In the franchise market, system efficiency between headquarters and franchisees is essential. As the number of stores increases, the headquarters requires systematic management, while franchisees need to reduce the time spent on ordering and inventory management to focus on their core business. However, existing systems have fragmented the entire process from food ingredient ordering and inventory management to delivery and settlement, creating unnecessary operational risks and cost burdens for both headquarters and franchisees.
CEO Kim Yu-bin of Samcheongdang (left) and CEO Lee Won-seok of Delivery Lab (right) / Source=IT Donga
Digital transformation (DX) of franchises is attracting attention as a way to resolve this fragmentation and maximize operational efficiency. This is why premium snack (bunsik) brand “Samcheongdang” has partnered with Delivery Lab, which operates the integrated food ingredient distribution platform “Order Hero.” Order Hero is a platform that allows users to compare and search more than about 400,000 food ingredients at once and place integrated orders from multiple distributors through a single app. Samcheongdang is a snack-specialty brand that has gained popularity with gimbap customized to customer preferences, and it promotes its strength as a small-capital startup capable of generating high profits in a small space.
The latest collaboration between Delivery Lab and Samcheongdang goes beyond the simple introduction of an “Order Management System (OMS)” and aims to integrate franchisees’ cost reduction and headquarters’ risk management. IT Donga met with Delivery Lab CEO Lee Won-seok and Samcheongdang CEO Kim Yu-bin to hear about the background and achievements of this collaboration and their future plans.
Samcheongdang sees need to improve ordering system amid store expansion
CEO Lee Won-seok of Delivery Lab / Source=IT Donga
IT Donga: Please introduce yourselves and your brands.CEO Lee Won-seok: I am Lee Won-seok, CEO of Delivery Lab, which is leading DX in the food ingredient distribution market through Order Hero. Delivery Lab was the first in the industry to commercialize an integrated delivery model based on micro-fulfillment centers (MFCs) in urban areas so that food service self-employed operators can place daily food ingredient orders more easily and accurately. We support full cold chain (low-temperature distribution networks to maintain freshness), consolidated deliveries, and real-time management of ordering, inventory, and outbound of private-label (PB) products. Since its launch in 2021, we have recorded a steep average annual sales growth of 154%. This year, we completed the development of our proprietary Transportation Management System (TMS) and are building an infrastructure that connects ordering, logistics, and delivery control into one.
CEO Kim Yu-bin of Samcheongdang / Source=IT Donga
CEO Kim Yu-bin: I am Kim Yu-bin, CEO of Samcheongdang, which operates 37 directly managed and franchised stores nationwide, leveraging the strength of low-capital startups. Our growth drivers are proprietary products developed with original recipes and a rational pricing policy that reduces the difficulty of franchisee operations. Recently, we have been focusing on standardizing cooking processes and advancing systems to reduce quality variability that can occur due to the nature of customized menus. While steadily expanding our nationwide franchise network, we are building a stable position in the snack category and focusing on improving company-wide operational efficiency in line with our growth trajectory.
IT Donga: What was the background to Samcheongdang’s adoption of the Order Hero OMS?CEO Kim Yu-bin: As our stores expanded nationwide, the importance of operational efficiency and quality control increased further. We first determined that it was necessary to improve our existing ordering system. Since franchisees were individually using multiple distributors to reduce costs, management efficiency declined, and they also faced the inconvenience of having to order headquarters’ proprietary products and general products through separate systems.
Ultimately, we believed it was crucial for headquarters to provide a transparent and convenient system so that franchisees could focus solely on service. Order Hero OMS not only had a nationwide logistics infrastructure in place, but also enabled integrated management of proprietary and general products in one go, aligning well with Samcheongdang’s strategy.
Building an integrated operating system that prevents franchisee risks
CEO Kim Yu-bin of Samcheongdang (left) and CEO Lee Won-seok of Delivery Lab (right) / Source=IT Donga
IT Donga: How did Delivery Lab resolve Samcheongdang’s issues?
CEO Lee Won-seok: We focused on building an integrated operating system that goes beyond simply automating orders to include franchisee risk management. To this end, first, we enabled franchisees to compare prices from around 80 distributors in real time via the Order Hero app, creating an environment in which they can purchase food ingredients at lower prices.
Second, we unified ordering and outbound systems that had been dispersed across multiple channels. We designed the system so franchisees can order both general and proprietary products through Order Hero OMS. In addition, we minimized inconvenience for headquarters and franchisees through integrated product delivery and integrated customer service (CS) systems. Thanks to the unified ordering system, we also eliminated concerns that the resources required for settlement would grow as the number of franchisees increases.
Third, we enabled headquarters to view ordering and inventory flows and settlement by store at a glance in data form. By building an integrated operating system that can monitor potential issues such as outstanding receivables and direct purchasing risks in real time, we provided an operating infrastructure that supports proactive responses.
IT Donga: What tangible benefits have you experienced since adopting Order Hero OMS?CEO Kim Yu-bin: Above all, the cost reduction effect is clear. Pilot tests showed an average cost reduction of more than 5%, with certain items declining by up to 28%. The time franchisees spend on ordering has been shortened by up to 40%. Feedback from the field has been very positive. Franchisees say, “It is so convenient,” and call it “tomorrow’s food ingredients ordered with one click.”
