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Why is SAP the Best ERP for FMCG in 2024?

Why is SAP the Best ERP for FMCG in 2024?

FMCG business operations require quick and flexible decision-making. With SAP ERP solutions, businesses can leverage the power of AI and Machine Learning (ML) to analyze, identify, and forecast demand trends, automate day-to-day manufacturing and production operations, and access a centralized database to manage financial reports and respond to shifting market demands in real-time. Growing business needs and complex supply chains make it essential for FMCG businesses to integrate sophisticated ERP software solutions to thrive in today’s competitive markets. In this blog, we’re going to dive into some reasons why SAP is the best choice ERP software for your FMCG enterprise.

1.ML and AI-powered Forecasting and Data Analysis

Sales are the backbone of FMCG businesses, making it imperative that your goods make the shelves for consumers at the right time and the right quantity. In quick supply and demand cycles, FMCG business operations need accurate and precise data to ensure products are manufactured, dispatched, and sold efficiently.

Too much production is a waste and too little is missed revenue. SAP AI and Machine Learning (ML) powered data analysis and demand forecasting can help ensure operations are running efficiently. The ERP software can identify demand patterns using historical data and market trends to help your manufacturing operations maximize resource efficiency even during the most volatile and fluctuating demand cycles.

With SAP ERP solutions for FMCG like S/4HANA or Business One, businesses can view all their financial data in real-time, and with integrated finance modules you can use data analysis to identify and pinpoint accurately where your business can save costs and boost profitability. The AI algorithms can help manage inventory and predict potential shortages to help managers always stay on top of any hiccups that might hinder production.

Leverage SAP AI and ML to develop pricing strategies for your products to boost profitability. SAP AI can use algorithms to analyze competitor pricing, market trends, and consumer behaviour to give precise data points and insights to help optimize your FMCG product pricing. With these tools, SAP ERPs can become a centralized repository of data and operations management for your FMCG business.

2.Integrations, Scalability, and Flexibility

SAP ERPs allow for flexible deployment, whether on-site or cloud-based, allowing options that fit your business needs. FMCG business operations require products to be manufactured, sorted, picked, packed, and shipped to consumers directly or through wholesalers and retailers.

Managing and optimizing multiple business processes makes integrations critical for FMCG enterprises.  With SAP, not only can businesses integrate existing components with additional SAP solutions from the SAP BTP (Business Technology Platform) but SAP ERPs allow for integrations with third-party software that your business might already be using or consider using in the future.

For FMCG supply chains, businesses can integrate SAP ERPs with a Transport Management System to optimize shipment routes and manage freight charges or integrate label generation software to automate the entire process. With these integrations, SAP ERP solutions allow businesses the freedom to choose which modules fit their current needs and seamlessly integrate solutions as business operations grow in scale.


Repetitive operations and processes are tedious and time-consuming. In a fast-paced FMCG business landscape, performing them manually can be error-inducing. SAP ERP solutions allow businesses to automate their FMCG business operations.

Automating operations and workflows not only drastically reduces error margins but also aids in compliance and ensures optimal quality for your products. In the production process, automation can greatly help businesses achieve sustainable results by reducing energy consumption and waste to ensure maximum efficiency within the supply chain.

With SAP ERP software you can use automation in conjunction with scheduling and sequencing. Have a sales order for a specific time later in the week? Schedule for it. Need a product manufactured by mixing raw materials in a specific order? Sequence production through the ERP by providing the exact parameters. As business needs grow, automation becomes increasingly necessary to ensure efficient resource management and customer satisfaction.

As an official SAP Partner, ExD has helped businesses in the FMCG sector transform their operations. We provide a wide range of ERP Services including SAP, Oracle and Salesforce. In the FMCG sector, ExD has partnered with Pepsi distributor Naubahar Bottling Company (NBC PepsiCo) to implement a comprehensive digital solution enabling seamless integration to optimize supply chain, financial, and human resource management operations. Implementing SAP S/4HANA has allowed NBC PepsiCo to expand and optimize business operations and handle the production of 150 million cases annually. Click here  to learn more about NBC PepsiCo’s transformative journey with SAP S/4HANA in partnership with ExD. We also partnered with Qarshi to help implement SAP S/4HANA to seamlessly integrate their financial management, human resource management, and value chain management operations, Read more about Qarshi’s Digital Transformation Journey. Learn more about how we can transform your FMCG business operations


With these key features, SAP ERP solutions cement SAP’s legacy as the industry leader in ERP software solutions. In FMCG enterprises quick and accurate decision-making is vital to maintaining a consistent and reliable supply chain and meeting consumer demand. With SAP AI and ML-enabled business intelligence, automated production operations, and room for scalability, your current and future FMCG business operations can be enhanced and optimized under one definitive ERP software.


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