Proving the Business Case for the Internet of Things

World's largest cosmetics franchiser to build intelligent supply chain with SAP

William Payne
September 20, 2018

The world's largest perfumery and cosmetics franchiser, Brazilian firm Grupo Boticário, has partnered with SAP and SAP Ariba to build a connected and intelligent supply chain. Grupo Boticário has 4,000 points of sale in Brazil, and a presence in 12 other countries. The company will leverage solutions from SAP Ariba to create digital processes through which it can manage and collaborate efficiently across its entire source to settlement value chain in what it plans as a simple, smart and integrated way.

"We make more than 350 million products every year. That's more than one for every person in the Brazilian population,” said Nicolas Simone, CIO, Grupo Boticário. “Running a business of this magnitude requires a highly synchronised supply chain. And with solutions from SAP and SAP Ariba, we can build one."

“The world has gone digital and procurement has gone with it,” said Catalina Manrique, Vice President, SAP Ariba Latin America. “Innovative companies like Grupo Boticário have embraced this trend and are powering new ways of thinking and operating that beyond savings and efficiencies, can create long-term, sustainable advantage for their business.”

According to a study by SAP, although 84 percent of global companies recognise that digital transformation is fundamental for their survival in the next five years, only three percent of them have completed digital transformation initiatives throughout their operations. The study, SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart, found that more than half of the companies in Latin America and Brazil expect to increase their turnover this year, but believe that the next two years will be far more challenging as a result of technology-driven business change. As a result, business executives in those countries believe that their companies will need to transform and accelerate their current go-to-market strategies.

The SAP study was based on interviews with more than 3,000 senior executives from 17 countries.