OABC grows organically to reach more than 400,000 consumers

Organic foods company expands its share of the consumer marketplace

Published on 18-Sep-2013

"Working with IBM Global Business Services helps us not only to satisfy our information technology needs, but to go beyond that in becoming a truly customer-centric business, responding to market trends as they happen." - Dr Jianwei Zhang, Executive President, OABC

Customer:
Organic and Beyond Corporation

Industry:
Consumer Products

Deployment country:
China

Solution:
Customer Relationship Management, Information Integration

IBM Business Partner:
Oracle

Overview

Founded in 2007, Organic and Beyond Corporation (OABC) cultivates, produces, distributes and delivers organic food. Headquartered in Beijing, the company has 6 branches in China and in 2012 reported an annual revenue of 200 million CNY (30 million USD).

Business need:
OABC saw an opportunity to increase its direct-to-consumer sales. Unless the company could scale its processes and systems cost-effectively, this market expansion might be inaccessible.

Solution:
Implemented Oracle’s Siebel Customer Relationship Management (CRM) software, with process design, business transformation and deployment assistance from IBM® Global Business Services®.

Benefits:
OABC hugely expanded its consumer sales, reduced its distribution costs, enhanced visibility of sales performance and increased its market share with more personalized service reaching more people.

Case Study

To read a Chinese version of this case study, please click here

Founded in 2007, Organic and Beyond Corporation (OABC) cultivates, produces, distributes and delivers organic food. Headquartered in Beijing, the company has 6 branches in China and in 2012 reported an annual revenue of 200 million CNY (30 million USD).

Food safety has drawn increasing attention from the government and the public in China, and this focus opened a window of opportunity for the organic agriculture market in China. Total organic food sales now exceed 10 billion CNY (1.5 billion USD) with an expected annual growth rate of more than 30 percent.

One major market change has been the surge in consumer interest in organic food. At this point, OABC operated a largely business-to-business (B2B) model, selling corporate gift cards redeemable as produce to retail, restaurants and trade, with a relatively small consumer (B2C) channel. To increase its share of the consumer market, the company wanted to expand its B2C operations, bringing additional revenues and income stability. Systems and processes designed to manage bulk sales and deliveries would now handle potentially millions of small orders.

To make the transition possible, OABC would need to re-invent and transform itself, finding new ways to understand and service the B2C market profitably or miss out on a golden opportunity.

Transforming the business model, supported by technology
The OABC team knew that maximizing customer value is the key to profitability, alongside cost-efficient production, sales, distribution and delivery. If OABC could capture the individual consumer’s loyalty and repeat business, then the company could build revenues based on customer service and product excellence.

OABC engaged IBM Global Business Services to design and build customer-centric business processes and systems, including performance management and sales solutions. The scope encompassed future planning of supply chain management and warehouse management solutions. With the increased scrutiny of food safety, the IBM team also reviewed product safety, traceability and quality assurance processes.

With a clear business operating model, the IBM team selected Oracle’s Siebel Customer Relationship Management (CRM) applications to provide a foundation for critical B2C processes.

Working with IBM, OABC was able to transform customer management, enhancing management of sales, distribution, order time, order items, preferred service hours and personalized services. The company can now utilize visualizations of the order process to gain an instant overview of delivery status and company performance.

IBM Global Business Services helped to create plans to redesign internal product traceability and quality assurance systems, and solutions that will allow current and predicted market demand data to be fed back to the production facilities to help ensure order fulfillment is increased and wastage reduced.

Successful transformation helps to capture new markets
With assistance from IBM Global Business Services and with Oracle’s Siebel CRM solution in place, OABC has successfully transformed its business model from its largely B2B and expanded its B2C sales channel.

The near-real-time information systems allow OABC to understand its market, adjust its production and delivery processes to match demand, and operate at very low costs with little wastage. The company can closely track sales performance and identify opportunities for improvement.

Dr Jianwei Zhang, the Executive President of OABC comments: “In the growing organic food industry, CRM and the ability to adjust production and supply based on customer demand plays a vital role in the development of enterprises like ours. Working with IBM Global Business Services helps us not only to satisfy our information technology needs, but to go beyond that in becoming a truly customer-centric business, responding to market trends as they happen.”

As a result of the project, OABC is now able to service 30 thousand consumers and operate profitably, seizing and growing a significant share of the B2C organic foods marketplace. With assistance from IBM, OABC has created a complete customer management process, updated its business model and sales policies, and standardized the sales processes. From the call center through customer contact activities to sales order processing and delivery services, OABC has achieved a seamless, highly secure information transfer, offering customers personalized, efficient service.

Jiangwei Zhang concludes: “Our strategy has always been to transition from a B2B enterprise to the B2C marketplace, and our project with IBM and Oracle has been an important part of this journey.”

Products and services used

IBM products and services that were used in this case study.

Service:
GBS CRM: Customer Focused Strategy, GBS CRM: Marketing and Sales Transformation, GBS ISV Community: Oracle - Siebel, IBM Global Business Services

Legal Information

© Copyright IBM Corporation 2013. IBM Corporation, New Orchard Road, Armonk, NY 10504. Produced in the United States. September 2013. IBM, the IBM logo, ibm.com and Global Business Services are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. It is the user’s responsibility to evaluate and verify the operation of any other products or programs with IBM products and programs. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. Oracle’s Siebel Customer Relationship Management is not an IBM product or offering. Oracle’s Siebel Customer Relationship Management is sold or licensed, as the case may be, to users under Oracle’s terms and conditions, which are provided with the product or offering. Availability, and any and all warranties, services and support for Oracle’s Siebel Customer Relationship Management is the direct responsibility of, and is provided directly to users by, Oracle.