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Author's profile photo Consuelo Jimenez

Strategic Procurement for Consumer Product Companies

For consumer products companies, monitoring and satisfying dynamic customer demand is a crucial challenge. It requires simultaneously dealing with fluctuating costs, managing variable availability, and coordinating with a global network of suppliers. Improving and automating these functions means that scarce resources can be freed up to respond to the marketplace and increase customer satisfaction. In addition, as competition in the industry intensifies, midsize companies need technology solutions to provide greater transparency, predictability, speed, and affordability. Fast time to value and a short implementation schedule are critical for adoption and customer retention.

Leading consumer products companies consider procurement to be strategic – a source of competitive differentiation – from optimizing material and commodity costs to maximizing supplier relationships and accelerating inbound receipt and payments. By making procurement a strategic driver, midsize companies  can exceed cost-saving targets, facilitate effective collaboration with suppliers, enforce contract and catalog compliance, and streamline operations.

Surviving in the Age of Short Product Lifecycles

Having full control and compliance among suppliers, vendors, contracts, regulations, buyers and financial organizations is a must in a world of the shorter product life cycle. This demanding environment requires procurement to continuously seek new ways to enhance ROI and lower operating costs. Procurement professionals are increasingly looking to technology partners to help them achieve these goals.

SAP Ariba covers the end-to-end source to pay process, fully digitizing one of the most crucial departments within the company. Although the importance of the procurement function is often underestimated, it is truly the heart of a modern enterprise and a strategic source of competitive differentiation. Global companies seek solutions to digitize their procurement and better manage supplier risk decisions. There is a significant potential for midsize companies to take this road.

How Apollogic Addresses Consumer Products Procurement Challenges

Midsize businesses, especially, need to focus on addressing specific pain points, solve for those, and continue to focus on growth, cash flow management, and resource efficiency. As an SAP partner for many years, with deep experience implementing SAP solutions, Apollogic understands the importance of the simplification and digitalization of business processes in midsize companies.

After several strategic workshops with SAP, Apollogic decided to simplify their offer for midsize businesses by developing and offering a packaged solution approach. The result was the introduction of Purchasing 2.0, an SAP Ariba Snap package, designed for the consumer products industry.

 The Partner addresses key challenges with a pre-configured solution composed of proven best practices, buying channels, and content – from day one. With Purchasing 2.0, Apollogic unlocks resources within consumer product companies’ purchasing departments, providing new options for savings in a transparent and fully digitalized way. With deployment spanning a short four- to sixteen-week timeframe, customers can start to outrun the competition and take their business to the next level within a few short weeks.

Critical to the packaged solution approach is the pre-documented scope, transparent pricing, and rapid timeline. Thanks to the fast 12-week go-live program, customers incur fewer deployment costs and experience seamless implementation. With this approach, a typical midsize customer can achieve ROI as soon as six months after implementation.

For consumer product companies, Apollogic’s industry-specific expertise is also a significant advantage. The Partner has recently implemented SAP Ariba solutions for similar customers from their locations in Poland and Germany. They are a distinctly qualified partner for Central European companies due to their experience in the region and the ability to conduct business in local languages.

About Apollogic

Apollogic is a Polish-German company and SAP partner based in Poznan and Hamburg, specializing in business and technical consulting, successfully supporting clients since 2006. They specialize in advisory services in the field of SAP systems (ERP/S4, CRM/C4, SRM/ARIBA, Fiori/SAPUI5 and SCP/HANA) while possessing expert skills in related IT domains.

A special thank you to Kathryn Zwack and Tomasz Radomski for partnering with me to write this blog post.

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