Since its establishment in 1997, Hangyo has become a prominent figure in the ice cream industry. Known for innovative flavours and high-quality milk-based ice cream, it has become a favourite in India.
Pain Points:
Supply Chain Management: Hangyo faced significant challenges with a predominantly manual supply chain process, leading to inefficiencies like stockouts and overstock situations. The lack of real-time data visibility and a robust supply chain system hindered effective decision-making, increasing operational costs.
Forecasting Challenges: Hangyo struggled with forecasting due to data limitations, affecting market trend predictions and inventory alignment. The absence of insights into weather-related demand and geopolitical trends further complicated planning, highlighting the need for advanced data analytics.
Scalability Issues: Scaling supply chain operations to meet growing demands posed a challenge, requiring a strategic operational reassessment.
Supplier Relationship Management: Inefficiencies in supplier coordination, delayed deliveries, and negotiation difficulties led to missed sales opportunities, underlining the need for improved supplier relationship management.
UK&Co Intervention:
Optimising Supply Chain with AI/ML Algorithms: UK&Co and Hangyo collaboratively developed an AI-enhanced forecasting model, integrating diverse data sources for precise demand predictions. This led to a 5 to 10% increase in forecasting accuracy and a projected 1% EBIT gain over two years. The transition required a cultural shift in valuing data, an ongoing effort to refine data collection and decision-making processes.
Data-Driven Decision Making for Sales Realisation: Hangyo adopted a data-driven sales strategy, analysing sales data and market feedback to tailor products and encourage customers towards premium offerings. UK&Co's guidance helped overcome initial resistance to SKU premiumization, leading to increased sales in competitive markets.
Sales Force Automation for Retail Presence: Implementing Salesforce automation enhanced sales tracking and market intelligence utilisation. Introducing gamification elements motivated the salesforce, significantly improving Hangyo’s retail presence in South India.
Implementing Direct Selling to Retailers: UK&Co supported Hangyo in leveraging data from 25,000 retailers, adopting direct selling strategies and using WhatsApp for effective communication with retailers. This transition to digital channels strengthened relationships with the sales distribution network.
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