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Revolutionizing Liquor Distribution in Africa through IoT

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • Glass
  • Retail
Applicable Functions
  • Procurement
  • Sales & Marketing
Use Cases
  • Inventory Management
  • Real-Time Location System (RTLS)
Services
  • System Integration
The Challenge
The client, a leading brewing company, was grappling with the challenge of price transparency in the fragmented liquor distribution market in Africa. The lack of transparent prices led to price discrimination and dissatisfaction among end customers, including mom & pop stores, taverns, and small beer cafes. The market dynamics were such that small businesses had weak responsiveness, leading to a lower market share and reach. The liquor monopoly was concentrated in the hands of a few big operators, limiting price choices for small businesses. The client sought to develop a B2B liquor selling platform to provide fair prices to end customers and break the monopoly of big operators.
About The Customer
The customer is a world-leading brewing company seeking to revolutionize the fragmented liquor distribution market in Africa. They aimed to provide fair prices to end customers, including mom & pop stores, taverns, and small beer cafes, by breaking the monopoly of big operators. The customer wanted to develop a B2B liquor selling platform that would integrate various features and systems to ensure price transparency and fair trading practices. They engaged FATbit Technologies to develop this platform, with the goal of improving their market share and reach, and enhancing customer satisfaction.
The Solution
FATbit Technologies developed a B2B liquor selling platform for the client, integrating various features and systems to ensure price transparency and fair trading practices. The solution included Seller ERP integration via Dell Boomi and IBM API Connect, real-time price comparison, basket price comparison, advanced reporting via Microsoft Power BI, loyalty program platform integration, Point Of Sales (POS) system integration, returnables management, advanced level discounts, promotions, real-time inventory management from Seller ERPs, bulk upload of catalogue and inventories, and automatic surveys. The team started by understanding the core steps of the buyers and sellers in the existing offline setup. They then launched a Minimum Viable Product (MVP), refining it over several sprints based on feedback received. The MVP was then evolved into a full-scale product, integrating different ERP systems using Dell Boomi and IBM API Connect. The team also integrated Microsoft Power BI for rich reporting and automated deployment with Octopus Deploy.
Operational Impact
  • The solution delivered by FATbit Technologies transformed the liquor distribution market in Africa from offline to online, creating an equal opportunity environment for sellers of all sizes. The system's basket price comparison functionality delivered price transparency to the end-user and set a playing field for fair trading practices. The integration of the Point of Sales (POS) system with the platform improved the operational efficiency of the sellers and accelerated the rate of solution adoption. The integration of Africa's leading loyalty program platform incentivized end-users with loyalty points for each purchase, spiking up positive purchase behavior and the number of new users committed to the system. The solution also included a return management functionality for empty bottles/crates, offering instant rewards to end-users and promoting environmental sustainability.
Quantitative Benefit
  • Achieved price democracy across the liquor value chain, diluting the monopolies of big players.
  • Significantly improved the return rate of reusable glass bottles, benefiting customers, businesses, and the environment.
  • Accelerated the onboarding of supermarket chains and leading liquor sellers, expanding the liquor platform to new markets.

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