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CLIENT CASE STUDY


Efes Rus: Business process transformation reduces costs by 47%

New operating model, end-to-end business processes and service center are helping the brewer lower costs and improve customer satisfaction.

Overview

Efes Rus is the Russian subsidiary of Anadolu Efes, one of the largest brewing companies in Europe and headquartered in Istanbul. In Russia, Efes Rus is one of the major players in the beer market, and has seven breweries.

To better compete in the face of recent regulations, the Russian brewer, Efes Rus, needed to transform its processes and operating model to reduce costs and make the business more responsive. It drew on Accenture’s deep industry, functional and local experience to redesign the company’s operating model and organization and streamline processes. The team consolidated processes scattered across seven breweries into end-to-end business processes. For instance, sales, logistics and customer service functions are now combined within a single order-to-pay process.

A single business service center (BSC) in Ulyanovsk delivers an unusually wide variety of services for Russia—sales support, customer services, supply chain, marketing, legal and IT. Given the business critical nature of the services, Accenture offered a risk mitigation plan and split delivery into two phases. Thanks to the efficient and effective end-to-end business processes and labor arbitrage, Efes Rus has managed to reduce the cost of services by 47 percent. The BSC also serves as the basis for continuous process improvement across the company’s business functions as it develops capabilities to yield additional savings and improved productivity. The centralized services are helping to transform customer service and convenience—even more important in a market with restricted growth. With these competitive advantages, Efes Rus is better positioned to grab market share.

Opportunity

Recent regulations in Russia to curb the sale of alcohol have led to a significant reduction in volume and a shrinking market for beer. As a result of the new regulatory environment, Efes Rus needed to reorganize its business. It sought to simplify and streamline its current organizational structure to a more manageable size as well as reduce labor costs—all without compromising quality. After its earlier merger with SABMiller, it also needed to integrate business processes, which were scattered across a variety of departments. Efes Rus tapped into Accenture’s business process skills to help the company be more cost-efficient and effective in an increasingly competitive market.

Solution

Over two years, Efes Rus collaborated with Accenture on a multifunctional shared service organization initiative. Together, they redesigned the organization and operating model, which encompassed end-to-end business processes. Also, key performance indicators and cross-functional reporting were centralized. They then established a business service center (BSC) in Ulyanovsk to provide, from a single location, a wide variety of services—sales support, customer services, supply chain, marketing, legal and IT—that were formerly conducted at seven locations throughout the country. As an example, sales, logistics and customer service functions are now combined within a single order-to-pay process.

For Russia, it is rare to combine so many disparate functions under a single roof. Taking the sales function apart and organizing it in a different place while Efes Rus conducted day-to-day business could disrupt business. Given the business-critical nature of these functions and the potential impact on topline growth, the delivery team put in place a strong risk mitigation plan that transitioned all processes to the BSC in two stages. Accenture also supported the handover of processes to the new BSC teams and provided 200 training sessions for the company’s employees and leaders.

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Results

Thanks to the efficient and effective end-to-end business processes and labor arbitrage, Efes Rus has managed to reduce the cost of services by 47 percent. The centralized business processes help reduce duplication of efforts and improve standards. The BSC also serves as the basis for continuous process improvement across the company’s business functions as it develops additional capabilities, such as discount verification and validation, to yield additional savings and improved productivity. Centralized operations and reporting also lay the foundation to improve customer centricity, sales intelligence and salesforce effectiveness. For Efes Rus’ customers, the BSC means that they only need to knock on one door to be served. Previously, they needed to call multiple contacts in cities scattered across Russia if they have a question about deliveries and invoices, for instance. This has helped improve the level of customer coordination and speed up service. Not only have the streamlined processes and BSC helped Efes Rus save money in a shrinking market, they are equipping the company with competitive advantages to grab market share.