Advancements in ERP for FMCG
Introduction Prior to a discussion of the advancements in Enterprise Resource Planning (ERP) for the Fast Moving Consumer Goods (FMCG) industry, it is important to first take a look at some of the environmental impacts to understand the context in which we need to place our discussion. The FMCG industry is currently functioning in an uncertain political and economic environment. All of this is impacting the industry in a climate where corporate accounting practices are being heavily scrutinized and anything perceived to be discretionary spending is queried. In addition, the industry is seeing dramatic consolidation via merger and acquisition activity with leaders increasing their market share and dominance in the supply chain. Traditional product lifecycle management is being challenged with the frequent introduction of new products and services with shorter lifecycles and a focus on brand extension. All of the above is placing intense pressure on conventional manufacturing and supply chain practices. IT Trends Recent research conducted by SSA Global Technologies shows that there is an increased emphasis on cost saving and efficiency, with demands on IT to do more with less, and for new IT investments to deliver significant returns on investment than were expected in the past.1
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SSA GT Global Manufacturing Survey 2002

Not surprisingly, in the context of the above environmental factors, research conducted by AMR Research2 found that for 2003, projected software spend for manufacturing organizations with US$500m+ turnover would be mostly in the area of supply chain management (33%), customer relationship management (18%), business intelligence (17%), portals (12%) and only 3% on core ERP. For organizations under US$500m turnover, however, the picture is very different. AMR Research found that an overwhelming 31% of projected