ERP system for Royal Canin Russia

In 2009 the ERP system on the basis of the product Microsoft Dynamics NAV was brought into commercial operation on production of the company in Dmitrov and in its distribution center in Krasnogorsk. By that moment in Royal Canin Russia need of creation of a system which would allow to keep account according to all-corporate standards (each four weeks) and to observe an order of providing the reporting according to the Russian legislation ripened.

Specialists of Columbus IT solved these specific problems based on the solution Microsoft Dynamics NAV. Then automation of production, financial and logistic circuits lasted six months (from December, 2008 to June, 2009).

Development of the project in 2011

The international consulting company Columbus IT performed implementation of the ERP system based on the Microsoft Dynamics NAV platform in the trade missions of Royal Canin Russia in Yaroslavl, St. Petersburg and Krasnoyarsk.

Solution

The choice for benefit of an information system based on Microsoft Dynamics Nav was in many respects dictated by the universal corporate Royal Canin Russia standards.

Implementation of a single system of enterprise management on the Microsoft Dynamics NAV platform in regional representative offices of Royal Canin Russia started in October, 2010.

The first specialists of Columbus IT company automated trading house in Yaroslavl. This year a similar ERP system was replicated in branches of the company in St. Petersburg and Krasnoyarsk. In the closest plans of Royal Canin Russia – business process automation of regional division in Irkutsk.

In regional branches in St. Petersburg, Yaroslavl and Krasnoyarsk integration of new ERP with the products of accounting of 1C which are earlier used in the company, with a management system of mobile trade and also the warehouse systems is performed.

Expectations

Automation of key fields of business of trade branches of the organization will become the end result of the project implemented in the company with assistance of specialists of Columbus IT: sales and settlement with clients, purchase of goods, warehouse logistics, financial accounting and the reporting.

Implementation of uniform ERP- the solution Microsoft Dynamics NAV in distributor divisions Royal Canin Russia will improve service quality and managements of the current business processes of the organization, will give opportunities for further development of the company in regions.

Results of replication of Microsoft Dynamics NAV in 17 trade branches Royal Canin Russia

Projects on replication ERP- solutions Microsoft Dynamics NAV were performed in 17 trade branches Royal Canin Russia across all territory of Russia from Kaliningrad to Vladivostok. Professionalism of specialists of Columbus and careful work planning provided implementation deadlines: on average, each branch passed to Microsoft Dynamics NAV within 2-2.5 months.

The new management system increased transparency and efficiency of key business processes of Royal Canin: purchases and logistics, sales management and customer relations. Microsoft Dynamics NAV provides each branch of the company reliable data about product characteristics manufactured in Russia or which arrived on import purchases. At order placement sales managers had an opportunity to manage reserves of stocks and to deliver products in strict accordance with requests of clients.

Integration tools provide processing of requests from clients and receipt documents from the suppliers arriving in electronic form. In a system exchange of necessary documentation with 3PL-operators whose warehouse spaces Royal Canin rents in different regions of Russia is supported. The means of electronic document management integrated with Microsoft Dynamics NAV help to reduce time of the movement of goods from the producer to the consumer. The solution based on Microsoft Dynamics NAV also optimizes the movement of goods in a branch network. On the basis of information on the current remaining balance of goods, the existing orders and the diagram of arrival of containers, logisticians define completion dates of orders, create diagrams and routes of local deliveries, calculate the needs for replenishment.

The functionality of route sheets accelerates procedures of shipments and execution of the accompanying documentation. With its help the logistician of Royal Canin defines the directions of delivery and the vehicle which client requests automatically approach. Tools of a system allow to distribute loading on vehicle fleet, to consider restrictions on weight and dimensional characteristics of orders. To route sheets accompanying documents, in the necessary number of copies automatically form. Solution performance gives the chance to branches of the company to execute more than 200 shipments daily.

The information system is data source for the daily and periodic reporting under sales of all branches Royal Canin. Sales informations are analyzed by certain clients or customer groups, to sales channels and managers. Proceeding from the parameters set in a request in Microsoft Dynamics NAV the amounts of orders taking into account or without the added discount, sales volumes in pallets and weight characteristics of the order are reflected.

Except sales informations reserves of products and their cost value, an average expense of goods are analyzed, a commodity remaining balance by days is planned. Stocks are segmented in a system on commodity groups, packing types, total weight. Also in the solution calculation of a free remaining balance in batches is available, at the same time in Microsoft Dynamics NAV information on the dates of receipt of products and the country of its origin is saved.

Account managers can quickly trace a status of receivables and stop shipments to unfair customers. For this purpose the functionality of stop-lists is provided in a system. At order placement the manager can set obligatory prepayment for such clients, define a payment deferral threshold in the working days and credit limits.

If the customer exceeds admissible terms and limits, shipment of products is blocked until a payment receipt. The history of payments and their delay by all clients remain in a system and are presented in the corresponding report on receivables. Also in Microsoft Dynamics NAV it is possible to create beforehand the list of clients, potential violators of a credit limit. When calculating the number of days before payment, days of delay, amount of debt is considered. For operational obtaining information on payments of clients integration with a system the client bank and with self-service terminals of Qiwi is implemented.

For management of a customer loyalty, in the solution the module of calculation of discounts to regular customers of the company is used. According to corporate standards of a discount for products of Royal Canin are charged time in 28 days or quarterly – depending on category of the client. The solution allows to set not only the fixed discounts, but also to consider in calculations specific parameters, such as delivery point, prepayments and debts, type of the purchased products.

According to representatives of Royal Canin Russia finance division, one of key project tasks there was a reduction of time spent for delivery of payments from clients. "Payments arrive to us either through bank, or through an electronic payment system of QIWI. The timeliness and correctness of delivery directly influences a possibility of shipment of products to clients, quality of the rendered financial services. Together with the staff of Columbus company we analyzed ways of improvement of this process. Selected the directions for automation of delivery of the statement arriving from QIWI and correctness of recognition of clients in statements on bank. The second task became complicated a unique format of the bank statement which is not supported in the standard by the existing systems, its processing had to be written from scratch. As a result of the carried-out works completely automatic delivery of the statement of QIWI, without participation of staff of treasury is implemented. To 10 o'clock in the morning we completely carry statements on an electronic payment system, and products can be shipped to clients. When processing the statement on bank it was succeeded to implement 100% recognition of payments of clients. In the next plans - to implement completely automatic delivery of the statement on bank. The works on automation of department of treasury which are carried out together with Columbus allowed to reduce costs for processes and to raise qualitative indexes of customer service", - emphasize in Royal Canin Russia.