winselectioncpfoodbev

SAP for Mid-Market Consumer Products:Food & Beverage Companies

Win-the-Selection with SAP Differentiation

A Sales Presentation Deck for SAP SGE AE and Partner Personnel

INTERNAL FACING SLIDEFor customer facing presentation, remove this slide.INTERNAL FACING SLIDEFor customer facing presentation, remove this slide.

Created by SAP SGE PSI TEAM

SAP CONFIDENTIAL

SAP Differentiation – Win-the-Selection DeckObjective

The SAP Consumer Products: Food & Beverage Differentiation and Win-the Selection presentation is designed to support the delivery of differentiated value selling messages to different members of a customer organization in various aspects of a sales cycle.

The use of this deck is for SAP Mid-Market (SGE) AE’s and Partners in a sales cycle in the form of presenting SAP and it’s differentiation through the introduction, industry solution presentation, value positioning and delivery.

Before you present, know what questions prospect wants you to address and are unique challenges to their business. Verify these before you begin presentation.

Please read the following page (slide) for the Usage Guide.


SAP CONFIDENTIAL

SAP Differentiation – Win-the-Selection DeckUsage Guide

AE/Partner decides which slides are of value, depending on the phase of the deal: First Meeting – SAP/Partner Introduction & Discovery Vision-to-Value – SAP Positioning Value Differentiation Win-the-Selection – Presenting Value to Close

Depending on the opportunity, these phases and various slides may, or may not weave together. Partners, work with your SAP AE in coordinating and leveraging this deck for best use given your deal opportunity.

AE/Partner modify before using: Follow recommendations on each slide in the deck (yellow comment box in upper right corner) Also, reference the slide notes section for additional information on use or for slide definition. Use Account/Prospect Blue Print – Obtain base line information on Company

– Information sources for PUBLIC companies: Information sources for PRIVATE companies:– 10K (MD&A) - Prospect website– Earnings Calls - Look up Public peer/competitor companies; – Analyst coverage understand their business situation and tweak to your

prospect– PR and other available public data - Ask the Industry Principal to provide input

Add Appropriate, Relative Customer Success Story Add Partner Logo Edit according to

The following provides a guideline for SAP SGE AE’s and Partners in using this deck in a sales cycle with mid-market accounts – from the first executive meeting, establishing SAP the vision-to-value, or working with the prospect to close the deal and win-the selection. Note that some of these slides are for internal use versus those meant as external, customer facing slides (notated in the blue box in the lower right corner).

Provide feedback to SGE PSI so that we can measure success, identify improvements and enhance. We need to know what works and what doesn’t work. Contact information is available in the notes section of slide 2 of this primary deck.


SAP CONFIDENTIAL

Win-the-Selection Talk Track TutorialsSAP Internal Access

Talk Track Tutorial

Link

Heaven & Hell See Talk Track slides 48-51 of this deck

Also view http://www.sap.com/community/events/2008_07_22_LTG/index.epx for general CP

Section 3: Minimal Business Disruption

http://smartdirectory.sap.corp:3080/Assets/asset.epx?id=71a3281c-b750-43bf-89b8-730dfb6c44a2

Complete Deck Example

http://smartdirectory.sap.corp:3080/Assets/asset.epx?id=a530a73e-dd51-45ec-bb07-bcc6f71e1d78

These tutorials are provided to assist you in developing your talk track when presenting the WTS deck:

Heaven & Hell – This tutorial provides specific speaking points for the “Heaven and Hell” slides contained in Sections 1 and 2 of the deck. Read the written talk track or listen to the recorded speaker to hone your ability to speak to the industry pains and to articulate how SAP specifically addresses the pains.

Section 3: Minimal Business Disruption – The talk track to this portion of the deck is critical. This is where you have to bust myths and refute our competitors’ FUD around our A1 solutions. It is not industry-specific. Listen to the recorded speaker to get the nuances of effectively presenting this message.

Complete Deck Example – This link provides a recording of a complete WTS deck presentation – You can listen to an individual section and/or to the complete presentation as an example of how a complete deck is assembled and delivered.


SAP CONFIDENTIAL

Win-the-Selection Talk Track TutorialsPartner Access

Talk Track Tutorial

Partner SMART Asset(s)

Heaven & Hell

See Talk Track slides 48-51 of this deck

Also view http://www.sap.com/community/events/2008_07_22_LTG/index.epx for general CP

Section 3: Minimal Business Disruption

Complete Deck Examples

INSTRUCTIONS: To access the tutorial on Partner SMART, search on “Sales Training Materials/English” and scroll to the specific asset(s) listed here:


SAP for Mid-Market Consumer Products:Food & Beverage Companies Company ABC

<date><presenter>

<insert customer logo>

CUSTOMER FACING SLIDERemove the Blue and Yellow Text BoxesCUSTOMER FACING SLIDERemove the Blue and Yellow Text Boxes

AE/Partner to AddendCompany nameDate of meeting and presentationName of presenters

AE/Partner to AddendCompany nameDate of meeting and presentationName of presenters

SAP CONFIDENTIAL

Understanding your business How SAP can uniquely enable <company name> strategic objectives How others quickly converted to SAP with minimal business disruption

Agenda


This is standard – no customizing

SAP CONFIDENTIAL

Intensifying CompetitionIntensifying Competition

Globalization & Emerging MktsGlobalization & Emerging Mkts

Demanding Retailers

Demanding Retailers

DynamicConsumersDynamic

Consumers

Rapid globalization via emerging markets

Rising prices & diminishing resources – energy, ingredients and commodities

Standards to manage globally, agility to execute locally

Rapid globalization via emerging markets

Rising prices & diminishing resources – energy, ingredients and commodities

Standards to manage globally, agility to execute locally

Evolving food & beverage retail formats

Compliance, food & beverage safety & sustainability requirements

Speed to market with innovative, tailored solutions

Evolving food & beverage retail formats

Compliance, food & beverage safety & sustainability requirements

Speed to market with innovative, tailored solutions

Competition on price and process

Industry convergence and consolidation

Selling to and competing with retailers

Competition on price and process

Industry convergence and consolidation

Selling to and competing with retailers

Better informed, more demanding, e.g. nutrition and diet

Want convenience & value and health & wellness

Price / Value conscious - Quality food at fair prices

Better informed, more demanding, e.g. nutrition and diet

Want convenience & value and health & wellness

Price / Value conscious - Quality food at fair prices

Key Trends are Driving Change in the Food & Beverage Industry

Market trends are driving food & beverage companies to develop and deliver innovative go-to-market capabilities.



SAP CONFIDENTIAL

Key Strategic Imperatives

Develop superior insights on the total marketplace: consumers, shoppers, and retailers

Increase the success rates for and impact of new products

Be the Supplier of Choice

Be the Supplier of Choice

Exploit opportunities for category and geographic expansion

Win shelf space and market share through superior account management and service leadership

Bring superior-quality products to market, and grow brand strength

Accelerate GrowthAccelerate Growth

Improve brand equity and price premium for products

Aggressively manage operating costs and process efficiency

Increase effectiveness of trade and consumer marketing

Increase MarginIncrease Margin

Each food & beverage company must pursue these strategic imperatives in ways appropriate to their unique strengths and market position.



SAP CONFIDENTIAL

<Company X’s> Business Challenges

Our Understanding Of

Your Strategy

Key Business Drivers

Intensifying Competition- Leverage emerging channels for engaging with consumers- Differentiate via comprehensive solutions for shoppers & consumers

Globalization & Emerging Markets- Business networks - partner globally to deliver locally- Connect the global value chain – from ingredients to delivery at retail shelf

Demanding Retailers- Enable retailer differentiation via programs tailored to retailers’ shoppers- Deliver flavors, preferences and relevant lifestyle options for their

shoppersDynamic Consumers

- Deliver quality, healthy food & beverage choices with convenience & value

Provide an integrated, lower cost solution to the purchasing, management and administration of customers' MRO needs (easy to buy from) Operational Excellence

Same Day Shipping100% order fill rate

Focus on Value-Added Customer Service Billing e-commerce

Your Key Requirements

xxx


AE/Partner to AddendUnderstand company strategy and business drivers. Collect information on prospect Blue Print (SAP AE) – leverage 10K (MD&A), financial statements, analyst calls, public information, etc. Highlight the key strategies and drivers obtained from your due diligence. After an executive first meeting, before you present, know what questions prospect wants you to address. Verify them before you begin presentation.

Include the “Your Key Requirements” section only if you are at a point in thesales cycle in which you can clearly articulate the prospect’s specific and unique Key Requirements and are prepared to directly address them throughout the presentation.

Reference Notes Page for additional information.

