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How CPG Players are Transforming Themselves Through SAP with RISE 

4 Mins read

Over the past few years, the consumer has firmly assumed a position in the driver’s seat. Businesses are now compelled to proactively meet the evolving needs and demands of the customers to gain a competitive advantage in tough global and local markets. Delivering personalized and seamless experiences are not merely options. This is imperative to drive positive business outcomes.

The customer has spoken, and along with personalized and contextual experiences, they also want CPG brands they interact with to be more socially responsible, sustainable, and transparent. 

As these shifts influence the CPG industry, those operating in this space also must account for shifting business models.

Direct-to-consumer and subscription models are now rapidly gaining ground. Some of that growth is coming at the cost of traditional business models. In uncertain economic times, the focus on improving profitability is increasing.

These influences are coming together to create the perfect storm for disruption in the CPG space. 

Disruption and the pursuant need to enhance competitiveness, add agility and resilience to business operations, and improve profitability are pushing CPG companies to capitalize on the potential of emerging technologies and solutions designed to meet the compelling needs of businesses today. Technologies such as RISE from SAP are specifically designed for those operating in the CPG space. Powerful solutions like this are helping these companies unlock value and deliver better business outcomes. 

RISE with SAP is a comprehensive suite of solutions that allow organizations to grow revenue by creating differentiated value, optimize business processes and sharpen process performance, and leverage the benefits of the cloud without compromise with solutions designed to address specific business needs and cover every regulatory requirement. 

Here is a look at how RISE with SAP is helping CPG players transform themselves to leverage the benefits of becoming digital enterprises:

Deeper insights for better business planning 

RISE from SAP enables CPG companies to move from a forecast-based to a scenario-based planning model. It unifies the financial and operational stakeholders in one S&OP process and enables real-time business planning. RISE allows businesses to link high-level strategic plans with mid-to-long-term operational plans to create operationally viable business plans that are aligns with the organizational goals and objectives. 

RISE provides CPG companies alternative what-if scenarios across key figures and dimensions and makes the entire business process collaborative and cross-functional. This makes the process more efficient as organizations get a complete and holistic view of all the influencers of business. RISE allows CPG players to balance inventory, service levels, and profitability quickly and effectively and provides the data and insights needed for better business planning. 

Improve logistics and transportation management 

RISE offers CPG companies the capacity to integrate their fleet and logistics management throughout the network. The open logistic network connects all business partners that drives inter-organizational collaboration and provides detailed and comprehensive insights on logistics and fleet management. 

RISE allows organizations to leverage the SAP Logistics Business Network to create a central entry point to manage all logistic transactions. This network can be further utilized to increase transparency across the entire value chain and improve the resilience of logistics processes, digitalizing common communication standards across the entire network. 

Organizations can also optimize logistics, improve services, increase visibility and control while reducing transportation complexity with RISE. With RISE CPG players can merge orders, maximize the return on the transportation spend, and forecast demand and shipment volumes accurately.

Forecasting demand and shipment volumes, enhancing freight, fleet, and logistics management to gain real-time visibility into global transportation and domestic shipping across transportation modes, and fine-tuning transportation planning enhances the service experience while improving profitability with better insights. 

Elevate warehouse management 

CPG companies have complex supply chains and large distributor networks. Fine-tuning these processes and integrating the complex supply chain logistics with warehouse and distribution processes can help companies gain greater visibility and control over warehouse operations.

RISE gives CPG companies the capacity to easily manage high-volume warehouse operations and optimize inventory tracking, distribution operations, cross-docking, multichannel fulfillment, and more in real-time. With data-backed insights, companies can improve warehouse and distribution processes and keep up with fluctuating demands while keeping costs in check. 

Drive faster, consumer-centric innovation

RISE operates like a central nervous system for organizations. It connects all processes and stakeholders and enables collaboration across the organization. RISE allows CPG companies to gain unified access to one of the world’s largest business networks which includes SAP’s supplier, logistics, and asset intelligence networks.​ 

RISE also helps organizations operating in the CPG space remove operational complexity by managing all service-level agreements (SLA), operations, and issue handling. With most of the heavy lifting done by SAP, CPG companies get more time and the insights needed to drive innovation according to the evolving needs of the customer.  

RISE with SAP allows organizations to leverage a wide portfolio of products and increase their capabilities according to their needs. SAP’s differentiated business capabilities help CPG companies innovate and establish new revenue streams, optimize business processes, and eliminate repetitive tasks while improving operational efficiencies. SAP offerings also help CPG companies understand, monitor, and optimize the environmental and social impact by reducing waste, driving supplier compliance, improving safety and sustainability. 

RISE with SAP employs process discovery reports, migration tools and services, and integration and extension capabilities and takes a data-driven approach to assess and drive transformation readiness. These readiness checks assist CPG companies to reduce transformation risk and help them make the best business decisions by tightly integrating and extending the digital core of the business and driving a faster time to market for innovations. 

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About author
Amitabh has decades of experience in Retail Solutions, especially in the Retail and Fashion Segment, He manages Enterprise level Global projects as Project Lead and Program Manager. As a founder & CTO at Groupsoft, Amitabh helps businesses in agile and waterfall project management through SAP implementations and advising on industry best practices.
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