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.
Service, Sales, Sustainability, Supply Chain, Marketing
Consumer Products, Retail
SAP NetWeaver Business Warehouse, SAP Mobile Platform, SAP HANA, SAP Enterprise Resource Planning, SAP Customer Relationship Management
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.
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.
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 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.
Mobility accelerates collection of sales data
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.
SAP leaps into action for Nongfu Spring
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.
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.
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.
Next step – streamlined logistics