AE/Partner to AddendUnderstand company strategy and business drivers. Collect information on prospect Blue Print (SAP AE) – leverage 10K (MD&A), financial statements, analyst calls, public information, etc. Highlight the key strategies and drivers obtained from your due diligence. After an executive first meeting, before you present, know what questions prospect wants you to address. Verify them before you begin presentation.

Include the “Your Key Requirements” section only if you are at a point in thesales cycle in which you can clearly articulate the prospect’s specific and unique Key Requirements and are prepared to directly address them throughout the presentation.

Reference Notes Page for additional information.

SAP CONFIDENTIAL

What does this Mean for Your Business?

How do we… Aggressively manage operating costs and

process efficiency?

Protect margin?

Identify new growth opportunities?

Manage safety & compliance regulations?

Deliver differentiated products to customers?

Understand and serve consumers?

- Insert Customer Logo Here -


AE/Partner to AddendDepending on phase of conversation, append key questions• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account

AE/Partner to AddendDepending on phase of conversation, append key questions• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account

SAP CONFIDENTIAL

Forward Thinking BusinessERP 1.0 vs 2.0

Source: PWC – “Why Isn’t IT Spending Creating More Value?” – June 2008

According to Gartner less than 13% of IT budget goes toward innovation of products, processes, or customer value in your industry.

By managing out complexity in your systems and processes more capital is available to innovate which supports your stated business objectives.

A recent PWC survey stated “In order to create and sustain value, IT investment must support organizational and business process change and innovation.”



Source: “Why isn’t IT spending creating more value?” – June 2008 – PricewaterhouseCoopers

The Issue: Responding effectively to consumer needs is impossible with disconnected systems & processes

In the absence of coordinated, integrated systems and processes, Food companies struggle to serve consumers effectively

Pain: Long lead times and poor alignment; Average 15 months to launch a new product, and 50% - 80% of new products fail

Pain: Poor coordination = ineffective spend; 65% of food manufacturers rate their sales & promotion effectiveness “poor”

Pain: Lack of cross-functional visibility results in 15% - 20% average out-of-stock rates, leading to lost sales at retail

Pain: Delivering timely analyses while managing internal & external data = overhead and expensive 3rd party costs

Pain: No visibility – Can’t see company-wide production status due to multiple disparate systems


AE/Partner to AddendDepending on phase of conversation, append challenges• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account

AE/Partner to AddendDepending on phase of conversation, append challenges• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account

Understanding your businessHow SAP can uniquely enable <company name> strategic objectivesHow others quickly converted to SAP with minimal business disruption

Agenda



The Solution: Coordinated, integrated systems and processes enable the Consumer Driven Enterprise

Only SAP offers industry leading solutions across the entire Food value chain, enabling coordinated, integrated business processes from strategic planning to tactical execution

Solution: Synchronize food demand with ingredients & packaging supply to drive customer service excellence

Solution: Capitalize on consumer needs to accelerate time-to-market with compelling food & beverage innovations

Solution: Coordinate cross-functional capabilities to deliver differentiated food & beverage products

Solution: Timely consumer, customer, and operational analyses drive go-to-market processes

Improved forecast accuracy > 33%

Imoved time-to-markpret 35%

Target promotions & redirect funds to branding; improved consumer take-away through promotions

Solution: Integrate Sales Volume Forecasts and Demand & Supply Planning

Days in Inventory decreased by 10%

AE/Partner to AddendDepending on phase of conversation, append enablers• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account

AE/Partner to AddendDepending on phase of conversation, append enablers• First meeting – Typically no customizing is necessary• Following meetings and content customized pending focus areas as identified with account


Improved customerservice

SAP CONFIDENTIAL

SAP Leadership in the Consumer Products Industry

>4200 SAP CP CustomersWorld-Wide

Apparel & Footwear (7 / Top 10)

Beverage (all Top 10)

96 % of the Top 500in CP run SAP

Home & Personal Care (9 / Top 10)

Durables / HA / CE (9 / Top 10)

… and > 1500 mid-marketcustomers

Food (all Top 10)

10%

45%

17%

Food

Beverage

AFS

17%

11%

HPC

HA/ CE /Durables



SAP CONFIDENTIAL

Sample SAP Consumer Products Customers


Apparel & FootwearHome & Personal Care Durables

Food & Beverage


SAP CONFIDENTIAL

Just a Few of SAP’s Mid-Market Food & Beverage Customers



SAP CONFIDENTIAL

The Complete Food & Beverage Value Chain Runs SAP

Wholesaler / Distributor

Retail Customers

Food / BeverageManufacturer

Packaging Supplier

Food & Beverage Ingredients

8 of the Top 10 Food Ingredients companies run SAP

8 of the Top 10 Food Ingredients companies run SAP

10 of Top 10 Food companies run SAP

10 of Top 10 Beverage companies run SAP

10 of Top 10 Food companies run SAP

10 of Top 10 Beverage companies run SAP

Food & beverage distribution fastest growing wholesale segment for SAP

Food & beverage distribution fastest growing wholesale segment for SAP

1500+ food and beverage retailers worldwide run SAP

1500+ food and beverage retailers worldwide run SAP



SAP CONFIDENTIAL

SAP Investment Impact on the General Consumer Products Industry

A significant amount of R&D isbenefiting the Consumer Products

Industry:

Supply Chain Effectiveness Brand Management Trade Promotion Management Recipe Management Innovation Management Master Data Management RFID Direct Store Delivery Business Planning (CPM) Sales & Operations Planning Demand & Revenue Management

“Importantly, the stronger margin does not appear to becoming at the expense of future growth – R&D headcount is up Q/Q and Y/Y and S&M headcount is down marginally quarter-on-quarter and up year-on-year – both indicating that capacity and product investment are not being curtailed.”

– Smith Barney on SAP

Overall R&D Investment ($ Millions)

766

944

1,1471,219

1,373

1,5401,675

1,875

2,076

486

1,1591,274

0

500

1000

1500

2000

2500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



SAP CONFIDENTIAL

Industry Business Scenarios Select Customers

Financial Excellence

Responsive Supply Networks

Superior Customer Value

Product & Service Leadership

Strategic IT

SAP Delivers Comprehensive Solutions to Food & Beverage Companies

93% of Top 500 global CP companies run SAPFood & Beverage Industry leaders are leveraging SAP beyond ERP to address high-

value industry scenarios



SAP CONFIDENTIAL

Ateeco, Inc.Listen to Tim Coyle discuss his SAP project

Challenges and Opportunities Retire a heavily customized legacy

system Reduce batch processing and manual

tasks Improve inventory control at third-party

warehouses

Objectives Establish a platform for future growth Provide better information for business

decisions Improve visibility into customer

profitability

Implementation Highlights On-time, on-budget project Rapid 13-week implementation cycle Strong executive buy-in and support Solid project management that focused

on requirements Project team that included the

company’s best people Application of ASAP methodology

Why SAP Stable, future-proof, enterprise

resource planning system Food and beverage experience Affordable, preconfigured industry-

specific solution

Benefits Provided decision makers with

accurate, real-time business data Improved customer profitability

measurements – operating margins, promotion effectiveness

Replaced manual tasks with automated processes

Enhanced coordination with warehouses through EDI communications

Increased inventory accuracy up to 98.9%

Reduced finished goods inventory by 25% (on average)

Reduced time to close monthly books by 70%

Ateeco, Inc. Headquarters: Shenandoah,

Pennsylvania Industry: Consumer products – Food Products and Services: Mrs. T’s

Pierogies (a potato-stuffed pasta shell) Revenue: US$48 million Employees: 200 Web Site: www.pierogies.com SAP® Solution and Services: ARIS

SmarthPath for CPG Foods, an SAP Business All-in-One partner solution

Implementation Partner: IDS Scheer

“SAP software is not just for large

companies. An SAP Business All-in-

One solution is an affordable,

exceptional product for any size

company. I think we prove that.”

Tim CoyleDirector of Information Systems & TechnologyAteeco, Inc.

QUICK FACTS



SAP CONFIDENTIAL© SAP America /

Johnsonville Sausage LLC

Challenges and Opportunities Replace multiple, best-of-breed

legacy applications with a single integrated planning and execution system

Prepare for changeover to the mySAP™ Business Suite applications

Objectives Implement SAP® Advanced

Planning & Optimization component for demand and supply network planning – independent from the mySAP ERP application.

