Tyson Foods, Inc. Selects SAP to Link Business Strategy With Technology in Single Operating Platform
SAP AG has announced that Tyson Foods, Inc. has selected mySAP™ Business Suite as the backbone technology platform to complete the integration of its operating units, adopt “best practice” business processes and optimize efficiency across its operations. The project will provide Tyson team members with a common view, platform and standard process for managing customer relationships, improving visibility and accuracy in procurement and inventory management and managing all financial information across the company for more consistent reporting. In addition, SAP and Tyson Foods will work together to further enhance a catch weight management application for tracking variations and assessing value between product orders and shipments. The announcement was made at SAPPHIRE® ’04, SAP’s international customer conference being held in New Orleans, Louisiana, May 11 – 13.
Based on the SAP NetWeaver™ integration and application platform, mySAP Business Suite gives Tyson Foods a solid technology foundation to speed the integration and realize the benefits of its acquisition of IBP, Inc. In the future, with tools such as SAP® Master Data Management, Tyson will have the ability to harmonize data across diverse IT landscapes and applications and more rapidly solve problems created by differences among product, customer and vendor information across multiple systems. The decision to deploy mySAP Business Suite follows the successful deployment of SAP’s human resources solution to manage payroll and other functions for the combined organization’s more than 110,000 team members. Under the agreement, Tyson Foods, Inc. will implement a full range of solutions from mySAP Business Suite in a phased rollout among approximately 6,000 power users. Ultimately, the rollout will extend to all Tyson team members.
“To achieve our goals for the integrated Tyson organization and take the relationship between business strategy, benefits and the supporting technology to the next level, we have selected SAP as the technology foundation that will standardize our operating units on best practice business processes across the organization,” said Jeri Dunn, CIO, Tyson Foods, Inc. “By choosing to implement a single, integrated technology platform from SAP, we can more rapidly achieve the benefits of the combined organization and provide Tyson with a strategic and competitive advantage going forward.”
With SAP® Trade Promotion Management, Tyson Foods, Inc. will have a closed-loop, integrated approach to improve the management of promotional spending, more effectively plan promotions with retailers and analyze promotions on key performance indicators such as total trade expenditures, profit impact and incremental return on investment. Leveraging SAP’s order fulfillment, supply chain management, strategic enterprise management and business intelligence solutions, mySAP™ Customer Relationship Management (mySAP CRM) ties together a seamless, end-to-end trade promotion management process that extends its value across the entire enterprise and to business partners.
With the financials solutions from SAP, Tyson Foods will have the ability to process and interpret financial and business data, handle financial transactions and manage profitability, business performance and growth. It enables companywide control and integration of financial and business information essential to strategic and operational decision making and will enable Tyson Foods to track financial accounting data within an international framework of multiple companies, languages, currencies and books of accounts.
With mySAP™ Supplier Relationship Management (mySAP SRM) as its global purchasing platform for sourcing and procurement, Tyson will have an in-house strategic sourcing function to capture quick, significant and sustainable cost savings without recurring expenses for managed services or systems integration. Using a common platform for sourcing and procurement will help ensure higher contract compliance and better spend visibility across all operating units within Tyson.
As part of the agreement, Tyson Foods will work with SAP in further enhancing catch weight management applications for the consumer products industry in capturing the value in measurements of incoming orders, which are placed by the case, and outgoing shipments, which are measured in pounds and ounces. This effort leverages the resources of two of the world’s foremost consumer products and technology leaders to solve a key area of revenue capture for the industry.
“This significant expansion of SAP’s relationship with Tyson Foods shows SAP’s unique ability to establish early success working with our customers and to deliver increased value over time,” said Bill McDermott, CEO and president, SAP America, Inc. “SAP is teaming with our customers — many of whom are global industry leaders — to maximize efficiency for consumer products companies and to develop innovative new applications that address key areas of revenue growth, customer satisfaction and operational excellence.”
About Tyson Foods, Inc.
Tyson Foods, Inc. [NYSE:TSN], founded in 1935 with headquarters in Springdale, Arkansas, is the world’s largest processor and marketer of chicken, beef and pork and the second largest food company in the Fortune 500. Tyson Foods produces a wide variety of brand name protein-based and prepared food products marketed in the United States and more than 80 countries around the world. Tyson Foods is the recognized market leader in the retail and foodservice markets it serves. The Company has approximately 120,000 team members and 300 facilities and offices in 27 states and 22 countries.
About SAP
SAP is the world’s leading provider of business software solutions. SAP® solutions are designed to meet the demands of companies of all sizes — from small and midsize businesses to global enterprises. Powered by the SAP NetWeaver™ open integration and application platform to reduce complexity and total cost of ownership and empower business change and innovation, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. The unique core processes of various industries, from aerospace to utilities, are supported by more than 25 industry-specific SAP solution portfolios. Today, more than 22,600 customers in over 120 countries run more than 76,100 installations of SAP® software. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at www.sap.com ) contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s Annual Report on Form 20-F for 2003 filed with the SEC on March 23, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
Copyright © 2004 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, 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.
For customers interested in learning more about SAP products:
Global Customer Center: +49 (180) 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)