Laoxiangji Group Implements the SAP System

I. Anhui Laoxiangji: A Leader in the Chinese Fast Food Industry

As a leading brand in the Chinese fast food industry, Anhui Laoxiangji Co., Ltd. has won consumers' favor with its philosophy of "delicious food, affordable prices, and pleasant environment". Since the brand was established in 2012, Laoxiangji has expanded rapidly across the country, with over 1,000 stores, becoming a well-known brand in the Chinese fast food sector. By strictly controlling ingredient quality and continuously optimizing service standards, Laoxiangji has stood out in the fierce market competition and gained wide recognition from consumers.

However, with the continuous expansion of the enterprise scale, the traditional management model has gradually exposed many problems. Issues such as information silos, non-standard data management, and bottlenecks in operational efficiency have become key factors restricting the enterprise's further development. To achieve sustainable development and enhance its core competitiveness, Anhui Laoxiangji Co., Ltd. has decided to introduce the advanced SAP system, embarking on a journey of digital transformation in its operational management model. Renaissance Consulting, a holding company under Hippocrates, has become the implementation partner for Laoxiangji's SAP project this time.

II. The Horn of Digital Transformation Sounds

Under the traditional management model, Anhui Laoxiangji faced many challenges. Data recording relied on paper documents, which were not only prone to errors but also difficult to retrieve and analyze quickly. Information flow was slow, and there were obstacles to communication and collaboration between departments. For example, inconsistent data between the procurement department and the warehousing department often led to inventory overstock or stockouts. In addition, the efficiency of financial data statistics and analysis was low, making it difficult to provide timely and accurate decision support for the enterprise's management.

To solve these problems, Anhui Laoxiangji decided to introduce the SAP system to improve the efficiency and transparency of enterprise operations through digital means. The SAP system organically integrates the enterprise's business processes such as procurement, inventory, sales, and finance, enabling real-time information sharing and collaborative management. Through data collection and analysis, the SAP system can monitor operational status in real time, optimize business processes, reduce operational costs, and bring comprehensive changes to the enterprise.

III. SAP Project: Comprehensive Planning and Steady Progress

(I) Overall Planning Blueprint

Anhui Laoxiangji's SAP project adopted the strategy of "comprehensive planning and phased implementation", gradually outlining a clear path for the digital transformation of the enterprise's operational management.

1. Phase 1: System Planning and Foundation ConstructionThe project team conducted in-depth research on the digital construction of advanced enterprises at home and abroad, and formulated a detailed implementation plan based on Anhui Laoxiangji's actual needs. During this phase, the enterprise built the infrastructure of the SAP system, realized the initial connection of business processes across departments, and laid the foundation for the subsequent full-scale application.
2. Phase 2: Implementation and Optimization of Core ModulesIn this phase, the enterprise focused on implementing core modules such as procurement management, inventory management, sales management, and financial management. Through the SAP system, procurement plans can be issued to suppliers in real time, inventory status is monitored in real time, sales data is fed back in real time, and financial statements are generated automatically. At the same time, the system optimized business processes, reducing waiting time and resource waste in operations.
3. Phase 3: Full Integration and In-depth ApplicationThe SAP system was fully integrated with other existing information systems of the enterprise (such as OA and CRM), breaking down information silos and realizing seamless data sharing. By deeply applying the data analysis function of the SAP system, the enterprise can grasp key indicators in the operation process in real time and provide decision support for the management. In addition, the SAP system also realized the full-process traceability of business processes, ensuring the transparency and standardization of operations.

(II) Core Business Model

Centered on core modules including procurement management, inventory management, sales management, and financial management, the SAP project promotes the overall upgrading of the enterprise's operational management.

• Procurement Management: Based on the enterprise's procurement needs and supplier resources, the SAP system automatically generates the optimal procurement plan and issues it to suppliers in real time. Through system monitoring, the management can keep track of the procurement progress at any time and adjust the plan in a timely manner to ensure the smooth completion of procurement tasks.
• Inventory Management: The SAP system realizes precise inventory management, tracking and controlling the entire process from raw material procurement to finished product warehousing. The system automatically generates inventory reports, reducing human errors and improving inventory turnover.
• Sales Management: The SAP system can monitor sales data in real time and generate sales reports, providing data support for market analysis and sales strategy adjustment. At the same time, the system supports the integration of multi-channel sales data, helping the enterprise better understand customer needs.
• Financial Management: The SAP system realizes the automated processing of financial data and automatically generates financial statements, reducing errors caused by manual operations. Through the data analysis function, the management can understand the enterprise's financial status in real time and make scientific decisions.

