Reference no: EM133337596

Case Study: Clemens Food Group Delivers with New Enterprise Applications.

Why would supply chain management be so important for Clemens Food Group?

Being in the perishable goods industry, procurement of material and supply to the customers are bound to very tight timelines. Any delay in procurement or supply can make the product unusable. Moreover the product cannot be stored for longer duration and all the supply chain activities should follow a specific pattern ( FIFO) in order to avoid perishing of goods.

The supply chain of perishable goods is a costly affair as it involves refrigeration of movable and immovable storage. Hence supply chain is one of the most vital parts in managing the business of perishable goods.the company is facing several problems in managing the plants and timely procurement of the material. This is because of the outdated technology the company is using to track their orders and stock on hand at the plants.

Factors that contributed to the problem:

1. Management doesn't have a continuous focus on the development of the technology.

2. The technology which was introduced 15 years ago outdated and since it took a lot of time to implement in the initial stages, the connectivity between different departments is missing.

SAP S/4 HANA provides different kinds of reports for different purposes like tracking of orders, stock on hand, stock in process of procurement, stock in transit, reports on various costs involved in procurement and logistics apart from providing simplified and summarized reports for the management.