Megafon implements ERP based on SAP for Retail

MegaFon company together with CIBER Russia company started automation of own retail network OJSC MegaFon.

In search of the solution

In March, 2009 the Board of Directors of OJSC MegaFon approved the plan of active development of own retail network that became the basis for search of the solution of automation.

It was necessary to select the software solution allowing to manage effectively goods flows and sales: create the range, control logistics, monitor works with suppliers, perform different types of sales (sale of services, wholesale, sales of the third parties, commission trade) and to manage promotion activities. Besides, the full integration with the POS system was required.

Considering calculation of commercial benefits of implementation and also the fact that in the head company SAP ERP already works, a choice was made for benefit of the solution NovaRetail based on SAP for Retail of CIBER company.

NovaRetail is the set-up solution for automation of all key business processes of retail including the main functionality of SAP for Retail and additional business processes, specific to the Russian retail networks (for example, commission trade, end-to-end accounting under agreements with suppliers, accounting a SCD and additional printed forms).

Feature of the project is that OJSC MegaFon has own system of financial and management accounting based on SAP ERP with which NovaRetail business process integration will be made, Alexander Niznik, the CEO of CIBER Russia noted.

Expectations

As a result of OJSC MegaFon will have following features in the field of management of goods flows and sales:

• formation of assortiment;
• request, offer, comparison of suppliers;
• contracts of suppliers;
• replenishment action planning;
• calculation of the selling prices;
• distribution of goods;
• commodity import;
• purchase;
• transportation;
• goods return to the supplier;
• inventory;
• movement;
• management of promotion activities;
• sale of services;
• wholesale;
• sales of the third parties;
• sales data management in the POS system;
• calculation of a retrobonus from the supplier;
• commission trade;
• integration with the POS system.

Work on automation of financial processes the Competence Center of SAP undertook MegaFon companies.

Stages of the forthcoming way

The project consists of two stages. The first stage within which there was a business process automation of internal services (back office) is implemented within February, 2010 - July, 2010.

The second stage - automation of external services (front office) - will come to the end by January, 2011.

Details

In more detail about the implemented project it is possible to read in article of TAdviser.

Project Results

In July, 2011 was it is announced project completion.

As a result of implementation of novaRetail the retail network "MegaFon" had following features in the field of management of goods flows and sales:

• formation of assortiment;
• request, offer, comparison of suppliers;
• contracts of suppliers;
• calculation of the selling prices;
• distribution of goods;
• commodity import;
• purchase;
• transportation;
• goods return to the supplier;
• inventory;
• movement;
• management of promotion activities;
• sale of services;
• wholesale;
• sales data management in the POS system;
• calculation of a retrobonus from the supplier;
• commission trade;
• integration with the POS system.

In addition, the Competence Center of SAP of MegaFon company made integration of novaRetail with own system of financial and management accounting based on SAP ERP. In a project deliverable, proceeding from February, 2010 to February, 2011, business processes of the front office and a back office were completely automated.

More harmonious work of all divisions of the company became a result of implementation of novaRetail in retail network "MegaFon". Now the management of the head company receives the reporting under the retail division quickly that promotes fast acceptance of management decisions. Thanks to creation in head and MegaFon subsidiary company of a common information space work of employees became simpler, and and the consolidated financial statements on all divisions became advantage to shareholders transparent. Also new SAP for Retail system became some kind of base for implementation of new functionality of SAP and creation of new competitive advantages of retail network.