(III) Strong Technical Architecture Support

The SAP system is based on an advanced digital platform, with high customization capabilities and efficient data access capabilities. Adopting a distributed architecture, the system optimizes data storage and access efficiency and can quickly respond to users' query needs. At the same time, the SAP system supports integration with third-party systems, realizing data sharing and collaborative work across various business links within the enterprise.

IV. Remarkable Results: Comprehensive Improvement of Enterprise Operational Management

(I) Internal Transformation of the Enterprise

The introduction of the SAP system has brought significant internal changes to Anhui Laoxiangji:

• Significant Improvement in Operational Efficiency: By optimizing business processes and monitoring operational status in real time, the SAP system has significantly improved the enterprise's operational efficiency. The execution of procurement plans is more accurate, the inventory turnover rate has increased by 30%, the feedback speed of sales data has accelerated, and the time for generating financial statements has been reduced by 50%.
• Substantial Upgrade in Data Management: The SAP system realizes centralized management and real-time sharing of enterprise data, with data consistency and accuracy reaching 100%. Various departments of the enterprise can obtain the required data in real time, reducing decision-making errors caused by inconsistent data.
• Full Realization of Paperless Office: The application of the SAP system has realized paperless operational management for the enterprise, reducing the cost of using and managing paper documents. At the same time, the system improves the accuracy and security of data, avoiding errors caused by manual recording.

(II) Social Impact and Industry Demonstration

The successful implementation of Anhui Laoxiangji's SAP project has not only brought significant benefits to the enterprise itself but also provided valuable experience for the digital transformation of the Chinese fast food industry:

• Industry Demonstration Effect: As a leading enterprise in the Chinese fast food industry, Anhui Laoxiangji's successful case has demonstrated the great potential of the SAP system in improving operational management efficiency to peer enterprises, encouraging more enterprises to actively engage in digital transformation.
• Cost Reduction and Efficiency Improvement: The application of the SAP system has reduced the enterprise's labor costs and management costs while improving operational efficiency. The enterprise has invested the saved resources into product R&D and service optimization, further enhancing its core competitiveness.

V. Future Outlook: Continuous Innovation to Lead the Industry's Digital Transformation

The successful implementation of the SAP system has laid a solid foundation for Anhui Laoxiangji's digital transformation. However, the enterprise is well aware that digital transformation is a continuous process, and there is still broad room for development in the future.

• Continuous Optimization of System Functions: Anhui Laoxiangji will continuously optimize the functions of the SAP system according to the needs of business development. For example, it will further improve the data analysis module to achieve more accurate market forecasting and operational decision-making; optimize the procurement management module to realize dynamic evaluation and management of suppliers.
• Strengthening Data Analysis Capabilities: The enterprise will introduce more advanced data analysis technologies and tools to deeply explore the operational data in the SAP system. Through data analysis, the enterprise can predict potential problems in advance, optimize business processes, and further improve operational efficiency.
• Exploring System Integration and Collaboration: Anhui Laoxiangji will actively explore the integration of the SAP system with other digital solutions. For instance, integrating with the supply chain management system to realize collaborative operations between upstream and downstream enterprises; integrating with intelligent catering equipment to realize intelligent management of kitchen equipment.
• Through these continuous efforts, Anhui Laoxiangji will continue to move forward on the path of digital transformation, moving towards intelligence and high efficiency. This will not only help the enterprise stand out in the fierce market competition but also provide richer and more valuable experience for the digital transformation of the Chinese fast food industry, leading the industry towards a more brilliant future.

VI. Related Solutions

• Solution 1: SAP Food Industry Solution
• Solution 2: MES System Production Management Solution

VII. Related Cases

• Case 1: General Electric (GE) SAP Project
• Case 2: Southwest Pharmaceutical Electronic Batch Record Project