Artur Vagapov: Deltek Maconomy allowed to increase the speed and quality of accomplishment of orders

Artur Vagapov: The central office of KSK group is located in St. Petersburg, there are representations in Moscow and in Ukraine. The staff of the company exceeds 250 people, the number of users of the ERP system totals 45 people. The staff of remote divisions also has access to a system.

TAdviser: Let's return by the time of start of the project in 2009. At this time the Russian business already rather well knew what is resource management systems. Really you were engaged six years in business, roughly speaking, by means of Excel, or after all the company had some automation equipment?

Artur Vagapov: Before implementation of the ERP system of Deltek Maconomy in the company the self-written accounting system based on Microsoft Access which had rather limited functionality was used, at the same time in it some elements of automated management of resources were implemented, but there was also a number of essential shortcomings, such as low reliability, limited functionality, poor performance and also high cost of further development and binding to the only and irreplaceable developer.

TAdviser: When did that moment when you realized the need for uniform ERP come? What became a decisive factor?

Artur Vagapov: In 2008 - 2009 KSK company had rather high growth rates, the range significantly extended, production volumes continued to grow, plans of an entry into the Ukrainian market appeared. At the same time the existing accounting system obviously ceased to cope with quantity of assigned tasks. It became clear that the existing system became a restraining factor of further business development.

TAdviser: What other systems did you consider as the platform for a corporate information system except DeltekMaconomy? Why did not stop the choice on the same 1C, how I understand, for accounting processes all the same it also is used?

Artur Vagapov: As the platform for a corporate information system Microsoft Dynamics NAV (Navision), Epicor Scala and Deltek Maconomy were considered 1C. As the company management needed a system which would allow to register accurately and to control business processes tightly, minimizing the risks connected with the wrong actions of users and staff rotation preferences were given to the western ERP solutions. The choice of Deltek Maconomy was caused by existence of industry solution for the sphere of industrial distribution based on this ERP system and also successful experience of implementation at the enterprises of the electrotechnical industry in Europe and Russia.

TAdviser: Whether a lot of time occupied implementation? Whether some cardinal completions in a system were required?

Artur Vagapov: In total, all process of implementation – from studying of requirements and preparation of technical specifications before input of the ERP system in commercial operation took about 9 months. Cardinal completions in a system were not required, but integration of Deltek Maconomy ERP with 1C systems which are already used in the company was implemented: Accounting (for conducting accounting and tax accounting) and APS (for purchase planning and production). Certain time also setup of interfaces between the ERP system and the equipment for scanning and goods marking and component parts in warehouses and in production demanded.

TAdviser: How did your employees apprehend new software? What functionality according to the results of implementation was covered by a system?

Artur Vagapov: A part of employees, so-called key users from the main departments of the company, took active part in ERP system implementation process that allowed them to get acquainted with advantages of a new system in advance, to state the wishes on its improvement and to undergo expanded training in work with a system. Further, these employees imparted the knowledge of the ERP system to other users, providing thus the best acceptance of a system in the company.

According to the results of implementation the Deltek Maconomy ERP system covered the business processes connected with purchases of import and local goods and component parts, with their warehouse placement and storage, with production and implementation of finished goods and also processes on planning and accounting of revenue, costs and cash flows and on formation of the management reporting on group.

TAdviser: Now, after nearly 5 years of operation what merits and demerits of a system you could note? What gave implementation of your company? Whether you will develop ERP further, perhaps, to implement some add-on modules?

Artur Vagapov: It is possible to carry to main advantages of the implemented ERP solution Deltek Maconomy:

• Increase in speed and quality of accomplishment of sales orders
• Improvement of planning of deliveries and work with suppliers
• Optimization of warehouse transactions due to integration into the equipment for marking and scanning of goods
• Accurate control of production costs and product cost
• Fast formation of financial statements

It should be noted that a system develops in process of business development of KSK group. So, at emergence of new branches, accounting of their activity begins in a uniform ERP system at once. The new directions of business (e.g. retail sales), were also integrated into the Deltek Maconomy system. Electronic exchange of documents (EDI) with the largest customers of KSK group is implemented.

As for plans for the future, the possibility of system implementation of management of a warehouse (WMS) and the module of internal electronic document management is considered.