SAP Innovation Awards 2024 – Entry ID 4389 - Constellation Brands
Corporate waste due to damaged goods is a significant challenge for Constellation Brands impacting our product margin due to incremental costs, re-work, incremental labor related to claims management and sustainability goals. Download the DocumentPUBLIC
Entry Pitch Deck
Constellation Brands
Erin Onze / Joseph Nadakkavukaran /Dan Herlihy
Consumer Packaged Goods (CPG)
Saving our glass with automated damage
claims
Entry Pitch Deck
Constellation Brands
Erin Onze / Joseph Nadakkavukaran /Dan Herlihy
Consumer Packaged Goods (CPG)
Saving our glass with automated damage
claims
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Constellation Brands
Rochester, NY
Consumer Packaged Goods (CPG)
www.Cbrands.com
11,700
Constellation Brands is a leading international producer and marketer of beer, wine, and spirits
Our mission is to build brands that people love because we believe elevating human connections is Worth
Reaching For
It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our
consumers, shareholders, employees, and industry
This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S.
at retail, and it drives our pursuit to deliver what’s next
Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand
family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico,
and Victoria; our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi
Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford and
Meiomi
As an agriculture-based company, we have a long history of operating sustainably and responsibly
Our ESG strategy is embedded into our business and our work focuses on serving as good stewards of the
environment, enhancing social equity within our industry and communities, and promoting responsible
beverage alcohol consumption
We do all of this by leveraging SAP S/4HANA, Ariba, SAC, BTP (including SAP Build Process Automation),
Concur
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Constellation Brands
Rochester, NY
Consumer Packaged Goods (CPG)
www.Cbrands.com
11,700
Constellation Brands is a leading international producer and marketer of beer, wine, and spirits
Our mission is to build brands that people love because we believe elevating human connections is Worth
Reaching For
It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our
consumers, shareholders, employees, and industry
This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S.
at retail, and it drives our pursuit to deliver what’s next
Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand
family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico,
and Victoria; our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi
Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford and
Meiomi
As an agriculture-based company, we have a long history of operating sustainably and responsibly
Our ESG strategy is embedded into our business and our work focuses on serving as good stewards of the
environment, enhancing social equity within our industry and communities, and promoting responsible
beverage alcohol consumption
We do all of this by leveraging SAP S/4HANA, Ariba, SAC, BTP (including SAP Build Process Automation),
Concur
CHALLENGE: SOLUTION: OUTCOME:
Saving our glass with automated damage claims
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Reduction in human effort by using 3
automation scenarios and 2 AI process
steps
Images scanned per day
50%
Constellation Brands
2,100+
CBI ships approximately 400MM cases of
beverages from Mexico to warehouses and
distribution centers in the US by truck and rail
Damages to product and/or packaging materials
may occur. On average, 4,000 damage claims are
submitted monthly with 15 images attached to each
claim.
Each claim takes approximately 10-15 minutes to
process, an individuals full time job
CBI is leveraging SAP Build Process Automation to
automate several of the manual and repetitive
activities and optimize the process, thus significantly
reducing the user workload in the claim process.
In Addition the team is leveraging AI capabilities for
image recognition to scan over 2,100+ images a day
to determine if a good is damaged and claim payout
determination
Constellation Brands automated a highly manual
process by automating six steps of the process,
introducing automated workflow and leveraging AI
for an additional two steps. This significantly
reduced the human effort in this process by 50%
and digitized the manual process.
In addition, the results will enable analytics to be
used to identify opportunities to reduce and/or avoid
damages ultimately increasing profits and
minimizing waste (improve sustainability).
Saving our glass with automated damage claims
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Reduction in human effort by using 3
automation scenarios and 2 AI process
steps
Images scanned per day
50%
Constellation Brands
2,100+
CBI ships approximately 400MM cases of
beverages from Mexico to warehouses and
distribution centers in the US by truck and rail
Damages to product and/or packaging materials
may occur. On average, 4,000 damage claims are
submitted monthly with 15 images attached to each
claim.
Each claim takes approximately 10-15 minutes to
process, an individuals full time job
CBI is leveraging SAP Build Process Automation to
automate several of the manual and repetitive
activities and optimize the process, thus significantly
reducing the user workload in the claim process.
In Addition the team is leveraging AI capabilities for
image recognition to scan over 2,100+ images a day
to determine if a good is damaged and claim payout
determination
Constellation Brands automated a highly manual
process by automating six steps of the process,
introducing automated workflow and leveraging AI
for an additional two steps. This significantly
reduced the human effort in this process by 50%
and digitized the manual process.
In addition, the results will enable analytics to be
used to identify opportunities to reduce and/or avoid
damages ultimately increasing profits and
minimizing waste (improve sustainability).
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4
Implementing and utilizing the SAP Build
Process Automation System, Constellation
Brands will be taking a task that is extremely
tedious and removing the manual nature, thus
allowing gross efficiency and productivity gains
achieved by our team. A major reduction in the
amount of daily hours spent on this task will let
the team focus on value added process
improvements in quality benefiting CBI.
Michael Ream
Sr. Quality Coordinator
Implementing and utilizing the SAP Build
Process Automation System, Constellation
Brands will be taking a task that is extremely
tedious and removing the manual nature, thus
allowing gross efficiency and productivity gains
achieved by our team. A major reduction in the
amount of daily hours spent on this task will let
the team focus on value added process
improvements in quality benefiting CBI.
Michael Ream
Sr. Quality Coordinator
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Corporate waste due to damaged goods is a significant challenge
for Constellation Brands impacting our product margin due to
incremental costs, re-work, incremental labor related to claims
management and sustainability goals.
Damaged goods result in waste as well as incremental costs
associated with re-packing (materials and labor)
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Corporate waste due to damaged goods is a significant challenge
for Constellation Brands impacting our product margin due to
incremental costs, re-work, incremental labor related to claims
management and sustainability goals.
Damaged goods result in waste as well as incremental costs
associated with re-packing (materials and labor)
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
Reduce the effort of doing low value, repetitive activities, that are
very time consuming
This will free up personnel cycles to do activities that are more
critical for accepting / rejecting a claim
The end goal is to focus the resources time on process
improvements to drive fewer damaged goods
Fewer Damaged Goods will help us reduce waste from our
manufacturing cycle and help achieve our sustainability goals
This project was completed in 8 weeks
SAP Build Process Automation is the right tool at the right time. It
will help us automate this very labor intensive process, enable
workflow for approvals, so we can free up cycles to work on
Process improvement.
Seamless integration with Core SAP (via API calls, etc..) and
access to AI & ML with reusable components for other use cases
We engaged SAP Services and MaxAttention colleagues to help us
with this custom and more complex use case. Their teams brought
a lot of knowledge and helped us gain familiarity with the SAP tools
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
Reduce the effort of doing low value, repetitive activities, that are
very time consuming
This will free up personnel cycles to do activities that are more
critical for accepting / rejecting a claim
The end goal is to focus the resources time on process
improvements to drive fewer damaged goods
Fewer Damaged Goods will help us reduce waste from our
manufacturing cycle and help achieve our sustainability goals
This project was completed in 8 weeks
SAP Build Process Automation is the right tool at the right time. It
will help us automate this very labor intensive process, enable
workflow for approvals, so we can free up cycles to work on
Process improvement.
Seamless integration with Core SAP (via API calls, etc..) and
access to AI & ML with reusable components for other use cases
We engaged SAP Services and MaxAttention colleagues to help us
with this custom and more complex use case. Their teams brought
a lot of knowledge and helped us gain familiarity with the SAP tools