Brice-Bosphorus (1C:ERP Enterprise Management 2.0)

Bris-Bosphorus increased profit by 15% with the help of 1C:Enterprise 8

Complicating production systems requires more advanced process management skills and additional resources for today's enterprises to handle growing volumes of information. Their ability to fulfill orders in a timely manner, respond quickly to changes in demand and ultimately maintain their competitiveness depends on this.

Pre-implementation situation

In the conditions of forcing production volumes and conquering new market expanses, control of internal business processes in the holding has receded into the background. If the enterprise is able to produce up to 80 thousand pairs of shoes daily, the holding lacked a centralized information system. But to ensure such a load, consistency in the actions of all departments and constant control of the profitability of orders with an accurate calculation of the planned and actual cost, which can only provide a single information environment.

Each of the holding's divisions worked in its own separate database. In warehouses, the address warehouse management system was used, but reports for other departments on receipts and shipments of goods and semi-finished products, returns and marriages were filled in manually. For this reason, when processing orders, managers often did not take into account the available stocks of the desired goods and raw materials, placing an order for the production of a new product and the purchase of materials necessary for production.

In addition, there was an established practice of keeping records of cash management in electronic tables, which did not allow to quickly correlate applications for cash consumption with the established limits and terms of counterparty agreements.

A mail client was used for document management, and therefore document approval was not clearly routed and often "hung." A significant share of manual operations and the lack of methodology for filling in the NSI influenced the accuracy of the information, and, accordingly, the analysts that the management used to plan production and calculate the cost of production. With a large territorial spread of divisions, production and retail, the situation was complicated by gaps in responsibility for business processes.

Prerequisites for implementation

The holding, of course, took steps to automate business processes, but so far the decision to introduce a comprehensive information system capable of uniting all divisions has not been made, the current situation has not changed fundamentally.

At the stage of choosing the vendor of the software solution for comprehensive automation, Bris-Bosphorus management made a peremptory decision to implement 1C products. In addition to the fact that industry products on the 1C: Enterprise platform have already established themselves as reliable assistants in some departments of the holding, they better reflect the specifics of Russian business. At that time, the choice was between two 1C solutions for integrated automation - the well-known 1C: 1C: Manufacturing Enterprise Management product and the innovative development 1C:ERP Enterprise Management 2.

The partner in the project was the automation department of the WiseAdvice Group of Companies. In addition to confirming competencies in the consulting and software part, ensuring the presence of the team at all project sites, the integrator's specialists conducted an expert express survey.

The survey contained information about the main problem areas in the holding's business processes and the project tasks formulated on their basis.

It is worth noting that the tasks were formed according to the principle "from the opposite": the customer received information not about the benefits that he will receive after implementation (since the goals as such have not yet been formulated by the customer, which means that the benefits could simply not be interesting to him), but about possible risks and losses that will inevitably arise if the situation does not change.

Not only the integrator is interested in the preliminary "monetization" of the tasks of the upcoming project, but also the persons responsible for the customer: it was these data that largely helped to justify the project to investors and formulate the final goals, to achieve which the effectiveness of the work done will be determined.

Project objectives

Based on the express survey, the customer has identified the goals to be achieved as a result of the project. The first and main was to increase the profitability of production. To do this, it was necessary:

• strengthen control over the timeliness, and most importantly, the need, procurement of semi-finished products and materials;
• speed up the processing of applications;
• streamline Treasury processes;
• Create a capacity utilization plan
• increase efficiency of receipt of information on receipts and balances from warehouses;
• Reduce inventory.

In addition, it was necessary to introduce a new document management system that would speed up the exchange of documents between departments, reduce the time for approving contracts and applications for spending funds, and strengthen control over the implementation of orders.

Comparing the information received and the functionality of the selected 1C products, WiseAdvice experts provided information on the possibilities of solutions in terms of achieving the project goals and fulfilling the tasks.

Since the holding is focused on growth and plans to develop the system in the future, the basis for comprehensive automation was the solution "1C:ERP Enterprise Management 2," as well as "1C: KORP Document Management."

