Frutura: Reinventing supply chain collaboration processes with next-generation solutions for automation and visibility
Explore Frutura’s journey with SAP
Frutura GmbH digitalized supply chain collaboration processes from order confirmations to invoice settlement with the SAP Business Network Supply Chain Collaboration solution integrated with SAP S/4HANA. Now, automated processes mean fewer manual tasks and optimized business-process compliance.
| Industry | Region | Company Size | Partners |
| Consumer products | Hartl, Austria | >900 employees | apsolut GmbH and Axians Global |
of supplier invoices are error-free.
faster goods receipts process.
of direct materials suppliers onboarded to SAP Business Network.
Head of Process Management and SAP, Frutura GmbH
Automating supply chain collaboration processes for more visibility
Frutura GmbH, a producer and marketer of fruit and vegetables, uses innovative production and processing systems that strive toward ecological sustainability. Its strategic goal of reducing greenhouse gases in accordance with the United Nations’ Sustainable Development Goals anchors the company’s vision and long-term viability.
With its operations in Austria, 250,000 tons of fruit and vegetables leave the company’s freshness hubs in Hartl and Vorchdorf every year. Working with producers in 40 countries around the world, it supplies fruit and vegetables to more than 1,600 SPAR stores on a daily basis.
The company’s reliance on manual ordering, confirmation, shipping, packaging, and invoicing processes meant that Frutura lacked visibility in its supply chain. Gerald Goldgruber, head of process management and SAP at Frutura, explains, “There were lots of e-mails, and it was not transparent for us as buyers or for our suppliers.” Needing better visibility and control over its supply chain, Frutura began digitalizing supply chain collaboration processes.
Head of Process Management and SAP, Frutura GmbH
Digitalizing supply chain collaboration from order to invoice settlement
With its business running on SAP S/4HANA, it was a logical next step to adopt SAP Business Network Supply Chain Collaboration to connect with its direct suppliers. Frutura partnered with apsolut GmbH to lead the implementation of the supply chain collaboration solution and Axians Global to take charge of program management, with both partners playing a pivotal role in integrating SAP S/4HANA. This would allow all processes from purchase order (PO) to order confirmation, ship notices, handling units, goods receipt, invoicing, and invoice status to be automated and streamlined and exchanged electronically over the network.
Goldgruber adds, “Direct materials for our company are fruit and vegetables. So, we decided to bring 100% of our direct suppliers on to the network. This involves different languages and time zones and includes regional suppliers from Austria, larger European and international suppliers, and very small local farmers.”
Another major factor influencing the decision to adopt SAP Business Network was the offering’s highly configurable business rules to heighten business process compliance. As Goldgruber explains, “We set up around 30 to 40 different business rules to help mitigate risk and prevent errors. For example, suppliers are allowed to invoice only after the goods receipt is posted at Frutura. So, without goods receipts, no invoicing is possible. What’s more, suppliers are not allowed to overinvoice a PO, meaning only amounts stipulated in the PO can be invoiced when goods are received at our site.”
Head of Process Management and SAP, Frutura GmbH
Yielding more-efficient supply chain operations
Frutura has already onboarded about 85% of its suppliers to SAP Business Network and expects to have 100% of them on the network by the end of the year. When buyers and suppliers communicate over SAP Business Network, a detailed history of all transactions and interactions related to a PO are in the same place. This is a significant benefit for Frutura and its suppliers.
Since digitalizing its supply chain collaboration processes, Frutura has dramatically reshaped accounts receivable processes, significantly reducing the time and number of people needed to handle supplier invoices. And as invoices are transacted electronically, the company no longer needs to use optical character recognition software. In addition, thanks to the business rules applied through SAP Business Network, 99% of all invoices that reach its advanced ERP software are correct.
The handling unit management process is very important for a business like Frutura. Using SAP Business Network Supply Chain Collaboration, the company uploads packaging instructions for suppliers. So, when a supplier creates a ship notice, there’s a packaging instruction suggestion on the network. Goldgruber comments, “With the handling unit process, the goods received clerk only needs to physically look at the goods. If the physical goods match the system handling units, which they do in 99% of cases, the clerk can move to the next step. In doing so, they avoid the need to build up the handling units in SAP S/4HANA because they are embedded in the business network. This process is around 60% faster than before.”
Head of Process Management and SAP, Frutura GmbH
Scaling compliance across its supply base
As Frutura works to onboard the remaining 15% of its direct supplier base to SAP Business Network for Supply Chain, it’s also looking toward enhancing how it manages supplier lifecycle and performance. For this, the company is planning to adopt the SAP Ariba Supplier Lifecycle and Performance solution. With these powerful tools, Frutura can help its direct suppliers manage compliance requirements, such as those relating to organic food certifications or food-safety accreditations. And other suppliers can manage their master data, including contact information and bank account changes. The tool allows suppliers to maintain their master data, which is then synchronized with Frutura’s advanced ERP software.
Featured partners
apsolut GmbH is an SAP gold partner focusing on procurement innovation. As a leading consultancy for intelligent spend management, procurement, supply chain, external workforce management, and business transformation, the company has significant proven experience implementing holistic transformations. apsolut led the implementation project for Frutura and guided the integration of SAP S/4HANA.
Axians Global is an SAP gold partner committed to helping businesses around the world unravel technical complexity to bring them a sustainable competitive advantage. With proven expertise, knowledge, and skills covering a wide range of industries and technology, Axians led the project’s program management and was integral to the successful integration of SAP S/4HANA.