Philippine-based producer of alcoholic beverages Tanduay Distillers Inc. has implemented SAP S/4HANA in finance, sales, and production to accelerate digitalisation across its business operations.
To ensure long-term and sustainable growth, achieve high-quality performance, and meet customer expectations, leading organisations in the Philippines have already invested in the latest cutting-edge technologies and solutions, including SAP innovations. Ayala Land Inc., Bank of the Philippines Islands (BPI), Jollibee Foods Corporation, JG Summit Holdings Inc., Manila Electric Company (Meralco), PLDT Inc., and San Miguel Corporation are just some of the country’s industry leaders that have utilised SAP ERP software and applications in order to manage their large and complex operations.
Tanduay Distillers Inc., a subsidiary of Tanduay Holdings, Inc., is also one of the companies that have already invested in the German tech giant’s end-to-end business solutions. The maker of the renowned Filipino brand, Tanduay Rhum, has deployed SAP S/4HANA to optimise operations in all of its ageing manufacturing facilities — which consist of 200,000 oak barrels — and maintain its competitive advantage while establishing a global footprint.
In November last year, the liquor company finalised its partnership agreement with Horizon Beverage Group, a New England team of beverage distributors. Their collaboration is aimed at expanding Tanduay Distillers Inc.’s presence in the overseas market by including its products in Horizon Beverage Group’s portfolio. Apart from the US, the diversified beverage firm has also reached the rum industries of UAE, Germany, Belgium, the Netherlands, China, and Singapore.
Implementing SAP S/4HANA in Finance, Sales, and Production
In order to keep up with the business growth and further support its global expansion, Tanduay Distillers Inc. took the opportunity to digitalise its processes and streamline data on a unified enterprise resource planning (ERP) platform. The company selected SAP S/4 HANA, an ERP system that includes artificial intelligence (AI), machine learning (ML), advanced analytics, as well as other intelligent technologies.
Moreover, the SAP S/4HANA platform transforms business processes through intelligent automation. It operates on SAP HANA, which is an in-memory database that intends to enable real-time processing and simplified data models. Expounding more about the SAP implementation project, Nestor Mendones, Senior Vice President of Finance and Chief Financial Officer at Tanduay Distillers Inc., shared:
“SAP S/4HANA is the digital platform we need to realise our future growth ambitions. It is unifying our production, sales, and finance in a way that will allow us to bring Tanduay Rhum to the world.”
Accelerating Finance Digitalisation
Here are some of the remarkable outcomes Tanduay Distillers Inc. achieved from utilising SAP S/4HANA in finance, sales, and production:
- Allowed real-time monitoring of financial processes using the finance and controlling capabilities in the SAP ERP platform.
- Enabled faster transactions for outstanding balances and helped avoid duplicate payments and discrepancies.
- Simplified the data governance and security of financial and accounting statements.
- Reduced the days needed to perform monthly book closing processes by 50{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22}.
- Made system-wide transactions data available on the first of the month.
On top of financial monitoring, the accuracy of Tanduay Distillers Inc.’s inventory tracking is also projected to improve significantly. According to the company, its sales and distribution system will also be able to increase map sales by leveraging SAP’s solutions. Meanwhile, understocking or overstocking inventory is also expected to be minimised through better procurement planning and forecasting.
SAP Philippines Managing Director Edler Panlilio said that SAP recognises the value of continuous growth for enterprises — big or small — in order to succeed and realise their companies’ goals. He remarked:
“At SAP, we do not only offer solutions, but we also offer innovations and progress for businesses, and our goal is to help them be an intelligent enterprise for the digital future.”
