by the end of 2004 – resulting from
revenue increases and cost savings
– Average 30-day improvement in response time to consumer and customer complaints
– São Paulo sales agents now serve up to 37.2% more customers per month than the companywide
average

109
Consumer Products – Food

SAGIT S.P.A.
Rome-based Sagit is a subsidiary of the international Unilever Group.
Posting annual sales of €1.4 billion and employing 2,300 people,
the company produces Findus frozen foods and Algida ice cream at
three factories for both the Italian market and for export.
The company’s excellent IT department began implementing SAP
software in 1994 and now focuses on SAP applications, which cover
all of Sagit’s business processes.

Sagit S.P.A.
www.unilever.it

110

“Thanks to SAP, we have a high-quality, standardized system that will
enable us to keep abreast of market requirements now and in the future.”
Lorenzo Pizzuti, IT Manager at Sagit

AT A GLANCE
Solution mySAP SCM; SAP LES
Challenges Sagit needed a system that could map data for individual pallets: showing
exact assortment of ice cream on each (along with the pallet size) and any
special characteristics relating to transportation and packaging.
Implementation Highlights – Implementation took just five months
– The SAP handling-unit management function gives Sagit high-speed access
to all the information it needs
SAP Environment SAP R/3 4.6

KEY BENEFITS
– Optimized mapping
– Maximized precision
– Provided end-to-end pallet handling
– Enhanced production safety

111
Consumer Products
HOME AND PERSONAL CARE
Manufacturers in the home care sector produce floor cleaning supplies, paper towels, laundry detergents, bleaches,
glass cleaners, and so on. These products tend to take longer to use up, so consumers want to be sure the products they
purchase fit their lifestyles and needs – as they are then committed to this purchase for 1-2 months, at least.

Personal care products companies are involved in the manufacturing, distribution, and sales of products, such as soap and
shampoo, razors, deodorants, tooth paste, mouth wash and so on. Consumers are very determined to find products they
can depend on because these products can determine how they are perceived in public and on social occasions.

Brand marketing and quality are extremely important for keeping customer loyalty in the home and personal care
segment – thus product or brand loyalty is crucial to ongoing success.

“Our goal at Procter & Gamble has been to build a demand-driven supply chain that
delivers the product at the right time, the right place, and for the right price. SAP has been
instrumental in our efforts to deliver such a demand-driven supply network. It has been a
key partner, helping us to establish a global business backbone at P&G over the last decade.”
Keith Harrison, Global Product Supply Officer, Procter & Gamble
Press Release – April 19, 2004

113
Consumer Products – Home and Personal Care

BEIERSDORF-LECHIA
Beiersdorf-Lechia SA is a leading manufacturer and distributor of
cosmetics in Poland, producing up to 8,000 tons of creams and lotions
annually.
The company selected and implemented mySAP Supply Chain
Management (mySAP SCM) to enable the collaborative planning,
forecasting, and replenishment (CPFR) process, achieve further
finished goods inventory reductions, lower safety stock, and deliver
performance improvements.

Beiersdorf-Lechia SA
www.beiersdorf.com

114

“mySAP SCM was selected because of its robust demand planning
and supply planning capabilities and the tight integration it offered with
Beiersdorf’s existing SAP R/3 solution.”
Robert Stobinski, Supply Chain Director and Member of the Board, Beiersdorf-Lechia

AT A GLANCE
Solution mySAP SCM
Challenges – Achieve global revenue and market share growth
– Improve profitability by minimizing total costs while maximizing
customer service levels
– Base forecasts on customer data and improve planning prcesses
– Provide customers with visibility into the status of their orders
Implementation Highlights – Achieved targeted performance levels after a 12-month implementation
– Implementation completed on time and within budget
– Reduced order-to-delivery cycle times by 50%
– Forecast accuracy improved in the range of 20% to 25%
Implementation Partner Electronic Data Systems

KEY BENEFITS
– Increased sales by 4%
– Reduced inventory by 60%, more than offsetting an increase of 10% in transportation costs.
– Improved product availability levels from 94% to 99.8%
– Established a foundation for extending collaborative processes to customers and suppliers

115
Consumer Products – Home and Personal Care

COLGATE-PALMOLIVE
Colgate-Palmolive is a U.S.-based $9.3 billion global consumer-
products company, serving people in more then 200 countries and
territories. Part of its winning IT strategy focuses on managing
data to reduce costs, improve efficiency, and make better use of
resources.
Colgate wanted to use the data-archiving capabilities in the
SAP NetWeaver™ application and integration platform.

