SAP launches 'Ganges' to connect CPG cos with kirana shops

BANGALORE: German enterprise solutions firm SAP today launched a new solution 'Ganges' to connect consumer packaged goods ( CPG) companies like Nestle and P&G with kirana shops and retailers, by helping them to keep track of sales and monitor performance on a real-time basis.

The solution, based on SAP's HANA platform, has been developed by its India team for the domestic market. The solution will be rolled out next year onwards across other developing markets like south Africa, Brazil, China and Indonesia.

"Software and communication technologies are reshaping the world and amplifying our ability to process information in unprecedented ways. With Ganges, small retailers will be able to keep monitor sales real-time, enable distributors to take orders and track inventory.

"...while, CPG companies will gain visibility through reporting and forecasting based on sales information aggregated from the retail stores," SAP member of Executive Board (Products and Innovation) Vishal Sikka told reporters here.

With SAP Ganges offering last mile connectivity, CPG companies can also use it as a direct marketing channel to reach retail stores, he added.

Sikka said the solution is also aimed at helping banks connect with retailers. "With better monitoring and clear insight into sales of these retailers, banks can assess credit eligibility of retailers and adjust credit limit periodically based on retail store sales," Sikka said.

According to India Brand Equity Foundation, Indian FMCG sector (comprising personal care, household care and food products) was valued at USD 36.8 billion in FY 2011-12 and is one of the fastest growing retail markets in the world.

The solution will be integrated with point of sale (PoS) devices, which will be available across price points. The pricing will be announced in the next few weeks.

"We expect the devices will be subsidised by the large CPGs as this brings in transparency in the business and will help them keep track of the market, which is largely unorganised. Its a win-win for everyone," he said.

Earlier this week, country's second largest software firm Infosys also launched a similar platform called TradeEdge, to help connect FMCG players expand their presence in emerging markets in an affordable manner.

The 'TradeEdge' platform aims to help brands improve sales and operational efficiency by enhancing collaboration between companies and distributors, improve product placement and reduce wastage. It also helps retailers order and pay for products in a cost effective manner using basic mobile phones.