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"Auchan Retail Russia" transferred finance to a cloud of Oracle ERP Cloud

Customers: Auchan Russia (AUCHAN)

Moscow; Trade

Product: Oracle ERP Cloud

Project date: 2017/12  - 2020/02
Number of licenses: 500

2020: Implementation of Oracle ERP Cloud

On February 10, 2020 it became known that all services Russian Auchan are transferred to the updated cloud Oracle ERP Cloud system. Russia became the pilot country of presence of the international retail network Auchan Retail where the project on digital transformation of financial functions started.

Tatyana Semenikhina, the project director on digital transformation of finance told Auchan about the choice of a cloud ERP system, advantages of the Russian legislation and project deliverables Retail Russia (during the period from December, 2017 to October, 2019), the leader in transformation of finance in Auchan Retail.

According to the representative of the company, the project started at the end of 2017. Began with standardization, unification of business processes between all countries of presence of Auchan Retail company. At this stage all divisions of the company were involved. Cloud services of Oracle ERP Cloud as much as possible were suitable for automation of the updated business processes and also more than other solutions, corresponded to an operational model of management and answered the IT strategy directed to increase in level of centralization.

Further integrators, both global, and local were selected. In Russia the Borlas group became local integrator. By June, 2018 the solution core-model was developed and implemented in Luxembourg, and in January, 2019 in Russia within three small legal entities trial operation of this model began. In July, 2019 all services Russian Auchan, including networks of hypermarkets Auchan and ATAK supermodels were transferred to the updated system. For February, 2020 the project is at a stabilization stage.

Implementation of Oracle ERP Cloud – only the first stage of the program of transformation. In Russia slightly less than 500 users who work with financial modules are connected to a system. The main users are the accountants performing any transactions and other financial transactions. In addition to them, access to a system was got by those who are engaged in validation of expenses and approval of payments and also elimination of discrepancies between the order, acceptance and the invoice. In this process constantly there are any disagreements (at the cost or the number of purchase of materials, services, works) and for their permission the Oracle ERP Cloud tools for purchase management and creditors are used.

It was succeeded to unify and standardize business processes in three functional directions: from the order of an expense before payment (P2P, purchase-to-pay), from creation of an object of sale before receiving money (O2C, order-to-cash), from centralization of all accounting entries before reporting (R2R, record-to-report).

During the project functions of employees changed. In addition to accountants as such, specialists, experts and managers with expanded functions appeared. At the same time to specialists who are engaged in P2P and O2C (upon they work with documents), it is not obligatory to have accounting education. From them skills of the deep analysis of transactions and knowledge of features of accounting which are necessary to become the expert are not required. Orientation of specialists in this directions goes on accurately delivered KPI of business process, such as payment of invoices without delays, timely drawing of accounts and collecting of money.

Oracle ERP Cloud services replaced a complex of the separate systems which were used earlier. It allowed to create the general group chart of accounts and uniform base of accounting transactions for economic events of the company in all countries of presence that will allow to facilitate replication of the solution further.

On the other hand, thanks to green card on digitalization of primary tax files (UPD, UKD, cash documents) Russia considerably advances many European countries, and it already bears fruits: tax statements are given in electronic form, invoices come and are sent in an EDI format why administrative load of business considerably decreases. Though it imposes other requirements to qualification of staff of financial services.

In general the project mentions not only finance or personnel management. It provides serious changes of processes at the level of all company. For example, implementation of virtual office leads to change of personnel management methods.

Accounting deals with a large number of written and voice addresses. And processing of the simplest of them can quite be entrusted any electronic assistants. It can be program robots who are capable to generate response e-mails, or chat-bots processing the entering phone calls[1].