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Digital transformation of soft drink manufacturing company

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Reference no: EM133185704

Topic:

Digital transformation of soft drink manufacturing company in Kazakhstan

Company information:

Short history

  • 1998 - Begin of the company, start of water production, which is then rebranded in 2010 under the new trademark
  • 2004 - Production of the first iced tea in market of Kazakhstan
  • 2012 - Production of drink under the license of the Swiss company
  • 2012 - Production of live fermented kvass
  • 2013 - Production and distribution of iced tea under contract with Nestle Waters until 2015.
  • 2015 - Production and distribution of drink with aloe pieces under the license of the Korean company
  • 2016 - Production of juice drinks
  • 2019 - Rebranding of water in small formats of 0.5 and 1l
  • 2020 - Launch of a new soft and carbonated drink 0.5 and 1l
  • 2020 - Distribution - Start of deliveries of goods from countries near and far abroad

Estimated annual revenue is $179,274,876 as of 2021

Previously, the company had ERP system which helps to manage all accounting balances and control leftovers in all its warehouses. However, there were no online platform for Retail shops (B2B clients), so they had to follow "old-school" time-consuming procedures (multiple calls, long correspondence, paperwork and etc.) in order to purchase products. Even distributors faced issues because their ERP were different from ERP of the company, and thus incompatible with it.

Currently, manufacturer and distributors have the same ERP system and they are compatible with each other. Next goal is to implement simple user-friendly online platform for B2B clients will help to increase sales by making all purchases significantly quicker. Further platform development and implementation of B2C feature are expected after B2B feature will be proven to be effective

Types and sources of data for digital transformation:

  • Currently on place:
    • Internal ERP software
      • Accounting balances - always up to date
      • Warehouse leftovers - always up to date
    • Sales reports - up to date of last sale
      • Volume Share
      • Clients base
      • Assortment
      • Market share
  • Needed collection:
    • Customers' data
    • Customers' sales
    • Customers' ability to use online platform
      • Availability of PC and/or IOS/Android smartphone
      • Availability and quality of internet connection
    • Questionnaire for customers and for distributors to discover other issues

Possible uses of AI in analytics

  • Intellectual stock analytics with automatic order which will help to avoid either overflow or running out of stock; based on AI processing of both warehouse, sales and customers data.
  • AI suggestions of products to be purchased for clients based on previous purchases and customers data
  • Workforce planning - optimal labor allocation to ensure orders get out on time while eliminating overstaffing and understaffing.

Explain, how the company could implement (if possible) the following aspects of digital transformation:

  • Digital marketing strategies:
  • Customer Data Management (CDM),
  • Customer Relationship Management (CRM)
  • Marketing Automation,
  • Programmatic Adverting,
  • Internet of Things,
  • Virtual/Augmented Reality,
  • Blockchain

Also consider digital leadership issues: Ethics, leadership styles, and multicultural leadership

Reference no: EM133185704

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