Colgate-Palmolive Company
www.colgate.com

116

“With the SAP data-archiving solution, we were able to reduce database growth
in our pet-food division by more than three-quarters, from about 70 gigabytes
per month to around 17 gigabytes per month. That’s quite a savings.”
Jim Capraro, Director, Enterprise Service Center, Colgate-Palmolive

AT A GLANCE
Solution SAP NetWeaver with data archiving and mySAP PLM
Challenges – Manage date overload to reduce high costs of storage, resources, and
system performance
– Implement a disciplined strategy to accommodate expanding database
Implementation Highlights – Merged 75 data centers into 1, with a second for backup
– Deployed solution globally
SAP Environment mySAP Business Suite
Hardware IBM 690
Software Unix Oracle Database

KEY BENEFITS
– Streamlined databases for better system performance, availability, and response times
– Gained a competitive advantage with leaner, more efficient systems, improving all business areas
– Reduced data-storage costs for more efficient use of resources

117
Consumer Products – Home and Personal Care

HAWAIIAN TROPIC
Hawaiian Tropic is a leading North American manufacturer and
distributor of Hawaiian Tropic and private-label sun care products.
Its headquarters facility is in Ormond Beach, Fla.
The mySAP All-in-One solution for consumer packaged goods
helped Hawaiian Tropic attain its supply chain goals.

Hawaiian Tropic
www.hawaiiantropic.com

118

“The strenght of the mySAP All-in-One for consumer packaged goods solution
. . . and the commitment of SAP to the small and midsize business market
both surprised and convinced us that they are the right enterprise application
solutions partner for us.”
Bill Jennings, Executive Vice President, Hawaiian Tropic

AT A GLANCE
Solution mySAP All-in-One for consumer packaged goods; mySAP Business Suite; SAP
Best Practices for Consumer Packaged Goods (CPG) from IDS Scheer SIGMA
Challenges – Improve inventory management, production schedules, and customer
satisfaction
– Streamline and combine the business processes of two companies running
disparate business applications
Implementation Highlights – Implemented using SAP rapid implementation methodology, requiring
30% less time and costing 40% less than traditional approaches
– Implemented within six months
Implementation Partner IDS Scheer AG

KEY BENEFITS
– Increased productivity – Provided faster access to better information
– Enabled a competitive advantage – Reduced inventory and freed up working capital

119
Consumer Products – Home and Personal Care

HENKEL
Henkel is a brand manufacturer of consumer products with
48,000 employees and a €10 billion turnover.
It chose mySAP Supply Chain Management (mySAP SCM) to improve
profitability through increased supply chain efficiency.

Henkel
www.henkel.de

120

“Key to our success has been our decision to stay 100% within standard
functionality while implementing best-of-breed processes.”
Rene Michel, Logistics Manager Switzerland and INSTREAM Project Manager, Henkel

AT A GLANCE
Solution mySAP SCM
Challenges – Comply with worldwide customer and consumer requirements
– Improve planning processes companywide

KEY BENEFITS
– Decreased change-over costs by 13%
– Increased production reliability dramatically
– Enabled 99.98% on-time deliveries

121
Consumer Products – Home and Personal Care

L’ORÉAL
L’Oréal Group, headquartered in Paris, is the global market leader
in the cosmetics industry with €14.3 billion ($17.9 billion) consolidated
sales in 2002, capturing 13% of the cosmetics market share.
After considering a number of available solutions, the company decided
on SAP Advanced Planning & Optimization (SAP APO) – a key
component of mySAP Supply Chain Management (mySAP SCM) –
to support its vendor-managed inventory (VMI) strategy.

L’Oréal Group
www.loreal.com

122

“The strength of SAP APO is that it can be integrated into our existing SAP R/3 System
for all our internal and external processes. This way, the whole process chain can be optimized.
This is a great advantage as we are always up-to-date on what our customers need.”
Peter Schneider, Director of Administration and Operations for L’Oréal Germany

AT A GLANCE
Solution mySAP SCM; the choice was based on high level of integration and
best-of-breed capabilities of SAP APO
Challenges – Maintain a proven and shared business growth model
– Achieve price leadership by reducing overhead and production costs
– Improve customer satisfaction and loyalty by simplifying administrative
structures and processes
Implementation Highlight Implementation completed within six months
SAP Environment SAP R/3

KEY BENEFITS
– Reduced inventory at customer sites by 50%
– Doubled inventory turns
– Simplified planning processes through takeover of merchandise-planning responsibility
– Improved customer relationships

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50 069 397 (04/07)
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