Integrated Business Planning for the Consumer Products Industry


The Current Market Reality

The consumer products is being driven by four critical forces. Consumer products companies need to drive real-time insights, operational excellence, and sustainable product and process information to secure profitable growth.


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Consumer Products Industry Challenges

Global demographic shifts, competition for scarce resources, instability, volatility, uncertainty, and enabling technology adoption conspire to disrupt the consumer product industry landscape. Leading consumer product firms must rise to meet these challenges and streamline their operations while continuing to innovate.

Sustainable Product Innovation:

Insufficient innovation pipeline and excessive product development lead times

Procurement:

Poor supplier collaboration, non-compliance risk, and limited visibility to commodity and input pricing variability

Agile Manufacturing:

Insufficient availability of finished goods produced in time to meet demand

Real-time Supply Chain:

Limited demand and sub-par forecasting slows supply response

Sales and Marketing:

Poorly timed and inconsistent campaigns and promotions limit sales and diminish consumer perception



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Critical Success Factors for Effective Integrated Business Planning and Execution

Consumer Product Enterprises need to be agile and better aligned to meet the challenges of today and the future


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Technology Constraints of the Past Inhibit the Ability to Deliver Required Capabilities

The vast majority of solutions are still based on the solution architecture of the past. These traditional constraints require fragmented and batch planning processes that are then disconnected from execution. These inhibit companies from transforming to meet today’s requirements.


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New SAP Technology: Enabler of Next Generation Applications and Capabilities

Next generation SAP Solutions built on new SAP Technology enable the required capabilities to support integrated planning and execution and transform the company to meet the challenges of today and the future. This is accomplished with:

  • SAP HANA Platform- Foundation for Run Simple, enabling a unified data model, high performance, and real-time analytics on transactional systems with predictive analytics
  • An enhanced user interface with SAP Fiori and Excel Front End
  • Consumer grade collaboration with SAP Jam

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Transform with SAP

Leading consumer products and utilising SAP technology and software to increase market opportunity, achieve profit goals and grow market share


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Why SAP?

With innovative software from SAP, high tech companies can not only efficiently manage volatile and dynamic business but also innovate faster and run simpler

Why do companies trust SAP?

Proven track record of innovation

For high tech companies, the ability to innovate is critical to respond rapidly to evolving trends in today’s connected marketplace. SAP HANA provides the perfect innovation platform for the future

The best and most extensive solution portfolio committed to the future

SAP solution breadth is second to none, as is our commitment to bring industry specific innovative solutions into the market in a comprehensive and transparent manner.

“We remain focused on the success of our customers- they are heart of our ambitions. The passion of SAP employees has brought amazing momentum… our best-ever financial results… are testament to our strategic direction, our customer orientation and our world class employees.” Bill McDermott, CEO, SAP



Consumer Products Industry Challenges


  • Increasing market volatility
  • Challenging consumer preferences
  • Changing Consumer demands
  • Shorter product life cycles




Key Differentiators of IBP for the Consumer Products Industry

  • Leverage demand sensing to keep up with rapidly changing demand
  • Handle large scale scenarios with HANA
  • Demand sensing
  • Align strategic plans with execution in a single system
  • Seasonal Scenarios
  • Assess profitability by customer, channel and product
  • Financial, Unit and rapid “What-If” Scenario Planning
  • Complex Supply Chain Analysis:
    • Finished Goods to Intermediates to Raw Materials
    • Multi-stage
    • Handles all demand and supply complexities
  • Demand Variability Analysis (Seasonal, Frequent, Intermittent)
  • Accelerate strategic plans with execution plans in a single system
  • Accelerate planning cycle time by incorporating cross functional team inputs
  • Network Visualization
  • Cross Functional Collaboration through SAP JAM
  • Inventory and Demand Driver Analysis



Additional Materials


Sapphire 2015 Customer Stories | Colgate | Replay

Sapphire 2015 Customer Stories | Florida Crystals/ ASR

Want to Keep Consumers Happy, Predict Demand/ Ship Quickly| Blog | June 2015

Webinar: Tyson Foods IBP for S&OP- Demand Planning Best Practices | Recording



Learn More


Key Contacts: David Kane; david.kane@sap.com

Getting Started: What is SAP Integrated Business Planning?

Explore Further on the Pre-sales Frequently Asked Questions?

Get More Details on SAP IBP Applications with the IBP Online Documentation



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