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How can SAP IBP transform the CPG business faster?
10-15-2018

Disruption is the new normal, and customer experience is everything! As the core of the Retail and Consumer Packaged Goods (CPG) industries, the supply chain has experienced drastic changes in today’s increasingly complex world. It is vital for companies to examine their supply chain operations and identify improvement areas so they can handle the disruption before it impacts customer engagement. To gain a competitive edge, companies must streamline their supply chain operations, meet customer demands, keep pace with technology, and familiarize themselves with the digital supply chain.

Multi-channel retailing has transformed the way consumers shop and experience the retail and CPG services today. As the consumption patterns change, the industry is trying to find other opportunities for growth by exploring customer segments and new markets or by re-inventing the traditional business models. To deliver the best possible customer experience, businesses are increasingly engaging in digital re-transformation to not only predict their consumers’ needs but also to deliver personalized experiences.

SAP Integrated Business Planning (IBP) is an integrated business solution that can solve the supply chain issues involving the customer. It can also help companies make better and faster decisions. By combining huge amounts of data and by integrating the supply network across the value chain, SAP IBP enables businesses to pursue ambitious growth strategies. These can help accelerate sales, serve the savvy customers, win new clientele, and provide perfectly tailored product or service suggestions, thereby enhancing the overall experience.

Let’s review some of the benefits of SAP IBP that can address the unique needs of your organization:

  • Connected supply chain : An integrated business planning solution can transform the supply chain and enable CPG companies to gain better visibility into customer demands, identify potential responses, anticipate obstacles, and deliver new value to enterprises.
  • Improved forecast accuracy : SAP IBP leverages predictive analytics and a demand sensing engine to offer a more granular approach to forecasting. It factors order backlog and recent shipment history. Additionally, it converts monthly planning cycles to daily cycles to help companies close the gaps that exist in traditional planning applications. By tying a company’s long-term objectives with operational concerns in real time, companies can optimize the short-term replenishment process at customer-facing warehouses and improve the overall experience.
  • Sales order management in real time : SAP IBP helps integrate planning processes and order fulfillment in real time allowing the review of all sales orders that are confirmed or unconfirmed. This enables companies to effortlessly decide where supply constraints can be adjusted according to the corresponding demand elements.
  • Long-term financial planning : Advanced frameworks in the SAP IBP solution provide flexibility to align supply chain strategies with financial planning in the long run. For example, the supply and consumed volume demand data can be used to accurately estimate the cost of operating strategies, thus enhancing the visibility into profitability. This allows companies to plan the future keeping the customer experience in mind.
  • Responsive planning with advanced algorithms : Unlike conventional tools, the what-if simulation in SAP IBP exceeds the capabilities by enabling a user to seamlessly craft necessary scenarios. By deploying scenario functionality at any time across the entire supply and demand spectrum, organizations can know what to expect from their customer and be prepared to deliver the same outcomes. This also helps them achieve financial as well as operational objectives.
  • Accelerate implementation : SAP IBP enables the CPG companies to fast-track implementation with a preconfigured customer solution. This eliminates the months of time spent on scoping, planning, designing, and testing as the system continues to evolve with the maturing processes. By using a baseline approach that is developed and refined through previous implementations, companies can deliver the right experience to the right customer and accelerate the ROI, tremendously generating impactful results.

SAP IBP provides the innovative tools required to transform supply chain planning. This powerful suite of functionality can enhance an organization’s ability to anticipate any bottlenecks in the supply chain, identify significant alternatives, and respond more efficiently and effectively. However, the execution of SAP IBP requires vision, strategy, and experience. Intrigo can help CPG companies effectively align processes and technology to meet business goals and unlock the true potential of SAP IBP throughout the organization. Check out how we have helped other customers here.

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Meet the Author

Anju Achuthan

Anju Achuthan

Senior Consultant
Anju Achuthan is a Senior Consultant at Intrigo Systems and is focused on supply chain planning, procurement and digital transformation initiatives at global corporations. She has over a decade of experience running supply chain and procurement initiatives at multinationals such as Danzas, Flextronics, Decathlon and Al-Seer Trading Agencies. In these roles, she has managed global supply chain initiatives at companies such as Nokia and Reckitt Benckiser.
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