20 march 2008
GMCS implements SAP at X5 Retail Group
GMCS announces the launch of the implementation project for an Enterprise Resource Planning (ERP) system at X5 Retail Group N.V., Russia's largest food retailer. 

GMCS won the contract in a tender, the results of which were announced in February 2008. The new retail operations management system will be based on SAP for Retail.

X5 Retail Group development strategy takes into account the chain's rapid expansion with maintaining flexibility of market response by launching new competitive brands, expanding the product portfolio, etc. In this context, the quality of operations and strategic management of a geographically distributed structure are of primary concern. To deal with this challenging environment, X5 Retail Group chose an industry-specific application, SAP for Retail, that will be implemented in cooperation with GMCS consultants.

"The need to implement a common management instrument was obvious to us. Managing a company of such scale and holding structure as X5 Retail Group is impossible without advanced information technologies. We certainly understand that project success is not determined only by selecting the right product. Much depends on the teams involved in the project, on the side of the customer and on the side of the contractor, and on how both of them are ready to face up to this difficult task. Therefore, choice of a qualified and reliable partner for us was as important as our own preparation for the project. GMCS, with its reputation of a competent professional consultant and experience of successful retail automation, we hope, is the partner we needed," says Teimur Shternlib, CIO, X5 Retail Group.

"We appreciate the trust placed in us by X5 Retail Group when GMCS was invited to work on such a significant project. When we draw recommendations for developing a new management system for X5 Retail Group, we will be guided by the project expertise we have already accumulated and the know-how developed by GMCS consultants on previous automation projects with retail companies. The project vision of the customer corresponds exactly with our position and the choice of the SAP solution fits the priority decision matrix structure developed by GMCS for companies in various industries," says Mikhail Romanov, president of GMCS.

The project is divided into several conceptual stages. In the first stage, the joined team of X5 Retail Group and GMCS specialists is expected to automate the flow of goods management. This work will then be used as the basis to perform the next stages of SAP implementations, including expansion of the financial module functionality, implementing a planning module, etc.

The company plans to complete the first stage of SAP for Retail implementation before the end of 2009. X5 Retail Group estimates total investment in realizing the first stage of the project at about $35 million.

About X5 Retail Group N.V.

X5 Retail Group N.V., Russia’s largest food retailer by sales, operates Pyaterochka and Perekrestok brands. The chain included 674 Pyaterochka soft discounter shops located in Moscow (309), St. Petersburg (244) and other Russian regions (121), as well as 179 Perekrestok supermarkets in Central Russia and Ukraine, including 105 outlets in Moscow and 15 hypermarkets on December 31, 2007. The company owns the real estate of these outlets. The number of franchising outlets in Russia and Kazakhstan totaled 688.
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