Consumer Products

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SAP Business Suite for Spend Management

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Consumer Products Industry at a Glance

The consumer products industry is undergoing rapid transformation, driven by consumer demands for innovative, sustainable, and personalized products from trusted brands. Supply chains have become increasingly complex, involving sophisticated inventory management and a diverse network of global suppliers, co-packers, and co-manufacturers. In this context, procurement and supply chain management are pivotal in driving digital transformation. By leveraging technologies such as AI, IoT, and cloud-based platforms, companies can enhance supply chain visibility, improve inventory management, and foster more agile and responsive supply networks. In the APAC region, where consumer preferences are highly diverse and dynamic, adopting digital solutions can help brands better meet these demands while maintaining operational efficiency and sustainability. Effective collaboration with suppliers and partners is also crucial for ensuring resilience and adaptability in the face of evolving consumer expectations.

Opportunities

43%

43% of the C-Suite have cost savings a primary value proposition for procurement, and 76% identified that increased internal collaboration has brought increased cost savings and 78% identified the cost savings as a primary driver of the increased use of External Workforce.

39%

Customer satisfaction is a key area for consumer products with 39% identifying it as a top measure of procurement performance and 23% identifying it as a key strategic priority as well.

58%

58% identified geopolitics as a top organizational risk area for procurement to focus on, however, only 24% of respondents were highly confident in procurements ability to manage global external risks , and the same number have high confidence in procurements ability to manage risk strategies for different categories.

44%

44% identified AI strategy as a top strategic priority, with 67% identifying AI proficiency skills as the most in demand skill for procurement, which is needed as only 23% have confidence in procurement to leverage AI for improved productivity and 28% have not measured the AI benefits in procure to pay automation.

Source: Economist Impact study, The Resilient Edge – Procurement in an era of polycrisis

Invoices without Exceptions

Suppliers whose Performance is Managed and tracked

Best in Class Metrics*

Sourcing Savings Rate

82.8%

100%

13.7%

*SAP Customer Benchmarking program

Spend Management Solutions

The SAP Business Network for Supply Chain delivers a compelling unique value proposition for the Consumer Products (CP) industry by enabling greater agility, visibility, and collaboration across increasingly complex and demand-sensitive supply chains. Here’s how it stands out specifically for the CP industry: 1. Real-Time Supply Chain Visibility Consumer products companies face constant pressure to respond to demand fluctuations, product customization, and short shelf cycles. The SAP Business Network provides real-time transparency into inventory levels, shipment statuses, and supplier capacity, helping companies avoid stockouts, reduce excess inventory, and better align supply with consumer demand. 2. Supplier Collaboration at Scale The network connects CP companies to a vast ecosystem of suppliers, logistics providers, and contract manufacturers. This enables faster onboarding, seamless collaboration, and synchronized planning—especially critical for managing seasonal spikes, promotional campaigns, and multichannel retail fulfillment. 3. Agility and Resilience in Disruption Management From raw material shortages to transportation bottlenecks, the CP industry is vulnerable to global disruptions. The SAP Business Network helps detect and respond to risks earlier by sharing real-time alerts, lead times, and risk insights, allowing proactive adjustments and contingency planning. 4. Sustainable and Responsible Sourcing With rising consumer and regulatory pressure for sustainability and ethical sourcing, CP brands can use the network to trace supplier practices, track emissions, and ensure compliance with environmental, social, and governance (ESG) goals—supporting both brand reputation and regulatory adherence. 5. End-to-End Traceability From farm to factory to shelf, traceability is key in the CP industry, particularly in food and personal care. The network enables end-to-end product tracking, allowing for fast and targeted recalls, authenticity verification, and enhanced consumer trust through transparent supply chain information. 6. Faster Time-to-Market for New Products The CP industry thrives on innovation and speed. By improving collaboration with R&D, contract manufacturers, and packaging suppliers, the network accelerates product development cycles and reduces time-to-market—vital in responding to trends or competitive moves

Source key components for production with digital end to end supplier connectivity and logistics visibility

Top Spend Categories

TRAVEL EXPENSE 8%

RECURRING SERVICES 5%

OPERATIONAL “CATALOG” SPEND 15%

TACTICAL SOURCING 4%

DIRECT MATERIALS 50%

EXTERNAL LABOR 18%

Spend Management Solutions

The SAP Business Network for Logistics delivers strategic advantages to Consumer Products companies by enabling real-time logistics collaboration, enhanced transportation visibility, and streamlined execution across a highly dynamic and distribution-intensive supply chain. 1. End-to-End Transportation Visibility In the CP industry, where time-to-shelf and on-time delivery are critical, SAP BN4L enables real-time tracking of shipments across carriers, regions, and modes. This improves delivery reliability, enhances customer satisfaction, and helps avoid costly disruptions like missed retail windows or spoiled perishable goods. 2. Seamless Collaboration with Carriers and 3PLs The platform connects CP companies with a global network of freight forwarders, carriers, and third-party logistics providers. This fosters real-time collaboration on bookings, documentation, and shipment updates—reducing manual processes and accelerating decision-making across the logistics ecosystem. 3. Improved Responsiveness to Consumer Demand With retail channels evolving rapidly (e.g., e-commerce, DTC, omnichannel), CP companies must adapt quickly. SAP BN4L supports agile fulfillment strategies by providing logistics flexibility and enabling fast re-routing or mode-switching in response to real-time demand or disruptions. 4. Streamlined Freight Settlement and Dispute Resolution Accurate freight cost calculation and faster dispute resolution are essential in a low-margin industry like CP. BN4L automates freight invoicing, validations, and payment processes—cutting admin time and reducing errors while building trust with logistics partners. 5. Sustainability Through Efficient Logistics Consumer brands are under growing pressure to reduce carbon emissions. SAP BN4L enables companies to monitor transportation emissions, optimize routing, and consolidate shipments—contributing to sustainability goals while also improving cost-efficiency. 6. Rapid Carrier Onboarding and Compliance As CP companies expand into new markets or launch new product lines, they must onboard logistics partners quickly. BN4L simplifies this by providing a standardized digital platform for onboarding and compliance, reducing time-to-market and ensuring global logistics alignment.

