F&N Holdings Bhd Group Selects SAP for Enterprise Transformation

SAP’s Specialized Solutions for Beverage Industry and Trade Promotion Management
Support Leading Beverage Company’s Drive for Competitive Edge in Global Market

SingaporeSAP Malaysia today announced that leading carbonated and isotonic drinks producer Fraser & Neave Holdings Bhd Group (F&N) has selected mySAP™ Business Suite family of business solutions to enhance collaboration, improve business processes, and reduce operating costs across all divisions of its core soft drink, dairy, and glass businesses. The rollout of SAP solutions will help drive F&N’s enterprise transformation to become the leading food and beverage player in the region.

With a focus on manufacturing and marketing of soft drinks and dairy products, F&N’s specific industry requirements extend beyond a standard ERP solution. In addition to unifying and streamlining processes across its enterprise, it needed an integrated suite of solutions to provide insight into the performance of its product range out in the market in order to deliver the right products at the right time. F&N selected mySAP™ Business Intelligence (BI), mySAP™ Customer Relationship Management (my SAP CRM), mySAP™ Enterprise Portal, mySAP Financials, mySAP Supply Chain Management (mySAP SCM), mySAP Human Resources, and SAP® Beverage. SAP Beverage, a component of the SAP® for Consumer Products portfolio of solutions, will replace F&N’s legacy sales and distribution system. F&N will also implement the trade promotion management capability in mySAP CRM to facilitate the conception and execution of trade promotions for measurable results.

“We selected SAP because it is the only organization that meets our diverse needs with an integrated business solution and the relevant industry knowledge,” said Mr. Tan Ang Meng, chief executive officer, F&N Holdings Bhd. “Our goal is to reap higher efficiencies, reduce operating costs, and drive brand awareness and market leadership. We are looking to SAP solutions not only to help us improve collaboration with our retail partners, but also to generate bottom-line savings.”

F&N will be the first SAP customer in Asia Pacific to adopt SAP Beverage and trade promotion management. Sixteen of the global top 20 beverage companies use SAP solutions to maintain their edge in an industry marked by intense competition and globalization. Companies around the world such as F&N use SAP Beverage to improve logistical performance and optimize asset utilization and inventory along the global supply chains. SAP Beverage, a specialized and comprehensive offering for the beverage industry, is the only offering that provides end-to-end business process integration and the capability to monitor, analyze, and integrate the entire value chain—from mobile handheld devices in distribution centers to back-end financials. SAP Beverage allows maximum interaction and cross-referencing of data to improve and expedite information management processing within the organization, providing full visibility of profitability by brand, package, and distribution channel.

Integrated with the back-end system, the trade promotion management capability in mySAP CRM eases headquarter planning, field planning, customer sell-in and negotiation, execution and validation, and evaluation. Besides conceiving and launching trade promotions to get quick measurable results, trade promotion management will also enable F&N to improve collaboration with their retail partners to guarantee improved return on investment for all parties. Leveraging on SAP’s integrated suite of business solutions empowers F&N to gain lasting competitive advantages and maximize their return on investment, bringing F&N closer to their goal of becoming the top beverage player in the region.

“We are proud to welcome F&N to join a growing list of leading beverage companies using SAP today,” said Puan Khatijah Shah, SAP Malaysia’s managing director. “As one of the few solution providers addressing the market with tailored solutions for breweries and the soft-drink industry, we understand the company’s need to respond to the changing consumer environment, establish stronger community relationships, and customize and strengthen its product appeal.”

F&N is taking a three-staged approach to the SAP implementation. The first stage—comprising financials, inventory management and sales and distribution with mySAP SCM and SAP Beverage — is expected to be completed by early 2004. The ensuing stages will run in parallel beginning in April 2004 and are scheduled for completion in early 2005. Stage two encompasses manufacturing, product costing, and profitability analysis with mySAP SCM, mySAP Business Intelligence and mySAP Financials; stage three focuses on human resources processes with mySAP Human Resources and trade promotion management with mySAP CRM.

About F&N Holdings Berhad
F&N Holdings Bhd is a Malaysian company listed on the KLSE with three core businesses: F&N soft drinks division, F&N dairies division and F&N glass packaging division. The glass division operates joint venture manufacturing operations in Vietnam and China. The F&N Group in Malaysia last year reported a PBT of RM122.3 million on a turnover of RM1.52 billion. It provides employment to 4,000 Malaysians.

For more information about SAP Beverage, visit http://www.sap.comsolutions/industry/consumer/beverage/.
For more information about mySAP Business Suite, visit http://www.sap.com/solutions.