MCS Coca-Cola Mongolia

Getting relevant enterprise management data, reducing manual work, and implementing real-time production control with 1C:ERP.
Challenges

Challenges

Lack of real-time and data-driven production control

MCS Coca-Cola is a part of MCS Group holding, which is involved in projects in information, communications, construction, real estate, industry, and infrastructure industries. The MCS Group is working towards the global development of the economy of Mongolia.

MCS Coca-Cola is a beverage manufacturer, which produces around 140 types of products under nine brands. There are 860 employees in the company.

Historically operations management and production planning, product accounting and inventory management, ROI calculation, and data collection for essential performance indicators assessment were carried out almost manually, using Excel tables.

The management team lacked an opportunity to assess essential business metrics and reports in real-time, sales representatives often placed orders for products that are not in stock, the amount of manual work associated with accounting was continually growing, which led to data discrepancies and errors.

The main goal of the project was the development of an IT system that will solve the following tasks:

Operations management and inventory control
Automation of production business processes, service, procurement, and warehouse management
Reducing risks of selling products that are not really in stock
Reducing a workload associated with manual transaction management and planned/actual cost of production
Real-time production ROI monitoring

Customer success

"Just in six months, we've got an IT system that has already significantly increased essential business metrics and fueled further optimization. An important fact is that development and implementation were conducted with no need to stop the production process."

– Hajidsuren Altangerel,

Chief Auditor, MCS Coca-Cola

During the implementation, the following business processes were automated:

Production planning
Repair and service control
Marketing
Sales
Warehouse and delivery
Finance and treasury

Company's owners set a number of strategic goals such as: opening 300 retail stores across the country, entering new markets, complete reorganization of the company, and profitability increase.

MCS Coca-Cola uses a complex discount system with multiple terms and conditions. During the implementation project, mechanisms for automatic bonus accretion and redemption for different loyalty programs were developed from scratch.

The 1C:ERP was integrated with two-way information exchanges with a system for sales representatives. Information about goods, documentation, sales data and stock balances can now be accessed in real-time.

Algorithms for planning and automatic control of maintenance services and orders distribution by trucks were implemented. Also, now there are mechanisms for the automated formation of financial and warehouse documents and shipping documents printing.

The standard mechanism for sales-based production planning was updated to account for production and warehouse capabilities. The algorithm of the automatic reorganization of production plans during high seasons was developed. Also, about 20 different printing forms and reports required in the work of the company have been designed.

Results

Results

Unique management solution with real-time production control

1C:ERP was chosen as a basis for building up a solution for solving MSC Coca-Cola's tasks. The reason for choosing this software product was its functionality related to central management areas automation. 1C:ERP was then customized to feature unique data exchange procedures tailored to the customer's business processes.

Then the solution was implemented for all company's departments covering 102 seats. Right now, for every six days in a week, the company processes 2-3 thousand orders. All this data is uploaded from sales Sales representatives applications to 1C:ERP. Sales representatives, in their turn, download information about transactions, stock balances, and available products.

This project is quite unique – the development and implementation of the needed functionality took just six months.

After the implementation, all company's departments work in a single data space, which allowed to eliminate the display of duplicate transactions, redistribute employee responsibilities, and achieve an increase of 20% in their effectiveness.
Now the system accumulates all the data about developed products, including the date of production, serial number, and expiry period. This leads to an expected decrease in losses due to flawed or defective goods by 15%.
Sales and procurement departments have access to up-to-date information on stock balances and current production orders, which results in better planning and faster decision-making process.
Data accuracy has increased; the system also allows sending reports to tax authorities with no hassle.
The planned increase in production management is 70%, labor efficiency growth is expected to be 30%, planned accounts receivable decrease would amount by 10%.

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MANUFACTURING

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Creation of a single information space across all business units within the enterprise.

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MANUFACTURING

Prodo

Implementation of an automated accounting system to reduce manual processing.

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