BRF - SAP Innovation Awards 2025

Winner in the Cloud ERP Champion and Industry Leader category: BRF, a global food giant, leverages SAP Integrated Business Planning (IBP) for supply chain management to drive digital transformation and growth. By using AI and advanced analytics, BRF improves forecast accuracy, optimizes inventory, and enhances planning. Collaborative forecasting and real-time data alignment increase operational efficiency, enabling BRF to manage its extensive operations and adapt quickly to market changes. Entry #5245 Download the Document

PUBLICEntry Pitch DeckBRFJorge Serpa / Gilberto AndrettaFood IndustryEnhancing innovation: daily supply chaindemand planning with SAP Business AI
COMPANY NAME:HEADQUARTERS:INDUSTRY:WEBSITE:NUMBER OF EMPLOYEES:Company information2BRF S.A.Itajaí, BrazilFood Industryhttps://www.brf-global.com/en/Nearly 100,000One of the largest food companies in the world, BRF, founded ~90 years ago, is present in 120+countries. Its purpose is to offer increasingly tasty and practical quality food - for people and theirpets around the world - through sustainable management of its chain, from farm to fork.Owner of brands Sadia, Perdigão and Qualy, the company focuses on actions centered aroundfundamental commitments to safety, quality and integrity.The company bases its strategy on a long-term vision and aims to generate value for almost100 thousand employees worldwide, more than 415 thousand customers, and approximately9 thousand integrated producers in Brazil, all its shareholders, and for society.From grain purchases to freight and logistics services, BRF monitors their partners to ensure thatthe Company's quality and sustainability principles are replicated by our suppliers around theglobe.PUBLIC
CHALLENGE: SOLUTION: OUTCOME:Enhancing Innovation: Daily Supply Chain Demand Planningwith IBP3Time for planners to accurately access and analyzedemand and forecast data versus from disparatespreadsheet to a central SAP IBP dashboard.SAP IBP is integrated in a process that touches500,000 thousand deliveries per month to 415+thousand customers representing 5 million tons offood produced per year.Jobs (scheduled tasks) per month ensuring that theplanning processes are automated and streamlinedincluding the use of SAP Business AI.33% FasterBRF500K 6,000+Seeking innovative solutions is essential to advancingdigital transformation and driving BRF's growth. Theuse of advanced technologies and ArtificialIntelligence (AI) is fundamental to overcoming supplychain management challenges. Ensuring thatforecasts and delivery deadlines are accurate requiresdetailed and flexible planning, enabling a quickresponse to changes, increasing operational efficiencyand accuracy.Additionally, consolidating real-time information,aligning financial and operational planning, andimproving interdepartmental collaboration arefundamental steps for our operation.Using SAP Integrated Business Planning (SAP IBP) forSupply Chain, BRF can analyze vast data sets, improveforecast accuracy, monitor order trends, and enableproactive decision-making.BRF tracks the end-to-end process including: Using daily forecasts for ongoing decision support Enabling simulation agents to produce different scenariosand what-if situations Collaborating on forecasts with cross-teamsBRF leverages advanced analytics to improve supply chainplanning, which helps adapt to market changes, optimizeinventory levels, and enhance replenishment planning.BRF, as one of the world’s largest food companies, istransforming efficiency and productivity standards in theproduction chain, developing solutions that makeprocesses more agile, simple, and efficient.With 44 production units, 103 distribution centersdelivering 500,000 thousand deliveries per month to 415+thousand customers, representing 5 million tons of foodproduced per year, the scale is enormous.BRF is one of the top SAP IBP organizations achievingdaily demand planning and sensing, statistical modeling,forecast accuracy and embedded analytics, time-seriesanalysis, and exception management, which is integral for~400+ planners and monitored by the BRF board,directors, and stakeholders.PUBLIC
GLOBAL CHALLENGESChallengesBUSINESS CHALLENGESPUBLIC 4Countries’ food agency regulations, requirements, and practices suchas Halal, sustainability, and others, significantly impacts BRF, when itcomes to demand and forecast planning with SAP IBP.These challenges include: Demand Segmentation - Categorization of products and forecastdemand for each segment must be accurate. Production and Certification Constraints - Food regulations canimpose constraints on production, such as dedicated productionlines, specific certifications, and assessment of what-if scenarios. Shelf-Life and Expiry - Some regulations may impact productshelf-life due to specific ingredient requirements or packagingguidelines. Inventory Levels - Stricter regulations require higher safety stocklevels to ensure continuous supply, as any non-compliance canlead to sudden drops in demand or recalls.SAP IBP assists BRF in meeting these requirements by ensuringcompliance, optimizing supply chain performance, and helping meetcustomers demands more effectively.For BRF, implementing SAP IBP brings numerous benefits, but it alsocomes with its own set of business challenges including: Intricated Supply Chain - Modeling multiple suppliers, plants,distribution centers, and stakeholders. Demand Volatility - Addressing seasonality, trends, andproducts’ shelf life to accurately forecast and plan. Products’ Shelf Life Optimize inventory level to reduce losses. Promotion and New Product Introduction (NPI) Planning -Planning for events and campaigns accurately Regulatory Compliance - Complying with stringent regulations,requirements, and standards. Process Alignment - Aligning business processes with bestpractices along with training and change management. Data Quality Ensuring one company-wide version of the truth.Addressing these challenges has enabled BRF to improveoperational efficiencies and enhance decision-making.
