The computer Center Kay (Columbus is the solution for the distribution center)

Provided to Microsoft Dynamics AX the regional growth of the St. Petersburg retail network

The retail chain stores, largest in St. Petersburg, "the Computer – the KEY Center used the self-written IT system which does not have sufficient flexibility. Expansion of the sizes of network, the planned significant increase in a market share, orientation on more complete satisfaction of requests of buyers demanded improvement of information technologies of the company. On the Microsoft Dynamics AX platform specialists of Columbus IT constructed two solutions – for business process automation of the central office and the WMS system for management of a warehouse complex.

Situation

For the last years the company "the Computer – the KEY Center dynamically develops, at the same time expanding the regional presence and mastering the new directions of business (sale of computers under own brand). Against the background of dynamic business development the system of own development existing in "KEY" ceased to correspond to requirements of the company. With market development more and more diverse information for decision making was required for managers, an opportunity to independently configure analytical reports and to independently obtain necessary analytical information from the database was required. At the same time a part of routine transactions remained non-automated. According to the CIO of "KEY" Oleg Weinberg "an old system did not allow to use modern methods of data processing, such as, for example, OLAP. Besides, creation of regional departments demanded creation of a system with ampler opportunities of scaling. Obviously, global reorganization of a system on the outdated platform was absolutely inexpedient".

Choosing a Solution

As a result in 2004 the company began to think of need of implementation of the ERP system. The solution was selected the Chief information officer of "KEY" Oleg Weinberg about a year: systems presented at the market were studied, experience of other companies working in retail was analyzed. As a result the solution Microsoft Dynamics AX and Columbus IT company for its implementation was selected. "Columbus IT, one may say, simply convinced us that they really have a good command capable to finish the project, - Oleg Weinberg says. – It became one of decisive factors". In addition change of business processes of the company "The computer the Kay center and, in particular, entry of the retailer into the markets of other areas of North-West Region became one of important circumstances of making decision on implementation of Microsoft Dynamics AX. In representations IT infrastructure also began to develop and to remake own system under features of representations which will demand business process automation sooner or later in the company considered inexpedient.

"The main objective of the project was in consolidating purchase management and sales, to optimize goods flows and to receive the powerful analytical tool in the order. As we by right consider ourselves leaders of the regional market, we wanted to receive the system which is completely satisfying to features of our business and at the same time not to lose the know-how developed by own forces", - Oleg Weinberg noted. The solution for benefit of Microsoft Dynamics AX was influenced by its following characteristics: simpler adaptation and upgrade of a system in comparison with solutions of other vendors and also reasonable price.

Solution

Thus, in February, 2004 the first stage of the project – automation of the central office based on standard functionality of Microsoft Dynamics AX started. In total duration of the software installation was 8 months. A system was brought into operation on September 4, 2005. During the project the most important aspects of activity of retail network were automated: forecasting of sales, purchase planning of goods on the basis of the received sales forecasts, pricing, planning of stocks – in warehouses and in shops (assortment planning) on the basis of the received sales forecasts, supply management process automation, the corporate reporting by means of the OLAP tools, etc.

Automation of the central office allowed KEY company to consolidate network management and to optimize goods flows. Having received the powerful analytical tool and a clear idea of a status of goods in a warehouse, top management of the company defined the following important IT task dictated by rapid growth of business. Automation of the new 4-storeyed warehouse complex designed to provide with goods retail network in St. Petersburg and in nearby regions became this task. The old warehouse of 4000 sq.m ceased to correspond to requirements of fast-growing network therefore the decision on purchase of the new complex twice exceeding old on the area was made.

Along with the choice of the suitable premises under the distribution center the management of "KEY" set the task of creation of design of IT solution of future warehouse complex for consultants of Columbus IT. In parallel with development of design the Columbus IT company held meetings with specialists of "KEY" therefore the ready technical specifications on implementation of the WMS system were created.

The WMS system on the Microsoft Dynamics AX platform offered by Columbus IT company completely considered specifics of activity "the KEY Computer Center and did not require almost any completions. This solution approved in many Russian retail networks allowed to optimize warehouse space, to accelerate distribution of goods, collecting and packaging of loads.

Having decided on the premises under a warehouse complex and having tested the new WMS system, the management "the KEY Computer Center decided to postpone the beginning of the project on automation of the new distribution center to January, 2007. Such solution was dictated by desire to minimize losses from moving of a warehouse and system implementation as on New Year's holidays the traditional recession connected with vacation of suppliers is observed.

Thus, on January 2, 2007 the project team consisting of specialists of Columbus IT, business experts of "KEY" and also warehouse workers started final project stage – automation of the distribution center. Within the project parameters of accounting of goods were changed: so, in an old system when accounting goods its dimensions did not play an important role, and in new – on the contrary, the specific cell was considered, respectively, it was necessary to count the sizes of each goods.

Results

Implementation of Microsoft Dynamics AX allowed to automate work of the central office of the company, namely the central warehouse, commercial service, department of logistics and audit and the service center. Now Microsoft Dynamics AX automates processes of a goods turnover of the company. Implementation allowed "KEY" to solve key problems of the central office, including forecasting of sales, purchase planning of goods on the basis of the received sales forecasts, pricing, planning of stocks – in warehouses and in shops (assortment planning) on the basis of the received sales forecasts, supply management process automation, etc.

The WMS system implemented a bit later allowed "KEY" to see more precisely a status of a warehouse of the company, the nobility what goods where lies as it moves. "Process of participation of warehouse specialists in decision-making where to put these or those goods, is minimized — a system itself analyzes turnover of goods, existence of empty seats, and issues offers how to place a batch. It allows to predict more precisely intra warehouse flows and to create orders, requests for shipment of goods", - Mr. Weinberg notes.

As a result today the Microsoft AX system used by "KEY", being the powerful analytical tool, allowed network to consolidate purchase management and sales, to optimize goods flows. The WMS solution also became a set of the powerful tools every day helping to organize effectively work of employees, the movement of goods and documents. Today in the system of the central office 40 simultaneous users, and in the WMS system – 20 work. The KEY company is going to develop the received solution in close cooperation with specialists of Columbus IT Russia.