Information technologies in retail network "Magnit"
Main article: Tander Retail network Magnet
The main IT projects of year in Magnet
In the annual report for 2019 the Magnit network summed up the results of activity in the field of IT. In the document it is said that 2019 was for Magnit fundamental to determination of a key vector on ensuring business continuity, organic growth of the company, implementation of strategic initiatives and formation of the plan of changes and transformation directed to increase in all key indicators of efficiency.
In 2019 the company approved IT strategy which considers the key purposes and problems of business strategy. In reporting year IT projects of the company were aimed at better to understand requirements and priorities of buyers, claim in Magnet. The network started the loyalty program and is going to continue it to develop it using different innovative solutions, for example the application for payment using a sensing technology of the person. And still Magnet opened the first "superstor" in Krasnodar equipped with video monitoring of queues and existence of products on shelves.
Besides, Magnet started the new information system working with the National directory of goods. The company calculates that it will allow it to reduce the terms necessary for an output to the market of new products.
|Technology of voice actuation of warehouse transactions pick-by-voice and technology of sorting of goods at the time of arrival of pick-by-line which increased effective management of a warehouse and reduced time necessary for accomplishment of routine transactions at handling of goods became important IT projects, - authors of the annual report of Magnet note.|
For the warehouses "Magnet" "rolls" a new management system (WMS) started in the pilot mode in one of the distribution centers. The retail network expects that it will allow to manage all transactions in distribution centers: from processing of requests up to delivery in shops. This project is designed to increase capacity of distribution centers.
In 2019 Magnet also started electronic document management in logistics division. In a pilot project use of electronic waybills allowed to reduce document handling time considerably: from three days till three o'clock. The company says that became the first retailer in Russia who implemented such solution.
Deployment of safe cloud infrastructure in Microsoft Azure belongs to other important projects, for example. In Magnet claim that it allowed to reduce terms and to reduce the cost of projects of the general service centers (GSC), EDMS, Service Desk and others.
Still implementation of own platform of mobile device management on shopping facilities of TanderStore which, expect in the company is given in the annual report, will allow to reduce costs for maintenance of devices.
The company notes that now for management of everyday transactions in Magnet the ERP system on a basis "1C: Enterprise" is used. Data on all transactions from all shops come to the main control center where after their processing analytical reports prepare. In 2019 the company optimized this system according to the new organization structure: reduced number of databases that reduced system maintenance cost.
In 2020 Magnet reported that the SAP S/4HANA Retail system which will allow to carry out end-to-end commodity financial accounting will become the digital core integrating all business processes of the company. During the program implementation more than 40 modules SAP S/4HANA is planned: at the first stage a system will cover automation of finance, merchandising, the personnel and the reporting. Announced digital transformation based on solutions of the German vendor Magnet after 25 years of cooperation with 1C. In more detail about transition of the company to SAP here.
"Magnet" implements video analytics across all Russia for the rating of cashiers
On June 2, 2020 Magnet announced the beginning of large-scale implementation of the tools of video analytics allowing to minimize emergence of queues, to increase quality of service for buyers and to increase a goods turnover. Read more here.
Temperature monitoring of fresh products online
On May 19, 2020 announced Magnet equipment of all the distribution centers (DC) the system of remote control of temperature condition and also began to use similar sensors of monitoring of products on the way to shops.
The innovation will allow the retailer to control freshness of goods on the Internet, to increase them "the life term" and also to reduce by 10% of loss at observance of other necessary indicators.
In left-luggage offices and in a zone of loading of goods in delivery cars in RTs sensors of the Russian development which scan storage temperature are installed and in case of deviations online transfer data to e-mail and the mobile phone responsible for elimination of problems. The new equipment also equips refrigerators of own cars of the company.
After loading of goods in trucks in a container with products additional sensors are installed. Thus, not only the general temperature in the truck, but also temperature of a separate box on the way to the buyer is traced, note in Magnet. It is necessary to analyze whether a certain thermocontainer is suitable for maintenance of quality or it needs to be replaced with another. After delivery of goods to shops sensors return to RTs, indicators are investigated and the relevant decision is made.
It is reported that the system of remote monitoring of temperature condition will act in RTs on the permanent basis, and not just during a summer season.
The board member, the director of supply chains of retail network "Magnit" Marya Dai emphasizes that the solution for remote control of temperature condition will be synchronized with other systems which to the middle of May, 2020 are implemented into the companies. Among them — a system management of a warehouse and transport.
Opening in the Innovation center "Skolkovo" of Digital office for the ERP directions
The retail network "Magnit" became the key partner of Skolkovo Foundation and will open in the Innovation center Digital office in the ERP directions — merchandising, finance, HR. The agreement on strategic cooperation also provides search and piloting of the innovative solutions for buyers and business. The Skolkovo Foundation reported about it on February 13, 2020.
It is supposed that the Digital office of Magnet will be opened in April, 2020, in it about 170 specialists will work. Activity of office will be directed on R&D (Research & Development), including creation and development of information systems of retail network.
Additional involvement of highly qualified specialists and active participation of Digital office of Magnet in life of IT community of the Innovation center "Skolkovo" will help to expand technology competences of retail network.
"Magnet" together with other large participants of an ecosystem Skolkovo will promote formation of legislative initiatives for retail, to implementation of modern technologies for buyers and suppliers.
The agreement on cooperation also provides work with the innovative technologies and the solutions for business digitalization presented in Skolkovo and in the world markets. Financial technologies, cooperation with key startups, industrial and technology partners will be the focus of attention.
|'Magnet' becomes the first representative of retail in the list of key orchestra seats of Fund. Trade – one of the most fast-growing industries on digitalization level. Jointly with Magnet we are going to accelerate development of technologies in this sphere: increase competences Russian a startup commands, participate in the state initiative of normative regulation of digital economy, create technological solutions for the industry,|
told Arkady Dvorkovich, the Chairman of Skolkovo Foundation
|Cooperation with the Innovation center 'Skolkovo' — an important step for Magnet in development of technology competences. The retail industry undergoes digital transformation to answer modern calls, we need to look for modern solutions. The digital office will allow the company to attract the high quality personnel, to get access to technologies, infrastructure and an ecosystem Skolkovo,|
noted Jan Dyunning, the president, the CEO of PJSC Magnit
Transition to electronic agreements with suppliers — for the first time in Russian retail (in work)
On January 13, 2020 Magnet announced that it among the Russian retail networks passed with the first to electronic agreements with suppliers. Thanks to this project the retailer reduced reconciliation of documents from 40 to 2 minutes. Registration of conditions is automatic now, and exchange of documents — online.
In four months "The magnet transferred about 700 suppliers to a digital format of the agreement, and is going to make complete transition until the end of 2020.
On the platform of provider the partner of network fills a form with details and conditions. The supplier studies the text of the agreement and annexes to it and if there are notes, creates the protocol of disagreements which is loaded into a system together with statutory documents.
All archive of documents (the agreement, applications, the protocol of disagreements) subscribes and transferred to network. "Magnet" on the party checks conditions which were entered by the partner of network, and the protocol of disagreements. If agreements are reached, then the agreement is signed by the retailer if it is not present — is rejected. As a result in addition to decrease in labor and time expenditure, the need to conduct paper archive disappears. According to forecasts of the retailer, in 10 years more than 1 million standard sheets will be saved.
As the CIO and data protection of Magnit network Evgeny Melnikov told, the paper scheme of vendor interaction, in addition to labor costs, bore serious risks: the text of the document could be changed before loading in a system and signings therefore each party needed to recheck every time on lack of distortions.
|Our development is a document in an unchangeable format, only its part of the agreement is available to each party to filling. After signing it is protected from changes. Exchange goes on channels of electronic document management through specialized providers that provides privacy protection of information — he reported.|
Magnet opened cases and effects of use of fashionable technologies - the analyst, VR, biometrics
Speaking at the TAdviser SummIT conference on November 27, 2019, the area manager of a research of perspective Magnet technologies Victoria Kozlova told what technologies can be effective, as a matter of experience the company.
New technologies in Magnet separate into two main directions. The first – new types of data acquisition devices, for example, biometric terminals, sensors, sensors and so forth. The second direction – the products and solutions processing everything collected data. It will always be in a trend as the integral part of reality, emphasized Victoria.
At the same time, marked out Kozlov that in whatever technologies in the company were engaged, they cannot be tested or implemented successfully, without having at least three basic things. Correctly built processes including understanding of roles, responsibility and the sequence of actions concern them partnership between team members and also. The third necessary element is a motivation, and not only material.
For 2019 in Magnet the test environment numbering 40 shops 3 of which was created are laboratories which are in Krasnodar, Moscow and Kazan. At the expense of it in Magnet reduced time for deployment and a research of difficult hardware and software systems on average from 290 days to 90 days.
Most in detail Victoria Kozlova stopped on several technologies which now in active study. For example, video analytics. It is used, for example, for management of queues. Being already set in a number of shops, the technology promotes reduction of queues for 70%.
Other case here – control of fullness of shelves and plano-grams. The representative of Magnet noted that in Russia retailers so far only test this technology, but case did not reach universal implementation yet. Minimum expected value of efficiency is estimated as 1% of sales growth. In Magnet the same cameras estimate correctness of price labels on the shelf, working on the general indicators of increase in level of service and goods availability for the buyer.
The video analytics can be applied also to FaceID mechanics (the person as the identifier). Magnet works in 4 perspective directions. The first – ID of loyalty. Recently the company finished deployment of the loyalty program on all the shops and sees high potential in transition from plastic cards to identification on the person. It is expected that in certain locations up to 50% of users of the loyalty program will want to use it.
FaceID can be used also for payment. In a number of the Magnit shops tests this technology which as expect in the company, in the long term not only will give to buyers new digital experience, but also to save time on the checkout during calculation.
And, at last, FaceID can be used for a time recording. In Magnet this project in an active phase. Its purpose is automation of process of accounting and salary accrual.
Are engaged in Magnet and audioanalytics for quality control of service of buyers. In addition to grocery stores Magnet has also a network of drugstores, shops of cosmetics where sales very much depend on quality of service. The company tests technology for control of correctness of pronouncing standard phrases, and as a result understand which of employees needs to undergo additional training, for example. The prospects of a case are estimated for 7% of sales growth.
Also in distribution centers of the company the "pick by voice" technology which by means of voice commands helps the employee of a warehouse to perform standard tasks for a sampling and a complete set is tested, thereby increasing performance.
Separately Kozlova stopped on issues of development of analytical tools. "Magnet" aims to come at that systems could issue ready-made solutions for business, based on Big Data of the company, for example, in questions of administration of outlets.
Did not avoid in Magnet and technology of virtual and augmented reality. In the company testing on personnel training in VR glasses starts. The technology allows to study at any time, in any place, at the same time points allow the employee not to be distracted by foreign factors during training.
О TAdviser SummIT
TAdviser SummIT took place in Moscow on November 27, 2019 and attracted more than 700 participants - heads and experts of IT departments of the largest companies and the state departments of Russia, representatives of IT developer and contractors. During the action the prospects of digital transformation of business and state agencies, development of technologies, products and services were discussed. The conference took place with assistance of the Ministry of digital development. The head of department Konstantin Noskov who during the open discussion summed up the first results of the Digital Economy national program participated in it. In total in a plenary part and five thematic sections about 60 reports were heard. The action took place in 5 Radisson Blu Olympiyskiy halls.
Start of shops with cash desks of self-service and robots sommeliers
At the end of October, 2019 it became known of plans of Magnet to start shops with cash desks of self-service and robots sommeliers. New supermarkets the retailer will call a superhundred-ramie.
According to him, the superstor will be "digital, interactive and atmospheric shop". It cited as an example independent scanning and payment and also the electronic sommelier of the Kuban wines — the display will read out the barcode from a bottle of wine and to issue information on the producer, tastes, etc. Similar devices under the name "Electronic Kavist" since 2018 work in Karusel hypermarkets of X5 Retail Group company.
These shops will be within the city, in them navigation and zoning will be updated. Wider range of perishable goods, products under own trademarks will be offered buyers. Besides, in superstor there will be no categories of nonfoods, for example clothes.
"Magnet" was solved on changes because noticed outflow of buyers from classical hypermarkets. The largest shops — more than 2100 sq.m — the company will also turn into "superstor".
|They [clients] do not want to spend time for a trip to a large format, and purchases of nonfoods quickly overflow in the Internet — the representative of the company told Vedomosti.|
He added that hypermarkets have a weak range and promotion actions which practically do not differ from shops at the house therefore clients have no reasons to go to shop of a big format.
"Magnet" began large-scale transformation of business using 1C
On June 6, 2019 the retail chain stores Magnet signed the agreement on strategic cooperation with 1C. The companies are going to optimize jointly possibilities of the platform of 1C that it conformed to requirements of the growing and diversifiable business of Magnet more and answered tasks which the network set for itself within large transformation. Read more here.
"Magnet" and SAP will create the platform for marketing and sales
In June, 2018 Magnet and SAP CIS signed the agreement on strategic partnership. The companies are going to create the information platform for process optimization of sales and marketing. The agreement also provides development and use of tools for development of predictive analytics.
Based on a single system it is going to collect and analyze data on consumer behavior, efficiency of sales and marketing actions. In addition, at the expense of the platform IT tools using Big Data technologies, machine learning and predictive analytics will be created. Solutions are designed to give the chance to the retailer to optimize costs, to improve service quality of buyers and also to create base for implementation of own loyalty program.
"Magnet" will predict the sales demand using technologies of Microsoft
In June, 2018 Magnet and Microsoft corporation signed the agreement on complex digitalization of network. Together they will be engaged in development of technologies which will analyze the sales demand and on the basis of these data to make the personalized offers. The buyer will be able to see them in mobile application of shop.
"Magnet" and Microsoft are going to create model of machine learning for demand forecasting in shops. The retailer expects that it will allow to analyze the volume of consumption of products, to provide permanent existence of fresh goods, including unique for specific regions and also to predict demand using AI.
For Microsoft it became the first large-scale partnership with the Russian retail. At world level Microsoft had a similar project with American Walmart giant retail.
2016: "Magnet" set thousand cash desk of self-service
In October, 2016 the Magnit network reported that it set thousand cash desk. It was set in hypermarket of Ulyanovsk. In total in shop 10 units of the modern equipment are set.
Cash desks of self-service allow buyers to punch independently goods via the scanner and to make payment. The equipment is located in specially selected zones where there are consultants-cashiers helping to make purchases. Devices accept bank cards and cash. Navigation is provided in a trading floor: shooters and posters with the slogan "We Save Time".
The Magnit company began installation of cash desks of self-service in November, 2014 during a trial project startup. The first devices appeared in Krasnodar and Tuapse. Since 2015 the retail network began implementation of cash desks of self-service in other shops. The NCR corporation became the partner of the company in delivery and the equipment of cash registers.
As of October, 2016 the equipment is installed more than in 150 outlets of network. The technology promotes increase in capacity of shop, allows to add traditional cash register lines and significantly accelerates service process.