Automating Supply Management for Supermarket Chain

  • Service Digital Transformation
  • Customer Major group of food corporations
  • Year of implementation 2019 – ongoing

Case

As a part of their digitalization policy, customer decided to automate interaction with suppliers within a subsidiary retail network.

Customer

Group of companies, manufacturer of food products of various types. The group controls several dozen food brands. Its enterprises manufacture hundreds of products, sold in many food retail chains in EMEA region.

A significant place in the group's structure is occupied by its own retail business. The company operates several retail chains under different brands, of convenience store, supermarket and hypermarket formats.

Business problems

  • #1 Lack of proper classification for supplied goods
  • #2 Company managers spend a lot of time communicating with suppliers.
  • #3 Executives do not have the full picture of procurement in the company.
  • #4 Unpredictable purchase schedule.
  • #5 Dependence on permanent contractors.
  • #6 Dependence of business on specific employees.

#1

Our approach

Loovatech involvement on the project started in October 2019. Our team joined customer's internal discussion of the project and carried out pre-project consulting.

During the first month of work, concept of a business IT solution emerged. It was to be a public portal for suppliers, which automated all interactions in procurement process. The result of the first three months was an MVP with most critical scenarios implemented.

Over 7 months, system's functionality was being expanded by the developer at the request of the customer. In particular, it was the process of outgoing tenders, where retailer arranges a procurement competition and can invite suppliers to participate was automated.

Within a year, the system was scaled up for all users in the retailer network.

#2

Result

Full-scale automation of procurement process in a major supermarket chain was carried out.

Working with incoming requests from suppliers and initiation and conduct of tenders by the retailer's managers were digitalized.

Actual results:

  • A working digital procurement system, used daily by over 75 managers of various levels within the retail chain.
  • Digitized classification of product categories with retailer standards, regulatory norms, and other product requirements.
  • Personal accounts for retail chain suppliers allowing them to participate in tenders announced by the customer, as well as to post independent offers to procure goods for the retailer.
  • Personal accounts of managers from the customer's side with differentiated rights for each role, including category manager, negotiator, logistician, auditor, operational manager, etc.

#3

Future

The customer still uses the system daily. Ever since the launch of an MVP in early 2020, the supplier portal continues to evolve.

The retailer has a need for expanded functionality of implemented solution. Further development of the portal is expected to start in 2022 in the form of horizontal scaling to other business units within the group.

A working digital procurement system, used daily by over 75 managers of various levels within the retail chain.

Digitized classification of product categories with retailer standards, regulatory norms, and other product requirements.

Personal accounts for retail chain suppliers allowing them to participate in tenders announced by the customer, as well as to post independent offers to procure goods for the retailer.

Business result

  • 4,000+ suppliers registered in procurement system.
  • 1,300+ active product categories in the classifier.
  • 100+ suppliers are now ready to offer their goods monthly.
  • 400+ incoming requests come from suppliers per month.
  • 75 regular users of the system on the customer's side.

Technology stack

  • Backend Python, Django, Celery
  • Middleware nginx
  • Interface Nuxt.js, Vue.js
  • Storage and queues PostgreSQL, Redis, RabbitMQ
  • Hosting Deployment at the customer's facilities
  • DevOps TeamCity, Docker, Ansible
  • Tools JIRA, Confluence, Bitbucket, Sketch, Zeplin
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1/3
Digital Transformation

Processes are time-consuming

Routine processes in production, sales, marketing or communicating between departments take a lot of time.
Digital Transformation

Human factor is an issue

Employees do the same actions in different ways, and there is a lot of human error.
Digital Transformation

There's duplication of work

Several systems and interfaces are needed to solve a single task, and switching between them takes time.
Digital Transformation

Productivity is low

There is lack of consistency and order; time-consuming information search and processing reduce the productivity of employees.

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Loovatech services

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