Your House (Rapid Retail)

Moscow, on September 28, 2009 - The network of Shopping Centers "Your House" (Crocus Group) summed up the results of annual use of the ERP system based on SAP for Retail. The main implementation project of a system was complete in September, 2008, and since then the network steadily increased the competitive advantages reached due to centralized operation and automation of the business processes.

The SAP for Retail system expanded abilities to manage with retail business of STTs "Your House". Among the most considerable project deliverables:

• The uniform scalable ERP system which is easily projected on new shopping facilities "your House".
• The common information space ensuring joint work of all divisions of STTs.
• Effective and reliable management reporting.
• Retail business process optimization, including complete logistic providing a trade flow, assortment management and stocks, sales.
• Replenishment action planning automation.
• Transition to the centralized input of master data.
• Improvement of business process of commission trade.
• Control automation by production of own products.

The need for implementation of a single system of management for STTs "Your House" was caused, first of all, by the plan for opening of shopping center in Voronezh at the beginning of 2009 and also the strategy of further expansion of network. By the time of awareness of such requirement of STTs "Your House" already developed in large-scale business: already two shopping centers, worked at Kashirskoye Highway and at intersection of MKAD and Volokolamsk Highway, of 66,000 and 55,000 sq.m. However use of different information systems in two hypermarkets aggravated heterogeneity of business processes of shopping facilities of one network, resulted in separation of databases and created problems with joining of master data on commodity nomenclatures and partners. With respect thereto it was necessary to bring network management to the new level of automation and to provide possibilities of replicability of the solution on new branches. For unification and business process optimization of network the solution so full-function and powerful, as well as the concept of hypermarkets "Your House" was required.

Having considered possible options of management systems for the enterprises of retail, the management "your House" selected the SAP for Retail system of SAP company. This choice was caused by wide functionality of a system, powerful technical characteristics and the reliable program of the support of SAP solutions offered clients after implementation. SAP was also spoken well by a large number of successful implementations in retail networks of Russia where the leading companies of the industry, such as Euroset, Eldorado, Tape, Victoria Group, use this ERP system. As the general contractor for the listed above retail networks the CIBER company, the Russian division of the international consulting company CIBER, Inc., the leader in the field of automation of retail networks acted. In view of experience and examination of consultants of the company, the management "your House" also made a choice for benefit of CIBER as partner in implementation.

In a project deliverable, proceeding 9 months (January, 2008 – September, 2008), the following modules were implemented:

• Management of goods flows and sales.
• Retail business processes, including planning of replenishment action and commission trade.
• Accounting and management accounting.
• Sales data management.
• Control of mobile terminals of data collection.
• Business intelligence.
• Integration of processes.
• Data exchange infrastructure.

Due to presence at CIBER company of the set-up solution novaRetail the most labor-consuming stages of the project - development phase of the conceptual project and implementation were reduced. In prednastroyena novaRetail all main business processes of management of commodity and financial flows of the Russian retail network that allows to reduce considerably time of setup of a system, and, as a result, to reduce costs for the project.

The implementation project of SAP for Retail for STTs "Your House" is unique the fact that the implemented system processes a huge number of commodity nomenclatures – more than 300,000 names from more than 2,500 partners. Thanks to automation of processing of a set of data performance of transactions of all business processes of retail much increased. The greatest effect managed to be reached due to automation of replenishment action and improvement of business process of commission trade according to normative rules and the recommendations of the legislation of the Russian Federation about accounting.

According to Shamil Muradov, the Deputy CEO for development of Network of Shopping Centers "Your House": "Lifecycle of the previous information systems used in our company ended already with the advent of the second hypermarket "Your House". In the absence of single information solution two objects of one retail chain stores developed absolutely independently, since input of master data and finishing with formation of own business processes. SAP for Retail integrated and Your House arranged business processes and gave us additional abilities to manage business, having provided necessary transparency of activity of all departments. A system supports our business processes in their complete volume and at all scope: in Your House more than 300,000 names of goods are on sale and it is serviced up to 1 million visitors a month. Thanks to the solution novaRetail we use all opportunities of SAP for Retail, and our information system allows us to develop and win successfully the new markets".

The implemented SAP for Retail system forms a reliable basis for implementation of plans for development and expansion of network: at the beginning of 2009 the Your House hypermarket in Voronezh was open. Within the next several years the company management is going to open at least two more hypermarkets in Moscow and to increase a share of the presence in the market.

Your House is a first in range network of shopping centers of Russia in which more than 300,000 names of goods are submitted. Consolidation of two in fact independent information systems working in shopping centers, "under a roof" uniform business processes and also a possibility of replication of a system for new shopping facilities, in particular, in Voronezh at the beginning of 2009 was the main objective of SAP implementation of for Retail in STTs "Your House". Thanks to the correct strategy and tactics of implementation, roll-out in Voronezh was implemented by forces only of the internal command "Your House" which grew during project implementation in Moscow. On behalf of CIBER the Crocus Group company received the supplier of a full range of services in the field of SAP for Retail: a hardware and software system based on IBM, licenses of SAP and consulting and also postproject support", - Alexander Niznik, the CEO of CIBER Russia says.