SAP responds to demands of food and beverage industry

By Anne Widjaja

SAP has been named one of the top technology providers for food and beverage distributors by Food Logistics, a publication dedicated to the US grocery and food service logistics industry.

Since the introduction of the U.S Food and Drug Association’s Food Safety and Modernisation Act in January 2011, there has been increased regulatory pressure to ensure the safety and traceability of food products throughout the entire value chain.

Consequently, food recalls in the US have risen significantly, according to This has placed even more pressure on the ability of distributors to meet the subsequent changes in customer demand.

Distributors have responded to this pressure by investing in business software that can effectively monitor and manage logistics operations.

According to SAP, the industry has looked to SAP’s Wholesale Distribution solution portfolio to address the needs of the food and beverage industry from both a customer service and profitability perspective. The SAP ERP and SAP Supply Chain Management applications allow distributors to track and trace compliance requirements whilst actively managing supply levels and price points in real time.

The portfolio also helps distributors better manage their costs. SAP BusinessObjects Profitability and Cost Management applications enable distributors to segment their customers based on profitability and cost analysis. SAP Paybacks and Chargebacks applications by Vistex also allow distributors to track their chargeback claims, from initiation to settlement.

Karen Lynch, vice president, Wholesale Distribution Industry Business Unit, SAP AG, highlights the commitment of SAP to the food and beverage industry.

“SAP’s inclusion in the FL 100 list is affirmation to our commitment to help food and beverage wholesalers turn today’s industry challenges into real business opportunities.”

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