Magnit began to introduce SAP into industrial operation

2021: Start of Key Stage of Digital Transformation Implementation Based on SAP

The company PJSC Magnet"" on October 19, 2021 announced the launch of a key stage in the implementation of digital transformation on the basis of. SAP In October 2021, the retail chain launched a number of SAP solutions and a store back office system based on its own development.

Solutions are implemented in a limited, so-called pilot circuit, after which, subject to stable operation, they will be replicated throughout the network. Replication will be phased, which will allow the Company to minimize operational risks and make a large-scale transition to SAP solutions as easy as possible. Pilot launches will continue until the end of 2022, the end of scaling is scheduled for 2025. The company expects that the effect of the implementation of the Program over several years may amount to billions of rubles. Actual evaluation of the obtained effects is planned from 2023, when the solutions will be used at half of the Company's facilities.

The solutions operate in three pilot business divisions and two stores of the Magnit Cosmetics format in Krasnodar. As of October 2021, SAP S/4HANA (end-to-end inventory, digital core, combining all business processes of the company), SAP CAR (checking storage), SAP ATT (compliance of operations with the legislation on traceability of goods), SAP Process Orchestra (tools for quick automation, integration and optimization of business processes) were launched.

Шаблон:Quote 'author = said Jan Dunning, President, CEO of Magnit Retail Chain.

Since October 2021, SAP has been employed by employees of the General Service Center (SSC), Accounting, Budgeting and Controlling Directorate and other departments. In the new system, they keep data on accounting and tax accounting, treasury, accounting for IFRS, as well as real estate, the purchase of goods and services, the sale of non-cash values ​ ​ and inventory accounting.

For the two pilot stores, employees of SSC and the Audit and Control Department began to perform accounting and control operations of goods movement and retail sales in SAP S/4HANA and SAP CAR. Now, logicians, commercial purchasing and category management support specialists, IT employees monitor in SAP the correctness of the processes of goods movement, master data transfer and integration of the solution with other systems. As of October 2021, SAP employs more than 450 users.

Also, for two pilot stores "Magnet Cosmetics" in Krasnodar, a system of back office of its own development was launched, focused on the structure of document management and SAP objects, with built-in integration mechanisms. The back office system of stores will give a number of advantages to employees of retail outlets: it will optimize and simplify data entry, automate routine manual operations, create a transparent accounting system and provide the store with synchronous data display with the central accounting system. In addition, the transition to this tool will contribute to the organic integration and creation of a single back office document structure with SAP solutions, provide a clear and simple interface for the user, increase the speed and quality of development. The updated back office system is being developed using the Agile methodology.

{{quote 'author = noted Svetlana Medvedeva, Head of the ERP Transformation Program of the Magnit retail chain. |

The launch of SAP solutions and the back office system of stores is an important step in the development of the Magnit business. Our company is growing, and we must ensure this growth with the help of advanced technologies. All participants of the ERP Transformation Program (project teams, employees of business departments, IT specialists) have done a tremendous job of launching systems at pilot facilities. This stage is only the beginning of our journey in the Transformation Program, which is the largest digital initiative in the history of Russian retail,}}