OBI summed up the results of 9 years of use of Columbus Care service

About the Customer

The company of OB – the European retail network implementing goods of category "make". Today there are 525 hypermarkets of OB, 331 of which work in Germany and 194 - in 12 countries of Central and Eastern Europe. In Russia – 14 hypermarkets of OB, the number of employees – 2500. Opening of the last, the fourteenth, shop took place in April, 2009 in Omsk.

2008-2009: Implementation of Microsoft Dynamix AX

Situation

Business of OB network is a difficult multilevel process. Practically all shops of the countries in which OB conducts activity work according to the scheme of DDP (Delivered Duly Paid) at which the supplier brings goods directly to shop and takes the responsibility for the risks connected with delivery. "However in Russia (owing to specifics) a situation other: there is a uniform Distribution center of batches on retail network, thus the logistic model, essentially excellent from western is applied, - Philip Lemer, the CEO "Ltd company of OB Import and Logistics Rus" tells. – Taking into account the Russian realities the new flexible solution capable to provide control over logistics and import was required".

Choosing a Solution

A system which at the same time would be flexible, i.e. capable to adapt to new tasks, and not too expensive in installation and operation was necessary for the company. As a result of the tender held in 2007 for Distribution Centre the vertical solution based on Microsoft Dynamics AH developed by Columbus IT taking into account features of the Russian business was selected. This solution allowed to automate all business processes connected with purchase of goods at suppliers and the subsequent its shipment through the Distribution Centre (DC) to shops and also to automate processes of warehouse activity.

According to Philip Lemer, "the stated offer of Columbus on the tender assuming installation of a system from Microsoft answered practically all parameters which we developed in the course of preparation for implementation".

Solution

The implemented solution executes both the Enterprise resource planning functions, and the WMS system. It allows to perform purchase planning, creation of requests to suppliers, drawing of accounts, to regulate shipment to shops of network and to make cost accounting and other functions of the trading system. At the same time the solution for the Distribution center is a full-fledged management system for intra warehouse processes. It not only allows to automate processes of loading and unloading, using warehouse most effectively, but also to make performance assessment on different key indicators, including on the processing speed of goods in a warehouse.

Also implemented solution allowed to lead to modern standards and some financial procedures. So, now workers of the Distribution center have an opportunity to automatically perform the statement and registration of accounts for the rendered logistics services and also to make unloading of accounting entries in SAP/FI.

Four departments of OB the company which should work further with a system took part in works on implementation of the logistic solution WMS based on Microsoft Dynamics AX jointly with specialists of Columbus IT. Besides, for key user training and business experts the test version of the solution thanks to which it was possible to try approaches and the purchased skills was created, without influencing the working scheme of office-work.

Results

According to specialists of OB, implementation of the WMS logistics system based on Microsoft Dynamix AX was an optimal solution for the company. Using an automated system purchase management is conducted: the size of a batch is automatically regulated according to the sizes of stock remainders. Besides, the scheme of cross docking is used: for reduction of time of processing of the arrived load the goods go not to a warehouse, and at once directly in a shipment zone - it allows and to reduce time of a way of a load from the supplier to the shelf of shop, and most effectively to use warehouse. And all way of a load from the order moment at the supplier and sending from a warehouse to shop is easily traced both by number of purchase, and by the article of goods. At any time it is possible to browse where now there is a load when and where it should arrive.

Along with the scheme of cross docking also standard circuit of storage of goods in a warehouse when the goods are placed in a warehouse for storage is used, shipment is made on the basis of requests from shops. Tasks for placement of goods in the storage area and complete set routes at assembly of the order before shipment in a system form automatically so that use of warehouse space was the most effective. Implementing solution for RTs allowed OB to increase both a goods turnover, and speed, warehouse processing of a load, promoting further growth in sales of the company.

Prospects

In plans of OB the company - further system implementation of automation of business in those countries where similar approach to deliveries of goods and also similar with Russian procedures and processes practices. According to Philip Lemer, "implementation of Microsoft Dynamics AX in Russia is a good sign for heads of OBI in those countries where there is also a need for automation of any business processes". "Microsoft Dynamics AX is a good, flexible system therefore it is easy to adapt it for needs of these or those representative offices", - Lemer considers.

2017: Results of 9 years of application of Columbus Care service

The network of OBI hypermarkets announced on December 7, 2017 results of 9 years of use of Columbus Care service for solving of tasks of the round-the-clock user support and development of functionality of the Microsoft Dynamics AX system regarding supply chain management, a warehouse and costs.

Nine years ago, in October, 2008, the management of retail chain stores of OBI Russia made the decision to transfer problems of the round-the-clock user support and development of functionality of Microsoft Dynamics AX to specialists of Columbus. Within providing service the consulting company supports work of specialists of Department of logistics: processes of management of supply chains, warehouse and costs.

For many years we trust service of a number of our business processes to experts of Columbus. It allows us to concentrate on the core business while a system and users of OBI are provided with support of specialists of the partner — Dmitry Gorbatenko, the CEO of OBI Pryamoy Import i Postavki LLC noted.

Columbus Care is service for support and development:

• ERP- systems on the Microsoft Dynamics AX platforms, Microsoft Dynamics NAV and 1C,
• The systems of budget planning and the business analysis on the IBM Cognos platform,
• Solutions Columbus WMS.

An individual set of services Columbus Care forms based on packets:

• Columbus Support– technical support 24/7/365,
• Advanced Care is development and deployment of new functionality,
• Performance Care is services in optimization of system performance,
• ITSM 365 is providing the cloud Service Desk system.

Staff of OBI can address concerning technical support on the round-the-clock hot line available to users of 7 days a week 365 days in a year.

Consultants execute all our requests according to the approved quality parameters which we stated in the agreement on the level of service (SLA). At the same time it is convenient to us to control the expenses as the service package of Columbus Support has fixed cost, and cost of tasks of development of a system we discuss previously and we approve with Columbus — Evgeny Nekryukov, the information technologies manager "OBI Direct Import and Deliveries" noted.

For problem solving of development of functionality of the ERP system the OBI company selected Advanced Care service package. The retail chain stores use Columbus Care service not only for ensuring uninterrupted operation of already automated processes, but also for adaptation of a system to market conditions in process of emergence of the new purposes of the company and, as a result, additional requirements to controllability of logistic processes.

So, the project connected with opening of the regional distribution center of OBI and integration of a system of the customer with the WMS system of logistic provider became one of examples of recent application of a service package of Advanced Care.

In general, on a response of the customer, in 9 years of work with Columbus Care the OBI company achieved the following results:

• About 15 thousand requests of users are executed,
• The percent of accomplishment of the SLA parameters made more than 99%,
• The incidents arising in use systems have no critical impact on work of Department of logistics,
• There was a confidence in the continuity of processes of the distribution center.