• Tweet this Share on Facebook Share on LinkedIn Share on Google+ Email

Explore how other customers are generating value with SAP technology.

More customer stories ›

Customer Snapshot

Spreading Sweetness Across the Globe

4.6 billion

Ferrero Rocher chocolates are produced each year

 

From modest beginnings, Ferrero has become one of the world’s largest confectioners, with 38 operating companies and 18 production facilities across the globe. With well-known brands including Ferrero Rocher, Nutella, Kinder Surprise, and Tic Tac, Ferrero continues to innovate, and tapped SAP to help keep their business in the sweet spot.

 

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-ferrero-small-candies-big-business-vidcj700.mp4
  • 488
  • 275

Small candies, big business

Company

Ferrero

Headquarters

Alba, Italy

Customer Website

www.ferrero.com/

Revenue

€7.218 million

Number of Employees

21,500

Implementation Partners

---

Line of Business

Sales, Supply Chain, Information Technology

Industry

Consumer Products

Featured Products

SAP Business Suite powered by SAP HANA

History

Sweet innovations

      

  • 1946Ferrero SpA founded by confectioner Pietro Ferrero in Alba, Piedmont, Italy, with 50 employees.
  • 1950 Michele Ferrero assumed leadership of the company his father started.
  • 1964Michele Ferrero modified his father’s recipe to produce Nutella, a cream of hazelnuts and cocoa, which is now popular worldwide.
  • 1966Ferrero opened in the UK.
  • 1982Ferrero Rocher, a spherical chocolate sweet, was introduced.
  • 2008KNG began an employee stock ownership program.
  • 2009 Ferrero was ranked as the world’s most reputable company in the Reputation Institute’s survey.
  • 2011Ferrero introduced an innovation-award-winning line of frozen products called “Gran Soleil.”
  • 2012Company shipped its 10 millionth menu cover.

Business Model

Consumer focus

Ferrero anticipates consumer needs and behavior to supply best-in-class quality products such as Nutella, Ferrero Rocher, Pocket Coffee, Mon Cheri, Giotto, Confetteria Raffaello coconut cream candy, Hanuta chocolate hazelnut-filled wafers, the Kinder line of products, as well as Tic-Tac breath mints.

Success Strategy

Accelerated analysis

Ferrero’s strategy begins with the need to accelerate profitability analysis. Luckily, SAP ERP powered by SAP HANA provides very efficient tools for that. Rather than working with weekly or end-of-month closing numbers, Ferrero can analyze profitability any time to make real decisions based on real facts.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-ferrero-looking-at-profitablity-vidcj701.mp4
  • 488
  • 275

Looking at profitability

The Challenge

Managing the matrix

Ferrero was challenged by their complex matrix of products, locations, and packaging units. They required simulation processes for activities such as planning surprises inside their Kinder eggs. Ferrero also needed to more efficiently manage their packaging materials, warehouse space and the allocation of space in their various distribution centers.

Enter SAP

Going multinational

Ferrero began a large SAP implementation project in 2003 to enable organizational change. At that time, they were organized in a country-based fashion and the goal was to build a multinational group. Ferrero decided to implement SAP ERP powered by SAP HANA to accelerate the analysis of their cost and profitability data.

The SAP Experience

Enabling growth

SAP ERP powered by SAP HANA enables Ferrero to join new markets and to build new factories in the quickest, most cost effective manner. SAP enables standardized, lean processes which were previously impossible, and with these new tools, Ferrero is ready to tackle new markets.

Running Better

Modeling the future

With SAP ERP powered by SAP HANA, Ferrero experienced impressive acceleration in the CO-PA controlling and profitability analysis models, a fundamental step toward future growth.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-ferrero-ready-to-accelerate-vidcj702.mp4
  • 488
  • 275

Ready to accelerate

Benefits

Simulation leads to success

One major area where Ferrero sees improvement is in trade promotion within the sales process. SAP ERP powered by SAP HANA improves supply chain processes and enables Ferrero to create complex simulations, such as projecting where their goods can be sent in a more effective way, fully optimizing their supply chain.

Lesson Learned

All together now

One of the most important goals Ferrero has achieved in their transformation program with SAP: it's enabled their IT department to grow as a professional family. They’ve moved from silos, in which each country developed their own IT systems, toward developing a shared community with shared, identical processes.

Today

Better data, better analysis

Ferrero is implementing SAP ERP powered by SAP HANA to accelerate analysis of their cost and profitability data. SAP ERP powered by SAP HANA makes it possible to gather much better insight about their trade promotions and supply chain – allowing them to perform analysis in real-time.

 

Journey Ahead

Real-time info. real-Time benefits.

Ferrero’s goal in the next five years is to double the total turnover in the extra-European countries, and SAP will play a key role, helping Ferrero improve speed and usability with real-time information. Ferrero expects better simulation and faster planning will lead to even more benefits in supply chain and trade promotions.

 

  • http://sapvideo.edgesuite.net/vod/2014/customer-journey/cj-ferrero-significant-improvements-in-speed-and-usability-vidcj703.mp4
  • 488
  • 275

Significant improvements in speed and usability

Related Links