Implementation of AVARDA.ERP in Finn Flare company

Information on a zakachik

The Finnish company Finn Flare is one of leading manufacturers of clothes, footwear and accessories in a casual segment. Collections of Finn Flare are developed by joint Finnish-Russian design bureau. The retail network Finn Flare is provided by 14 brand stores in Moscow.

The franchasing network consists of more than 270 corporate points in 232 cities of Russia and Abroad. Dynamics of development of Finn Flare network – on average 60% a year. Finn Flare received the award "Goods of Year" twice, in 2006 - in the "For Effective Business Development and Permanently High Quality" nomination.

Project Objectives

2003 in the history of Finn Flare became the significant period. At this particular time the company management made the decision on creation of an extensive network of the franchisee in regions of Russia and the subsequent exit to international market. The automation system existing at the time of the beginning of program implementation of development appeared incapable to cope with sharply increased volume of tasks and did not meet requirements of dynamically upcoming business. It was the reason basic on which in Finn Flare company the decision on acquisition of the new software product of the class ERP was made.

First-priority project objectives became:

• System implementation, capable to work in the conditions of the planned development and  dynamic growth of business
• The organization of full operational accounting of the company within a common information space
• Receiving effective planning tool and analysis of activity of the company
• Centralization of management of own retail network
• Creation of a powerful management system for a customer loyalty
• Optimization of work is near assortment
• Control automation by warehouses and logistics chain

System Selection

Due to the effective objectives the company management of Finn Flare imposed the following main requirements to the new automation system:

• high high-speed performance and capability is effective to work in the company with the distributed territorial structure (the powerful system of replication)
• completeness of functionality
• the openness of the software product since in plans of Finn Flare company there was a support of a system by forces of own IT department became one of key requirements

Specialists of the company considered the different software solutions for the trade industry presented at the Russian market. As a result, the ERP system of AVARDA from Ansoft company was recognized the most conforming to requirements of the customer.

Project Features

The implementation project in Finn Flare company had the specifics. In particular:

• By means of the ERP system of AVARDA full automation of Finn Flare - since the central office was performed and finishing with each warehouse and shop of own network. The reliable communication of all objects is provided with an AVARDA system replicaiton engine.
  At the same time all analytical data, the financial statements and other information necessary for effective and centralized operation by the company, it is stored in the single database.
• Finn Flare regularly performs deliveries of large batches of the products to all points of franchasing network. Therefore for Finn Flare company business processes both retail, and wholesale are inherent. The functionality of the basic AVARDA ERP systems configuration allowed to automate at the same time both a wholesale, and retail link of the company.
• At implementation of implementation in Finn Flare company the record on speed is set – during the project 1-2 shop a week were automated.

Project Progress

Implementation of the ERP system of AVARDA began summer of 2003 and was broken into several stages. Specialists of the customer were directly involved in project implementation.

At the first stage there was an AVARDA setup under needs of Finn Flare: the system of discounts is finished, the block of commission trade is created, opportunities for formation of agreements are expanded. During the same period there was user training to work in a new system.

Implementation of AVARDA at the central office of the Moscow representative office Finn Flare and also automation of a wholesale link and warehouse logistics became the second stage. Among other works, activities for quoting of goods, formation of an assortment row were automated, the warehouse control system of the company using technologies of barcoding is created. All works planned for this period were complete by the end of 2003.

At the third stage the retail link of Finn Flare was automated and replication of a system in all shops of own network is made. Final system implementation of AVARDA was performed to the middle of fall of 2004.

Project Results

Implementation of a corporate information system based on AVARDA allowed Finn Flare company to centralize management in the conditions of continuous development and to increase efficiency of key business processes.

In general, among project deliverables it is possible to note the following:

• A common information space is organized, the centralized system of operational accounting is constructed. It increased information security of the company and gives the chance to the management timely to make management decisions on the basis of up-to-date information
• By means of one system activity of the central office, warehouse economy and own retail network of the company is completely automated. All information on functioning of a wholesale and retail link of Finn Flare is stored in the single database.
• The Finn Flare company receives the tool for management of a warehouse and trade inventories which allows to plan more precisely work of a wholesale link and work with network of the franchisee
• The powerful management system for a customer loyalty is created
• Procedures of formation of an assortment row and creation of new collections are optimized
• Based on AVARDA the information system capable to function effectively in the conditions of growth of business and to adapt to  new requirements of the company is built

Today the ERP system of AVARDA is operated more than in 150 workplaces in Finn Flare company and develops by forces of own IT department. Thanks to openness of the software product specialists of the customer have all opportunities for continuous improvement of a system and its adaptation under new requirements of business. The most difficult completions are ordered in Ansoft company which also delivers updates of a basic configuration and shell program of AVARDA. The closest compliance of opportunities of AVARDA of the strategy of development for Finn Flare gives to the company the major competitive advantages and offers new prospects of business development.