FESCO Transport Group (DVMP) (1C: Holding Management)

2021: Implementation of Fesco Group Supply Management Solution

Project Objectives

• Creation on the basis of 1C software product: Management of the holding of a single comprehensive information solution for production accounting in terms of supply management functions for FOSCO Group of Companies
• Reduced operational costs for demand requisition collection and procurement plan execution
• Increase the speed and transparency of procurement planning and execution processes
• Ensuring uninterrupted operation of the System, subsequent reduction of System maintenance risks
• Optimize the execution of business processes by ensuring effective information interaction of all departments within automated business processes.

Decision

Streamlined supply management processes by increasing the level of automation of procurement management processes.

Formalized organizationally:

• Categories of procurement procedures and processes for managing procurement procedures.

Configured on the system:

• A workplace for purchasing initiators and coordinating procurement procedures in the form of a "Procurement Procedure Assistant";
• processes of coordination of procurement procedures and selection of winners;
• integration with IS "Controlling" in terms of control and reservation of budget limits;
• processes for creating an item, including approval of a new item in the ECU;
• Differentiating access to procurement procedures by working group.

Results

• 1,000 workstations are automated to ensure operation.
• Increased efficiency of internal control, transparency and availability of data;
• Annual and quarterly supply requirements planning has been implemented;
• Automated process of collecting unscheduled applications;
• Procurement of vendor orders is recorded and monitored;
• Registration of contracts with reference to the winner selection protocol is ensured;
• Procurement planning and execution processes are fast and transparent;
• It is possible to conduct competitive procurement procedures in accordance with the requirements of the Customer.
• Increase employee efficiency by automating routine operations and selecting suppliers for the order nomenclature by 40%;
• Reduce procurement preparation time by standardizing and automating business processes in procurement preparation and coordination by 70%;
• Reduce operational and administrative costs by unifying processes by 12%.

2020: Implementation of SSC solution in Fesco group

Project Objectives

• Creation on the basis of 1C: Management of Holding 3.0 of a single comprehensive information solution on accounting and tax accounting for organizations in service with LLC "SCF" (more than 25 legal entities of the Fosco Group).
• Improving the efficiency of regulated and financial accounting of serviced organizations due to the application of uniform methodological approaches when recording facts of economic activity.
• Information and analytical support of the following business tasks of financial accounting: Accounting, Tax accounting, Formation of regulated reporting, Warehouse accounting, Integration with production and external accounting systems.

Decision

The SSC methodological basis has been created - the Customer, together with the ICL expert group, has worked out the target model of SSC processes.

A single system has been introduced in the 1st stage DZO (21 enterprises providing intermodal transportation that provide transport services).

Migration of processes of the 2nd stage of DSO to SSC (4 enterprises (railway division, sea transportation).

Integration with production processes and external accounting systems is ensured.

User training has been conducted.

The following units are involved:

• Department of Economics and Planning
• Tax Administration
• IFRS Department
• Central Federal District under income agreements
• Central Federal District under expenditure contracts
• Procurement Management Services
• IT Services
• Accounting Department.

The following functions are centralized:

• Accounting and tax accounting
• Reservation of limits for the order
• Contracts and counterparties
• Procurement
• Data for IFRS and budgeting
• IT Support

Results

• 320 workplaces are automated to ensure SSC operation;
• Processes of all DCs work according to a single methodology, transparency and data availability are ensured;
• Reduced costs for functions transferred to SSC by 80%;
• Increased internal control efficiency by 84%;
• Increase data transparency and availability by 79%.

Project dates: April 2019 - December 2020