Kraft Foods: Customer Reference Video

Kraft Foods is a food-and-beverages leader, with brands recognized around the world. Find out how this innovative company is using SAP Supply Network Collaboration to establish clear processes and analytics, collaborate and share benefits with suppliers, and gain visibility into supplier relationships.

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    • Kraft Foods is a global brands company, global foods and beverage company. In 2008 was just shy of $42 billion with operations, plants, in 168 plants in 47 countries, sales in about 150 countries. We have a huge stable of very well-known brands. In North America, you can find our products in about 99% of the households. Kraft is using the supplier network collaboration hub in order to communicate for SMI, which is supplier managed inventory. We have seen some real savings there, where we get cash-flow benefits. But also for our suppliers, they also lock us up as a customer. But also, they have the ability to ship in within these two ranges, the mins and the maxes, and they get to choose their production capabilities and exactly when to ship it in. They communicate through that collaboration hub, and so it's a shared benefit. It's not just that we benefit on a cash-flow side. They benefit in that they don't have to create invoices. They are automatically paid. But also that they can more adjust their own manufacturing capabilities and their more supply chain capabilities. For a very large company like Kraft, with multiple plants and lines of products and, quite frankly, with our customers being very diverse and global, you need to have very good analytics. You need to have very strong processes that are very understandable and clear. Kraft grew very quickly in terms of each individual brand in its own business unit, and we found that there was a lot of leverage left to be done. And we have taken over the last, I'd say, five, six years to really hone that down. And our catalyst project now is transforming the business processes. That's the general idea, that clarity is by understanding your processes and every strong analytics of what not only the customer are doing but your processes internally are doing. And SAP offered us the ability to have one source of truth, one set of master data, one sets of business processes that are reused across the various lines. The benefits have been, one, just streamlining business processes and creating where our suppliers know exactly what we're doing and what they're going to do for us. In other words, they are going to ship in a product at noon. It's not, we think they are going to ship it in or we believe that we have communicated properly across the chains. So the SNC, the collaboration hub, really gave visibility between the two partners, our suppliers and Kraft Foods. And they can check exactly what they think we understand is in the process, and we can see exactly what they believe they're doing. So when they want to acknowledge a P.O. and say, yes, we will ship that in, and they want to close it with an ASN, an advance shipment notice, it comes across in real-time. We know it's on its way.
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