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Customer Snapshot

Almost Instant Gratification for Thirsty Consumers

8,000

sales representatives serve more than 1 Million customers.

 

China’s bottled water consumption – and available choices – is soaring. Knowing consumers are fickle if their favorite drinks aren’t conveniently available everywhere, Nongfu Spring realized the need to expedite sales and distribution while gaining real-time visibility of consumer behavior and production in order to stay the industry leader.

 

Company

Nongfu Spring

Headquarters

Hangzhhou, China

Customer Website

www.nongfuspring.com

Revenue

US$1.6 billion

Number of Employees

10,000

Implementation Partners

HP

Line of Business

Service, Sales, Sustainability, Supply Chain, Marketing

Industry

Consumer Products, Retail

Featured Products

SAP NetWeaver Business Warehouse, SAP Mobile Platform, SAP HANA, SAP Enterprise Resource Planning, SAP Customer Relationship Management

History

Supplying safe hydration

Evolving consumer habits and concerns about local water quality are driving growth in China’s bottled water industry. Sales in China are estimated to grow from US$9 billion in 2012 to US$16 billion by 2017*, and Nongfu Spring has been at the forefront of this fast-growing industry for more than 16 years.

*According to market analyst Euromonitor International.

                      

  • 1996Qiandao Lake Yangsheng Tang Drinking Water Co., Ltd. was founded.
  • 1997Production began.
  • 2000The Chinese Olympic Committee chose Qiandao Lake Yangsheng Tang Drinking Water for training.
  • 2001The company changed its name to Nongfu Spring Ltd.
  • 2002AC Nielsen ranked Nongfu Spring among the top six consumer brands in China (the only Chinese brand to make the list).
  • 2003 Nongfu Spring launched its first mixed fruit drink.
  • 2004The company introduced its first sports drink.
  • 2008Nongfu Spring rolled out C100 lemon juice drink, containing the recommended daily allowance of vitamin C.
  • 2009The company started to produce C100 grapefruit juice drink following the success of the lemon juice drink.

Success Strategy

Channeling refreshment to meet growing demand

Nongfu Spring holds a vibrant vision for long and short range success that is rooted in their confidence in market demand. The company is poised to remain at the forefront of the bottled water industry by constant attention to IT improvements in real-time tracking of inventory and delivering replacement product to retail shelves expeditiously.

The Challenge

Data bottlenecks slow the flow

In a country where it had been normal for everyone to boil their drinking water to be safe, bottled water is rapidly becoming the attractive alternative. However, inefficient sales systems and slow distribution processes were hurting Nongfu Spring’s ability to keep retailers’ shelves stocked.

 

Nongfu Spring collected massive volumes of operations, sales, marketing, production, and distribution data, but they outgrew the company’s capacity for preparing timely and accurate reports. They needed the benefit of real-time business insight to maintain their position as the leading producer of bottled water.

Enter SAP

SAP breaks the data log-jam

Nongfu Spring has used SAP solutions for many years, starting in 2007 by integrating SAP Mobility into existing business intelligence and CRM solutions (SAP NetWeaver Business Warehouse and SAP CRM). They immediately realized improvements in the efficiency and effectiveness of their mobile sales force. When the company heard about SAP HANA, they requested a proof of concept to see if utilizing in-memory computing would benefit them.

 

 

Nongfu Spring was looking for a way to query multiple data sources and reduce processing times to improve operations and business decision making.

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Mobility accelerates collection of sales data

The SAP Experience

And the data – and profit – flows

SAP worked closely with Nongfu Spring during the implementation process, to move data and reports from Nongfu Spring’s existing Oracle data mart into streamlined channels of information use. Nongfu Spring moved 152 reports in two months, and reported improvements in data extraction and reporting.

 

 

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SAP leaps into action for Nongfu Spring

Running Better

The power of water, the power of SAP

SAP HANA is processing most of Nongfu Spring’s reports 20 to 30 times faster than the company’s previous systems. Results are even more dramatic for some of the company’s data and processes.

 

How dramatic? Here’s one example...

 

Regular account settlements require the company to reconcile its freight accounts. Before SAP HANA, this was typically a complicated operation, requiring 24 hours to process. Data could overwhelm the system and bring it to a halt.

 

 

With SAP HANA, Nongfu Spring processes these reports in 37 seconds – 2,335 times faster!

Today

Delivering bottles, and data, faster

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Stores deliver bottles and data faster

Nongfu Spring is also using SAP HANA for real time supply network simulation and demand planning. The company says it reduced the time to run its transportation plan from 2 days to 200 seconds with SAP HANA. This improved on-time delivery and reduced transportation costs by 35%. SAP NetWeaver Business Warehouse powered by SAP HANA is closely integrated with the SAP Mobile Solution, and provides effective input for strategic business planning and business intelligence.

 

Sales data that is entered daily on mobile devices by the company’s 8,000 field sales representatives is captured and analyzed in real-time. Mobile apps, developed on SAP’s Mobile Platform, help guide store visits, marketing supervision and sales management. During store visits, representatives can often enter sales orders and inventory data via mobile devices instead of on paper. Integration with SAP ERP and SAP CRM on the back-end has improved the sales process, and contributed to the rapid growth of Nongfu Spring.

 

SAP Afaria also securely manages more than 10,000 mobile devices, protecting data and facilitating mobile technology improvements, such as automated software updates.


Journey Ahead

The bottled water wave swells

Nongfu Spring is now in the process of implementing SAP HANA throughout the enterprise. Nongfu Spring, one of China’s largest users of an enterprise mobile business platform, is expanding mobile functionality to improve its logistics planning process.

 

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Next step – streamlined logistics

Nongfu Spring anticipates continued acceleration of its data gathering, and knows SAP will be there with innovations to turn information into profit.

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