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Creating a Magical Cinema Experience

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Creating a Magical Cinema Experience Cinemas invite the world to escape from it all and Introduction of a virtual Kanban immerse themselves in a world of movies. Watching system to reduce wastage and improve a movie at home can never match up to the cash flow Creating a excitement of the cinema theatre, and so, despite Introduction of advanced predictive other entertainment options, the cinema industry analytics to assess product demand The Edge Quarterly continues to thrive. The Edge Quarterly and catalog insights to recommend the Magical Cinema The cinema industry in Australia is currently right order requirement, and progressing through a significant phase of Automation of a centralized order disruption, innovation, and growth. Last year, the process for all suppliers industry spend was forecast to exceed AUD 1.8bn Experience while growth is expected to continue at an average Introduction of a virtual Kanban system of 1.4% over the next five years. to reduce wastage and improve cash Once thought of as a mature industry facing ven in the era of streaming, going to the movies flow decline, the entertainment and film industry Eremains an experience of choice — be it for today is adapting and continually evolving to Many external factors can impact demand for the premium seating, the surround sound, the best offer something for everyone. The industry is food and beverage requirements; seasonal screens and vision, hot gourmet popcorn, or unique staying ahead of the curve and reinvesting in considerations such as public holidays, fluctuations cinematic experiences like 4DX. better experiences for consumers; experiences in ticket admit demand in line with blockbusters that are memorable, that leave a mark, and make and the film line up, promotional food offering and an impact. Service providers in the industry are bundles, and supplier product changes. also continuously seeking ways to operate more efficiently. Despite increased competition from other sources of entertainment such as online subscription streaming services, the exhibition industry is thriving, forging ahead with innovative ways to provide the ultimate movie-going experience, be it luxury seating, new cinema concepts, and the use of emerging technologies. At the same time, industry data suggests food and beverage (F&B) to be a lucrative investment area. F&B expenses average around 20-30% of the total costs, and the introduction of hot food and better- quality food products could boost the efforts to deliver competitive advantage. “Human-led Event Cinemas realized that the food and beverage technology can value chain for the company’s 80+ cinemas across assist entertainment Australia and New Zealand was an opportunity for business transformation through the use of businesses across Intelligent Automation. the globe to thrive.” Through engagement with suppliers, cinema operations teams, and food and beverage departments, the RPA Center of Excellence Team Aylene Baldwin was tasked to review and reengineer its processes General Manager Business Transformation EVENT HOSPITALITY AND ENTERTAINMENT completely. This exercise resulted in three key projects being identified: Mark Pinder RPA Centre of Excellence Manager 26 EVENT HOSPITALITY AND ENTERTAINMENT 27 Cinemas invite the world to escape from it all and Introduction of a virtual Kanban immerse themselves in a world of movies. Watching system to reduce wastage and improve a movie at home can never match up to the cash flow Creating a excitement of the cinema theatre, and so, despite Introduction of advanced predictive other entertainment options, the cinema industry analytics to assess product demand The Edge Quarterly continues to thrive. The Edge Quarterly and catalog insights to recommend the Magical Cinema The cinema industry in Australia is currently right order requirement, and progressing through a significant phase of Automation of a centralized order disruption, innovation, and growth. Last year, the process for all suppliers industry spend was forecast to exceed AUD 1.8bn Experience while growth is expected to continue at an average Introduction of a virtual Kanban system of 1.4% over the next five years. to reduce wastage and improve cash Once thought of as a mature industry facing ven in the era of streaming, going to the movies flow decline, the entertainment and film industry Eremains an experience of choice — be it for today is adapting and continually evolving to Many external factors can impact demand for the premium seating, the surround sound, the best offer something for everyone. The industry is food and beverage requirements; seasonal screens and vision, hot gourmet popcorn, or unique staying ahead of the curve and reinvesting in considerations such as public holidays, fluctuations cinematic experiences like 4DX. better experiences for consumers; experiences in ticket admit demand in line with blockbusters that are memorable, that leave a mark, and make and the film line up, promotional food offering and an impact. Service providers in the industry are bundles, and supplier product changes. also continuously seeking ways to operate more efficiently. Despite increased competition from other sources of entertainment such as online subscription streaming services, the exhibition industry is thriving, forging ahead with innovative ways to provide the ultimate movie-going experience, be it luxury seating, new cinema concepts, and the use of emerging technologies. At the same time, industry data suggests food and beverage (F&B) to be a lucrative investment area. F&B expenses average around 20-30% of the total costs, and the introduction of hot food and better- quality food products could boost the efforts to deliver competitive advantage. “Human-led Event Cinemas realized that the food and beverage technology can value chain for the company’s 80+ cinemas across assist entertainment Australia and New Zealand was an opportunity for business transformation through the use of businesses across Intelligent Automation. the globe to thrive.” Through engagement with suppliers, cinema operations teams, and food and beverage departments, the RPA Center of Excellence Team Aylene Baldwin was tasked to review and reengineer its processes General Manager Business Transformation EVENT HOSPITALITY AND ENTERTAINMENT completely. This exercise resulted in three key projects being identified: Mark Pinder RPA Centre of Excellence Manager 26 EVENT HOSPITALITY AND ENTERTAINMENT 27 Event Cinemas identified an opportunity to improve order, allowing for flexibility and the capacity to order cycle management by reducing sellouts and consider local or national programing changes and excessive ordering. With EdgeVerve, Event Cinemas upcoming events. Once the order process has been was able to simulate a virtual just-in-time supply checked, RPA is used to re-cut all finalized cinema ordering system, across all products replicating a order requirements and data by supplier type for The Edge Quarterly traditional Kanban card system. order preparation. The Edge Quarterly The result has been the ability to maximize asset This new process means each supplier now receives productivity through more efficient use of storage only one order on behalf of all cinemas, with space, improved cash flow operations, and reduced additional product and distribution information stock wastage. communicated using Automation. Suppliers also receive a 12-week rolling forecast to support Using advanced predictive analytics forward manufacturing estimates. to assess product demand and catalog The entire process is human-led, assisted by insights to recommend the right order stakeholders across the supply chain order process, requirement and is completed on the same day. Once the algorithms for ordering supply were defined, EdgeVerve was engaged to help develop Other benefits a robust, accurate, and timely predictive analytics Process improvement using Intelligent Automation process to identify the best-recommended order for has also resulted in greater efficiency to the overall each product. ordering process, including: With the use of EdgeVerve’s RPA technology, the • Standardized order processes with greater team was able to define a process whereby every transparency in centralized operations product was assessed by demand and usage history, right down to the amount of salt allocated • Improved cinema cash flow and operating margin to popcorn. • Increased order governance and controls Robotic Process Automation (RPA) helped Event • Improved revenue from the reduction in sellouts ABOUT EVENT HOSPITALITY & ENTERTAINMENT LIMITED Cinemas assess thousands of product cataloged items even before the ordering process started. • Improved supplier performance and management Event Hospitality & Entertainment Limited (EVENT) is a leading entertainment, hospitality and leisure This was achieved by calculating the activity over • Thousands of hours in productivity savings company. Founded in 1910 and headquartered in Sydney, EVENT is at the forefront of the experience the previous 52 weeks, for each product, by each through cost reductions or reallocation of economy and delivers over 40 million customer experiences annually. From movies and adventure to travel Event Cinemas in Australia and New Zealand. The resources to more valuable tasks and dining, EVENT believes that in an increasingly busy world, an outstanding experience can make the day result; Event Cinemas now understands supply and better and create lasting memories. • Improved customer satisfaction demand trends — right across the network
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