12 july 2006
GMCS implements SAP solutions in Tekhnosila
SAP, GMCS and Tekhnosila announce about starting a project involving development of an enterprise resource management system on the basis of Enterprise Resource Management solution (mySAP ERP).

mySAP ERP for Retail solution was chosen because of its flexible functionality and extensive potential for operative management of a dynamically developing and geographically distributed corporate structure. According to Leonid Tyukavkin, Vice-President of Tekhnosila, in choosing a solution (SAP for Retail vs. Oracle RETEK) total cost of ownership was mainly addressed.

"We understand well, Leonid Tyukavkin says, that any solution we implement will require further support and updates – you know, retail business is so dynamically developing. Today Russia has a sufficient number of consultants practicing in SAP for Retail with a wide partnership network created. Of no little importance is the fact that SAP for Retail is a localized solution, so we can use Russian language in the project. SAP is widely known in Russia, many banks are ready to give loans so that you can take up licenses, execute projects, and buy equipment. Thus, simple calculations show that implementing SAP solutions saves or yields money.

Project objective involve, in the first line, solving of a number of critical business tasks, namely:

  • Make commodity flow, purchase, sales, and cost management processes more transparent and efficient;
  • Optimize financial accounting and cash flow management;
  • Pass from operative management to strategic management;
  • Increase asset value.

Secondly, Tekhnosila plans to considerably improve its IT resources, namely, to pass to a common and scalable information platform for commodity flow management and apply best practices in IT field, all this enabling to improve quality and operativeness of work of the company's employees.

The project will be executed by a joint team of GMCS' consultants and Tekhnosila's SAP Implementation Department with active participation of the top executives of a corporate customer. The project work package includes not only development of a project concept, prototype of key business processes, implementation of system settings, testing and commissioning, but training seminars is system operation for users, development of regulations and instructions, knowledge and experience to be shared between the project participants.

Strategically, the project is divided in two parts deployed in parallel: SAP POS Data Management subproject and ERP subproject. The POS Data Management subproject will involve implementing an interface with a store work automation program for collecting sales data and information on other day-to-day activities of retail outlets and generation of analytical reports based on data obtained. Within the ERP subproject an enterprise resource management will be developed on the basis of mySAP ERP (Enterprise Resource Planning) solution, including solutions for logistics, finance and controlling management.

The system shall be commissioned for commercial operation in May 2007.

About Tekhnosila

Tekhnosila is one of Russian largest multistore chains selling household appliances and consumer electronics. The history of the multi-store chain has more than 12 years' record. Tehkhnosila has a branched and continuously growing trade network. By July 2006 Tehkhnosila's multistore chain included 66 stores (26 of them – in and near Moscow, and 40 – in other regions). The company's e-shop is in service since 2005. As of June 1, 2006 the chain has 4 large warehouse terminals in the nearest suburbs of Moscow. In 2005 Tehkhnosila's multistore chain had a turnover of US$ 601 mln., gross profit of US$ 140 mln., while its EBITDA amounted to US$ 45 mln.

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