Continue multiyear plan for transition from legacy ERP to mySAP Business Suite

Maintain or improve all key performance metrics during and after implementation

Benefits Daily forecasting capability Enhanced vendor-managed

inventory planning and stimulation – fully integrated with corporate demand and supply planning

Capacity-constrained supply plan with future shortages highlighted for exception management

Long-term (over 5-year future window from current status) supply and demand planning simulation and analysis

Ability to modify planned orders in the business planning and stimulation tool and track execution changes

Johnsonville Sausage LLC Location: Sheboygan Fallls, Wisconsin Industry: Consumer goods Products and Services: Food Revenue: US$500 million Employees: 1,000 Web Site: www.johnsonvile.com SAP® Solutions and Services: mySAP™

Supply Chain Management application with the Advanced Planning & Optimization component

Implementation Partners: itelligence Inc. and Bristlecone Inc.

“One reason we were so successful

and the team maintained our metrics is

that we had experienced full-time

members dedicated to the project. This

wasn’t a part-time commitment.”

Ron GIlsonCIOJohnsonville Sausage LLC

QUICK FACTS




Tasty Baking Company

Challenges and Opportunities Drop in operating margin from

7.9% in 2000 to -4.9% in 2002 Complex existing IT

infrastructure insufficient to support the turnaround plan of a new management team

Objectives Create an entperprise

applications backbone that could support the strategic plan

Why SAP Industry standard – most robust

for food companies Low risk – stable company Industry best practices Cultural fit Superior customer service

Benefits Improvement in key business

metrics within one year Order fill rate improved by 2 %

pts Returns reduced by 4% Days in Inventory decreased by

10% Inventory write-downs reduced

by 60% Fixed asset utilization increased

by 5% Thrift product reduced by 40% Internal rate of return of 43%

over 5 years Net present value of ~5x the

initial investment Achieved 11% increase in sales

without new staff

Tasty Baking Company Location: Philadelphia, PA Industry: Consumer goods Products and Services: Food Revenue: US$295 million Employees: 1,100 Web Site: www.tastybaking.com SAP® ERP Deloitte Consulting

When we started the project, no one in

IT had any experience with SAP

software. We were not only able to

learn SAP skills quickly; we can now

provide most of the support internally

at a very low cost .”Dave Marberger Chief Financial Officer Tasty Baking Company

QUICK FACTS




Dairy Industries Jamaica Ltd.

Challenges and Opportunities Achieve operational efficiencies to

compete well against global companies active in marketplace of Dairy Industry Jamaica Ltd. (DJIL)

Integrate business processes to cope with rising manufacturing costs and increasing business complexity

Objectives Eliminate disparate application

platforms throughout organization Fulfill parent company’s reporting

requirements

Why SAP Met DIJL’s industry-specific

functional requirements Is known for long-term viability as a

vendor Offers cost-effective solutions with

best business practices integrated

Benefits Use of preconfigured templates

to lower risk and accelerate time to value

Improved inventory control and materials management

Increased accuracy and visibility of information

Better data access, resulting in more efficient decision making

Increased productivity from functionality found in the SAP NetWeaver® Business Intelligence component

Dairy Industries Jamaica Ltd. Location: Kingston, Jamaica Industry: Consumer goods Products and Services: Dairy Products Revenue: US$24 million Employees: 70 Web Site: www.gracekennedy.com SAP® All-in-One IDS Scheer North America

“Before introducing the SAP solution,

the sales and distribution functions

operated independently and would

only feed information to manufacturing

by way of purchase orders. With SAP

software, these functions are tightly

integrated.”

Andrew Ho General ManagerDairy Industries Jamaica Ltd.

QUICK FACTS




The Boston Beer Company

Challenges and Opportunities Increasing complexity of

business with a lack of reliable systems for inventory, MRP, purchasing, cost center, and department budgeting

Impossible to obtain “good/useful” information quickly

Multiple systems required too much manual intervention and maintenance (SAP replaced WDS)

Objectives Quickly implement a robust and

stable ERP system that will improve decision-making

Minimize system support and maintenance costs

Why SAP Breadth of functionality Flexibility and customization

capabilities State-of-the-art technology Ongoing investment in product Commitment to fast

implementation

Benefits Only one FTE required to

maintain SAP Total IT cost is now <1% of

revenues

The Boston Beer Company, Inc. Location: Boston, MA Industry: Consumer goods Products and Services: Alcoholic

Beverages Revenue: US$238 million Employees: 390 Web Site: www.bostonbeer.com SAP® ERP

““SAP has provided us with precisely

what was needed—a stable, scalable,

and cost effective ERP solution.” Frank John WigginsDirector of Information TechnologyThe Boston Beer Company, Inc.

QUICK FACTS



SAP CONFIDENTIAL

Carolina Turkeys acquires ButterballWatch a Sapphire 2008 replay

© SAP 2009 /



SAP CONFIDENTIAL

Carolina Turkeys leverages SAP for traceability

Challenges and Opportunities Replace companies software platform

to remove growth constraints imposed by legacy system

Objectives Utilize knowledge and experience of

the SAP Best Practices offering that support food and beverage companies to help Carolina Turkeys increase productivity and competitiveness while addressing regulatory compliance requirements

Implementation Highlights Deployment of a state-of-the-art ERP

packaged solution within 7 months, within budget, and with minimal disruption to operations

Accelerated deployment due to skilled, knowledgeable internal subject matter resources complemented by external consultants

Solution that selectively combines Carolina Turkeys’ existing differentiated processes with industry Best Practices

Why SAP Solutions Accelerated time to benefit Better-managed risk while taking steps

to acquire competitive options Rapid, affordable implementation plan Desire to go with SAP as proven

leader in food and beverage industry

Benefits Higher throughput, productivity, and

profitability anticipated Higher levels of customer services and

satisfaction expected Improved customer order fill rates and

flock-to-customer traceability expected Reduction in working capital for

packaging and spare parts inventory projected

Reduction in payroll processing expense projected

Carolina Turkeys Location: Kings Mountain, North

Carolina Industry: Consumer goods Products and Services: Food and

Beverage Web Site: www.carolinaturkeys.com SAP® Solutions and Services: mySAP™

ERP packaged solution for food and beverage, SAP NetWeaver platform

Implementation Partners: Deloitte Consulting LLC

“With SAP software, we know that

we’re a better run company.”

Gary Lenaghan,VP of Human ResourcesCarolina Turkeys

QUICK FACTS

© SAP 2009 /



SAP CONFIDENTIAL



SAP CONFIDENTIAL

Smooth Sailing for Seafood Distributor with SAP® Software

Challenges and Opportunities Scalability, functionality, and

uncertainty of existing system Untimely, inaccurate information and

complex data administration Burdensome compliance with

regulatory statutes Concerns related to losing historical

data in migration to new system Corporate acquisition requiring minimal

IT disruption

ObjectiveIntroduce scalable, state-of-the-art software to optimize operations and support growth

Implementation Highlights Strong executive leadership and

participation Minimal customization of SAP® solution

Why SAP Ability to scale for corporate growth Support for Slade Gorton’s shared

services vision Out-of-the-box, seamless integration

with other key business functions such as procurement and warehousing

Confidence in SAP’s future vision and plans for solution development

Benefits Ability to operate with very lean staff

and minimal costs, while maintaining very high levels of customer service

Separation of duties, especially critical in a very lean environment

Real-time, accurate and timely reports with lower IT support costs

QUICK FACTS

Slade Gorton & Co. Inc. Location: Boston, Massachusettes Industry: Wholesale distribution Products and Services: Seafood Revenue: US$320 million (FY 2005) Employees: 155 Web Site: www.sladegorton.com SAP® Solution and Services: SAP® ERP

Financials solution

“Sales is now fully integrated with us

here in Boston. . . . We now function as

a single entity with multiple locations.”

Bonnie HardyVice President of Shared ServicesSlade Gorton & Co. Inc.



SAP CONFIDENTIAL

© SAP 2009

SAP® ERP Upgrade Skips “Bells and Whistles” to Keep Sugar Firm on Fast Track



SAP CONFIDENTIAL

SAP Provides an Integrated Solution for Seneca Foods

“SAP's commitment to and expertise in the food

industry is apparent in the capabilities of its solutions

and the knowledge of its people. Seneca is now better

positioned to grow our business and service our

customers and employees”

Carl CichettiChief Information Officer Seneca Foods Corporation

Company Seneca Foods

Location Marion, New York

Industry Consumer Products

Products/Services Canned and frozen food producer

Revenue $1.2 billion

Employees 3,358

Web Site www.senecafoods.com

SAP® Solutions and Services SAP ERP, SAP solutions for GRC, SAP NetWeaver® XI, NetWeaver MDM, SAP Productivity Pak by RWD, SAP xRPM, SAP Interactive Forms by Adobe, Redwood, ARIS

Challenges and Opportunities Lacked an integrated HR system Non-integrated systems Financial costing done manually Redundant data entry

Objectives Implement a business process platform designed

to support growth and accommodate change Improve financial close process Replace spreadsheets with real-time reporting

driven by business operations

Implementation Highlights SAP is replacing an Oracle-based application,

Epicor, ADP/Horizon, and other home-grown applications

Why SAP Demonstrated a thorough understanding of

Seneca’s business needs and addressed them with specific functionality

SAP’s market penetration and the number of consumer product sites in production with SAP

Uncertainty about Oracle Fusion and the future of their various applications

Benefits Improved capabilities, such as HR and costing Integration between applications, improved data

visibility, and elimination of redundant data entry SOX compliance Strategic IT capabilities; legacy system retirement Improved data integrity and reportingCUSTOMER FACING SLIDE

Remove the Blue and Yellow Text BoxesCUSTOMER FACING SLIDERemove the Blue and Yellow Text Boxes


SAP CONFIDENTIAL



SAP CONFIDENTIAL

Cliffstar: 40% Growth in Business with SAP®

© SAP 2009 /



SAP CONFIDENTIAL

Community Coffee

Challenges and Opportunities Maintaining multiple legacy

systems to manage its business operations

Objectives Align business processes with IT

to better serve customers Gain consumer goods best

practices that will drive business growth

Implementation Highlights On time, within fixed budget Elimination of business

blueprinting with preconfigured SAP Best Practices

Strong executive sponsorship

Why SAP Industry expertise; process-based

foundation based on proven SAP Best Practices

Majority of company needs met with preconfigured business processes

Benefits Improved customer service Better inventory control Increased profitability Fully integrated system across entire

organization Consolidation of financial processes

Community Coffee Company Location: Baton Rouge, Louisiana Industry: Consumer Products Products and Services: Coffee Revenue: $148 million Employees: 1000 Web Site: www.communitycoffee.com SAP Solutions and Services: SAP®

Business All-In-One, SAP® Best Practices Partner: IDS Scheer

“For over 85 years, Community Coffee

Company has leveraged innovation and

experience to make and deliver fresh, great-

tasting coffee. This new system will further

enable us to have the right products, in the

right place, at the right time to better

serve our customers.“

Mat Saurage

President (and 4th generation founding family member)

Community Coffee Company

QUICK FACTS



SAP CONFIDENTIAL

Productos Chata

Challenges and Opportunities Obtain better information, real

time data for decisions, better process integration from purchasing to sales

To improve financials and customer service through strengthened reporting and enhanced integration between sales and purchasing

Objectives Streamline business processes

and increase productivity More business transparency Develop a system that can scale

with the company

Implementation Highlights Saved time through preconfigured

business processes that didn’t have to be customized

Reduced risk and complexity due to use of SAP Best Practices

Why SAP Rapid deployment, highly specialized

for industry Supports both consumer products

scenarios and Mexican business requirements

Industry leadership and success stories

Good support and growth platform for long term

Benefits Information consolidation Real time decisions Integrated processes Improved communications & visibility Rapid growth supported Less lead time required

Productos Chata Location: Culiacán, Sinaloa (Mexico) Industry: CPG Products and Services: Specialty Mexican

foods: meats, broths, tamales, beans Revenue: $70 million Employees: 1400 Web Site: www.chata.com.mx SAP Solutions and Services: SAP®

Business All in One, SAP ® Best Practices Partner: Grupo ASSA

“The SAP All-in-One solution built on theSAP Best Practices supports both our consumer products scenarios and the Mexican business requirements, saving us valuable time through preconfigured business processes that we didn’t have to customize."

Raúl AchoyIT ManagerProductos Chata

QUICK FACTS



SAP CONFIDENTIAL

Understanding your business How SAP can uniquely enable <company name> strategic objectives How others quickly converted to SAP with minimal business disruption

Agenda



SAP CONFIDENTIAL

500 – 1000

> 25016.7 %

8.3 %

10.1 %

Company Revenue in $M US

64.9%

Total Customers: 50,100

> 2500

1000 – 2500

500 – 1000

Over 75% of SAP installations worldwide are in companies with $1B or less in revenue

DID YOU KNOW……

Two-thirds of our customers are midsize companies like yours

When you include Business Objects Customers, 78% of SAP customers are SME’s (~64,000 SAP SME Customers)

SAP has 36% SME business software market share compared with: Oracle 28% | Sage 24% | Microsoft 12%

SAP has over 500 vertical solutions focused on SME, which are developed and sold by SAP Channel Partners



SAP CONFIDENTIAL© SAP 2007 /

COMPANY SIZE

Company Industry Revenue EmployeesERP

Implementation Time

Ateeco (Mrs. T’s) Food & Beverage $48M 200 13 weeks

Angostura Food & Beverage $175M 250 16 weeks

Lastar Wholesale Distribution $100M 200 16 weeks

Joerns Healthcare Life Science $175M 700 16 weeks

Pressman Toy Corporation Wholesale Distribution $50M 300 18 Weeks

Frederick Wildman & Sons Wholesale Distribution $100M 110 5 months

Life is Good Durable Goods $100M 500 5 months

Slade Gorton Food & Beverage $320M 155 5 months

Twinlab Corporation Nutritional Supplements $250M 1137 5 months

Island Oasis Food & Beverage $68M 210 6 months

Hawaiian Tropic Personal Care Products Private 500 6 months

Thrifty Foods Food & Beverage $400M 3,700 6 months

Stylemark Durable Goods $26M 350 6 months

Carolina Turkeys Food & Beverage $500M 300 7 months

Community Coffee Food & Beverage $148M 1,000 7 months

Tasty Baking Food & Beverage $295M 1,100 8 months

Atkins Nutritionals Wholesale Distribution $100M Est 75 8 months

Lowest Risk SAP Execution Success in with Quick, Affordable Deployments


SAP CONFIDENTIAL

“Design to Order”

“Reusable components”

“Off-the-shelf

Investment

Time

“Repeatable Processes”

52+ Weeks1992 - 1999

24 – 52 Weeks2000 - 2003

12 – 16 Weeks2004 - current

The Evolution Of The SAP Implementation

Leverage the industry experience from 1000’s of implementations

Adjustments within project

StandardSystem

StandardSystem

StandardSystem


SAP BestPractices


SAP BestPractices

PackageSpecification



SAP CONFIDENTIAL

Extensive Industry Expertise

SAP Best Practices for Consumer Products

Preconfigured Industry Template

Industry analysts

Industry surveys

Partner expertise

SAP industry expertise

User groupsConsumer Products clients



SAP CONFIDENTIAL

SAP Business All-in-One Solution

The SAP Business All-in-One Solution is based on:

A consistent foundation supplied by SAP: Netweaver architecture MySAP ERP Industry Best Practices Templates, Tools, Documentation &

Methodologies

From which, Partners enhance the foundation to deliver Industry Specific qualified solutions with:

Micro-vertical requirements Rapid Implementation methodology Customized Documentation Tailored service offerings Local implementation presence



SAP CONFIDENTIAL

SAP Pre-Configured Industry Solutions

Customer Configuration

Customer Configuration

SAP/Partner Business All-

in-One

SAP/Partner Business All-

in-One

Micro-vertical functionality with built-in content, tools, and methodologies

delivered by SAP partners

Micro-vertical functionality with built-in content, tools, and methodologies

delivered by SAP partners

SAP Best Practices

SAP Best Practices

Preconfigurations based on thousands

of installations

Preconfigurations based on thousands

of installations

SAP Business Suite

SAP Business Suite

The undisputed ERP Market Leader

The undisputed ERP Market Leader

ManufacturingManufacturing

SAP Fast Start Bundle

SAP Fast Start Bundle

Start small and with extremely low risk

Start small and with extremely low risk

Services Services

Distribution Distribution

SAP Functionality

SAP Functionality

The richest set of industry- specific

functionality on the market today

The richest set of industry- specific

functionality on the market today



SAP CONFIDENTIAL

Embeded Industry Best Practices Saves <xx> Time & $$

Typical ERP Provider SAP

Takes More Time & Resources Because:

1) Delivers <xx> a blank sheet of paper – you can’t leverage experiences / configuration settings from peers in your industry.

2) Requires in more time and people to implement. <xx> will have to create the blueprint from scratch with no reference to what others in your industry have done. You are spending to re-invent the wheel.

3) <xx> will waste time and money experimenting with ramifications of options A through E of each business process.

Takes Less Time & Resources Because:

1) Delivers <xx> an industry specific blueprint to start from – enables you to leverage experiences / configuration settings from peers in your industry. Why spend money re-inventing the entire wheel?

2) You can focus time / resources on 20% of configuration that makes <xx> unique. Simply change settings in blueprint that don’t fit <xx> .

