Csbook Consumer Products

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 SAP Software Abbreviation List

8 10

APPAREL AND FOOTWEAR adidas-Salomon

14

adidas-Salomon

16

Mascot International

18

MAS Slimline

20

Nike

22

Wolverine World Wide

24

BEVERAGE

4

abi

28

Beck’s

30

Brown-Forman

32

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

5

Contents

DURABLES 3M

66

ATOMIC

68

CONAIR

70

PACIFICCYCLE

72

Plast Wood

74

Pressman

76

tesa

78

Villeroy & Boch

80

FOOD

6

Aarhus Olie

84

Barilla-Wasa

86

Brezelbäckerei Ditsch

88

Chupa Chups

90

CJ

92

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

7

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

8

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

9

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) 10

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 fashionrelated 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.

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“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

13

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 14

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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

15

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 16

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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

17

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 18

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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%

19

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. 20

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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

21

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 22

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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

23

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®, HarleyDavidson® Footwear, Hush Puppies®, Merrell®, Stanley® Footgear, and Wolverine®.

Wolverine World Wide www.wolverineworldwide.com 24

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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

25

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.

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“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

27

Consumer Products – Beverage

abi Amalgamated Beverage Industries Ltd. (abi) is the largest CocaCola 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 28

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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

29

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 30

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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

31

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 32

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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 – Improve production efficiency – Reduce cycle-time to create new packaging

– Reduce stock-outs – Lower procurement costs

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

33

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 34

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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

35

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 36

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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

37

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 38

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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

39

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 40

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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

41

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 42

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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

43

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 44

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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

45

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 46

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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

47

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 48

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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

49

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.

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“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 inventoryreduction goals.” Vara Gollakota, Solutions Leader for Pan-Asian Supply Chain Project, Sony Marketing Asia Pacific SAP Customer Success Story Sony Marketing Asia Pacific

51

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 52

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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

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“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

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“. . . 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

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“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

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“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

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“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.

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“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

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“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

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“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

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“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

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“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

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“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 thirdlargest 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

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“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 companywide data, all at the touch of a button.

tesa AG www.tesa.com 78

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“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

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“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

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“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 highperformance 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

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“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

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“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 demandplanning tools it was looking for.

Chupa Chups www.chupachups.com 90

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“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 – Synchronize planning and execution – Integrate suppliers to avoid possible delays

– Anticipate customer demand – Foresee bottlenecks

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

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“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

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“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

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“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

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“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 – Minimized paperwork

– Had far fewer errors – 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

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“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

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“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

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“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

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“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

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“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

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“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

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“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

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Consumer Products – Home and Personal Care

COLGATE-PALMOLIVE Colgate-Palmolive is a U.S.-based $9.3 billion global consumerproducts 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

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“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

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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.

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“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 – Enabled a competitive advantage

– Provided faster access to better information – Reduced inventory and freed up working capital

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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

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“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

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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.

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“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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