SAP IBP for Fast-Moving Consumer Goods (FMCG)
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Integrated planning for maximum product availability
Plan demand, inventory, and capacity across all channels with an integrated SAP IBP platform for fast-moving consumer goods (FMCG): from demand sensing to MEIO (multi-echelon inventory optimization), from promotional effects to OTIF.
Challenges of planning in the
FMCG industry
FMCG markets are fast-moving, volatile, and margin-sensitive. Failure to ensure availability and manage markdowns will result in lost sales and margins.
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Volatile demand & promotions – Price promotions, seasonality and NPI (New Product Introductions) distort the forecast.
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Omnichannel complexity – retail, e-commerce, quick commerce & D2C with different service and delivery windows.
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Short shelf life and write-offs – Best before/shelf life require precise inventory and replenishment planning.
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OTIF requirements & penalty fees – retailers enforce delivery windows and service levels.
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Supply chain risks – raw material shortages, logistics bottlenecks, volatile lead times.
Those who master these challenges increase service levels and revenue, reduce write-offs and working capital – and gain sustainable competitive advantages.
How SAP IBP is transforming fast-moving consumer goods
Demand Planning & Demand Sensing
Forecasts from POS/ship-to/market data, short-term signals (weather, events), and machine learning models for greater accuracy.
Response & Supply with Supply Chain Optimizer
Cost- and service-optimized supply across the entire network (factories, DCs, stores), including allocation in cases of shortages.
Promotion‑ & NPI‑Planning
Planning of price promotions, displays & launches including leverage, cannibalization and sales curves.
Shelf-life consideration
Shelf life data is automatically incorporated into demand, production, and replenishment planning.
Inventory Optimization (MEIO)
By mapping the entire supply chain, SAP IBP can dimension inventories across all echelons in a targeted manner and dynamically manage safety stocks.
Seamlessly connect S&OP & S&OE
Cross-departmental planning of marketing, sales, supply chain, production and finance on a single database.
Benefits for FMCG
with SAP IBP
Faster responsiveness
Demand sensing and scenarios for promotions, weather peaks, and delivery disruptions enable rapid and automated responses to market conditions and external circumstances.
Fewer transcripts
Best-before date-driven planning reduces losses and improves margins and sustainability.
Lower inventories and working capital
Through MEIO, dynamic safety stocks and optimized network distribution, you achieve a higher service level with lower inventories.
More OTIF & revenue
Higher service levels, fewer out-of-stocks, and improved shelf availability.
Your benefits at a glance
SAP IBP increases delivery capability (OTIF) in the FMCG market, reduces spoilage, optimizes inventory, and enables fast, data-driven decisions for higher sales and margins.