3) Results in less time and people. Much easier to erase and change portions of existing blueprint than to start with blank sheet of paper.

Update <xx> with customer name


SAP CONFIDENTIAL

1,107 Partners1,107 Partners

660+ Partner solutions660+ Partner solutions

9,590

8,240

11,700

2006

2005

We Have the Customers, Partners and a Track RecordDeep industry Best practices for ‘configure to needs’ midmarket customers

2004

6,935

11,3502007

Q1/20081,134 customer references1,134 customer references

50+ Countries50+ Countries

SAP Business All-in-One Trusted by businesses around the world



SAP CONFIDENTIAL

Gartner Magic Quadrant – SAP is the ERP Leader

“All-in-One is a unique offering for the midmarket, because it is actually the SAP product with a templated deployment methodology implemented by SAP partners. Each partner re-markets and implements an industry-specific offering that uses a combination of SAP industry templates, as well as partner-specific templates, to configure a turnkey solution for the customer with fixed scope and implementation at a fixed price.”

Figure 1. Magic Quadrant for Midmarket and Tier 2-Oriented ERP for Product-Centric Companies



SAP CONFIDENTIAL

R&D, Analyze & Plan

Procure & Manufacture

Market Sell Deliver & Service

Product & Service Leadership

Responsive Supply Networks

Operational Excellence

Superior Customer Value

Procure & Manufacture

Market & Consumer Insights

Best People & Talent

Financial Excellence

Strategic IT

SAP Delivers a Comprehensive, Integrated Solution for Consumer Products

Leverage pre-integrated, cross-functional best practices to lower risk and increase time to value



SAP CONFIDENTIAL

Scope of SAP Packaged Solution for Consumer Products


End-User Service Delivery

AnalyticsStrategic Enterprise

ManagementFinancial Analytics Operations Analytics Workforce Analytics

FinancialsFinancial Supply Chain

ManagementFinancial Accounting Management Accounting Corporate Governance

Human Capital Management

Talent Management Workforce Process Management Workforce Deployment

Procurement and Logistics Execution

Procurement Supplier CollaborationInventory and

Warehouse Management

Inbound and Outbound Logistics

Transportation Management

Product Development and Manufacturing

Production PlanningManufacturing

ExecutionEnterprise Asset

ManagementProduct Development

Life-Cycle Data Management

Sales and ServiceSales Order Management

Aftermarket Sales and Service

Professional-Service Delivery

Foreign-Trade Management

Incentive and Commission Management

Corporate ServicesReal Estate

ManagementProject Portfolio

ManagementTravel Management

Environment, Health and Safety

Quality Management

SAP NetWeaver People Integration Information Integration Process Integration Application Platform

AE to Addend Map solutions areas to specific company business challenges

Visit: help.sap.com

SAP CONFIDENTIAL

The SAP Packaged Solution for Consumer Products

ALL KEY BUSINESS PROCESSES ARE INTEGRATED AND SEAMLESSAnalyze, Plan and Develop Cost and profitability analysis Comprehensive sales planning and

monitoring

Procure Inventory/stock visibility Compare vendor quotations

Deliver and Service Complete support for product

returns. Complaint management and

track & trace capability

Market and Sell Capable to promise/available

to promise Product allocation

Manufacture Support for multi-stage manufacturing

processes Integrated costing and quality

management 3rd party Sales Drop-Ship

SAP All-in-One for Consumer Products



SAP CONFIDENTIAL

Phase 1

End-to-End Supply Chain Visibility

Phase 2

Customer Intimacy

Phase 3

Shared Services, Closed Loop Product

Lifecycle Mgmt

Roadmap: Risk MitigationPhased Deployment Approach

Master Data Mgmt, Data Conversion, Training

Installed Base Mgmt Customer Service Mgmt Trade Promotions Mgmt Channel Management Advance Demand &

Supply Planning Distributed Manufacturing

Distributed Manufacturing Visibility & Control

Global Trade Compliance Corporate Performance

Management

Rapid ERP Implementation Order to Cash Procure to Pay Supply Chain Planning Manufacturing Execution Financials SOX Compliance Business Intelligence

Sales and Opportunity Management

Marketing HR and Talent Mgmt Product Lifecycle Mgmt Environmental

Compliance (WEEE) Engineering Change

Control

Project Safeguarding, Value Realization

Account-Specific - Build roadmap with customer’s scope. Service lead may present.


SAP CONFIDENTIAL

The change aspects we

respect

Accellerating sustainable

change

The type of Projects we

support

Scope

Successful changeprojects

Strategy development Organizational design Process management

(Design, Reengineering, Statistical Process Control)

Support of mergers and takeover processes

Six sigma quality management

Change project support and consultancy

Goal setting & project management Workshop design & facilitation Monitoring of change processes Cooperation with external consultants

Assessment of change readiness & capacity

Stakeholder & impact analysis Involvement management Mobilization & communication design Individual & organizational learning Coaching Event organization

StrategyStrategy

StructureStructure

Products & Processes

Products & Processes

People IssuesPeople Issues

Changes in strategy, structure, products &

processes, people issues

The project Phases we

support

Process

Project management support during all project phases...

Understand the nature of change to maximize your

project success

SAP Provides a Comprehensive Change MgmtMethodology Backed By Services

If applicable, this slide may be replaced with the Partner’s methodology


SAP CONFIDENTIAL

Process Advisory Council(Business Unit Key Stakeholders)

Subject Matter Experts

Technical Advisory Council(IT Key Stakeholders)

SAP Has Put the People & Process in Place to Ensure <Company X’s> Success

Program Management Office Program Director Project Manager Technical Lead Chg Mgnt/Training Lead Integration Manager

Executive Steering Committee

PMO Support Financial Analyst Human Resources

Budget to Report

FulfillmentManufacturingPlanning & Execution

Sales & Marketing

Engineering Hire to Retire

Change Mgmt. / Training Team

Technical Team

Integration Team

Change Mgmt. / Training Team

Technical Team

Integration Team

First LastFirst LastFirst LastFirst Last

First LastFirst Last First Last First Last

Optional: Enter in specific names for target. Build the governance team with service lead.


SAP CONFIDENTIAL

Industry Expertise 30 + years of consumer products

experience Food & beverage best practices

accelerate time to value Industry partner ecosystem to develop

and implement Resource industry expertise to reduce

risk and enable project success

Trusted Partner Installed in the top 10 food companies

& the top 10 beverage companies > 1500 mid-market Consumer Products

customers Executive commitment and involvement

in your success 7x the mission critical apps run by SAP

than any other company

Enable business strategy Service enabled to innovate without

disruption Customer advisory boards leading

industry development Benchmarking & best practices

leadership Open business and development network Business network transformation

Why SAP?Leverage 30+ years of Consumer Products Experience

Lowest Cost of Ownership Flexible, proven implementation

methodology Shared service expertise Open platform scales to support growth Built-in value identification and value

delivery



SAP CONFIDENTIAL

SAP for <Company X>

Why ERP?

Why SAP?

Why Now?

xxx

xxx

xxx


AE/Partner to AddendUse this slide to articulate the most compelling points for the prospect.

Include the “Your Key Requirements” section only if you included it in the “Key Business Challenges” slide at the beginning of the deck

AE/Partner to AddendUse this slide to articulate the most compelling points for the prospect.

Include the “Your Key Requirements” section only if you included it in the “Key Business Challenges” slide at the beginning of the deck

Your Key Requirements

Xxx

Xxx

Xxx

SAP CONFIDENTIAL

Why SAP? - Top 10 Reasons

SAP is the de-facto Consumer Products industry standard.

SAP is a trusted advisor to the Consumer Products industry.

SAP is the most complete solution for the Consumer Products value

chain.

SAP is the undisputed business software market leader

SAP has the most active Consumer Products user community.

SAP creates sustainable shareholder value.

SAP adheres to the highest standards of quality.

SAP is an open and flexible technology platform.

SAP has the most comprehensive Consumer Products partner

ecosystem.

SAP is the safe choice in a consolidating industry.

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

Customize for Sub-Segment.Use ISG Sales Asset “Top 10 Reasons”


SAP CONFIDENTIAL

Thank you!

SAP CONFIDENTIAL

<Business Challenge #1>

SAP Solution Enablers

Difficult to allocate trade promotions budget to most effective accounts or promotions.• Increase promotion

effectiveness by providing detailed information of promotion effectiveness down to the account and category level allowing allocate funds to most effective promotions and accounts.

• Increase in promotional sales 3-5%

Source: SAP analysis

SAP Value

$XXm annual improvement due to faster partner productivity.

$XXm unique to SAP annual improvement in

<Issues/needs for company>

Drive Innovation Develop superior insights

on the total marketplace: consumers, shoppers, and retailers

Increase the success rates for and impact of new products

Accelerate Growth Exploit opportunities for

category and geographic expansion

Win shelf space and market share through superior account management and service leadership

Bring superior-quality products to market, and grow brand strength

Increase Margin Improve brand equity and

price premium for products Aggressively manage

operating costs and process efficiency

Increase effectiveness of trade and consumer marketing


Select one key business challenge per slide

Select relevant Solution Enabler(s) from

“Internal-Facing” subsequent slides

AE/Partner to AddendFill out based on top 3 to 5 Business challenges

(Source – Business Challenges, Slide 6 and Sales Fact Sheet, Slides 9 - 11)

• Issues/Customer Needs• Unique SAP Solution Enablers• SAP Value (Source – Integrated Processes

Deliver Value, Slide 19 of this deck)

• The following slides support the first two of the three pillars. For the third pillars, SAP AE to calculate value metric most relevant to prospective customer.

AE/Partner to AddendFill out based on top 3 to 5 Business challenges

(Source – Business Challenges, Slide 6 and Sales Fact Sheet, Slides 9 - 11)

• Issues/Customer Needs• Unique SAP Solution Enablers• SAP Value (Source – Integrated Processes

Deliver Value, Slide 19 of this deck)

• The following slides support the first two of the three pillars. For the third pillars, SAP AE to calculate value metric most relevant to prospective customer.

SAP CONFIDENTIAL

Customer Successes with SAP: Operational Benefits

Key Performance Indicator Impact

Financial period-end close time -71 % (from 7 days to less than 2 days)

Inventory cycle count time -75 % (from 3 days to less than 1 day)

Finance and accounting staff -45 % (5 fewer staff required)

Inventory stock variances Reduced from ~4.0 % to ~0.3 %)

Key Performance Indicator Impact

Order Fill Rate +2 % pts**

Returns -4 %

Days in Inventory -10 %

Thrift Product -40 %

Inventory Write-Downs -60 %

Fixed-Asset-Utilization 5 % pts

*These business transformation studies are all available on www.sap.com** Calculations based on lang-term trends, excluding the impact or exceptional events

Key Performance Indicator

10 % to 25 % increase in process accuracy for demand forecasts

10 % increase in employee process productivity

Significant reduction in inventory and enhanced inventory turnover

50 % increase in the use of purchasing cards, with a corresponding reduction in accounts payables transactions

Improved enterprise-wide communications

Key Performance Indicator

Quantitative benefits:-Greater productivitiy/cost savings of 150.000 €/year-Working capital gains of 30.000 € / year-Turnover increase of 500.000 € /year-3-year payback period with 36 % internal rate of return

Qualitative benefits:-Improved data accuracy and inventory reliability-Increased sales productivity and customer satisfaction-Enhanced materials management-Traceability of finished goods and raw material

Consumer products - dairy, 70 employees, Jamaica*

Consumer products - beverages, 550 employees, USA*

Consumer products - food, 1,100 employees, USA*

Consumer products – beverages, 220 employees, Italy*

SAP CONFIDENTIAL

Sales Fact Sheet: Consumer ProductsSupply Chain LoB

* SS = success story, CS = case study. Available in SMART.

Pain PointsPain Points SAP Potential Benefits and Value SAP Potential Benefits and Value DriversDrivers

SAP SAP SolutionSolution

DifferentiationDifferentiation Proof pointsProof points

Difficult to match mid- and long-term demand with available material and capacity constraints

• How do you support your S&OP meeting with information and actionable items?

• How often can you run a full horizon S&OP?• How long does it take your people to provide the input?• Can everyone see the Forecast in a format that's relevant to them

i.e. Marketing in $$$'s at the brand level, Production at the unit level in Flavor/Size, Sales at the SKU level in Pallets?

• Can you run meaningful simulations to support S&OP decisions that drive revenue and profitability?

Wholistic view of demand and supply, matching capabilities and provision of actionable executable items• Increase revenue from better availablity and improve profitability with balanced asset rationalization• Improve the quality of internal collaboration and communication •Reduce data chasing efforts & costs

• SAP Integrated Supply Chain Planning for CP

• SOP

•Integrated planning and analysis in one tool, includes collaboration, optimization simulation and exectuion capabilities•Fast and flexible integration of partner solutions that provide additional decision support capabilities (SmartOps for Inventory optimization)

• Brown-Forman

AMR:- Improve revenue by 10 %- Increase profitability by 5-7%

Joint planning and execution with customers and suppliers• Can you collaborate on your demand plans with your retailers?• Can your retailers communicate short-term changes in promotions

or any other events impacting demand to you?• Can you monitor your retailers forecast accuracy and pick the best

forecast in every week?• Are you able to share your demand and supply plans and pass on

changes in raw material and packaging requirements to your suppliers in a timely manner?

• Can you monitor the process for your outsourced manufacturing e.g. co-packers?

Market-side: Increase revenue, service levels and customer satisfaction and loyalty with your retail customers from joint planning and execution of demand plans

Supply side: Improve service levels from your suppliers into the factory and reduce material costs and increase supplier efficiency


•Include business partners from the extended Supply Chain into your supply chain•Dedicated supplier and customer collaboration platform (Supply Network Collaboration, Inventory Collaboration Hub) with pre-configured business content that cover the key collaborative processes in the CP industry•Demand combination

• Novartis

• Global snack food manufacturer

Visibility into POS data and demand signal propagation to react faster to demand variations

• What do you do with WalMart‘s RetailLink data?• How do you process POS data from different retailers with

different formats?• Are you able to analyze POS data and feed it into your internal

supply chain?• How long does it take your organisation to respond to changes in

demand?

Leverage consumer demand signals in the suppy chain•Increase demand visibility and accuracy by leveraging demand information down to POS data•Improve revenue and service levels by reducing stock-outs and capturing additional opportunities•Improve promotion performance through faster response to take.away signals•Compliance with retailer requirements


• xDVi

•Ability to pull retail POS data into internal supply chain •Scalability to include different retail data and adapter formats, plus ability to harmonize and aggregate POS data•Build-in linkage between supply chain and trade promotion efforts

• General Mills

Inability to follow product all the way through the supply chain and into customer locations.

• Do you know where your product is at all time?• Do you have a complete picture of supply all the way to the POS?• Can you tell your customer exactly where product is and when it

will be on the shelf?• Do you have visibility to RFID information beyond simple

warehouse management?• Can you control the inventory sales coverage without surprises?

Be able to cover the entire delivery cycle, have complete visibility into inventory position, provide visibility to Retailers

• Exceed service levels• Reduce out-of-stocks by 10-40%• Reduce inventory in DCs and on-site

at customer locations


• SAP Extended Warehousing & Logistics for CP

•Other vendors do not cover the end-to-end delivery cycle due to missing or unproven Supply Chain Execution functionality

• Kimberly-Clark

* see end of deck and SMART for details.


AE/Partner Sales Fact Sheet are used to support slide 9, supporting key business challenge and SAP solution and value enabler.

AE/Partner Sales Fact Sheet are used to support slide 9, supporting key business challenge and SAP solution and value enabler.

Outside the scope of BAiO

SAP CONFIDENTIAL

Sales Fact Sheet: Consumer ProductsSales LoB



Pain PointsPain Points SAP Potential Benefits and Value SAP Potential Benefits and Value Drivers*Drivers*

SAP SolutionSAP Solution DifferentiationDifferentiation Proof pointsProof points

Difficult to allocate trade promotions budget to most effective accounts or promotions.

• How do you allocate spend to accounts?• Do you take past promotion effectiveness into

account?

Increase promotion effectiveness by providing detailed information of promotion effectiveness down to the account and category level allowing allocate funds to most effective promotions and accounts.

• Increase in promotional sales 3-5%

• SAP Integrated Sales & Marketing for CP

Access to all relevant enterprise-wide information out-of-the-box.

• Nestlé

• ConAgra

• Colgate-Palmolive

Difficult to orchestrate Trade and Consumer Marketing activities leading to waste of trade funds and media budget.

• How do you ensure synchronization between trade promotions and consumer marketing activities?

Increase consumer take away by ensuring orchestrated trade and consumer activities.

• Increase take-away during promotion by up to 80%


Oracle/Siebel doesn’t allow synchronization out-of-the box in an integrated Marketing calendar.


• Nestlé

Inability to secure product availability at POS during promotions due to missing linkage of Sales, Account & promotion planning into Supply Planning.

• How do you pass promotion uplift into the Demand and Supply plan?

• How do you keep sales plans and demand & supply plans in sync?

• What is your out-of-stock rate during promotions?

