Eldorado (Personnel management on HCM SAP ERP)

Client and project tasks

The Eldorado company is the largest retail network of shops of electronics and home appliances in Russia and the neighboring countries. In 2010 under a brand of Eldorado 700 shops in all cities of Russia work with the population from 500 thousand inhabitants and to 92% of the cities with the population of 250-500 thousand inhabitants. The program for regular customers of Eldorado totals 3.7 million participants. Today over 16,000 employees are employed in retail chain stores.

Why the developed personnel management system did not arrange management?

Specific requests and requirements to a HRM system in retail

In addition to ensuring basic functions, the HRM system of the retailer should have the potential for implementation of large volume of specific industry tasks and requirements in the field of development of personnel potential and personnel analysts. Among them:

• Data acquisition for work efficiency evaluation by each region, the locality, shop;
• Comparison of sales level by comparison to the volume of personnel resources;
• Analysis and identification of optimal number of sellers;
• The analysis and identification of optimal volume of the remuneration stimulating sales;
• Comparison of operation parameters of separate shop, the region, network in general – including and with indicators of competitors;
• Monitoring of indicators of a staff turnover and labor productivity;
• Management by means of average target values at which each region and each shop should aim;
• Analysis of a ratio of a sales and uncommercial personnel.

Solution MOLGA Consulting for Eldorado

In a basis of architecture of Uniform methodology of personnel management processes and the HRM system of the company the project solutions created by MOLGA Consulting based on the SAP solution ERP HCM (SAP HR) and earlier approved in the leading Russian and international retail chain stores laid down. The project team also developed Uniform methodology of accounting of personnel and payroll and also Uniform corporate reference books of Eldorado network.

Further specialists of MOLGA Consulting performed implementation, setup and replication of the SAP solution ERP HCM and also provided synchronization of data with a single system of managerial accounting of retail chain stores.

Project Progress

As the general contractor of the project on creation of a management system based on SAP ERP for HCM (SAP HR) for Eldorado the MOLGA Consulting company acted.

In May, 2008 – February, 2009 the project on creation of the pilot HR solution for the Central office and the Moscow region of network was implemented. From June, 2009 to February, 2010 there was a replication of a system on all branches Eldorado.

Specialists of MOLGA Consulting and Eldorado managed to realize optimal model of project implementation in practice. Stages of inspection and business development were consistently implemented, necessary methodologies are created. Then there took place implementation of a pilot project and its testing.

As result: successful and fast replication of a system across all Russia. At the same time, consultants had not to leave on "implementation points" to regions: after remote connection of branches to a system, training of all its future users in Moscow was organized.

Project Results

• High-quality increase in efficiency of business processes;
• Basic expansion of opportunities and improvement of quality of a business intelligence due to integration HR information and data of financial accounting;
• Transparency of operational management processes;
• Formation of technical and business conditions for creation of the Uniform center of calculations (Center of internal outsourcing);
• Growth of efficiency of accounting transactions twice at simultaneous decrease in their cost value for the company more than for 50%;
• Expense reduction on FOT for 6.5 million rubles due to centralization of function of payroll;
• Decrease in errors at payroll to an indicator less than 1% within the first half a year of system operation – at regulation of 3-5%;

According to calculations, the corporate system of personnel management in Eldorado will pay for itself in 18 months of productive operation.

Comments of project participants

"Implementing this project, we moved to other level of transparency of the company and quality of information. Earlier in the field of personnel management we used more than 40 separate installations of other solution, at the same time control and the reporting were complicated. The project contributed significantly to increase in management decisions and their execution. Besides, we managed to implement it in rather comfortable mode in terms of finance costs." - A. Natrusov, the vice president for information technologies of Eldorado

"Implementation of a single system of personnel management based on SAP ERP of HCM means a new stage a razvaitiya of Eldorado company. All data are consolidated in one base that allows to get quickly access to them in a uniform format. The transparency of information - both on the party of branches, and on the party of the central office is provided. I thank all project team members and MOLGA Consulting company - our partner in project implementation." R. Ilyasov, vice president for personnel of Eldorado