Strategy to Improve Interactions With Each Customer Has Amazing Results
Not so long ago, an opportunity was uncovered at Kraft Foods Group Inc., a small export business operation that had not been given the attention it needed to grow, which had been somewhat overlooked by its owner, Kraft International. The opportunity presented itself following the spin-off of Mondelez (a former Kraft International business) from Kraft. Subsequent to the spin-off, Kraft’s core business was mainly directed at the slower-growing U.S. market, while the remaining export business presented a chance for growth with consistent double-digit growth, despite minimal investment. The message from management was simple: scale the export business dramatically within the next 3-5 years. And since the business was currently communicating with customers with spreadsheets, that’s something that also needs to be fixed, fast!
In Kraft’s export business, the growth strategy began by improving interactions with each customer, making it easier for distributors to order, as well as to learn about the full Kraft export catalogue. “We can’t grow this business unless we (first) address how we communicate and collaborate with customers,” explained a Senior Project Manager at Kraft. That Project Manager and his team quickly identified that their existing model for serving customers was not appropriate for a fast-growth business. The ordering process required customers to complete a spreadsheet that listed products and static pricing, and then e-mail it to Kraft for fulfillment. That meant customers who wanted to see full product offerings had to scroll through a spreadsheet. Further, when Kraft made updates and new product offerings, customers had to request specific information or wait for the quarterly spreadsheet update to be e-mailed out. Needless to say, this resulted in weak order accuracy and virtual elimination of “upsells.”
Kraft executives realized that there was a need to change quickly and strategically. Accordingly, they contacted SAP Services to help them find an answer that would facilitate a practical solution. As you might expect, there were very few “easy answers” regarding renewed growth.
The answers emerged from conversations facilitated by SAP Design Thinking ““ a process that focuses on discussions about ideas rather than technology and products. That’s a big deal when rebuilding a business strategy.
For Kraft, SAP helped key stakeholders imagine what they could have. “If you could build anything,” stakeholders were asked, “what would it look like?” In this instance, the team at Kraft was tasked with discussing how the right tool to deliver export pricing and to support their export customers could look.
“The SAP Services team came in and didn’t try to sell me a particular technology solution,” recalls Kraft’s Senior Project Manager assigned to the project. “It was about taking us on a journey from where we were to where we wanted to be. They understood that we want to improve how we do business, but we also want to realize the dream of what we can become in the future.”
Kraft’s Export Business is Going Mobile
The solution? A mobile pricing and ordering app with higher data quality and accuracy. Once implemented, the app was met with high praise from their customers ““ because it was faster and easier to use. SAP Services brought technical expertise and an Agile development methodology to the table to enable a transformation for the Kraft Export business. In addition, this app was based on the SAP mobile platform, which served as the foundation and infrastructure needed to meet the challenges Kraft faced.
What was Kraft Able to Achieve by Partnering with SAP Services and SAP Design Thinking?
Faster mobile app development cycle with agile methodology facilitating: (A) Fewer changes in project scope, thanks to early involvement of business users, (B) Better user acceptance, thanks to a joint design thinking workshop with the business and IT to reimagine processes, and (C) Stronger customer collaboration with real-time mobile pricing and ordering tools.
Kraft’s Story From Kraft’s Customers
Kraft is off to a great start around their goals for growth. Kraft Export just launched their pilot program in early February with select customers. Customers are already excited about the new process and rich experience being offered throughout the ordering process and praising the “Amazon-like” buying experience which includes real time calculations and fast shipments being received. Already, customers can agree that the new process and mobile tool can be summed up in one word: Amazing.
Marshall explains in more detail what happened to get to this “Amazing” point: http://www.news-sap.com/talking-solutions-technology/
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