Asahi Group Deploys SAP Ariba Procurement Solutions

Asahi Group Deploys SAP Ariba Procurement Solutions

SAP Ariba procurement solutions help organisations improve their entire buying and settlement process, achieve compliance, visibility, and control while delivering negotiated savings that improve the bottom line.

Despite the economic downturn in the foodservice industry due to COVID-19 plus the decline in the domestic beer market, in particular, the Japan-based global food and beverages manufacturer Asahi Group Holdings Ltd. (Asahi Group) remains committed to strengthening its business and pursuing rapid growth by distributing resources to higher-added-value brands both locally and globally. 

The company has selected SAP Ariba procurement solutions to deliver the digital strategy intended to help the domestic group companies’ purchasing of indirect materials. The Asahi Group will be implementing SAP Ariba solutions as its sole indirect materials purchasing platform in the cloud anticipated cut costs, strengthen compliance, and improve efficiency and productivity.

SAP has been a partner of Asahi on its digital transformation journey. Before this recent deployment of SAP Ariba solutions, the Japanese enterprise has also been leveraging the HANA technology in managing its beverage inventory in stores and in responding to market trends more quickly. HANA has been helping Asahi strengthen relationships with retailers and consumers by providing accessible, near real-time sales and operations data.

Procurement Solutions Rollout

The rollout of the SAP Ariba procurement solutions began in January 2019 at both Asahi Group and Asahi Group’s business management entity Asahi Professional Management Co. Ltd. In July 2019, Asahi Breweries Ltd., the group’s entity known for production and sales of beer, happoshu (low-malt beer), sho-chu, chu-hi, spirits, and wine, was the second to deploy the SAP Ariba solutions. 

Asahi Soft Drinks Co. Ltd. and Asahi Group Foods Ltd. implemented the procurement solutions in January 2020 and the rest of the group companies abroad will follow.

2020 has challenged a lot of enterprises, including the Asahi Group, in terms of achieving business results. Forecasting 2021, the company anticipates that it will be able to achieve ongoing cost reduction and compliance by having 80 percent of all indirect materials spend managed by its procurement team optimising SAP Ariba solutions.

“Glocal Value Creation Management”

In the recent CEO message released in August, Asahi President and CEO Akiyoshi Koji shared the company’s philosophy in addressing the pandemic and adapting to the new normal. According to the CEO, Asahi will proceed with the “Glocal(think globally, act locally) Value Creation Management” that is based on the Asahi Group Philosophy in addressing management reforms. He said:

“Although business performance will decline in the short term due to the COVID-19 pandemic, our ability to identify and rapidly respond to structural changes in society as a whole will determine the resilience of our entire business in the post-pandemic new normal.”

“The Asahi Group has brands that are cherished both globally and locally, technologies for ensuring the highest levels of production quality, and employees committed to working together as a team to realize the Asahi Group Philosophy,” Koji highlighted.

Aligned with the CEO’s message, the implementation of SAP Ariba solutions for procuring indirect materials is positioned to increase collaboration and strengthen relationships with its global network of suppliers, and set standards for evaluating and continually improving its procurement transformation. 

Moving forward, the Japanese enterprise is looking into adopting SAP Ariba solutions for direct materials following the company’s objective to achieve strategic and sustainable procurement operations worldwide.

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