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.
Small candies, big business
Sales, Supply Chain, Information Technology
SAP Business Suite powered by SAP HANA
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.
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.
Looking at profitability
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.
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.
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.
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.
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.
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.
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.
Significant improvements in speed and usability