Are you running a small or medium business (SME)? If so, you know how important it is to keep your production and delivery processes under control. From sourcing raw materials to delivering the final product, you need to ensure that everything runs smoothly, and SAP Business One solution for seamless supply chain management just be that game-changer you need.

Managing the supply chain can be a real challenge, and any mistake can be costly. Efficient supply chain management processes are crucial for businesses, which is why integration of ERP software is important. That’s where SAP Business One comes in.

This amazing software has revolutionized supply chain management by offering advanced features and solutions to make your life easier. In this article, experts at VC ERP share the benefits of SAP Business One and why it could be the solution you need to take your SMB to the next level not only when it comes to supply chain management but holisitically.

So, let’s dive in!

Benefits of ERP in Supply Chain Management

SAP Business One is a holistic business management solution, an ERP with several capabilities including Supply Chain Management.

An ERP system like SAP Business One provides an integrated platform to manage the entire supply chain. It enables businesses to orchestrate the movement of goods, information, and finances and fosters collaboration and visibility throughout the supply chain network.

Major advantages of ERP in SCM are:
  • Streamlined Control and Management:

ERP enables real-time reporting and tracking across the supply chain from a central interface. So it assures you of efficient information exchange, improves interdepartmental coordination, and reduces decision-making delays.
  • Accurate Order Monitoring:

With ERP, you can monitor every order meticulously, ensuring timely production and delivery. Softwares with Business Intelligence like SAP Business One provide instant access to order-related information, allowing you to track both old orders in transit and new ones in processing. This detailed insight aids in analyzing customer needs and enhancing their experience.
  • Efficient Inventory Management:

An SMB ERP such as SAP Business One offers advanced features for error-free inventory management, thus, minimising order delivery errors, reducing operational costs, and boosting the company’s overall revenue. Let’s understand this with a few Supply Chain Management use cases for SMBs in the FMCG industry.

7 Supply Chain Management Use Cases of SAP Business One in multiple Industries

In the competitive FMCG industry, managing the supply chain efficiently is essential for success. This is where SAP Business One emerges as a reliable ally, offering comprehensive solutions tailored for small and medium-sized businesses (SMBs).

Use Case 1: Demand Forecasting and Inventory Optimization

An FMCG company producing snack foods notices that certain products sell well during specific seasons or events, like the Super Bowl or Christmas. They need to ensure they stock enough products ahead of these events to meet the increased demand.

Using SAP Business One

  • The company can now utilize the system’s demand forecasting based on historical data to anticipate sales spikes.
  • The Material Requirements Planning (MRP) functionality will suggest purchase and production orders to ensure sufficient raw materials and finished goods are available.
  • Using the right inventory levels, the company can avoid stockouts during peak times and reduce carrying costs during off-peak periods.

Use Case 2 – Promotion Management and Special Pricing

An FMCG SMB plans to launch a new beverage and wants to offer promotional prices to certain large retailers and distributors for an initial period.

Using SAP Business One

  • The company can set up specific price lists for these selected customers.
  • Volume discounts or time-sensitive special pricing can be created to incentivize larger orders or faster adoption of the new product.
  • The sales team can track the success of the promotion through sales analytics, and the inventory team can monitor stock levels to ensure supply matches the promotional demand.

Use Case 3 – Batch Tracking for Quality Control

The FMCG company produces a line of organic fruit juices. It’s crucial to track batches of juice to monitor shelf life, ensure freshness, and quickly recall products if a quality issue arises.

Using SAP Business One

  • Every batch of juice can be tracked using the batch management feature.
  • If a particular batch of fruits causes quality concerns, the company can quickly identify and recall all juices produced from that batch.
  • This ensures consumer safety, maintains brand reputation, and provides data for root cause analysis to avoid future issues.

Use Case 4 – Bin Location Management

A company dealing with automotive parts has multiple products and SKUs, with different parts required for different car models. It’s imperative to quickly locate each part in their vast warehouse to ensure speedy delivery to car manufacturers or service centers.

Using SAP Business One

  • Using Bin Location Management feature, each SKU can be mapped to a specific bin location in the warehouse.
  • When a service center places an order for a particular car part, the warehouse team can swiftly locate the item, leading to faster order processing and increased customer satisfaction.

Use Case 5 – Drop Ship Warehouses

An e-commerce company sells specialty electronics sourced from various suppliers. Some high-value or niche items have limited demand, so it’s not cost-effective to stock them in the company’s primary warehouse.

Using SAP Business One

  • The e-commerce company sets up drop ship warehouses in SAP Business One linked to specific suppliers.
  • When a customer orders one of these niche products, the system triggers a direct shipment from the supplier to the customer, bypassing the need to stock and manage the product in the company’s primary warehouse.

Use Case 6 – Inventory Transfer Between Warehouses

A fashion retailer has multiple outlets and a central warehouse. One of its stores in a high-traffic mall experiences a sudden surge in sales of a particular clothing line due to a local event.

Using SAP Business One

  • The store realizes they are running low on stock for this popular clothing line.
  • Using SAP Business One, the store manager requests an inventory transfer from the central warehouse or another outlet that has excess stock. This ensures they continue to meet demand without losing sales opportunities.

Use Case 7 – Inventory Audit Reports

A pharmaceutical company needs to maintain precise inventory levels for its medicines, given the regulatory requirements and the implications of stockouts or overstocking on patient health.

Using SAP Business One

  • Using the Inventory Audit Reports in SAP Business One, the company can regularly review the history of inventory transactions.
  • They can identify patterns, such as frequent stockouts of specific medicines or overstock situations, and take corrective actions.
  • This ensures regulatory compliance, optimizes inventory costs, and most importantly, ensures medicines are available when patients need them.

What Are the Benefits of Implementing SAP Business One by VC ERP?

Once you have decided that SAP Business One is the right choice for your supply chain management needs, the next crucial step is to select the best SAP partner to implement the solution, train your team, and provide ongoing support for the system.

With so many SAP partners in the industry today, it can be challenging to choose the best SAP Business One implementation partner for your SME. Therefore, let’s take a look at the benefits your business can gain by implementing SAP Business One with VC ERP Consulting.

20+ years of demonstrated legacy with 300+ projects, 200+ customers, and 20+ partners with core competencies in successful implementations, business process re-engineering, technological upgrades, and seamless integrations.

  • Customer-Centric Approach
  • Industry Expertise
  • Deep Business Process Understanding
  • Comprehensive Support and Training
If you are considering an SAP Business One implementation partner, then VC ERP Consulting is at your service. Call us + 91-99789 60138, +91-7948998911 (India), Whatsapp +254-111229970 (Kenya), +1-469 915 6026 (North America) or drop an email at: