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• 2009

Successful SAP Retail project in leading Russian consumer electronic company M.video

IMG Россия (consulting subdivision of S&T) completed SAP Retail project in leading Russian consumer electronic company M.video

About the Customer

OJSC “Company “M.video” (www.mvideo.ru) is one of the leading Russian consumer electronic retail chains, first and the only public company in its segment. The Company started its operations in 1993 and by the end of third quarter of 2008 it had 140 brand name stores in 59 Russian cities with a total space of 375 000 sq. m. In 2007 “M.video” was awarded as “Best Retail Company” by prestigious Russian “Number 1 Brand/People’s Choice Brand” national competition.

In November 2007 OJSC “Company “M.video” became the first publicly traded company in the domestic consumer electronic retail sector.

Goal of the Project

Main reason for launching the project was request from top-management to have more accurate stock data (including cost prices for goods) on different facilities of the company.

Solution

The project started on the customer site on November, 10 of 2007. Mixed team from IMG Russia, S&T Russia and M.video leaded by IMG Russia Project Director and Head of M.video ERP department Mikhail Dereshev successfully completed all tasks and in accordance with requested dates (July, 01. 2008) project was launched and system started to operate. The main complexity of the project was in choosing correct approach to integration with M.video corporate data system as the project was related not only to accurate decision making and completion of this decisions within SAP Retail. Together with group of IT specialists leaded by Head of department Sergey Selyutin an effective SAP and Corporate Data System integration solution was worked out. IMG Russia completed following tasks:

• Conduction of main goods records in SAP, including hierarchy of goods and their attributes
• Conduction of main records in SAP for goods’ storage areas – warehouses, stores and service centers. Extended conduction of contractors in logistics part
• Types of purchase orders were fine-tuned. Current work scheme has now a function of automated filling of purchase orders using corporate data system. Switching to manual filling of purchase orders will not request any additional fine-tuning
• Different types of sales orders were fine-tuned
• Different types of specific commodity circulation were fine-tuned: goods’ movements between facilities, products’ write-offs, divergences calculation during consignment of goods
• Registration of retail sales in cost price write-off part was fine-tuned as well

During the project Corporate Data System – SAP interfaces were worked out:

• Synchronization of main goods and facilities records
• Download of Purchase Orders from corporate data system to SAP
• Download of physical goods’ consignment to SAP
• Download of all commodity circulation types to SAP
• Interface for downloading wholesale and retail sales to SAP

Following reports were worked out:

• Goods’ availability for reporting date or period
• Goods’ circulation between facilities report
• Goods’ classification and statuses (sellable – non-sellable) report
• Shortage during consignment report
• Inventory report – general one and for each facility in particular
• Goods’ cost price report for each facility/for some period, etc.

Various forms were developed: Bargain 12, invoice, bill of payment to wholesale suppliers, etc.

During the project IMG Russia specialists developed and implemented testing program, created instructions for users and organized role trainings with employees and integration test. Project audit was done by SAP CIS.
Active participants of the project were Igor Kirov, Erika Kolchina, Rosa Kolomiets and representatives of M.video financial and sales departments. Huge support during the whole project was provided by President of M.video Aleksander Tynkovan, Financial Director and sponsor of MM/SD project Christopher Parks and CIO Georges Correa.

Results

IMG Russia that belongs to Austrian IT Group S&T successfully implemented SAP Retail project in registration of goods operations part: conduction of main data regarding products, facilities, purchases, retail and wholesale sales and integration of operations related to commodity circulation to M.video corporate data system. Goals of the project (providing clear picture of stock and its up-to-date cost price) were achieved. System planning was organized considering following development of the system and installation of new modules. At the moment IMG and S&T Russia specialists provide technical support for installed solution. “IMG Russia team proved themselves as a very experienced group of specialists in Retail sphere. They have impressing experience in the area of commodity circulation registration and integration of SAP with other systems, which helped to work out a complex solution for given task in M.video without any additional efforts”– commented Mikhail Dereshev on the Management Board that was devoted to project completion.