The chief information officer of Begemag network Alexey Pavlov - about global upgrade and its effects
In 5 months the Kemerovo network of supermarkets "Begemag" upgraded information infrastructure and thanks to it improved trade processes and the cash register line. Incidents at the checkout became 70% less, for 9% service of buyers accelerated, time for support of points of sale was reduced many times. How to achieve such results, the CIO of Begemag network Alexey Pavlov told.
Alexey, in 5 months you considerably improved IT infrastructure of all network of 61 supermarkets. Why there was a need for upgrade?
Alexey Pavlov: We solved two big problems. The first was connected with technology development of Begemag network. In the field of retail it is impossible to stand still, develop it is necessary constantly, and the special place is allocated to technology development in this process. The second task — to define weak points in our IT infrastructure, business processes and to make them strong.
What you had weak points?
Alexey Pavlov: It will be more correct to call them growth points — we just improved everything that can be improved. At the different levels and in different processes of network infrastructure.
First of all — work of cash desks, is what defines service quality of buyers, directly affects also their loyalty, and on the profit of shops.
In network the cash program which was difficult to be serviced was installed: it was necessary to update manually, it was impossible to look at remote action of the cashier or expanded a log. If something from the cash equipment hung up, it was necessary to reboot all cash desk several times. All this took away a lot of time and resources of employees. She slowly worked and if the buyer was calculated on the bank card, it was necessary to wait to him very long. The product did not develop, completions necessary to us became too long and not in full. The technical support worked without process approach: sent the request and you do not know whether it is recorded, whether deal with an issue, there is no SLA.
How did you solve these problems?
Alexey Pavlov: We began global upgrade IT infrastructures. In retail it consists of a set of blocks — we watched what can be improved at each level what tools to use and as among themselves to coordinate them. Carried out audit at all checkout, made rewiring and updated the equipment: replaced scanners also keyboards, instead of hard drives delivered more modern and fast SSD. In half of shops set another cash registers Pirit which quickly issues checks and gives more opportunities for their customization — the difference was felt at once.
Considered options of replacement of the cash solution: upgrade to the latest version of the existing system or replace it with new. As a result decided to replace.
What requirements did you impose to a new cash solution and the IT contractor?
Alexey Pavlov: We wanted the solution with simple centralized operation, fast and uninterrupted. That it was easily built in IT infrastructure of network, without problems was integrated with internal and external solutions, was constructed on free components and did not require excess costs. We selected a loyalty system with various tools, updated the equipment, wanted to sell IQOS and lottery tickets Stoloto therefore the flexibility of the cash solution became one of the main criteria. It had to connect all elements in a harmonious system and not just solve the existing problems, but also to become a basis of technology conversions. The problem of continuous development of technologies is always relevant for the retailer, and it is necessary to use the most modern tools already now, to look forward and be ready to possible calls.
We wanted to implement everything in a short time, and both the flexibility of solutions, and coordination of work with all IT contractors is for this purpose important. Everything turned out: in 5 months we moved to a new technology level — updated the cash solution, started the large-scale loyalty program, seriously upgraded the equipment, accelerated acquiring.
What tools helped you to move to a new technology level?
Alexey Pavlov: For us technology development is means of achievement of specific purposes and opening of new opportunities for business. We were aimed to accelerate work of cash desks and to achieve their uninterrupted operation. We increased speed by 9% — thanks to updating of the cash equipment and implementing solution for automation of trade of Set Retail 10 of CSI company. It manages not only cash desks, but also trading day, scales, weight goods. Management and updating in Set Retail — centralized at the expense of it we many times saved time and resources on maintenance of shops.
One of priorities was to start the large-scale loyalty program in offline - and online sales channels. In addition to card transactions, we opened new channels for work with buyers: mobile application, addressed mailings, call center, service on the product delivery, the CRM system. All this became possible with Loymax loyalty system.
Set Retail 10 and Loymax are closely integrated. Thanks to flexibility of Set Retail we had all opportunities, relevant for us, at once: the centralized service, a plug-in for trade in lottery tickets Stoloto, coupons for sale of IQOS. The solution – on three steps ahead of similar, in it is mute already there is everything that is necessary, this functionality should not be created specially. It is important for us, we need the mechanisms operating already now, buyers at us – here and now. At the same time, Set Retail 10 gives us opportunities for cost reduction.
How it is possible to save?
Alexey Pavlov: In the solution there are tools which help to reduce costs of shop. For example, smart rounding of the amount of the check. Function distributes a discount for rounding of kopeks so that the amount of the paid VAT was minimum. From each check we save several kopeks, and take care of the pence, the pounds will take care of themselves. One more opportunity – printing of the compact check – allows to save on a check tape. At printing on the Pirit cash register equipment the size of the check decreased by 20%. And at an alcohol probitiya the cash desk combines QR code UNIFIED STATE AUTOMATED INFORMATION SYSTEM also the check. Thanks to it the check size with alcohol was reduced by 30%.
At sale of goods with age restriction a system reminds the cashier to ask the passport of the buyer and prompts it minimum admissible age. It is convenient for the cashier, and we are quiet for compliance with law.
Very positive emotions from CSI service – process of support is transparent, there is SLA, and the monitoring system of Zabbix monitors operability of software and is able to prevent incidents. Together with the updated equipment it helped to reduce the number of requests on work of point of sale to our IT service by 70%, we save time and resources.
Plus flexibility of the solution about which I spoke and the worked technical documentation helped us to write independently integration with a back office system Astor – it also helped us to save.
Did you mention acquiring acceleration whether it was connected with replacement of the cash solution?
Alexey Pavlov: It was connected not only with replacement of the solution, but also with work of a team of the IT contractor. With one of merchant acquirers we really had a problem of slow non-cash payment of buyers. Specialists of CSI contacted bank and jointly found solution. Acquiring works perfectly now.
In general, work of our companies — "Begemag", CSI and Loymax — was harmonious, accurate and fast. The pilot project took 2 weeks, circulation — is slightly more than a month, in day we updated from 4 to 7 shops.
Whether it is possible to tell that all effective objectives are achieved?
Alexey Pavlov: Yes, it is unconditional. Both business objectives of the company, and my purposes in a part of development of IT infrastructure. The main — acceleration of cash desks, their uninterrupted operation, reduction of operating costs.
What is farther according to the plan of technology development of Begemag network?
Alexey Pavlov: We implement new solutions, for example a control system of the cash transactions Set Prisma — we expect decrease in losses at the checkout, increases in performing discipline. We connect new tools of loyalty which will give to our buyers more freedom. For example, it will be possible to activate, learn balance or to block the card of loyalty, without addressing to call center. It will be convenient to the buyer, and to us will help to release personnel time. There is a lot of plans, and they are connected with desire if not to outstrip time, but not to lag behind definitely it.