Nowadays, facing the global economic downturn, fierce industry competition, and uncertainty in future politics, economy, and markets, enterprises in the food processing industry are experiencing varying degrees of challenges. As a result, enterprises in the food processing industry are generally facing a series of pain points and challenges. For example, companies often rely more on experience rather than data when making decisions, resulting in resource waste and increased management costs, especially in raw material procurement and inventory management, where there is a significant amount of hidden resource waste. In addition, product quality fluctuations are also a quite fatal problem, especially in the process of expanding production scale for enterprises. Due to improper process control, product quality fluctuations can directly affect market reputation… ACLOUDEAR, a digital transformation expert in the food processing industry, stated that the common management pain points currently include low operational management efficiency, difficulty in personnel replication, lack of data supported decision-making, product quality fluctuations, and limitations in intelligent and large-scale development.
In response to the challenges faced by the food processing industry, SAP has launched the GROW with SAP solution package, which includes a range of SAP cloud product solutions, accelerated adoption services, community support, and learning resources to ensure that different enterprises can quickly adopt the digital core of SAP ERP public cloud, easily access SAP’s industry best practices accumulated over 50 years, empower food processing enterprises to innovate and grow, and face the future.
To address these pain points, the GROW with SAP solution package provides a range of SAP cloud product solutions to assist food companies in digitizing and standardizing their business processes, enhancing operational efficiency and market competitiveness.
1.End to end business process management: The GROW with SAP solution package provides end-to-end business process management for the food industry, covering various aspects such as sales, procurement, production, warehousing, and finance. By integrating business processes onto a unified platform, enterprises can eliminate information silos, achieve seamless information transmission, and improve overall collaboration efficiency.
2.Flexible supply chain and intelligent manufacturing: GROW with SAP solution package helps enterprises establish flexible supply chains, optimize raw material procurement and inventory management. Through material planning and safety stock management, enterprises can adjust production plans in real time and reduce inventory costs. Meanwhile, the GROW with SAP solution package supports intelligent manufacturing, ensuring the stability of product quality through real-time monitoring of production equipment and process parameters.
3.Data driven scientific decision-making: The GROW with SAP solution package provides powerful data analysis tools to help enterprises obtain real-time production and operational data, thereby making scientific business decisions. For example, by monitoring key indicators in the production process, companies can quickly identify problems and take measures to reduce waste and improve production efficiency.
4.Rapid expansion and standardized replication: The GROW with SAP solution package has high flexibility and scalability, allowing enterprises to flexibly expand system functional modules according to business needs, achieving rapid production and standardized replication of new factories. Through data-driven management of knowledge and standards, enterprises do not need to rely on a large number of experienced employees when expanding, and only need to operate according to the standard processes provided by the system.
Qingdao Huadi Food Ingredients Co., Ltd. is a private enterprise dedicated to creating standardized Chinese food flavors, focusing on the research and development, production, and sales of food ingredients for nearly 30 years. With the rapid expansion of the enterprise, Huadi has encountered bottlenecks in operational management:
● The collaborative effectiveness of the management team has reached its limit:information transmission relies on manual labor, and data is scattered in various spreadsheets, making it difficult to achieve real-time support and effective decision-making.
● Personnel reserves cannot keep up:Expanding a new factory requires a large number of experienced employees, making it difficult to meet the demands of rapid expansion.
● Decision making lacking data support: Production and procurement decisions mainly rely on experience, leading to resource waste and inventory backlog.
● Unstable product quality:With the expansion of production scale, there are quality fluctuations in products during storage and sales, which affects the reputation of the enterprise.
To address these issues, Huadi chose the “GROW with SAP Solution Package” brought by ACLOUDER Acloudear. This solution is based on a series of SAP cloud product solutions and has planned a three horizontal and one vertical digital strategy for Huadi, positioning the brand strategy with SAP+OA as the core support. It focuses on digital channel marketing, flexible supply chain (planning+procurement+logistics and warehousing), and intelligent manufacturing production to support Huadi’s full lifecycle development and growth.
The GROW with SAP solution package brings four future management focuses to Qingdao Huadi: digital channel marketing, flexible supply chain, intelligent manufacturing production, and shared financial management. These measures have helped to create an integrated management platform for business and finance, covering standardized management of sales, research and development, planning, procurement, warehousing, finance, and logistics, comprehensively promoting the digital transformation of traditional industries and the leapfrog development of new industries in Huadi.
By implementing the GROW with SAP solution package, Huadi has achieved the following significant results:
1.Business process coordination and optimization: Seamless connection and optimization between raw material procurement, production planning, product sales, and other links have been achieved. Management links such as “safety stock”, “order lead time”, and “material planning” have been added, realizing the visualization and digitization of the enterprise value chain.
2.Scientific management and efficient operation: Through the application of digital management and standardized knowledge, the new factory can achieve normal operation with only a few core personnel and local workers. Based on real-time data management, enterprises can make scientific decisions for every business activity to ensure efficient operation.
3.Significant improvement in management efficiency and customer satisfaction: Sales management efficiency has increased by 65%, and customer satisfaction has reached 98%. These achievements laid a solid foundation for the rapid development of the Flower Emperor.
Zhang Fuchai, Chairman of Qingdao Huadi Food Ingredients Co., Ltd., stated that the implementation of the GROW with SAP solution package has taken an important step towards Huadi’s management and development. By refining various tasks, we have created the ‘Flower Emperor Chariot’, enabling the modernization and digital management of enterprises to develop and operate with high quality and efficiency
In the process of rapid development and expansion, the food industry is facing many challenges such as low operational efficiency, insufficient personnel reserves, and lack of data to support decision-making. The GROW with SAP solution package helps enterprises achieve digital transformation and business process optimization by providing end-to-end business process management, flexible supply chain, intelligent manufacturing, and data-driven scientific decision support.
The case of Qingdao Huadi fully demonstrates the enormous value of the GROW with SAP solution package in the food industry. By implementing the GROW with SAP solution package, Huadi has successfully solved many pain points in operational management, achieved production standardization and management digitization, and provided strong support for the rapid expansion and long-term development of the enterprise. For other food companies looking to achieve digital transformation, the GROW with SAP solution package is undoubtedly a trustworthy choice.
This article "From Traditional to Intelligent: GROW with SAP helps food processing industry achieve new breakthroughs" by AcloudEAR. We focus on business applications such as cloud ERP.
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