Riv Ghosh together with Korus Consulting implements a large-scale digital program

2023: Implementation of "1C:ERP. Holding Management "

Riv Ghosh has launched a project to transform the IT landscape. The changes will affect commodity movement, financial management, own production, pricing and other business functions. KORUS Consulting experts help the retailer introduce the core of another architecture - 1C:ERP Holding Management and build an effective structure of a comprehensive IT project. This was announced on June 16, 2023 by Korus Consulting.

Illustration: inet-shops.ru

The launch of the digital program is associated with several factors. First, Riv Ghosh is in an active stage of business transformation. After the departure of beauty giants and key suppliers from the Russian market, the company changed its assortment policy: the role of its own brands and brands increased. Logistics chains have become more complicated, Riv Ghosh has taken over the import functions. The retailer plans to enter the CIS markets. In addition, there have been changes in the pattern of buying behavior. The demand for cosmetics and perfumes is showing positive dynamics, the growth of the average check over the past year was more than 20%, customers are showing interest in other brands.

To work with different logistics and increased demand, Riv Ghosh decided to rebuild the business model and make a large number of changes to the IT architecture. Over the years, it has become very complicated, some of the solutions are outdated, so it has become more and more difficult to develop the IT landscape in accordance with business strategy and environmental challenges. The company decided to launch this digital program, which includes the introduction of 1C:ERP Management of the Holding, solutions for analytics, pricing, data storage, auto-order, as well as piloting the 1C: Retail product in chain stores.

For Riv Ghosh, both operational efficiency and the speed of obtaining financial indicators are important, therefore ERP , a system was chosen that combines an operational accounting solution and advanced financial management functionality. Planning the changes, "Riv Ghosh" faced a number of difficulties. The target architecture needs to include a large amount of legacy processes, some of which are archaisms. Process analysis and reengineering was required to highlight know-how and key blocks. In addition, transformation affects a large number of business units, and changing the entire IT landscape within one project would be too risky for business. Riv Ghosh turned to KORUS Consulting for expert support in planning projects and to solve the problem of updating the core of the 1C architecture. In the target landscape, the platform will be a single installation, but in order to reduce risks, it was decided to launch the modules in stages.

The cooperation began with the introduction of a unit for limiting costs on the basis of 1C:ERP Management Holding, which made it possible to establish interaction between teams. Then the experts of the IT company carried out the conceptual design of the future platform and started the first stage of the project to automate the operational circuit. Another current area of ​ ​ work is the examination of processes in order to optimize pricing.

The first stage of the ERP project includes automation of commodity movement: procurement, sales, warehouse, logistics, inventory management, as well as about 20 integrations with related systems (WMS, cash registers, loyalty solution, online store). From a financial point of view, the task is to implement the target costing methodology in the system.

In the future, Riv Ghosh automates a factory that produces goods under its own trademarks. The ERP system should improve the efficiency of costing, ensure the production of requirements planning, purchasing, inventory management, and production functions. After the automation of the factory, Riv Ghosh will be able to close the operational cycle, speed up the calculation of cost and management decisions. This will help the company to efficiently scale: the business develops STM, thereby expanding the range and can more flexibly manage the cost. The company also plans to automate the financial circuit. This is necessary to shorten the period closing and reporting times.

We decided to build an IT landscape on the principle of Best of Breed: to use the flagship 1C solution as a core, surrounded by specialized Russian and foreign products. A more dynamic and manageable IT infrastructure will support the changes that are taking place in the business. We also expect this platform to accelerate reporting, improve data transparency and quality while reducing system maintenance costs. commented Alexander Khokhlov, Chief information officer of Riv Ghosh.

Four components are important for a comprehensive IT project: a competent roadmap, deep methodological training, high-quality landscape design and an effective project management structure. We help Riv Ghosh implement a digital program based on these principles. This reduces the risk of automating a large volume of retail operations, finding the right solutions and building effective interaction with business and other project teams, noted Ksenia Rodnova, Deputy General Director of KORUS Consulting Group of Companies.