PROJECT OBJECTIVES WHY SAPObjectives5BRF selected SAP IBP based on a proven, data driven, planning tool tohelp anticipate and respond quickly to risks and opportunities. SAP leads the market in supply chain transformation. SAP provides a broad range of capabilities that support demandplanning, inventory optimization, supply planning, sales andoperations planning, along with a forward-looking roadmap SAP provides short- to long-term forecast accuracy through AI-powered algorithms, statistical modeling, demand sensing, andautomated outlier correction. SAP has a strong global presence, ensuring that BRF withinternational operations can address local and global requirements. SAP has a deep understanding of food industry best practices andprovides guidance and expertise based on successful deployments. SAP enables planners to make well-informed decisions with toolsdesigned for them, promoting automation and allowing planners toconcentrate on value-added tasks.To support BRF's growth, the company sought to adopt a scalableand flexible solution that could optimize demand planning and supplychain management. The adoption of the SAP Integrated BusinessPlanning (IBP) platform aims to achieve several objectives such as: Increasing forecast accuracy: Using statistical models andmachine learning algorithms to improve planning accuracy. Optimizing inventory management: Determining optimal inventorylevels, reducing stockouts, excess inventory, and obsolescence. Improving logistical efficiency: Aligning strategic, tactical, andoperational planning across different departments (e.g., sales,marketing, finance, supply chain). Ensuring regulatory compliance: Supporting risk management andcontingency planning to comply with regulations. Promoting sustainability: Implementing practices that reduceenvironmental impact and promote sustainable development.PUBLIC
USE OF ARTIFICIAL INTELLIGENCE IN THE PROJECTProject or use caseOVERALL USE CASE6BRF is a recognized early adopter of the use of SAP Business AI, Joule, and machine learning. For SAP IBP they are utilizing demand planning and sensing,statistical modeling, forecast accuracy and embedded analytics, time-series analysis, and exception management enabled by the following: Algorithms - Combines traditional time-series forecasting, regression and predictive modeling, and machine learning to produce more precise dailyforecasts. Master Data Analytics Artificial intelligence improves data quality, enhances the planning processes, and supports better decision-making. Order Patterns - Leverages demand sensing to automatically adapt to order patterns and downstream demand signals like point-of-sale data with theability to fine-tune the forecasts.BRF is amongst the first customers to successfully incorporate SAP IBP with Joule (slide 13) to leverage the SAP Help Portal and a Chatbot for assistance,and conversational search, with a roadmap for further deployments going forward including the planning assistance with the add-in for Microsoft Excel.BRF uses SAP IBP for both short-term and long-term strategic planning. In the short term, BRF relies on SAP IBP for daily visibility of sales, productionplanning, and stock variations. This approach is crucial for our end-to-end process. Also, It is priority for planning day-to-day availability of inventory / stock. Inaddition, for exports, close market monitoring is essential to adjust production, shipping, and minimize losses.In the longer term, BRF sets monthly and quarterly sales KPIs and uses SAP IBP to track progress and adjustments, such as launching sales campaigns orincreasing production. Accurate forecasting is vital as it directly impacts sales goals.BRF relies on SAP IBP to provide demand and production data for the Annual Budgetary Run. This process contributes to major strategic decisions for thefollowing year, hence it is extremely critical.PUBLIC