"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 at the St. Petersburg International Economic Forum (SPIEF). 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.

The director of 1C Boris Nuraliyev and the CEO of Magnet Olga Naumova on agreement signature (a photo - retail.ru)

Magnet started the strategic program of transformation in the 2nd half of 2018. The company sets the purpose to become "the new standard of available consumption and positive consumer experience for all Russian families". At the heart of the program – focus on the buyer, satisfaction of his requirements, the maximum use of strengths of the business model and creation of new platforms for growth.

In the annual report of group for 2018 it is said that "new" Magnet will create the digital competences, new to the company, relevant for each element of a chain of value creation. The special focus is delivered on omnichannel. In Magnet plan that the omnichannel offer for consumers will help it to come to the new growing segment of the market and to strengthen a customer loyalty, and digitalization of internal processes will provide "disruptive level variation of efficiency".

1C initially was the main platform of process automation in Magnet. In total the companies cooperate about 25 years. Initially based on "1C: Enterprise" independently wrote applications for automation of different processes in Magnet.

In Magnet self-written and ready-made solutions based on the platform of 1C are used

Magnet has an internal division of competences of 1C in which about 200 developers and 150 testers and specialists of maintenance.

Later Magnet began to use applications of development of 1C also: for example, ERP for production sites and the agricultural direction of Magnet, "1C: Payroll and HR Management", "1C: Document Flow", the solution for the maintenance and repairs (MR).

One of the largest systems implemented on "1C: Enterprise" in Magnet are management systems for financial flows and cash desks. Based on the platform of 1C the command center cash desks providing revenue management of thousands of shops and the cash registers was created.

In total Magnet has more than 60 thousand units of the cash registers

The director of information technology and data protection of Magnet Evgeny Melnikov told TAdviser that the new strategy of the company assumes large-scale transformation in terms of the bigger offer of new services to the buyer, and one of the main questions here - ensuring maximum speed of changes.

"Magnet" grew from average to very large, diversified company from more than 19 thousand outlets and that the platform of 1C used by it corresponded to volumes of growth and transformation, it is necessary to make changes to it, marked out Millers.

We are going to change so together with 1C their platform that it corresponded to our new requirements and could provide faster, more efficient services. As a result it will allow us to sell, reduce quicker feedback speed at the checkout, to hand over the reporting and many other things quicker, - he explained in a conversation with TAdviser.

Evgeny Melnikov added that Magnet for 1C is the largest customer in retail and one of main customers with whom interaction helps the developer to improve the platform.

Among the stated plans of Magnet and 1C within strategic cooperation - to provide stability and high quality of processing of large volumes of data in real time for the purpose of providing new opportunities to clients of network. The director of information technology and data protection of Magnet noted that Big Data are already widely used in their company.

In 2018 Magnet signed the agreement on strategic cooperation and with the competitor of 1C – SAP. The software of the German vendor is used as the main platform for automation in the closest competitors of Magnet - the companies X5 Retail Group and "Tape". In a case with Magnet cooperation with SAP has more point character: it provides creation of the platform for process optimization of sales and marketing using technologies Big Data and also development and use of tools for development of predictive analytics.

Use of Big Data means many directions of which there is an overall picture allowing retail chain stores to see the buyer and the employees, Evgeny Melnikov in a conversation with TAdviser noted. The platform of 1C at the same time serves as one of the main sources of data: personnel information, check analytics, etc., and their processing can happen on different platforms, he notes.

Magnet has very much data bulks, and their analytics brings benefit when she allows to make in online the mode some decisions, the director of information technology of the company notes. The key purpose for which Big Data in Magnet are used - to understand needs of the buyer and to create optimal offers for it, to create the correct passport of shop.

The range of shops can differ depending on location of shop, from a season and other factors, the representative noted Magnet. The correct formation of the range allows to build optimum and other systems: production, logistic.

Along with transformation of network of the solution of 1C support also increase in profitability of network. Earlier in the company told that Magnet implements new technologies which improve labor productivity. It allows to employ less people: people who leave Magnet within "routine" are not replaced new^[1].

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