SAP, Tanduay Bring the World’s No.1 Rum Closer to You

SAP SE enables Tanduay Distillers Inc., makers of the venerable brand, Tanduay Rum, to optimize operations in all its manufacturing plants with SAP S/4 HANA.

Tanduay Distillers Inc. eyes greater global success, digital innovation

As the world’s best-selling rum in 2017, the iconic Filipino brand has recognized the need to improve its business operations in order to maintain its competitive edge as it continues to establish its presence abroad.

In 2018, Tanduay tapped SAP to streamline its manual processes, siloed data, and outdated financial IT systems that impede efficiency and drawing of insight to expand operations cost-effectively and profitably. With SAP S/4 HANA, Tanduay has digitalized its processes and unified data on a single, intelligent Enterprise Resource Planning (ERP) platform.

SAP S/4 HANA is a future-ready ERP system with built-in intelligent technologies, including AI, machine learning, and advanced analytics. It transforms business processes with intelligent automation and runs on SAP HANA, a market-leading in-memory database that provides real-time processing speeds and a dramatically simplified data model.

“SAP S/4HANA is the digital platform we need to realize 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.” Said Nestor Mendones, SVP of Finance and Chief Financial Officer of Tanduay Distillers Inc.

SAP S/4 HANA’s finance and controlling capabilities allow it to monitor financial activities in real-time and avoid discrepancies and duplicated payments. It allowed the Tanduay to pay outstanding balances faster. It also made data security and data governance for their financial and accounting statements much simpler. Systemwide transactions data can immediately become available at the first of the month, reducing the days needed to do monthly book closing processes by 50%, from 20 working days to 10 working days.

Aside from financial monitoring, Tanduay’s inventory tracking accuracy is expected to improve significantly. Their sales and distribution system can enable better map sales; warehouse management and production can create more efficient tracking and control of materials movement in warehouses; and greater stock transparency in inventory levels can help avoid shortages or gaps.

Tanduay can now have on-demand access to accurate inventory data with improved forecasting and procurement planning, which aids in avoiding understocking or overstocking inventory.

SAP’s solution can help provide more excellent asset management capabilities by automating notifications to Tanduay for repairs and facilitating maintenance requests to prepare labor and materials activities and avoid downtimes through ready access to data for failure analysis.

With processes and data unified in one system, Tanduay can focus on more strategic tasks, which became crucial for their business continuity amid the COVID-19 pandemic. Their employees quickly collaborated across different teams, strengthening accountability, productivity and improving relationships with suppliers and customers.

“We understand the value of continuous growth for businesses, big or small, to succeed and achieve their company’s goals. 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,” said Edler Panlilio, Managing Director of SAP Philippines.