17 november 2008
SAP and Teknosila presented their implemented solution to Russian and international mass-media
A media tour was carried out in order to demonstrate to Russian and international mass-media the solution for the management of operations of the retail chain and the head office of Tekhnosila that was implemented by GMCS based on the SAP for Retail industry solution.


The decision to implement SAP for Retail was made in spring 2006 at the onset of the regional expansion of Tekhnosila, Russia’s most dynamic home appliances and electronics retail chain. Leonid Tukavkin, Vice President for Strategy, Tekhnosila, says implementation of the modern management system became particularly urgent after the company opened numerous new outlets and the timely supply of goods to the regions became critical. 


According to Mikhail Romanov, President of the IT consulting company GMCS, which was engaged as an external consultant by Tekhosila, - having a wide range of business applications under its belt, GMCS formed a sort of matrix structure of offering the most suitable business automation products to clients from various industries. Within this structure the solution that the consulting company recommends for large retail chains is  SAP for Retail, on the basis of which GMCS, together with the Teknosila team, constructed a full-scale enterprise resource planning system for the retailer.


Based on the selected implementation approach, two systems were deployed simultaneously. One system is used to manage sales data. It is based on SAP POS Data Management. The other system manages finance and logistics and is based on SAP ERP. 


The key result of the implementation of the first system is higher speed and quality of producing outlet sales reports and consequently higher quality of management decisions. To collect relevant information on Tekhnosila outlet performance, GMCS implemented SAP POS Data Management to create an interface with the outlet automation program. System users now get updated information on merchandise balance every two hours. The data on retail and wholesale sales of the entire chain is available already on the next day.


The data is now much more accurate. GMCS consultants on the project also developed and realized an algorithm of multilevel verification of outlet reports using product ID codes, prices, bill number, etc. Retail outlets also are notified of mistakes in reports and the correction process is put under control. The correction time now takes one to three days rather than a month or two.


Presently, all sales and product movement data is accumulated and processed in a single depositary created by GMCS based on SAP Business Warehouse and is available for the staff of various Tekhnosila departments. Corporate system users, including commercial and finance department specialists, accountants, logistics, retail and wholesale trade staff receive exact data on daily operations in the required analytical frameworks. 


As a result of the second sub-project, SAP ERP implementation, a unified system of the retail chain’s key business processes management was establishment. In the process of implementation a joint Tekhnosila -GMCS project group automated sales, procurement, and logistics. Tekhnosila internal expert team automated financial and management accounting. The performance of the company’s key business function is now carried out in a single system, allowing Tekhnosila to monitor the motion of goods and transportation costs in real-time mode, efficiently management transportation and logistics costs, abandoning unprofitable transportation projects. Tekhnosila now supports a competitive price level and timely replenishment of stock even in the most distant regions. 


The project took 14 months to implement. Tekhnosila continues its extensive development and plans that the chain’s new business optimization goals will concern strategic planning and assortment planning and management (based on SAP Merchandise & Assortment Planning), as well as detailed demand forecasting and outlet replenishment (based on SAP Forecasting & Replenishment).

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