Lotte Chilsung Innovates Production, SCM, and Sales Processes through Digital Transformation

Digital Transformation in Progress... Enhancing Work Efficiency and Establishing Rapid Data-Driven Decision-Making
Building Central Remote Control System and S&OP System, Advancing Sales Support SFA System

Lotte Chilsung is undertaking a business process innovation in the production, SCM (Supply Chain Management), and sales sectors of its beverage business through digital transformation. A scene showing the use of the sales support system SFA2.0.

[Asia Economy Reporter Lee Seon-ae] Lotte Chilsung announced on the 5th that it will innovate the work processes of production, SCM (Supply Chain Management), and sales departments in the beverage business through digital transformation.

Lotte Chilsung is undergoing digital transformation to build and advance systems in each department to enhance work efficiency and establish a fast and rational decision-making system based on data.

In the production sector, a SCADA (Supervisory Control And Data Acquisition) system was established to transmit operational data of production facilities located at remote sites to a central server and monitor the status of equipment operation and production flow at a glance through the transmitted data. Additionally, by utilizing tablets, an environment was created where on-site workers can immediately respond to production equipment issues through the SCADA system. This system is currently being piloted at the Anseong plant.

In the SCM and production sectors, an S&OP (Sales and Operation Planning) computerized system was introduced to automate and centralize work processes from demand forecasting, inventory management, to production planning. Through the S&OP system, visibility of the entire work process was secured, enabling quick and flexible responses to sudden variables. Furthermore, as inventory replenishment guides and production plans are automatically generated, work time has been reduced, and demand and supply information is shared in real time through the system, reducing work errors.

In the sales sector, the existing mobile work support system for sales staff, ‘SFA (Sales Forces Automation),’ was advanced. The upgraded SFA 2.0 system provides optimized customized applications for each user’s work, including sales, delivery, logistics, new distribution, and partners. Tasks previously done manually were computerized, and tablets were provided to enable work anytime and anywhere, realizing Smart Work.

Moreover, Lotte Chilsung built an AI sales advisor named ‘Charlotte’ within the advanced SFA system. The Charlotte advisor sends sales activity guide messages by analyzing big data related to sales performance, promotion status, weather, and more. It provides daily messages analyzed through big data, including not only simple performance status but also product recommendations and overdue payment alerts by client, allowing sales staff to receive real-time coaching on sales activities in the field.

A Lotte Chilsung official stated, “We will continue to lead innovation by swiftly responding to the rapidly changing market environment through digital transformation in various work areas, analyze consumer needs based on big data, and conduct marketing reflecting these to enhance customer value. We also plan to gradually expand the digital transformation know-how established in the beverage business to the liquor business.”

This content was produced with the assistance of AI translation services.