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Vatsak is one of the top Ukrainian confectionery producers with a 20-year history. Based in Mohyliv-Podilskyi, Vinnytsia region, the company now runs a chain of more than 900 branded stores in Ukraine and 16 other countries, including Moldova, Poland, Romania, and others. Vatsak's 3 branches produce 50,000 sweet products daily and deliver them to more than 1,200 stores of the largest national retail chains in Ukraine.

The core values of Vatsak's production are quality and craftsmanship. The company relies on its own equipment to make the key ingredients, such as jam or candied fruits, using fresh produce from the best suppliers. Moreover, the confectioners carefully decorate every cake by hand.

Project

Vatsak's team set an ambitious goal: to increase the output volume at the existing facilities by optimizing production processes and implementing modern IT approaches in business process management. Yet another important factor was to achieve balance in increasing productivity while reducing the number of staff working hours and maintaining their guaranteed wages.

The company aimed to increase the efficiency of each individual department and the enterprise as a whole. Therefore, Vatsak's team engaged IT-Enterprise specialists in the in-depth digitalization of business processes, optimization of production process management, and processing of B2B and B2C interactions “from customer requests to a detailed response from the company.” These processes were built on the no-code/low-code IT-Enterprise platform.

Due to Vatsak’s decision to move innovatively through digital transformation, the project team needed to review every single process created since the company was founded. 

With this in mind, the comprehensive digitalization project covered areas such as the cashier's workplace (POS) and retail sales in the store, customer order management, production planning and accounting, manufacturing process design, recipes, and costing.

Retail chain management, POS​

With a retail chain of over 900 stores in its network, the company placed focus on maximizing the efficiency of customer service as an added value to the quality of its sweets. Completing this task was powered by a solution for retail management and the cashier's workstation (POS).

The cashier's workstation (POS) consolidates all tasks related to the sale of goods, processing various types of payments, cash operations procedures, balance control, etc. All active cash registers and cashier actions are monitored in real time. The POS is also integrated with the WMS (warehouse management system), which ensures accurate accounting of goods and a smooth stock replenishment process.

The POS is part of an end-to-end software solution from IT-Enterprise. It seamlessly integrates the ERP, CRM, POS and payment processing software and transfers data across business processes to ensure that it remains accurate, up-to-date, and analytical.

The company places great importance on data regarding customer demand, preferences, and orders from the chain's stores, which are present in all regions of Ukraine. Further, this information allows for process optimization in the processing of incoming orders and their transfer to production.

Processing incoming customer requests

The manager responsible for order processing can view all orders (planned and additional ones) from the Vatsak retail chain in the IT-Enterprise system. Along with retain chain orders, the chief planning manager has access to consolidated orders, export orders, individual orders, and orders from other chains added via the EDIN platform.

Incoming customer orders are processed with breakdown by region, network, customer, and other advanced analytics. This data then becomes the basis for creating and forecasting sales plans.

Production management with Smart Factory

Vatsak’s production management was implemented based on the Smart Factory Industry 4.0 concept. It follows the principles of end-to-end processes, up-to-date online data, and the use of tablets at production workplaces. For each order, end-to-end business processes provide information on its production status, product status/order delivery time, shipping time, etc.

After processing, retail chain orders are transferred in digital form to production. Based on the process data required for making Vatsak's products, the unified IT-Enterprise system calculates the need for raw materials, supplies, resources, etc. As a result, all necessary information is displayed on the production team’s mobile devices (tablets). Actual output volumes are also recorded in the system and processed online.

Next, production time data is transferred to logistics. At this stage, logisticians approve product delivery routes and send electronic picking orders for product shipment according to the requested list. At the same time, the system helps to generate printable accompanying documents.

Analyzing all resources and raw material consumption during the production process allows for effective inventory and procurement management. It is also possible to influence the calculation of planned and actual production costs by optimizing the costs associated with logistics, in-house ingredient manufacturing, etc.

Project features

The project provided Vatsak with a range of tools for comprehensive operational management of all processes in production, logistics, sales, retail chain management, etc.

Smart Factory is aimed at mass production, yet with maximum flexibility.

IT-Enterprise is a digital partner of Vatsak Design Bureau. It supports comprehensive business processes according to modern standards and technological stack and provides flexibility for development and scaling.

Watch a case study video on the project results here