Furthermore, given the brand’s frequent new menu development, the ability to flexibly procure various food ingredients registered in the OMS and immediately conduct cost analysis is a major advantage. In the end, reduced operational stress has enabled headquarters to focus more on maintaining quality and developing new concepts, which is a key achievement.
The core of Order Hero OMS is data integration based on physical logistics / Source=Delivery Lab
IT Donga: What differentiates Order Hero OMS?CEO Lee Won-seok: The core of Order Hero OMS is “data integration based on physical logistics.” We have departed from existing ordering systems that merely provided order lists and bundled the entire process from inventory, outbound and delivery to settlement and CS into a single flow, thereby securing transparency in the supply chain.
Its concrete strengths fall into three categories. First, it is a solution that resolves information asymmetry between headquarters and franchisees. In Order Hero OMS, headquarters and franchisees communicate based on the same order, outbound, and delivery data. This reduces the repetitive confirmation of orders and inquiries about progress that used to occur, minimizing confusion in the field.
Second, it ensures thorough supply stability for proprietary products. Headquarters monitors in real time the flow of proprietary products, which determine brand competitiveness, from ordering and inventory to outbound and movement control. This prevents stockout risks and maintains appropriate inventory levels, providing a stable supply environment to stores nationwide.
Third, it offers an “all-in-one process” that extends from ordering to settlement. Franchisees can complete dispersed orders in a single app and handle delivery tracking in a one-stop manner. Headquarters can dramatically reduce complex operating resources while ensuring operating stability by accessing data on each store’s inventory flows and direct purchasing risks, which were previously difficult to identify.
Beyond operational efficiency toward an era of AI-based predictive ordering
CEO Kim Yu-bin of Samcheongdang (right) and CEO Lee Won-seok of Delivery Lab (left) / Source=IT Donga
IT Donga: What are the future cooperation plans between the two companies?CEO Kim Yu-bin: Since the system has been sufficiently validated in the field, we aim to expand Order Hero OMS to franchisees nationwide by 2026. For Samcheongdang, reducing quality variability is important due to the nature of customized menus. With this introduction of Order Hero OMS, we have gone beyond innovating the procurement method for proprietary products, and we plan to establish a pre-processing plant in the future to lower the cooking difficulty for franchisees and reduce quality variability.
In particular, we are preparing an AI-based automatic menu ordering system with Delivery Lab. This system automatically places orders by analyzing data on the quantity of inventory consumed. For example, if 2kg of sauce is used to serve 30 orders, the system would automatically place an order when about 25 servings have been consumed. Once this is introduced, the convenience of operations will be taken to another level.
CEO Lee Won-seok: The era is shifting from human-managed inventory to AI-based predictive ordering. Delivery Lab is advancing an engine that analyzes transaction data such as ordering patterns by store and standard recipe data and comprehensively considers factors such as costs and quality issues by supplier to determine the optimal ordering time. We are conducting beta tests through our own research and development (R&D), and we plan to expand this to other franchises to help them focus on brand growth without worrying about logistics.
Delivery Lab: “Will establish the DX standard for franchises”
Technologies applied in Order Hero OMS / Source=Delivery Lab
IT Donga: Which industry sectors do you see as promising for Order Hero OMS, as demonstrated through this collaboration?CEO Lee Won-seok: Order Hero OMS is not just software; it is a technology-based “operating infrastructure.” It can be applied to all industries that require nationwide supply stability and store operation automation, including not only food service brands such as snack shops, chicken, and pizza that use large quantities of proprietary food ingredients, but also meal kit manufacturers and unmanned shops such as coin laundries.
This collaboration is highly significant in that it is the first successful case of a nationwide franchise integrating the entire process by bundling ▲logistics infrastructure (MFC) ▲operating systems (OMS) ▲franchisee apps into one. Starting with this project, Delivery Lab plans to roll out customized DX models optimized for various industries.
CEO Kim Yu-bin of Samcheongdang (left) and CEO Lee Won-seok of Delivery Lab (right) / Source=IT Donga
IT Donga: Lastly, please share your respective future goals.CEO Kim Yu-bin: Our goal is to expand our nationwide franchise network with stability as the top priority. With the introduction of Order Hero OMS, we have completed a three-stage expansion strategy that extends from product differentiation and operational differentiation to supply chain differentiation. Building on this, we aim to grow into a solid nationwide brand. Furthermore, we plan to accelerate our global expansion. We have already established a presence in the Japanese market, and store openings are underway in Indonesia. Our goal is to build the system validated in Korea in overseas stores as well, creating a franchise that serves the same delicious taste and is easy to operate anywhere in the world, thereby contributing to the globalization of Korean cuisine.
CEO Lee Won-seok: Delivery Lab aims to make Order Hero OMS the standard for franchise DX. We will continue expanding MFCs nationwide and strengthening our AI-based systems. By unifying data on ordering, inventory, logistics, and settlement for franchises, we will provide operational efficiency and ultimately become a partner that enables headquarters and franchisees to focus solely on fundamental growth without concerns.
IT Donga reporter Kim Ye-ji (yj@itdonga.com)
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