Pyaterochka automated lifecycle management of its own brand

2021: Launch of ACS with lifecycle of own brand goods

On May 4, 2021, X5 Retail Group announced that the Pyaterochka retail chain launched the automated lifecycle management system of its own brand (STM) Product Lifecycle Management 5 (PLM5) from Oracle Retail. At the first stage, the solution will be used in 4 product categories: Grocery, Drinks, Fresh Products and Non-Food Products. The implementation was carried out by Veltio.

The implementation of PLM5 is aimed at improving the efficiency of business processes of the network due to advanced technologies and solutions and is one of the stages of the large-scale digital transformation of Pyaterochka. Previously, the entire cycle of work on the creation and promotion of CTO was carried out by network employees in several different systems. Now all information is combined into one database of working documents and a single communication platform has been formed for the interaction of all Pyaterochka divisions responsible for creating goods, branding creative agencies and STM product manufacturers. With the help of the solution, you can accumulate, structure and analyze a huge amount of data, which also includes the results of supplier audits, certificates for products, specifications, labeling files, tasting, etc. Thus, PLM5 allows you to completely automate the process of creating each CTO product in one window mode, and taking into account the integration with the site audit system, the automation of product quality control and the tasting process will allow you to manage the entire life cycle of the CTO product. All this allows you to make informed decisions on the assortment and further optimization of business processes as quickly as possible.

The PLM5 functionality also provides for monitoring the status of all CTO projects and the implementation of end-to-end quality control and compliance with the reference process of product creation, which significantly simplifies compliance with the originally approved quality parameters and recipe of products and gives more opportunities to pay maximum attention to the creation of each product.

Pyaterochka aims to increase the share of STM in RTO, primarily due to the introduction of medium, high and premium segments into product lines with a focus on goods. With PLM5, the shelf time can be reduced by 40% on average.

The development of STM is one of the strategic priorities of Pyaterochka. We continue to increase the share of STM and already in 2021 we plan that it will be about 23% of retail turnover. At the same time, the high quality of our products remains the most important focus for us. The solution developed by Oracle will allow us to maintain standards and significantly accelerate the entry of new products into the market. We will be able to track the full life cycle of each product under our own brand name from idea to putting it on the shelf, as well as even more effectively interact with suppliers, manufacturers, creative agencies, etc. The introduction of PLM5 is another important step in the large-scale digital transformation of Pyaterochka, "commented Leonid Vilensky, director of the Own Trademark department of the Pyaterochka retail chain.

Due to the high pressure on retail trade, it is especially important to act effectively, increase the speed of bringing products to store shelves, while minimizing the human factor when creating goods under their own brands, "added Konstantin Price, Director of Business Development at Veltio.

In the future, the trading network plans to scale the use of the cloud service into the categories "FROV," "Alcoholic beverages" and "Own production," automate the process of maintaining changes in new goods and accounting for incidents in the quality of STM goods, as well as introduce management of the creation of imported goods supplied by manufacturers from abroad. On average, the share of STM in 2020 was 17.4%, and in November 2020, its own brands provided 19.2% of the network's turnover.

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Pyaterochka and Oracle automated work with STM -- >