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Customer Snapshot: Overview

Millions of people worldwide use Avery Dennison products every day

A global leader in labeling and packaging materials and solutions, Avery Dennison’s applications and technologies are an integral part of products used in every major market and industry. While most consumers and small business owners worldwide are already familiar with Avery labels and products, the company’s reach goes well beyond packaging and labeling. Avery products deliver information across a multitude of categories from reflective street signs to wine labels, product labels, clothing logos, marketing designs, and more. 

Company
Avery Dennison Corporation

Revenue
US$6 billion

Number of Employees
>25,000

Industry
Mill Products

Visionary Themes

Run Simple, Run Live

Headquarters
Glendale, California, USA

Customer Website
www.averydennison.com/

Line of Business
Commerce, Manufacturing, R&D/Engineering, Sales, Sourcing and Procurement, Supply Chain

SAP Solutions
Ariba Contract Management, Ariba Procure-to-Pay, Ariba Sourcing

 As Avery Dennison continues to grow around the world, a reliance on manual paper-based procurement processes has led to some inefficiencies. The opportunity was ripe for a digital, automated transformation that included mobile capabilities.

Customer Snapshot: History

A Solution to a Sticky Pricing Problem

The Avery Dennison story begins in 1935, with just a few spare parts, one very bright idea, and a US$100 loan.

Ray Stanton (“Stan”) Avery, a struggling clerk in Los Angeles, California, USA, invented a smarter way for stores to price their products, then went on to pioneer the labeling industry.

With a few simple materials—primarily used machine parts and a saber saw—Stan created and patented the first self-adhesive, die-cut labeling machine. His practical genius would ultimately yield eighteen patents and establish Avery Adhesives as the company that transformed how brands and businesses deliver information. In 1990, Avery International merged with Dennison Manufacturing to become Avery Dennison.

Today, Avery Dennison manufactures and distributes labeling and packaging materials in over 50 countries and employs more than 25,000 people. The flexibility and responsiveness afforded by Avery Dennison's global footprint enables them to service their customers at key points throughout their supply chain. In just over 80 years, Avery Dennison has grown from one bright idea into a global corporation that continues to set new standards for quality and innovation in materials science.

Customer Snapshot: Business Model

Delivering Messages that Stick

Avery Dennison Corporation is a Fortune 500® company with sales of $6 billion. Avery Dennison manufactures and distributes display graphics, labeling and packaging materials, retail graphic embellishments, and RFID tags that companies around the world use to engage customers and efficiently manage their inventories. Their products are virtually everywhere you look, providing a crucial thread in the fabric of global commerce.

Over 170 manufacturing and distribution facilities located in more than 50 countries

 

The company sustains founder Stan Avery's spirit of curiosity through research, invention, and development of new materials science products and processes. Their expertise in high-speed manufacturing, information display and management, logistics, branding, graphics, and packaging enables them to impact a wide array of markets—from consumer packaged goods and apparel to transportation, architecture, and healthcare.

Avery Dennison delivers so much more than labels…

Customer Snapshot: Success Strategy

Delivering Information to Make the World a Smarter Place

Avery Dennison is a global leader in labeling and packaging materials and solutions. The company’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and 25,000 employees worldwide, Avery Dennison serves customers with insights and innovations that help make brands more inspiring and the world more intelligent.

The Challenge

Digitizing the Paper Trail of a Paper-Based Enterprise

For Avery Dennison, creating messages that stick is the easy part. Consolidating processes and cutting out redundancy was the bigger challenge. For this global company, procurement across 50 countries was posing a growing challenge as predominantly manual processes were slowing down the purchase order cycle and creating inefficiencies. 

 

Avery Dennison looked to SAP solutions as a way to help streamline and accelerate the invoicing cycle, centralize procurement activity, digitize paper-based processes, and keep all stakeholders on the same page.

Avery Dennison wanted an easy-to-use solution that would help their business Run Simple.

Enter SAP

 

Looking to a Leader

With fully integrated source-to-pay solutions, SAP Ariba solutions were the clear choice to help digitize and automate Avery Dennison’s processes.

Avery Dennison sought a solution that could handle the most pivotal point in their procurement process.

Enter SAP: The SAP Experience

Introducing New Streamlined Processes for Better Business

The team deployed SAP Ariba solutions to manage contracts, support payment and invoicing, and standardize procurement processes in North America and Europe. The teams worked together to automate workflows and create a mobile app component. No longer chained to a desk or tied to paper processes, employees can now work on the go, making reporting and compliance easier than ever.

 

SAP Ariba was a one-stop-shop for Avery Dennison’s invoicing needs.

With SAP Ariba solutions, we have completely transformed procurement at Avery Dennison. Previously, paper invoices and purchase orders would be sent back and forth between offices for approval and payment. Now, everything is done digitally, saving us considerable time, money, and effort. — Maarten Eddes, Global Business Process and Systems Manager, Avery Dennison Corporation

Better Business

 

Time Saved, Efficiencies Gained

With an average of 400 hours per week saved, Avery Dennison is already seeing benefits from the new system.

The company has seen multiple gains across the board from SAP Ariba.

Better Business: Benefits

Keeping Tabs on Orders Has Never Been Easier

87% of purchase orders in North America are now managed through SAP Ariba solutions. The mobile app has been widely adopted by all stakeholders who can now access the system just as easily from remote locations as they can from their home office. Avery Dennison has yet another reason to celebrate the new system: automated workflows have completely eliminated the risk of human error and it has significantly lowered the risk of fraud. The success of the program has given Avery Dennison high hopes for a global rollout in the near future.

 

Faster invoice processing, with time reduced from 23 days to 5 days

The best sign of a successful rollout is user satisfaction.

Better Business: Run Simple

 

Visibility Is a Top Priority For This Signage Giant

For a company focused on delivering clear messages, the new system is a perfect match. The new standard workflows greatly increase visibility into all phases. Plus, with mobile in the mix, users can truly Run Simple, tackling tasks on the fly to save time and effort.

When getting the message across is the main goal, Avery Dennison is on the right track to eliminate redundancy and bring the point home more efficiently than ever, both behind the scenes and for the consumers.

Everyone in the network is on the same page with e-invoicing.

Journey Ahead

Going Global and Comprehensive

With their North America operations up and running, Avery Dennison is looking to take the SAP Ariba solutions around the globe. They have plans to roll out these new solutions across Asia, Latin America, the Middle East, and Africa, and increase the number of transactions managed through SAP Ariba solutions in Europe to 70% in the near future.

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