Transforming business models and understanding what the customer demands is vital for a company to last over time. In this sense, the advance of online sales is a faithful reflection of how consumer habits are changing and why brands are increasingly putting chips on the web.
According to data provided by the chamber of the sector, electronic commerce billed $ 152,000 million in the first half, a figure that accounts for a rise of 60% year-on-year.In this framework of digital transformation, companies must expand their commercial boundaries, focus on omnichannel, exit traditional models and adapt their competitive strategies in order to capitalize on the new opportunities brought by the so-called new industrial revolution, also known as revolution "4.0".
"With a roadmap in mind, we begin to transform internal processes and functional definitions to take the business towards a new direction," he completes. In this way, the company put together a team of professionals focused on innovation.
"We set out to transform the core of our business. In particular, the points of sale and the supply chain," says Lanari.
Thus, the company managed to consolidate a team that already has more than a hundred technology professionals and is constantly seeking to add talent and strengthen its growth. As of today, the figures that Farmacity exhibits are the following:- More than 300 stores in the city of Buenos Aires and 14 provinces- 2.5 million unique customers per month- 13 own brands- More than 6,500 employees
The digital transformation that the company faced - which also brings associated a cultural transformation - was not from one day to the next, since the different sectors "were not mature" to face these changes. Only at the beginning of this year the strategy was consolidated to set the course of the business for the coming years.Custom offers
With the implementation of this roadmap, the firm began to recycle on its foundations in order to build customer loyalty.
"We saw this not only in the technological area but in all areas. Change was inevitable," Fernando Flamenco, Systems Development Manager at Farmacity, tells iProUP. The executive clarifies that changes in the base were necessary to better position and generate new links, both in house and with the public.
Therefore, despite being based on a "more traditional" retail model, Farmacity aims to become a company marked by constant evolution, with a focus on innovation and the incorporation of new technologies to provide a better service. The central concept is more than clear: customers.Under this umbrella of innovation, there is an ambitious project focused on personalizing the user experience. "There are many customers who pass through our stores. And we see that those who are habitats do not want us to ask for their ID, card number, their name or other information," Lanari details.
To improve in this aspect, Farmacity is advancing in a digital tool that will allow you to know in depth what those who enter their stores (digital or physical) are looking for, what they need and what they want to find. Based on that, retain them from benefits, discounts, promotions and tailor-made proposals.
With a first pilot test, the company launched a strategy that promises to transform the user experience, in addition to the construction of the business model.
"Our long-term goal is that when a customer approaches the gondola, the system recognizes it, offers a discount coupon and we know in advance what they may be interested in," Diego Carlos Rui Díaz, Architecture Manager, tells iProUP , Data and Omnichannel IT.Modernization and omnichannel
The personalized experience is not the only focus of innovation that the company faces: all Farmacity stores incorporated this year the QR payments of MercadoPago, the Mercado Libre wallet, in line with what happens in the world with the irrupcipon of new transactional methodologies that have cell phones as epicenter.
For Flamenco, these types of integrations are a clear example of the digital transformation that is being experienced. "It is something that we could implement with speed. We managed to have what customers ask for and provide solutions with a high degree of effectiveness. In this case, it was a quick win for them and for us," he says.
He adds that the digital transformation "makes sense if the process is fast." In his vision, "everyone is scared by the appearance of the next Uber, but nobody thinks that if it had not appeared it would remain the same, with customers buying without thinking or asking for improvements."
As part of its competitive strategy, Farmacity set out to simplify and facilitate access to more efficient solutions, based on innovative methods. "We are aware that new technologies will allow us to make management more transparent," executives agree.
Another of the concepts that is increasingly rooted in its plan is the so-called omnichannel. That is, the integration of all existing channels so that a customer who initiated a communication (or a purchase process) through one of them can continue it in another.
"In the retail industry, different experiences are often seen in stores and in e-commerce. This is not only about technology but also about logistics and what is offered," Lanari adds.To create a true experience, the proposal must point to efficiency, with a round trip work with users. There, the use of "Big Data" and knowing the client are vital to realize really multisport projects.
What is big data? It is the massive analysis of data. The volume is so large that the procedures used to find repetitive patterns must be more sophisticated. Specialized software is required to process that material in order to obtain revenue from the information collected in a timely manner.
In this sense, Lanari explains that the premises are changing because there is a comprehensive plan that considers what each user needs depending on their geographical location.
As for the transformation inside, Farmacity implemented two processes of logistics technification: one in the drugstore and another in the center of distribution of products of mass consumption.
With the first one he was able to increase 200% the average productivity per person. With the second, improve the level of customer service (particularly when preparing orders) and double its operational capacity, thanks to an automatic storage and logistics system.Currently, the company is incorporating processes of technification in the distribution center so that, with innovative tools, improve the standards of its production processes.
"This allows to generate a new concept of e-commerce, simpler, with more options. Currently, 80% of online purchases are withdrawn in our stores, in more than 130 pick up points," say executives.
Electronic recipe
With a well-marked path, Farmacity is trying to transform the full experience of its segment.
"We have the course because we built a map to 2021 in which the core tools have to change to prop up the projects. There comes into play the Big Data and much more information from customers to make decisions," says Rui Díaz.
What has been achieved with its warehouse and its distribution chain is a great step to pave the way for the new era. "In recent years we have invested in logistics and robotization, it gave us a lever to reach all the premises more efficiently. That has been a very important project that the client does not see, but that improves their experience," adds Flamenco.
Looking ahead, he is working to promote the implementation of the Electronic Recipe, along with other actors in the sector. With more than 900,000 medical orders processed per month, it also implemented automation tools to identify, catalog and optimize the administrative process.
However, they affirm that in order for this plan to advance, "operational, legal and regulatory issues have to be resolved", in line with the rest of the companies in the sector and the Ministry of Health.
"We are pushing their development. This, together with the other innovations, will make the patient's life and ours easier," Lanari concludes.