SAP in Meat Industry Overview

End to End solution for Meat Industry

Companies

Dr. Christian Kern, Business Development, Meat Industry, SAP Germany

May 2012

SAP Deutschland AG & Co.KG. All rights reserved. www.micarna.ch - Image rights are available 2

Pressures and Challenges for Meat Companies

Fulfill legal Requirements (EU178)

New technology trends

Low profitability

Pressure to utilise capacity

Price pressure

High costs

React quickly

Growth pressure

Brand formation and expansion

High delivery capacity at constant

quality

Implement traceability (EU Reg. 178),

Invest in new automatic process technology + IT

Increase profitability

Purchasing

Product innovation

Efficient/innovative processes

Exploit economies of scale

Retail information exchange

Scaling of processes => Growth

Successful brand formation

Accelerating delivery

Merger and Acquisitions

Improve

Innovate

Adjust

Increase

Be transparent

Accelerate

Pressures Challenges

INCREASE Shareholder Value


Situation at many Meat Industry Companies

Today:

Meat Companies running IT without SAP SAP ERP in Financial, Controlling and Human Capital Management established

Overall small deep footprint in production Heterogeneous IT Landscape at medium and large meat companies even with SAP

Reason:

=> high and special requirements

=> Industry specific solution is needed to fulfill

requirements along meat value chain

BUT :

Increasing number of meat companies would like to replace

their outdated legacy systems, because Lack of support or upgrade path Lack of scalability Lack of multi-language, multi-currency support


Lack of integration due to meat specific requirements Common situation

Livestock

Procurement

Livestock

Production

Disassembly/

Fabrication

3rd party applications or custom

development where customer is

responsible for the interfaces.

Challenges:

Toolbox approach

Different Data Models

Fragmented Business Processes

Batch Updates

Information Silos

Etc.

Back office

System Financials

Slaughtering

Further

Processing

Sales

Planning

=> Less Value


Out of the box integration along the meat value chain

+ MEAT MANAGEMENT

by softproviding

enables customer to use

SAP ERP fully

integrated

=> High Value


Overview Meat Value Chain Vertical Integration

Materials flow

Service flow

End to End solution for the meat industry covers the full meat value chain


Main Meat Industry Principles Mixing and Separation Processes along Pull and push forces

Source: http://www.fleisch-teilstuecke.at/fileadmin/_/Teilstuecke/Poster/Poster_Schwein1.pdf

http://www.fleisch-teilstuecke.at/fileadmin/_/Teilstuecke/Poster/Poster_Rind1.pdf

Slaughtering Further

Processing Cutting Rearing

Fresh Meat

Sausages

Push Which Endproducts should be produced from 2.000 pigs?

How many animals are needed to produce all the ordered or planned sales products? - Pull


Overview of the End to End Scenario Complete process support

Materials flow

Document flow

380 pigs

Invoice

Order

Foil

Order

Order

6 t Ham

Shoulders Shoarma

Shoarma Invoice

Order 1030

1020 1010

Order

Invoice

Invoice


The End to End Scenario

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Plan Demand

Plan Supply

Matching supply and demand,

create production schedule

Procurement of Livestock &

Slaughtering

Procurement of packaging Material

Cutting meat

Sales order creation

Customer Delivery from the

slaughtering/cutting/deboning plant

Receipt at the convenience

processing plant

Production of shoarma at the

convenience processing plant


convenience processing plant


distribution center

Billing

Tracking & Tracing

Review financial results


Value for our Customers

to one integrated solution

From heterogeneous IT-System Landscape...

Integrated processes

Less interfaces

End-to-end flow of value and quantities

Seamless tracking and tracing

Focused know-how on one solution

Data consistency uniform Master Data

Reduced costs, low risk

Fin

an

cia

l b

ackb

on

e

Sol 1

Sol 1

Sol 1

Plant 1

Plant 2 Sol 2 Sol 3

Sol 4

Sol 3

Plant 3

Produktion Qualittsmanagement Vertrieb

Finanzwesen

Controlling Lagerverwalt.

Einkauf & Materialwirts. Personalwesen

SAP ERP

MEAT_line (sopro)

PROCESS_line X_line (sopro) SAP Best Practices

Legacy

System ..

Plant 1

Plant 2

.. Plant X

Supply

Network

Planning


Added value (Business)

Improved insights Real-Time information Immediate data access Homogeneous view on production- and

commercial data

Higher productivity Standardised process flows Reduced process errors Reduced lead times Increased Automation Immediate batch tracking Improved raw material yield

Enabling growth Improved Roll-Outs via templates Higher Utilisation of existing capacities


Added value (Technology)

One fully integrated solution

for any breed

any company area (finance, controlling)

any plant

any country

Open platform

Reliable and scalable solution

Standard solution, out-of-the-box

Connection to any hardware and/ or integration of existing hardware

Continuous innovation


Consumer products food & beverage value chain runs SAP

Wholesaler /

Distributor

Retail Customers

Food / Beverage

Manufacturer Meat industry

companies

Food & Beverage

Ingredients

8 of the Top 10 Food Ingredients

companies run SAP

10 of Top 10 Food companies run SAP

10 of Top 10 Beverage companies

run SAP

Food & beverage distribution fastest

growing wholesale

segment for SAP

1500+ food and beverage retailers

worldwide run SAP

10 of the Top 10 Meat industry

companies run SAP

93% of Top 500 global CP Companies run SAP Marketleadership

Cargill


SAP and Meatline by softproviding see some of the references

17 Companies

~ 22 Bill. revenue

~ 100.000 employees

~ 155 Plants

Marketleader in Switzerland,

Greece, Slowenia, Canada,

Netherlands, UK, Chile

CH CH

SL

CH

GER GER

GER GER

FL

GR

AUS

CAN


Customers worldwide Global view

SAP in Meat Industry Overview

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