Points of Consumption Network Control, Effortless

ABInbev, the world’s largest brewer, trusts LOVIS with its future. Zx Ventures, its innovation, growth and sustainability division, runs on LOVIS EOS.

Created in 2015, Zx Ventures’ mission is to develop new products and businesses to address emerging users’ needs. Delivering extraordinary experiences, beverage personalisation, new purchase and delivery formulas, comprehensive availability, and more.

Within Zx Ventures, Brand Experience, or BEx, offers a rich variety of artisan beers and new experiences to consumers through Pub type Points of Consumption, or POCs, which include food, merchandising and, in some cases, local brewing. BEx is also responsible for providing large and very large events, like Corona Capital.

The Problem

Disarticulated interaction between Procurement, Distribution, Sales (POCs) and Finance compromised BEx’s operational control.

Operating flow between centralised and distributed procurement was undefined. Sixty percent of purchases were done from the headquarters, while 40% was done at the POC, usually via email, without a process, workflow, policies nor historical records. Optimising financial and material resources was not possible.

Inventory control, beer freshness and correlating consumptions versus sales was carried out on Excel spreadsheets, which made it hard and complex. POC’s merchandise quantity, quality, location or purchase detail was generally unknown.

Expenses and purchase reports were manually prepared by POC managers using spreadsheets and emailed to Finance, where is was manually conciled and integrated to manage payables, outlays and accounting.

Sales information was downloaded from the POC software, manually integrated with lots of effort, to produce information according to the business needs and holding company reporting requirements.

Zx Ventures analysed the enterprise software run by ABInBev and concluded that it was too complex and rigid to run the flexible and agile current and future business models.

The implications

Innumerable manual tasks were carried out in an attempt to produce usable information, each area had its own version and lack of necessary detail made hard to make decisions and limited response capacity. Brand Experience growth was compromised.

25,000 person-hours were consumed every year on low on none added value manual tasks. Creation of new business models and expansion of existing ones was not happening. Money was lost.

Operational disarticulation between POCs, procurement and distribution centres was the normal. Reactive and emergency purchases, sometimes buying group’s products from retail stores, happened frequently. Unnecessary logistics expenses were incurred. Beer and food freshness was lost due to expiration. Costs skyrocketed.

POCs, events, initiatives or business line’s EBITDA lacked visibility, and little could be done.

The Solution

Zx Ventures needed an integrated, powerful and flexible enterprise software to build the known present and the unknown future. After analysing several offerings, the team concluded they needed something quite different than the well-known third industrial revolution solutions available in the market. For an innovative company an innovative solution was required. LOVIS EOS was selected for its power, flexibility, end-to-end business processes support and simultaneous connections integral cloud business model.

Business processes were analysed, modelled and documented. LOVIS EOS was configured to support all of them from one end to the other. Master data was prepared and uploaded. Process and technology training sessions were delivered. Integral tests were run. Go-live happened less than five months from kick-off.

Pubs, Brew Pubs and Restaurants POS software was integrated via our APIs. Sales, income and recipe based consumptions and variations are automatically created by the POS software in LOVIS EOS. Items, purchase receptions and costs are automatically created by LOVIS EOS in the POS software. Every POC has inventory, procurement and freshness reliable information. FEFO (First Expiry, First Out) lot control is in place.

Procurement, Distribution, Sales, Finance and Accounting got synchronised. All the organisation’s data was available on the cloud and reliable information was produced directly from LOVIS EOS integrated database.

Procurement requirements converted into purchase orders trigger the integrated procurement-to-pay business process. Everyone knows where it is and where is it going to. All manual operations were eliminated. Results are readily available online and on real time showing exactly how Zx Ventures is performing right now. Organisational-wide workflow and the highest transactional availability allow distributed, regional and centralised tasks and authorisations happen as soon as needed. Flow and control are maximised.

LOVIS EOS flexibility and scalability is allowing other Zx Ventures’ businesses to be implemented, which is key for an ever changing innovative business.

Benefits

Zx Ventures invests the recovered 25,000 person-hours formerly consumed in manual tasks to run the business. Using this time analysing information to grow the current business, innovate, develop new business models and save costs. Personal and professional satisfaction in growing and stress is decreasing.

Centralised purchases with distributed delivery, better negotiations with providers, simple and powerful business rule creation and enforcement and food and beverages expiry lot controls, amongst others, reduced supplies costs by 30%. Full POC and Business Line EBITDA will reduce 5 to 8 million investment risk allowing to open new POCs in a more intelligent way.

Zx Ventures has a platform where all business and operating areas are run and informed decisions are made. The necessary detail and any level of aggregation is available at any moment. Response capacity is stronger. Incorporation of 70 new profitable POCs during 2020 will require a much smaller growth in people than before LOVIS.

Pioneer and innovative, Zx Ventures will support new and highly diverse businesses on the speed, security, flexibility and integration of LOVIS EOS.