Year of Graduation
Development of recommendations for electronic data interchange between multinational FMCG companies and Russian distributors
Faculty of Management
AbstractThe study adopts international experience of electronic data interchange setup between big multinational FMCG companies and 80 Russian distributors. In this study we considered practical business cases with similar conditions and issues, well-known and new theoretical papers as well as own practical experience of leading such integration project.The goal of the study is to develop recommendations to establish electronic data interchange between multinational FMCG companies and Russian distributors. Relevance of the study is supported by three points. First, Internet penetration in Russia grows, more companies prefer to interchange data electronically through public networks while there are no good enough guides to establish and maintain electronic data interchange. Second, Russian distributors historically have specific organization of business processes. This fact does not allow applying international experience directly without proper adjustments. Third, most public recommendations are not exhaustive, covering one or few aspects of the process. This fact does not allow using them as a sole guide for this specific task. Subject of the study is the process of electronic data interchange establishment and maintenance between big multinational companies and small and medium distributors. Object of the study is the project of electronic data interchange setup between a big multinational FMCG company (sponsor) and 80 Russian distributors, started at the end of 2012 in Russia. In Introduction we provided history of the topic and highlighted three key questions for electronic data interchange: what data should we use for interchange, how to setup and maintain data interchange process, what interface should be used for data interchange. As a result of the international experience review on electronic data interchange we formulated an action plan for the task. Describing the data gathering and analysis methodology, we provided reasoning for applicability of the analysis methods used (comparison, systematization, interpretation) to the gathered data. During data gathering we used three main sources. First, we extracted directly from sponsor’s ERP statistical data on sales, stocks, invoices and inventory for TOP distributors. Second, conducted a series of interviews with key sponsor’s people from sales, analytics, IT and client service departments. Third, we conducted 80 interviews with key people on distributors’ side.As a result of data analysis, we amended and detailed developed action plan for electronic data interchange setup. As a result of the study, we formulated recommendations for electronic data interchange between big multinational companies and Russian distributors. The study has three key advantages. First, the recommendations cover well key issues faced by such integration projects’ managers: from planning to full deployment and maintenance of an electronic data exchange system. Second, the study takes into account specific issues and business processes organization of Russian distributors that made it possible to significantly improve developed recommendations. Finally, developed recommendations were tested on real cases and adjusted based on the practical results.In conclusion we briefly describe the results of the study and formulate most important limitations of the developed recommendations.