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  1. 1. SAP Customer Success Story Consumer Products – Food “For Perdigão, mySAP CRM was the best instrument to increase the incremental value of our distribution network and our relationships with customers.” Antonio Zambelli, Director of Marketing, Perdigão AT A GLANCE Summary Why SAP Solutions PERDIGÃO One of the largest food compa- nies in Latin America, Brazil- •Technology’s capacity to support Perdigão’s call-center strategy Perdigão Uses mySAP™ Customer Relationship based Perdigão realized it needed and new telesales and telemar- Management to Redefine Channels and Get Closer to enhance its distribution net- keting department to Customers work to increase market share and competitive advantage. •Ability to integrate smoothly with SAP R/3® software, functionality The company turned to the now found in the mySAP™ ERP Originally founded in Brazil as a small grocery store 69 years ago mySAP™ Customer Relationship solution by Italian immigrants, Perdigão is one of the largest food compa- Management (mySAP CRM) solution to support its call-center Implementation Highlight nies in Latin America. A consumer products innovator, Perdigão strategy and new telesales and Smooth integration with SAP R/3 software kept the implementa- has launched between 20 and 40 new products annually over telemarketing department designed to supplement field tion on schedule and within the past eight years, many of them innovations in the domestic sales efforts. budget. Brazilian market. Its distribution network, with 20 wholly owned Web Site Key Benefits •Increased market share in São Paulo from 14.5% to 22%, and 10 outsourced distribution hubs, has proven effective for maintaining its market position. Key Challenges a significant portion of which is •Increase market share directly attributable to mySAP •Strengthen relationships with CRM Yet Perdigão knew that to grow long term, it had to seize greater distributors to boost sales •Cost savings of BRL 173,000 •Enhance sales force effective- ness and efficiency (US$61,000) by replacing its legacy call-center system market share in critical product categories. Since Perdigão’s market share is linked directly to its distribution capabilities, the Project Objectives •Improved average response time to customer complaints by first step was to identify key regions where Perdigão’s distribution • Enhance distribution network to support additional business 30 days network was less effective than its main competitor. • Optimize operational sales activi- ties by integrating enterprise- Existing Environment SAP R/3 software wide channels During a 2001 annual strategic planning meeting, Perdigão’s • Increase access to and use of relevant customer information Database Oracle executive team decided customer relationship management by customer-facing personnel Hardware (CRM) was the answer to enhance relationships with distributors. Solutions and Services Hewlett-Packard By building stronger relationships, Perdigão aimed to pull addi- •mySAP CRM Operating System •SAP® Business Information Warehouse component, now HP-UX tional business through the distribution network for increased found in the SAP NetWeaver® market share and a distinct competitive advantage. Business Intelligence component •SAP Business Workflow tool
  2. 2. Perdigão initiated the first phase of its mySAP™ Customer In 2001, however, Perdigão realized that these initiatives were not Relationship Management (mySAP CRM) solution implementa- enough to drive the desired market share and revenue benefits. tion in June 2002, starting with a pilot in São Paolo. Early steps Through a detailed comparison of B2B customer sales visits to included deploying software to support an interaction center resulting purchases in São Paulo, Perdigão’s sales management as well as inbound and outbound sales. According to Peppers & team calculated that unsuccessful visits (no sale made due to Rogers Group, Perdigão will realize an internal rate of return customer being busy or not on-site) made by agents represented (IRR) of 52% by the end of 2004, resulting from revenue increases approximately 10% of the area’s customer base. Further assessment and cost savings attributable to mySAP CRM. revealed that these unsuccessful visits, in conjunction with returned and unavailable products, were the primary Pinpointing Challenges contributors to lost sales. Through its history, Perdigão has become a strong player in the Brazilian consumer goods industry. With 30 distribution hubs, Perdigão also analyzed its interactions with end consumers, Perdigão has maintained a sustainable market position that opti- looking for profitable strategies to create more direct relation- mizes the strength of its pioneering products and operational ships. At this point, consumer contact consisted of inbound networks. “We couldn’t grow as a business Yet, prior to implementing mySAP CRM, the company’s without integrated systems, particularly aspiration to achieve unrivaled market leadership had yet to be realized. Antonio Zambelli, director of marketing at Perdigão, as we were embarking on a customer- explains: “Our main competitor had a much better distribution based strategy. For example, the legacy network than we did and, as a result, greater market share in system was our primary channel of certain categories. We set out to match our competition, if not interaction with end consumers, yet we outperform them.” could not connect that information to Before the mySAP CRM implementation, Perdigão started to our company business processes.” address its market share challenge through various sales force Adhemar Hisashi Hirosawa, IT General Manager, Perdigão initiatives. In 1999 and 2000, the company equipped field sales agents with PDA devices containing business-to-business (B2B) calls to the customer service center to obtain information on customer profiles that included price tables, customer transaction products or to register feedback. The account’s field sales agent histories, customer credit limits, and target sales goals for indi- was then notified, which left problem resolution in the hands vidual accounts. The integration of routing and customer zip of the agent. As a result, notes Zambelli, “Perdigão’s connection codes helped agents become more productive by quickly locat- to its end consumers and B2B customers was exclusively by ing customers and maximizing the time spent during sales visits. personal attention from the sales agent. We did not have a way to develop a direct relationship.” It became increasingly clear that Perdigão needed a customer-based strategy to drive additional growth.