Implementation technology

Having received information about possible losses, the customer decided to start the project as quickly as possible. It was the deadlines that initially led to the refusal of exhaustive documentation of the project. The priority was to quickly get the result, that is, the finished product. In these conditions, according to WiseAdvice experts, the right thing to do was to carry out a project using Scrum technology.

Further, it became clear that at the Bris-Bosphorus project, the needs and goals of the implementation very accurately coincided with the basic principle of Scrum - for a short "sprint" to provide the customer with a useful result (in this case, working software functionality), for which the highest priority was determined. Some factors contributed to this:

• Since the selected software products have rich functionality, they have satisfied most of the customer's needs without "deep" modifications (coding). That is, the solution was adapted to the customer's business processes mainly through parametric settings.
• The close cooperation between the integrator and the customer, provided for by the technology, within the framework of the project, excluded the "unnecessary" work and improvements, even in a situation of constant updating of tasks (Scrum specifics). The customer's specialists provided consulting support to the team of implementers in terms of the subject area, which made it possible to take into account the non-obvious requirements for the system dictated by the specifics of the work.
• The functionality of the solution is developed on the basis of practical experience and in itself is a guideline for building effective business processes, so the Scrum technology project made it possible to get useful results, greatly winning in terms of timing and cost. For example, the customer received the first working functionality a month and a half after the start of design work, and a full-fledged treasury management system - two months later.

Project results

According to Elena Vladimirovna Yutlandova, Director of Economics and Finance at BRIS-BOSPHOR, "the implementation of the ERP system yielded the highest results in the shortest possible time. Suffice it to say that thanks to this, profit growth was 15%. The profitability of production and the accuracy of calculating the cost of batches increased, which made it possible to reduce the cost of production and make additional profit. "

Elena Vladimirovna Yutlandova, Director of Economics and Finance at BRIS-BOSPHOR: "The implementation of the ERP system yielded the highest results in the shortest possible time. Suffice it to say that thanks to this, profit growth was 15%. "

The results of the implementation of "1C:ERP Enterprise Management 2" and "1C: KORP Document Management" were able to exceed the customer's expectations:

• Operational production load planning has been implemented. In real time, the system displays the movement of materials and semi-finished products between workshops, as well as finished products to the warehouse. Duplicate purchases of materials and semi-finished products were minimized, and therefore production costs decreased by 10%, and the cost of finished products decreased by 5%.
• "1C:ERP" is integrated with the address warehouse management system, in which warehouse workers record the physical location of batches of goods or semi-finished products in the warehouse. Information about receipts, shipments and reserves after it is entered into the warehouse system is immediately mirrored in "1C: ERP." Managers now receive complete and reliable information about the inventory status in real time. Product residues and returns that were previously deposited, and often "lost," in the warehouse are promptly put into circulation and included in orders in small batches with full product characteristics. As a result, inventory volumes were reduced by 25%.
• A detailed inventory carried out during the project revealed that the number of unaccounted products and semi-finished products in the repackaging warehouse reached 10% of the total stock. These products were not used in any way and were most often not taken into account. Warehouse management through "1C:ERP" made it possible to record the remnants of batches in the system immediately after repackaging. As a result, the stock of the repackaging warehouse is reduced to zero.
• The processing of orders received accelerated by more than 30%. Sales, Warehouse and Manufacturing employees work in a single information space. Sales managers - it doesn't matter if a specialist is in the central office or in the branch office - were able to quickly reserve an item in the warehouse if it is available or place production orders in one click.
• The created electronic document management system made it possible to reduce labor costs for approving documents in all divisions of the holding by 30%. A reconciliation scheme has been built for all internal (cash request) and external (contracts) documents. Requests for spending funds are agreed only taking into account the established budget limits. Misappropriation of funds is excluded. Reconciliation no longer hangs due to the order control system.
• All business units are now consolidated into a single system. To generate reports and obtain the necessary analytics, there is no need to reconcile data by phone and use spreadsheets. As a result, the receipt of management reporting accelerated at least 3 times, and the preparation of regulated reporting - 5 times.

The introduction of a unified information system allowed Bris-Bosphorus to overcome the internal inconsistency of processes and detect hidden losses and reserves, and with them new growth opportunities.