The intersection, trading house (Columbus is the solution for the distribution center)

The Perekryostok trading house firmly takes the leading positions in the Russian market of retail. One of secrets of success of this company – the innovation approach and use of the most modern managerial technologies. When most the Russian networks just looked narrowly at the western information systems, Intersection through Columbus IT company already automated work of the distribution center. Results of automation exceeded all expectations: the solution based on Microsoft Dynamics Akhpozvolilo of the company to increase capacity of RTs twice and to lower the general trade inventory by 20%.

By means of Microsoft Dynamics AX in Intersection 60 thousand financial transactions a day are processed on average. A system supports the RTs key functions on supply of shops of network with different goods and implementation of wholesale trade operations.

Foreign experience

Approximately in 2000 before Perekrestok company seriously there was an issue of optimization of work of RTs and increase in its capacity. Perekrestok very thoroughly approached the solution of this problem. Heads and specialists of the company got acquainted with work of a number of the western networks of retail stores in Great Britain, Canada, France and Austria, having adopted some know-how allowing to accelerate considerably processing of loads in a warehouse at the colleagues.

Having armed with new knowledge, the company started the choice of the system integrator. In Intersection more than fifty supplier companies conducted survey, then selected several "finalists" and carried out in-depth examination of their opportunities. Finally Intersection stopped the choice on the solution of Columbus IT company based on the Microsoft Dynamics AX system. According to heads of Intersection, this solution was selected proceeding not only from current demands of network, but also taking into account plans of its development within the next seven years.

In 2000 in Russia there were no analogs of carrying out projects of such scale therefore in Intersection staked on the service provider having experience of maintaining large projects. The company focused on result, having high potential and having rather powerful software solution as a system should work with huge information volumes in the arsenal was necessary.

Knowledge is power

The project lasted one and a half years – since November the 2000th till March, 2002. About a half of this time was occupied by reorganization of work of RTs and business process reengineering. According to heads of Intersection, system implementation developed into "the serious social project" in which practically all RTs business divisions were involved.

Especially It should be noted the solution for knowledge management about the project which was implemented by the project team consisting of consultants of Columbus IT and specialists of Intersection. All documentation on the project (including both problem definition, and the guides of users) was prepared in the form of files of the HTML format with cross-references. These files were available to all users involved in the project that allowed to provide support of lifecycle of modifications of information system RTs and by that to minimize risk of introduction to commercial operation of the version of the information system which is not meeting the requirements of the company. Now about 35 users in each change of RTs use the Microsoft Dynamics AX system in the activity.

Instrument of business development

During the project work of the distribution center of TD "Intersection", including all intra warehouse movements was completely automated that significantly increased efficiency of network in general. Consultants of Columbus IT implemented automatic information exchange between Microsoft Dynamics AX in RTs and systems applied in supermarkets of network.

Emergence in the company of information capital and understanding of business challenges by very many participants of business processes became a key project deliverable. The chief information officer of Intersection Vladimir Kiva considers one more very important project deliverable emergence of "the instrument of the development" allowing to implement long-term plans of the company.

Take care of the pence, the pounds will take care of themselves

Certainly, the project has also notable purely economic results: the average time of assembly of orders is reduced by 30% and capacity of RTs is doubled. The general trade inventory decreased by 20%, therefore, a part of financial resources is released. The efficiency of purchases of goods increased, turned out to be consequence of what decrease in the amounts of "not additional order" and "reorder" for 50%. Due to advanced accounting of goods with a limited expiration date commodity losses are reduced. End-to-end lot-based accounting is implemented; the increase in labor productivity, strengthening of labor discipline are observed, new opportunities for improvement of control and stimulation of personnel appeared.

Methodology

"The distribution center - heart of the enterprise. Almost all goods, except for perishable, pass through RTs before get to supermarkets of network, - Artem Dolgikh, the head of the Warehouse Solutions group of Columbus IT Russia notes, - the project Implemented in TD "Intersection" put the general for automation of warehouse complexes functionality. On this project the implementation methodology of vertical solutions of Columbus IT which essence consists in minimization of changes of already implemented business processes was also born".