  3. 3. The Technology Choice Making Vision a Reality Prior to mySAP CRM, Perdigão’s primary business applications Perdigão has experienced remarkable changes from the implemen- included SAP® R/3® software (functionality now found in the tation of mySAP CRM, but the future holds even greater prom- mySAP ERP solution) and its legacy call-center solution. Yet ise. To date, the 52% IRR can be traced to sales force effectiveness these were not integrated, making it difficult to connect and service initiatives. As mySAP CRM continues to permeate customer and consumer feedback to critical business processes, the Perdigão enterprise, widespread benefits and even higher such as product development. Adhemar Hisashi Hirosawa, IT returns will result. general manager at Perdigão, comments, “We couldn’t grow as a business without integrated systems, particularly as we were Next steps are to implement mySAP CRM in Rio de Janeiro and embarking on a customer-based strategy. For example, the expand telesales and telemarketing throughout Brazil. Perdigão’s legacy system was our primary channel of interaction with end goal is to continue its remarkable progress toward creating an consumers, yet we could not connect that information to our company business processes.” “From the beginning, we were careful to After defining the scope of its CRM project, Perdigão considered plan the implementation of mySAP CRM solutions from PeopleSoft, SAP, and Oracle. A key decision factor from a strategic standpoint. At each included the technology’s capacity to support Perdigão’s call- step, we ensured the functionality that center strategy and a new telesales and telemarketing department we implemented was connected to our designed to supplement field sales force efforts. A final factor overall company goals.” was the ability to be integrated smoothly with SAP R/3 software. “The CRM tool was coming not only to support the operational Adhemar Hisashi Hirosawa, IT General Manager, Perdigão activities of one area. It was coming to integrate enterprise-wide channels,” says Hirosawa. “The return to the company was enterprise-wide focus on the customer. “The company is changing expected by operational optimization, but also as a result of its culture,” says Zambelli. “Customer service is not only a func- increased access and usage of relevant B2B customer information tion of one department, but a function of the whole company. by customer-facing personnel.” After careful analysis, Perdigão All areas will put the customer first.” chose the mySAP CRM solution based on its core functionality and the ability to tightly link up with the SAP R/3 back end. By strengthening relationships and better meeting the needs of both B2B customers and end consumers, Perdigão exemplifies Perdigão knew technology must be aligned with the company’s how a company can make a significant impact to its bottom line. customer-based strategy to achieve success. “From the beginning, From increased sales revenue to streamlined consumer support, we were careful to plan the implementation of mySAP CRM Perdigão is differentiating itself as a customer-focused enterprise from a strategic standpoint,” says Hirosawa. “At each step, we in an otherwise product-driven industry and market. By crafting ensured the functionality that we implemented was connected direct relationships with both its B2B customers and the end to our overall company goals.” users of its products, Perdigão is generating strong demand across its entire distribution network. In June 2002, Perdigão launched phase one of its CRM project in São Paulo with the implementation of mySAP CRM. The initiative began by deploying an interaction center and inbound and outbound sales. In each case, Perdigão consciously supported each application by workflow productivity functionality to increase efficiency and open revenue opportunities.
  4. 4. /contactsap 50 077 404 (05/12) 2005 by SAP AG. All rights reserved. SAP, R/3, mySAP,, xApps, xApp, SAP NetWeaver, and other SAP products and services © mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. Printed on environmentally friendly paper. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty state- ments accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.