Tsingtao Brewery Improves Accuracy of Sales Forecasts by 13%, Improves Beer Stock Turnover by 10%
 
 

Tsingtao Brewery Improves Accuracy of Sales Forecasts by 13%, Improves Beer Stock Turnover by 10%

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Founded in 1903 by British and German merchants, Tsingtao Brewery Co., Ltd is one of the oldest beer producers in China. The company is the world’s sixth largest brewery, with more than 50 manufacturing facilities across 19 Chinese provinces. It exports to more than 70 countries, including Brazil, Canada, France, Germany, Japan, Mexico, the U.K., and the U.S. Tsingtao Brewery still uses the same type of yeast and 50-day brewing process created by its German founders more than 100 years ago.

To improve beer production planning, the company engaged Oracle Partner Besthelp Information Consulting to integrate Oracle’s Demantra Advanced Forecasting and Demand Modeling and Demantra Demand Management with its Oracle E-Business Suite enterprise resource planning (ERP) system. Now, staff views sales information and develops beer production plans based on accurate demand and supply data, in addition to forecasting how much beer the company needs to brew for special occasions, such as Chinese New Year and other holidays, in addition to major sporting events.

 
 

 
 

Challenges

A word from Tsingtao Brewery Co., Ltd

  • “Thanks to Oracle’s Demantra products, we can analyze supply and demand trends for our beer products and forecast the impact of special events and holidays on sales. This helps us improve production planning, so we have the right quantities of beer on hand to meet customer demand.” – Jiang Zongxiang, General Manager of Information Management Department, Tsingtao Brewery Co., Ltd

  • Implement an integrated sales and operation planning system that provides visibility into supply and demand trends for beer to shorten the time needed to compile and modify production plans
  • Streamline feedback between the sales, logistics, and manufacturing departments to ensure any changes to beer orders are communicated quickly and efficiently
  • Provide the sales team with analysis tools that enable them to accurately forecast demand for beer, particularly at special times of the year such as Chinese New Year and other public holidays

Solutions

Oracle Product and Services

  • Engaged Oracle Partner Besthelp Information Consulting to build a sales and operation planning system based on Oracle’s Demantra Advanced Forecasting and Demand Modeling and Demantra Demand Management, and to integrate the system with an Oracle E-Business Suite ERP platform that includes a supply chain management system
  • Improved the stock turnover rate by 10%, by sharing demand, supply, and production plans between factories and the sales and logistics departments, increasing transparency of the company’s ability to supply beer to meet demand
  • Increased efficiency by eliminating the need for the sales team to manually aggregate numerous spreadsheets when developing and reviewing beer demand plans
  • Cut the time needed to modify market demand plans from seven days to three days by using the Demantra forecasting and demand management tools to analyze and forecast beer sales issuing an alert if the quantity to meet demand doesn't match what is scheduled to be manufactured
  • Improved the accuracy of sales forecasts by 13% by simulating the impact of festivals, holidays, sporting events, new product launches, and special promotions on the demand for beer
  • Facilitated informed decision-making around product promotions and sales and marketing campaigns by providing managers with accurate information about the volume of beer sold in specific time periods, the highest selling beer varieties, and what quantities are shipped to which regions in the world

Partner