Sofia Group switched to 1C: ERP and created a digital ecosystem for employees

2021: Single digital ecosystem with 1C end-to-end tender process: ERP

On August 11, 2021, 1C-Rarus announced that by order of Online Communications, it had made the transition from 1C: UPP to 1C : ERP to Sofia Group of Companies and created a digital ecosystem for employees. An end-to-end process of tender sales and procurement, calculation of a management premium with 20-25 variables is automated, a software robot for managing internal turnover has been created. According to 1C-Rarus, as a result, tender processing accelerated 3 times, labor costs in divisions decreased by 20%, orders are processed 30% faster, and profit increased by 15%.

The Sofia Industrial Group supplies materials and equipment in the oil and gas and energy industries. The company's counterparties were 4,700 enterprises, including: Russian Railways, LokoTech. Group companies are connected by common interests and work in a single information solution, which unites more than 40 legal entities with about 500 employees. Before the project, the company did not track the end-to-end chain of the tender transaction from winning the competition to selling and calculating employee premiums. The tender department handled tenders in spreadsheets, the information was confused. Sometimes they did not have time to submit an application for a tender in time and lost transactions.

On the recommendation of 1C-Rarus, management decided to switch from 1C: UPP to 1C: ERP Enterprise Management 2 - a production management system designed to meet business needs. The transition to 1C: ERP for business provides timely updates with legal changes, additional functionality (CRM module, production planning), scaling the system by connecting industry modules and seamless integration with 1C systems.

The project was implemented together with the Online Communications IT company, the customer of the Sofia Group outsourcing system.

Project Results

The companies of the Sofia group received a single ecosystem due to the connection of 1C: ERP and CRM with electronic trading platforms integrated through Seldon. A bid management system has been created, whereby priority bids are processed first. For each request, the stages of preparation of tender documents are managed and agreed upon. Requisition templates and workflows are used in future work. As a result, the conversion of victories in tenders increased, and the processing of tenders accelerated 3 times.

The calculation of the management premium of employees of the commercial department, which is 75% of the staff of the group of companies, is automated. Premiums are calculated on the basis of:

• fixed indicators;
• reducing and increasing coefficients;
• 20-25 variables that are collected into formula components (discounts, margins, revenue, cost, etc.).

Using composite motivation, project managers prioritize project teams and put the necessary motivation into the formula calculator. As a result, employees clearly see the components of the award, this encourages project teams to work better and faster with customers.

Project and division managers manage the "Order Portfolio" with the help of the developed AWS. The results of the transaction - sales volume, discounts, additional services, profitability and other indicators - are collected in a single interface. The "Order Portfolio" is created to help top managers:

• work with banks to obtain loans and finance transactions;
• Monitor possible outages
• Monitor the customer commitment schedule.

Now companies better manage the liquidity, resources and risks of projects.

A software robot has been created to control internal turnover between group companies. A chain is automatically generated that includes the seller, buyer, transfer mark-up, and other parameters for calculating the optimum. To control the chain, the conditions are adjusted and the robot automatically updates the result. Managers do not need to manually adjust internal invoices and restore the sequence.

Due to the established order priorities in 1C: ERP, the employees of the tender department immediately understand which requests to process in the first place. The tender management process is unified throughout the group of companies, the system is built up to the payment calendar with suppliers. Reuse developments from already played tenders, which saves managers hours of work. For each transaction, for each direction, the employees of the tender department see an end-to-end chain of indicators.

Project managers of Sofia Group of Companies draw up strategic sales plans for the client - a plan for the year ahead with quarterly updating and monitoring of ETP. This helps to correctly set tasks and priorities for tenders in advance, and not in fact. Work with item groups is delegated to the project team. The team has a common KPI for the project result and profitability, now the calculations are visible in the program, this rallies and motivates employees. A big help was the "Portfolio of Orders" - a report in which project managers see the situation on the project, risks, revenue. With this digital ecosystem of work, sales grew 1.5 times.