novaRetail based on SAP for Retail is unrolled in retail network "Mosmart"

The retail network "Mosmart" announced end of the first stage of an implementation project of a resource management system of the enterprise for the hypermarkets of the Moscow region. As the ERP system the set-up solution novaRetail based on SAP for Retail developed by CIBER company was selected. The information system covering business processes of management accounting, assortment management and purchases, logistic transactions, integration with the cash system of shop became a project deliverable of the implementing solution novaRetail based on SAP for Retail for Mosmart network.

"The solution novaRetail based on SAP for Retail will allow to optimize key processes of operating activities that is especially important during active recovery of network functioning. The new automation system, scalable and open for modifications, considers the potential of increase in volumes of business and expansion of regional presence of network" – Ismailov Ruslan, the deputy CEO of Mosmart Group says.

Earlier the Mosmart company used as the ERP system the software of different suppliers for a back office, the front office, management of accounting and as the integration platform for consolidation of these components. The used system did not answer business tasks of creation of transparent accounting and also had problems with further development of its functionality and technical support. The industry solution which was necessary for Mosmart company had to include the business scenarios of the organization of retail developed on the basis of industry best practices and a full range of the services necessary for effective use of scenarios: from strategic consulting before technical support of the information platform. The SAP for Retail system met all these requirements. The solution gave an opportunity of the integrated management of commodity and financial flows in one system, gave the chance of scalability and openness for modifications.

As a result of the tender for implementation the CIBER Russia company with industry solution of novaRetail based on SAP for Retail won. The maximum scope of functionality in the solution, numerous experience of CIBER company and competitive price became the main criteria of a victory in the tender. novaRetail includes all main functionality of SAP for Retail and additional business processes, specific to the Russian retail networks (for example, end-to-end accounting under agreements with suppliers, accounting of a SCD, self-produced processes). Thanks to preset tunings of novaRetail it is possible to implement the full SAP for Retail system in shorter terms due to simplification of process of conceptual design and a stage of implementation for business processes, universal for all retail networks. Existence of the solution novaRetail allows CIBER to offer clients the optimal strategy of SAP implementation of for Retail, at economy of their financial and temporary resources. Among the companies using novaRetail in the world and in Russia – UNIQLO, Alpha Retail, Dunelm Mill, Laithwaites, EVER Supermarket, Victoria Group, Network of Shopping Centers "Your House", "Ol! Buzzing".

Project scope for Mosmart included automation of the following business processes:

• management of material flows and sales (including jobs in shops);
• retail business processes;
• management accounting;
• operational logistics;
• purchase planning;
• sales data management;
• control of mobile terminals of data collection;
• business intelligence;
• integration of processes;
• Electronic Data Interchange.

The first stage of implementation of the project was implemented from November, 2009 to July, 2010 in time. At the first stage of the project the implementing solution novaRetail based on SAP for Retail for hypermarkets of the Moscow region was performed. Within the project development of necessary automatic interfaces between novaRetail based on SAP for Retail and the Mosmart systems was performed: integration with the cash systems of shops (POS), management systems for the weight equipment, integration with suppliers on EDI. At the second stage replication of the developed solution is planned for automation of financial accounting and planning. In current plans there is an end of SAP implementation in regional hypermarkets till October, 2010.

As a result of implementation the Mosmart company got the following advantages:

• The goods turnover is taken under control: the centralized single system provides operational up-to-date information about a remaining balance.
• Control of the entering prices and soblyudeniye of conditions of commodity agreements is exercised.
• Localization of assortiment of shops is implemented.

"The Mosmart group received a system for business management with an optimal ratio the price quality. A slogan of the solution novaRetail implemented in many countries of the world (in addition to Russia, in such countries, such as, in England, Germany, New Zealand) – YOU DO NOT HAVE TO PAY A LOT TO GET A LOT ("it is not necessary to pay much to receive much") – received one more confirmation, - Niznik Alexander, the CEO of CIBER Russia says. - CIBER Russia always made and will make the contribution to strengthening of a position of company CIBER, Inc. as world leader in the implementing solution SAP for Retail".

The Mosmart network refused the French ERP and passed to SAP

The retail network "Mosmart" refused IT solution based on which it historically began to develop the business, the French METI system, and switched to the set-up solution novaRetail of Ciber based on SAP for Retail. Business of Mosmart grew from an old system, and is already until the end of the year going to complete replication of a new system in hypermarkets of the company more than in 10 regions.

The network of Mosmart hypermarkets completed the first stage of the project on implementation of a new ERP system of novaRetail based on SAP for Retail in divisions of the company in the Moscow region. As the CEO of the Russian office "Ciber", integrator of the project told TAdviser,Alexander Niznik, before for several years Mosmart used the French METI system, however, the lack of centralization was its main shortcoming: for a full support of functionality of each of shops own installation of METI was used.

Let's remind that the tandem of METI and Mosmart became in 2003 for the French system developers, enough known in Europe, the permit to the Russian market of corporate automation. In 2006 the French adequately accustomed to Russia and even opened Sweep the East branch with office in Moscow here.

Cooperation of Mosmart with METI proceeded until business of the retail company did not grow from an old system. In 2008 Semyon Slutsky, then the vice president of network (now the adviser to the chairman of the board of directors), motivated the choice of the solution METI with the fact that on start of business the company had no need for installation of serious ERP. "We implemented very simple, qualitative software from two leading French developers and integrators of the IT area for retail: METI companies (back office) and Symag (front office). We keep accounting in program 1C 8.1", - he said then.

Then, in 2008, Mosmart implemented the new platform based on the IBS Suite system which was developed by the French company Soft Solutions. As envisioned, it had to integrate all program components and give to the company the chance to be engaged in qualitative analytics and forecasting. Obviously, these measures did not satisfy the company fully. As for METI, a system also had problems with further development of its functionality and technical support, representatives of integrator explained.

As explained in Ciber, when choosing the new Mosmart system it was initially focused on SAP: the different packaged solutions based on SAP for Retail participated in the tender held at the end of 2009: in addition to the offer of Ciber it were Norbit for Retail from the company "NORBIT" and INLINERETAIL from the company "Inline Group". For benefit of Ciber experience of successful implementations more than in 30 companies in Russia and in the world affected.

As a result transfers all main business processes from directly processes of retail, management accounting, logistics, purchases to SAP Mosmart and up to a business intelligence. The first stage of the project passed from November, 2009 to July of current and extended to Moscow. Within the second until the end of the year will transfer to a system also Mosmart hypermarkets in other regions of presence: it is Novosibirsk, Krasnodar, Novokuznetsk, Ufa, Orenburg and others (only 12 cities).

As the first results in Mosmart note increase in control over a goods turnover, the entering prices and observance of conditions of commodity agreements. Besides, localization of assortiment of shops is implemented. "We managed to pass into a short time to the new advanced information platform and to overcome all restrictions imposed by long-term operating experience of the previous system", –Ruslan Ismailov, the deputy CEO of Mosmart group [[Ismailov Ruslan|]] said. Information on the number of licenses and the project budget of the party do not open.