LITX helps food and CPG businesses harness SAP’s automation and analytics to minimize stockouts, streamline inventory, and strengthen retailer partnerships. Our solutions drive quicker market response, increased profitability, and enhanced customer satisfaction. We focus on optimizing supply chain operations, ensuring compliance with industry regulations, and elevating consumer engagement. With SAP, we enhance demand forecasting while maintaining rigorous food safety and traceability protocols, positioning your business for long-term success.
At LITX Business Solutions, we deliver SAP S/4HANA Best Practice solutions tailored for the Food and Consumer Packaged Goods (CPG) industry. Our industry templates help manufacturers ensure safety, quality, and profitability while maintaining full traceability from raw materials to retail shelves.
Industry Challenges in Food & CPG
Supply Chain Complexity: Managing perishable goods, fluctuating demand, and global supply chains requires real-time visibility and agility.
Regulatory Compliance: Strict food safety and traceability regulations necessitate robust systems to ensure compliance.
Consumer Demand: Rapidly changing consumer preferences and the demand for personalized products require flexible production processes.
Cost Pressures: Rising raw material costs and margin pressures demand efficient resource utilization.
Sustainability: Increasing focus on sustainability and waste reduction requires transparent and eco-friendly operations.
SAP S/4HANA is designed to address these challenges by providing a unified, intelligent ERP platform. Here’s how it transforms F&B operations:
Real-Time Insights: Leverage advanced analytics and real-time data processing to make informed decisions.
Enhanced Traceability: Ensure end-to-end traceability of ingredients and products to meet regulatory requirements.
Streamlined Operations: Optimize production planning, inventory management, and supply chain processes.
Improved Customer Experience: Enable faster order fulfillment and personalized offerings with integrated CRM capabilities.
Sustainability Integration: Monitor and reduce waste, energy consumption, and carbon footprint with embedded sustainability tools.
Production Planning and Process Management
Recipe and Formula Management
Maintain master recipes and formulations with precise ingredient proportions, shelf-life data, and production instructions for consistent product quality.
Batch and Lot Production
Support batch-based manufacturing with automatic batch numbering, expiry control, and full material traceability through production and packaging.
Shelf-Life and Date Management
Track product shelf-life, best-before dates, and expiration data across inventory, production, and sales for complete regulatory compliance.
Make-to-Order & Make-to-Stock Production
Enable flexible production strategies — from customized recipes to high-volume standard goods — while optimizing production capacity and minimizing waste.
Yield and Loss Monitoring
Capture real-time yield variances, monitor production losses, and analyze performance metrics for continuous improvement.
Supply Chain and Inventory Management
Demand-Driven Replenishment
Utilize predictive analytics and historical sales data to plan production, reduce stockouts, and minimize excess inventory.
Characteristic-Based Inventory
Manage stock by key food attributes such as batch, quality, fat content, moisture level, or flavor variant for greater precision.
Cold Chain and Storage Management
Ensure temperature-controlled logistics with SAP’s integrated warehouse and transportation management — maintaining product integrity from plant to shelf.
Vendor Collaboration & Procurement Automation
Improve raw material sourcing through real-time supplier collaboration, ensuring ingredient availability and compliance with quality standards
Sales and Customer Relationship Management
Promotional and Trade Spend Management
Plan, track, and analyze trade promotions and discounts, aligning marketing spend with actual sales performance.
Variant Configuration for Product Lines
Support product variety management (e.g., size, flavor, packaging type) to simplify order entry and enhance customer satisfaction.
Customer Service Excellence
Provide accurate delivery dates, stock visibility, and order tracking for distributors and retailers through SAP Fiori apps.
Real-Time Pricing and Profitability
Automate pricing, discounts, and rebate calculations based on channel, region, or customer agreements.
Quality, Compliance, and Sustainability
Integrated Quality Management (QM)
Perform quality checks at every stage — from raw materials to finished goods — ensuring adherence to food safety standards like ISO 22000, HACCP, and FSSAI.
Regulatory Compliance and Labeling
Manage allergen information, nutritional data, and ingredient declarations across packaging and labeling for global compliance.
Traceability and Recall Management
Achieve full lot and batch traceability for rapid, targeted recall in case of non-conformance.
Sustainability and Waste Reduction
Leverage SAP tools to monitor energy use, packaging waste, and raw material efficiency for sustainable operations.
Financial and Operational Analytics
- Embedded Real-Time Analytics
Get instant insights into production cost, sales performance, and inventory turnover through SAP S/4HANA embedded analytics. - Advanced Costing and Margin Control
Calculate recipe-based costing, track variances, and manage price volatility of commodities like sugar, oil, or grains. - Integrated Financial Management
Link finance with supply chain and production for faster closing cycles, accurate profitability analysis, and improved cash flow visibility.
Transform Your Food & CPG Operations with LITX
With LITX’s SAP Best Practice framework, food and CPG manufacturers can achieve end-to-end transparency, regulatory compliance, and operational excellence — ensuring every product that reaches the shelf meets quality, safety, and profitability goals.
Best Practices Implementation
Implementing SAP S/4HANA in the F&B industry requires a strategic approach to maximize ROI and ensure smooth adoption:
- Define Clear Objectives: Align the implementation with business goals, such as improving supply chain efficiency or enhancing compliance.
- Engage Stakeholders: Involve key stakeholders from operations, finance, and IT to ensure buy-in and collaboration.
- Leverage Industry-Specific Templates: Utilize SAP’s F&B-specific best practices and pre-configured templates to accelerate implementation.
- Focus on Change Management: Train employees and foster a culture of adaptability to ensure successful adoption.
- Adopt Agile Methodology: Implement in phases to minimize disruption and allow for continuous improvement.
Value-Added Services
To fully realize the potential of SAP S/4HANA, businesses can benefit from value-added services such as:
- Process Optimization: Redesign and streamline workflows to align with SAP S/4HANA capabilities.
- Data Migration and Cleansing: Ensure accurate and seamless migration of legacy data to the new system.
- Integration with IoT and AI: Enhance operations with predictive analytics, smart sensors, and automation.
- Customization: Tailor SAP S/4HANA to meet specific business needs and industry requirements.
Continuous Support and Enhancement
The journey doesn’t end with implementation. Continuous support and enhancement are critical to maintaining system performance and adapting to changing business needs:
- Proactive Monitoring: Identify and resolve issues before they impact operations.
- Regular Updates: Stay up-to-date with the latest SAP innovations and industry trends.
- User Training: Provide ongoing training to ensure employees are equipped to leverage new features.
- Scalability: Scale the system as your business grows, ensuring it continues to meet your needs.