Be able to stock outlets with additional promotion placing, ensure product availability and instant replenishment to take advantage of increased consumer take away and additional sales opportunities

• Reduce out-of-stocks by 10-40%• Increase revenue by up to 20%

•ERP


Oracle/Siebel doesn’t provide immediate and accurate linkage to Supply Chain Planning out-of-the box, but have to install expensive and difficult-to-maintain custom integration to the Supply Chain system.

• Colgate- Palmolive

• Nestlé

Can’t keep financials clean.• How do you ensure discounts are correctly applied?• Can you make sure pricing policies are consistently

applied?• How do you avoid deductions and invoice

inaccuracies?

Have accurate pricing and assignment of promotional deals to customers orders

• Reduce deductions, AR balances and invoice inaccuracies dramatically

• Reduce administrative efforts• Increase customer satisfaction

• ERP


Best-in-class order-to-cash and pricing solution integrated into the process. Oracle / Siebel, CAS and others require expensive and difficult-to-maintain custom integration to ERP systems.

• ConAgra

Can’t determine profitability of account or promotion. Can’t avoid forward buying and cumulative discounts.

• How do you determine the profit of past promotions?

• Can you assign all costs (deductions, rebates, bill-back, media costs, etc.) to your accounts and promotions?

Improve profitability of promotions and account by assigning all costs to and shifting activities towards the most profitable ones.

• Improve customer profitability by 1.5 to 3 percentage points

• ERP


Best-in-class order-to-cash and pricing solution provides visibility of profitability out-of-the box. Oracle / Siebel, CAS and others require expensive and difficult-to-maintain custom integration to ERP systems.

• Nestlé



AE/Partner Sales Fact Sheet are used to support slide 9, supporting key business challenge and SAL solution and value enabler.


SAP CONFIDENTIAL

Sales Fact Sheet: Consumer ProductsR&D LoB



Pain PointsPain Points SAP Potential Benefits and Value Drivers*SAP Potential Benefits and Value Drivers* SAP SolutionSAP Solution DifferentiationDifferentiation Proof pointsProof points

Time to Market is too high • Can you bring the new product to market on time?• What is your average time to market?• What is the time to market of your next competitor?• Have you been second to market in the last few

years?• What was the consequence on volume and profit?

Reduce the time to market through process control and aligned execution

• Have visibility into the process and the ability to act•Schedule all required resource to avoid delays• Align Execution of all functions towards to target launch date•Reduced time to market by 20-50%

• SAP New Product Development & Introduction for CP

• ERP

End-to-end NPDI process allows total process control and aligned execution

Project Management

E-SOA

• Kimberly Clark

• InBev

•Arla Foods: 35% reduction in time-to-market

Too many new product introductions aren’t successful

• What is your product success rate?• How do you identify and respond to consumer

needs?• How do you take consumer insight into account?• How do integrate a new product into the Brand

context?• How do you bring products to market (introduction,

promotion, pipeline build)?• How do you plan product launch promotions?• How do you define the supply network for the new

product?• Does this proposed new product fit with your

portfolio strategy?

Increased success rates through better decisions along the innovation process

• Investment into the most promising ideas and concepts.

• Knowledge integration, reduction of errors• Transparent and comprehensible decisions on the

portfolio.• Avoid “riding a dead horse” by phase based approach

for all development projects (killing unsuccessful projects in an early phase)

• Ensuring the right mix of completely new products and product innovations


•Seamless data integration

•Portfolio Management

•Integration to Brand management

•Connected business process into Trade promotion mgmt, and Supply Chain

•Project Management

E-SOA

• Arla Foods: Significant increase in revenue from new products, aiming for 50% in 2008

Lack of control across the process• How do you control the R&D budget?• What are the average R&D costs per product

introduction?• Do you have a formal process to manage the R&D

process?• How are decisions made for new products? Along

the product development?

Higher transparency along the innovation process• Better visibility on the development budget per cost

category.• All decisions managed by a best business practice

methodologies. • Decisions are transparent • Conformity through a formal process.• Make new product concepts comparable by proven

metrics.


End-to-end process coverage

• Kimberly Clark

Difficult collaboration • How do you collaborate with external partners?• Where will you source the components and

manufacture the new product?• Are you planning product launch promotions with

your retail partners?• Are collaborating on launch volumes?• How do you manage the Life cycle data?

Increase success rates and margins through collaboration with Suppliers, Contract Manufacturers and Customers

• Information sharing across functional and corporate silos to avoid errors

• Collaboration with suppliers and contract manufacturers to optimize sourcing and both development costs and on-going product costs and increase product margins

• More effective product launches through collaboration with trade customers

• SAP NPDI for CP

•SAP Integrated Sales & Marketing for CP

•Integrated Supply Chain Planning for CP

Collaboration capabilities and integration into other functional areas

Out of the box processes and integration for the operational management of new product development.

• General Mills

• Hershey’s

• Danone




Outside the scope of BAiO

SAP CONFIDENTIAL

Sample SAP Consumer Products Customers

Beverage


AE/Partner Use for Beverage prospectsAE/Partner Use for Beverage prospects

SAP CONFIDENTIAL

SAP Wine & Spirits Distributor ExamplesSAP Wine & Spirits Supplier Examples

© SAP 2008 /

Proven - Spirits & Spirits Distributor Examples



SAP CONFIDENTIAL

Brown-Forman Expands its Global Presence with SAP® SCM

“What SAP Supply Chain Management has enabled us to do

is expand our products and distribution network while

meeting the Sarbanes-Oxley requirements without taking on

additional staff.”

Jim HutchinsonSenior Vice President of Supply Chain ManagementBrown-Forman Corporation

Company Brown-Forman Corporation

Location Louisville, Kentucky

Industry Consumer products – beverage

Products/Services Fine wines and spirits

Revenue US$2.4 billion (2006 gross)

Employees 3,750

Web Site www.brown-forman.com

SAP® Solution andServices

SAP Supply Chain Management application

Implementation Partner Accenture

Challenges and Opportunities Assimilate partners and acquisitions faster Tap emerging global markets Reduce inventory levels Improve customer service

Objectives Establish global positions for premium brands Introduce more premium brand beverages Expand business without significant additional

headcount

Implementation Highlights Minimal customization Tightly managed project scope Accelerated implementation within budget

Why SAP Superior integration of supply chain planning with

inventory and order management Strong investment in research and development

for emerging products Viability of SAP as a company

Benefits Accelerated on-boarding for global distribution

partners Adopted global sales and operations planning

process Increased number of products while maintaining

service levels without adding inventory Shifted demand planning team’s focus of

competence from data management to business analysis



The Boston Beer Company

Challenges and Opportunities

Increasing complexity of business with a lack of reliable systems for inventory, MRP, purchasing, cost center, and department budgeting

Impossible to obtain “good/useful” information quickly

Multiple systems required too much manual intervention and maintenance (SAP replaced WDS)

Objectives Quickly implement a robust and

stable ERP system that will improve decision-making

Minimize system support and maintenance costs

Why SAP Breadth of functionality Flexibility and customization

capabilities State-of-the-art technology Ongoing investment in product Commitment to fast

implementation

Benefits Only one FTE required to

maintain SAP Total IT cost is now <1% of

revenues

The Boston Beer Company, Inc. Location: Boston, MA Industry: Consumer goods Products and Services: Alcoholic

Beverages Revenue: US$238 million Employees: 390 Web Site: www.bostonbeer.com SAP® ERP

““SAP has provided us with precisely

what was needed—a stable, scalable,

and cost effective ERP solution.” Frank John WigginsDirector of Information TechnologyThe Boston Beer Company, Inc.

QUICK FACTS


SAP CONFIDENTIAL

SAP® Solution Manager



Dairy Industries Jamaica Ltd.


Achieve operational efficiencies to compete well against global companies active in marketplace of Dairy Industry Jamaica Ltd. (DJIL)

Integrate business processes to cope with rising manufacturing costs and increasing business complexity

Objectives Eliminate disparate application

platforms throughout organization Fulfill parent company’s reporting

requirements

Why SAP Met DIJL’s industry-specific

functional requirements Is known for long-term viability as a

vendor Offers cost-effective solutions with

best business practices integrated

Benefits Use of preconfigured templates

to lower risk and accelerate time to value

Improved inventory control and materials management

Increased accuracy and visibility of information

Better data access, resulting in more efficient decision making

Increased productivity from functionality found in the SAP NetWeaver® Business Intelligence component

Dairy Industries Jamaica Ltd. Location: Kingston, Jamaica Industry: Consumer goods Products and Services: Dairy Products Revenue: US$24 million Employees: 70 Web Site: www.gracekennedy.com SAP® All-in-One IDS Scheer North America

“Before introducing the SAP solution,

the sales and distribution functions

operated independently and would

only feed information to manufacturing

by way of purchase orders. With SAP

software, these functions are tightly

integrated.”