Source key components for production with digital end to end supplier connectivity and logistics visibility

Top Spend Categories

TRAVEL EXPENSE 8%

RECURRING SERVICES 5%

OPERATIONAL “CATALOG” SPEND 15%

TACTICAL SOURCING 4%

DIRECT MATERIALS 50%

EXTERNAL LABOR 18%

Spend Management Solutions

The SAP Strategic Procurement package helps Consumer Products (CP) companies drive innovation, manage supplier risk, and optimize costs across a dynamic, global supply base. Combined with SAP Joule, teams gain real-time insights and AI-driven automation to streamline sourcing, collaboration, and compliance. Faster Sourcing for Innovation and Speed-to-Market Ariba Source-to-Contract enables rapid sourcing of packaging, ingredients, and contract manufacturers through guided workflows and pre-approved supplier pools—shortening cycle times. With Joule, users can instantly check sourcing event status, track RFx approvals, and send supplier reminders to accelerate timelines. Simplified Supplier Collaboration and Onboarding Ariba makes it easy to onboard and qualify suppliers across global networks, ensuring compliance with quality, risk, and sustainability standards. Joule enhances this by showing supplier registration progress, surfacing pending onboarding steps, and providing contact details to resolve issues faster. Scalable Contract Management and Compliance Managing thousands of supplier contracts is simplified with automated creation, approval, contract workspace updates, creation of contract terms and tracking in Ariba—reducing risk and ensuring alignment with legal and ESG policies. Joule allows teams to view approval status, access pending tasks, and identify approvers instantly to keep processes moving. Competitive Sourcing and Cost Control Ariba supports e-auctions, multi-round bidding, and supplier scoring to ensure best-value selection. Joule adds speed by allowing procurement teams to pull up purchase requisitions, compare supplier bids, and view shipping and line item details—all through intuitive, natural language queries. Global Execution with Local Flexibility Ariba delivers a consistent sourcing experience adaptable to local regulations, currencies, and suppliers. With Joule, teams can quickly access sourcing data, approve tasks, create RFQ’s—boosting productivity across global operations.

By leveraging SAP Ariba with embedded Joule capabilities , CP companies gain a powerful, AI-enabled sourcing platform that delivers speed, transparency, and smarter decision-making at scale.

Source key components for production with digital end to end supplier connectivity and logistics visibility

Top Spend Categories

TRAVEL EXPENSE 8%

RECURRING SERVICES 5%

OPERATIONAL “CATALOG” SPEND 15%

TACTICAL SOURCING 4%

DIRECT MATERIALS 50%

EXTERNAL LABOR 18%

Spend Management Solutions

SAP Fieldglass offers value proposition for the Consumer Products industry by enabling greater control, compliance, and cost-efficiency in managing external labor and services—a critical need in an industry that relies heavily on seasonal workers, packaging specialists, promotional staff, and third-party logistics providers. Faster access to talent SAP Fieldglass enables rapid talent acquisition by tapping into multi-channel talent pools with pre-qualified workers, automated engagement and registration processes, and streamlined onboarding tasks. The platform provides immediate access to preferred suppliers and allows you to easily bid out service requests, ensuring quick deployment of necessary workforce and services. Enhanced Compliance and Risk Mitigation SAP Fieldglass helps ensure compliance by automating contractor vetting, certification tracking, onboarding, and safety training validation—reducing the risk of fines, incidents, brand reputation delays or campaign delays. Improved Cost Control and Visibility Fieldglass provides real-time insights into workforce spend and performance metrics, enabling better budgeting, forecasting, and contract management. SAP Fieldglass helps in granular management of rate differentials, multi-rate per assignment, allocations, tiers etc., automated via rate cards. Streamlined process SAP Fieldglass streamlines the entire process from requisition to payment, enabling faster fulfillment and better supplier management by finding the right talent at the right time and securing the right suppliers. The platform provides the ability to monitor supplier progress and work quality throughout the engagement, ensuring optimal procurement-to-pay efficiency. Streamlined Service Procurement The platform integrates with SAP S/4HANA and SAP Ariba, making it easier to manage services procurement end-to-end—from requisition to invoice. This streamlines the acquisition of specialized services consulting, marketing and research, maintenance etc.,

Comprehensive visibility into external worker resources with access to qualified talent when needed

Top Spend Categories

TRAVEL EXPENSE 8%

RECURRING SERVICES 5%

OPERATIONAL “CATALOG” SPEND 15%

TACTICAL SOURCING 4%

DIRECT MATERIALS 50%

EXTERNAL LABOR 18%

Customers are achieving outstanding outcomes

Owner of 27 luxury brands and more than 2,300 retail stores

of purchase orders now flowing through SAP Business Network 82%

reduction in employee effort for warehouse receiving Up to 50%

World’s largest almond processing and marketing cooperative

savings in annual transportation expenses USD $1 million customer order fill rate 99% improvement in forecast accuracy 10%

Largest supplier of branded soft drinks in Great Britain

of indirect POs issued and invoiced through SAP Business Network 100% supplier invoice processing time reduction 11 to 5 days

ThankYou

* Research documentation has been used from work commissioned by SAP Ariba and produced by Economist Impact

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