Experience of implementation of IBM Cognos TM1 in retail network BTIE Comfy

The last researches of retail market show that the greatest return from automation to retailers is brought by the projects concerning management of marketing and customer relations, distribution of goods and supply chain management, demand forecasting and assortment planning. The solution of such tasks is especially relevant for the retail companies with the wide range and geographically distributed structure. It is interesting that more than a third from the polled heads of retail networks consider crucial for successful development of the company, its exact and operational management an e-business intelligence and already implement the corresponding projects.

Among them and Comfy - the participant of the Ukrainian retail market of home appliances and electronics. Today the corporate network contains 78 shops in 38 cities of Ukraine and continues to grow actively. Comfy is more than 10,000 different models of home appliances, electronics and accessories at the most attractive prices. Shops of retail network are distinguished by clear arrangement of goods, a convenient design and navigation on halls, thematic zones and high standards of service. About Comfy often speak as about the company which with confidence looks in tomorrow, the company which daily cares for the buyers – offers them exclusive goods and services, professional consultations and superdiscounts, will organize unusual events and holidays.

In 2011 the Comfy network together with the international consulting company Columbus implemented the project on automation of strategic and operational planning of the range of network. As the software product the management of retail network selected the solution based on IBM Cognos TM1. At that time specialists of Columbus consistently performed implementation of a new corporate information system on the Microsoft Dynamics AX platform and solutions for automation of a warehouse complex of the class WMS, own development of Columbus. The experience of cooperation was successful so the choice of Comfy for benefit of the same partner was almost predetermined.

Additional criterion for the Ukrainian retailer was the fact that the solution on IBM Cognos TM1 proposed by experts of Columbus allowed to exercise flexible management of the range of network by seats of each shop. Complexity of implementation of such approach as a result defined the choice of retail network Comfy, and the new project was started in the fall of 2011.

Using the solution IBM Cognos TM1 implemented with assistance of specialists of Columbus, the staff of commercial department of retail network Comfy defines and if necessary adjusts development plans for network in the horizon of five years. This solution allows to make and control accomplishment of the strategic plan of sales of retail network by each commodity category. In the course of the analysis specialists of Comfy consider actual data on sales of last periods, forecasts of change of consumer demand from experts of the market, plans of opening new both closings of old shops and other indicators.

A new system also carries out tasks of operational management of the range. At the expense of the solution based on IBM Cognos TM1 created by a project team of Columbus, specialists of Comfy analyze, claim and adjust the sales plan for year about one week. Planning is conducted to the level of type of goods, future promotion actions and "happy hours" are defined at the level of nomenclature positions. Further category managers of retail network Comfy detail the plan to the level of seats in each specific shop that allows to build forecasts for purchasing activity of the retailer.

Actual data on the current range and the plan of promotion actions are unloaded from the ERP system on the Microsoft Dynamics AX platform which is earlier implemented by Columbus. It is remarkable that integration of the solutions Microsoft Dynamics AX and IBM Cognos TM1 was implemented by a project team for only several weeks.

Prior to implementation the staff of commercial department of Comfy performed all laborious work on assortment planning in the tabular Excel forms. Now all forms and reports are submitted visually, decision making process considerably accelerated. Also it should be noted that the solution IBM Cognos TM1 deployed with assistance of the Columbus command is distinguished by simplicity of reconfiguration of algorithms and forms according to new calls of business of the company. It allows specialists of the company independently, without involvement of third-party specialists to develop the implemented system.

As a result of use of the solution IBM Cognos TM1 of the Ukrainian retail network of home appliances and Comfy electronics it was succeeded to provide transparent process management of assortment planning and to increase their accuracy. Managers of the company can carry out the comprehensive analysis of sales, define profitable and non-profitable commodity categories, avoid deficit or surplus of stocks in shops and in the warehouses Comfy thanks to what the retailer managed to increase profitability of each single shop and all network in general.