Andrew Ho General ManagerDairy Industries Jamaica Ltd.

QUICK FACTS


SAP CONFIDENTIAL

Bacardi Achieves Compliance using SAP Software



SAB Miller manages workforce with SAP ERP Human Capital Management


Inadequate HR support for employees and managers

Nonintegrated systems/costly time consuming HR processes

Ineffective change-management processes

Lack of up-to-date, accurate information for HR

Objectives Merge 40 Payroll systems in One Create online performance-potential grid Automate time-management processes

of 56 business units

Why SAP Met SAB’s industry-specific functional

requirements Is known for long-term viability as a

vendor Offers cost-effective solutions with best

business practices integrated

Benefits 24% ROI, with reduced IT costs Integrated, streamlined HR processes Time saving, enabling employees to

focus on key strategic tasks

SABLtd. Location: Sandton, South Africa Industry: Consumer Goods Products and Services: Brewery Revenue: US$11 Billion Employees: 5,000 Web Site: www.sablimited.co.za SAP® Human Capital Management Deloitte

“Through SAP ERP HCM, the executive management team can pull up metrics during an executive board meeting and make high-level, strategic people decisions in real time – there is no ‘next day’.”

Steve Bluen, Director of HR, SAB Ltd

QUICK FACTS


SAP CONFIDENTIAL

Community Coffee


Maintaining multiple legacy systems to manage its business operations

Objectives Align business processes with IT

to better serve customers Gain consumer goods best

practices that will drive business growth

Implementation Highlights On time, within fixed budget Elimination of business

blueprinting with preconfigured SAP Best Practices

Strong executive sponsorship

Why SAP Industry expertise; process-based

foundation based on proven SAP Best Practices

Majority of company needs met with preconfigured business processes

Benefits Improved customer service Better inventory control Increased profitability Fully integrated system across entire

organization Consolidation of financial processes

Community Coffee Company Location: Baton Rouge, Louisiana Industry: Consumer Products Products and Services: Coffee Revenue: $148 million Employees: 1000 Web Site: www.communitycoffee.com SAP Solutions and Services: SAP®

Business All-In-One, SAP® Best Practices Partner: IDS Scheer

“For over 85 years, Community Coffee

Company has leveraged innovation and

experience to make and deliver fresh, great-

tasting coffee. This new system will further

enable us to have the right products, in the

right place, at the right time to better

serve our customers.“

Mat Saurage

President (and 4th generation founding family member)

Community Coffee Company

QUICK FACTS


SAP CONFIDENTIAL

Frederick Wildman & Sons Runs SAP

QUICK FACTS

Frederick Wildman & Sons Ltd. Location: New York, New York Industry: Consumer products Products and Services: Wholesale wine

and distilled beverages Revenue: US$100 million Employees: 100 Web Site: www.frederickwildman.com SAP® Solution and Services: SAP® All-in-

One partner solution Implementation Partner: IBM

“We see SAP as a strategic investment

for our company’s future. It provides a

solution and platform for us to grow in

a competitive market, and embedded

best practices that we leveraged for a

rapid implementation.”

Joseph LoSardoVP, Director of Operations Frederick Wildman & Sons Ltd.

Challenge and Opportunity Provide a single solution platform to

enable growth and increase profitability

Objectives Increase data visibility and availability

across the enterprise Improve ability to analyze business

results in real-time Implement a solution that will enable

capture of complete information on products, customers, and sales opportunities

Implementation Highlights Full ERP implementation for 75 users

completed in five months, with go-live in July, 2007

Three IBM consultants assigned to account

Why SAP SAP competed against Oracle and

Microsoft; decision drivers were price, solution flexibility, and functionality

The depth of functionality, pre-configured content, and flexibility demonstrated by IBM in their All-in-One solution; IBM’s Express for Wholesale

SAP and IBM’s commitment to the mid-market and their joint sales approach lead to a trusted advisor relationship

Benefits Streamlined operations and increased

profitability Increase in inventory turnover Improved customer service through

greater visibility to order fulfillment information


SAP CONFIDENTIAL

SAP® Software Helps Empresas Polar Hone Its Competitive Edge

Challenges and Opportunities Growing operational complexity Increasing margin pressure Redundant data, applications, and

processes

Objectives Install integrated solution to support go-

to-market (GTM) strategy Provide optimal support for key current

and future operational requirements

Implementation Highlights Phased approach using knowledge

from previous deployments Linkage of new processes to overall

company value chain, ensuring optimum cooperation and support from end users

Why SAP Seamless integration with SAP®

software Scalable functionality at low total cost

of ownership

Benefits Flexibility to review, configure, and

redeploy GTM strategy Real-time accurate view of demand

and inventory Organized and streamlined order

processing SKUs with increase in activity: +60% Average increase in sales activity for

SKUs mentioned above: +195% Time spent on administrative activities

(sales personnel): –50% Collection-to-cash (AR) processing

time: –50%

Empresas Polar Location: Caracas, Venezuela Industry: Consumer products Products and Services: Beer, wine,

beverages, and more Revenue: US$3+ billion Employees: 25,000 Web Site: www.empresas-polar.com SAP® Solutions and Services: SAP for

Consumer Products solutions; SAP® xApp™ Mobile Direct Store Delivery composite application

Implementation Partners: Accenture; SAP Consulting; SAP Custom Development

“The integrated SAP software helped

us differentiate ourselves from all other

competitors in Venezuela.”

Ramón A. CastilloProject Manager, Food Business UnitEmpresas Polar


SAP CONFIDENTIAL

Wine Warehouse Runs SAP


SAP CONFIDENTIAL

Charmer Sunbelt Runs SAP

QUICK FACTS

The Charmer-Sunbelt Group Location: New York, New York Industry: Wholesale distribution Products and Services: Wholesale wine

and spirits Revenue: US$2.9 billion Employees: 2000 Web Site: www.tcsg.com SAP® Solution and Services: SAP for

Wholesale Distribution Implementation Partner: Clarkston

“We have been able to drive

inefficiencies out. Substantially

improve inventory and market data,

and improve order fulfillment.”

Bill HealeyCorporate Vice President and CIOThe Charmer-Sunbelt Group

Challenges and Opportunities Provide a single solution platform to

enable growth and increase profitability

Objectives Increase data visibility and availability

across the enterprise Improve ability to analyze business

results in real-time Lowered operating costs by managing

and automating processes within the warehouses

Implementation Highlights Implemented Warehouse Management

first Followed with a full ERP

implementation rolled out by location Leveraged Vistex solution for depletion

allowance management

Why SAP SAP competed against Oracle (JD

Edwards); decision drivers were price, solution flexibility, and functionality

The depth of functionality, pre-configured content, and flexibility

SAP and Clarkston commitment to the wholesale distribution industry and their joint sales approach lead to a trusted advisor relationship

Anticipated Benefits Streamlined operations and increased

profitability Increase in inventory turnover Improved customer service through

greater visibility to order fulfillment information

Increase supplier cost recovery


SAP CONFIDENTIAL


SAP CONFIDENTIAL

Spirits Are High at The Beer Store with SAP® Software

Challenges and Opportunities Inadequate legacy system for

supporting strategic and tactical initiatives

Limited visibility into financial and managerial activities at the store level

Objectives Maintain strategic direction while

adhering to best-practice retail principles

Remain customer focused by offering a wide selection of products and faster checkouts

Implementation Highlights Strong focus on change management Small, on-site, knowledgeable SAP

team Training for implementing and

sustaining project

Why SAP Best-in-class products with high

degree of configurability Flexible, leading-edge architecture for

scalable, multichannel and multiformat deployments

Benefits Deployment of SAP® software in 10

new stores remotely Seamless delivery of software updates

to stores Support for growth strategy and new

business needs Enhanced decision making through

heightened visibility into detailed data at store level

Integration of cash management with internal audit control

Integration of fraud management

QUICK FACTS

The Beer Store Location: Mississauga, Ontario, Canada Industry: Retail – beverage service Products and Services: Beer Employees: 5,600 Web Site: www.thebeerstire.ca SAP® Solutions and Services: SAP®

Enterprise Point-of-Sale, SAP Point-of-Sale Loss Prevention for Retail

Implementation Partner: SAP Consulting

“We were locked in with our system. . .

SAP had the retail expertise, a skilled

team, and the right technology for our

next generation of retail software.”

John HynesManager, Application SystemsThe Beer Store


winselectioncpfoodbev

Documents

sales presentation deck

sap differentiation

selection presentation

primary deck

complete wts deck presentation

sap ae

complete presentation

track slides