Taras Korniyachenko: The advantage of TEDIS Ukraine is the scale
CEO of the company about her achievements and prospects in an interview “DS“
– In less than 10 years of its history, TEDIS Ukraine has become one of the largest Ukrainian distribution companies. What are the company’s achievements in 2019 and will it be able to repeat them in 2020?
“Our advantage is scale.” In Ukraine today there is no other distributor in the FMCG sector who can deliver goods throughout Ukraine in record time. Within a week, we can completely cover the territory of Ukraine, launching a new brand, a new product on the tobacco market. And this is our advantage, we do it with the level of costs that no one in Ukraine can repeat. We keep our bar at a high level and do not plan to lower it.
– In the current crisis conditions, what steps of the state could help Ukrainian companies stay afloat?
– In the current crisis caused by the Covid-19 pandemic, it is very important to support Ukrainian business. Many companies have not been able to get out of it without loss. For the tobacco market, a predictable and moderate tax policy on cigarettes is important. The wholesale market for cigarettes is open to everyone, but most of the players on the market (111 licenses for wholesale trade in tobacco products have been issued in Ukraine) are interested in making money instantly, minimizing their tax obligations.
We systematically advocate for complete transparency and tightening control over the circulation and movement of tobacco products. If these rules are not neglected, then market participants, as well as state and local budgets, will benefit. Indeed, budget revenues include salaries for doctors and teachers, and infrastructure development: new roads and schools.
– What technological solutions have been implemented in the company in recent years? And how does this affect the results?
– The company “TEDIS Ukraine” is constantly improving its services. In 2014-2015, she invested more than UAH 100 million in her own IT developments. In 2015, the company introduced SAP. If you compare SAP with the 1C program, then, of course, this is a more transparent and effective program. Nothing can be changed in it, all processes are tied to the separation of duties, that is, one person cannot release the goods and add them to the price list.
We continue to work on an omnichannel sales model. In our opinion, this model is the most customer-oriented, as it allows the buyer to feel the main thing. Plus, he can always get additional services and leave feedback on the work of the seller.
Increasing customer confidence and the availability of goods and services ultimately leads to increased sales. It is also an opportunity to increase the range of products sold due to the dimensionlessness of virtual shelves. In addition, we get an increase in the recognition and perceived quality of brands of goods and sellers themselves. Omni-channel allows you to increase the manageability and predictability of the business by balancing channels, which reduces the risk of loss of sales.
– Today, the main product in your portfolio is tobacco products. Does TEDIS Ukraine plan to expand its business lines?
– Tobacco today is the main product in our portfolio. Its share is about 95%. In addition, we sell tobacco related products: matches, lighters, etc.
The company has great potential. We are distributors in the FMCG sector, so there are enough products that we could still sell. We regularly calculate all possible options, assess risks, and study other categories so that the company can grow. We are looking at how this will affect profitability and capitalization.