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• Pressroom
• 2009

S&T Russia integrates data for retail giant M.video

Complex SAP retailing project successfully realized

M.video, Russia’s first and only retail chain for entertainment electronics to be listed on the stock market, has been active in the Russian market since 1993. The business has over 140 branded branches in 59 Russian cities, amounting to a combined total sales area of 375,000 m². In 2007, M.video was chosen as the best retail business in the prestigious “Number 1 Brand / People’s Choice Brand” competition. As the company’s data quality in 2007 no longer matched its management requirements, S&T Russia was commissioned to plan and implement a solution to integrate SAP with the existing corporate data system. “The S&T Russia team proved itself to be a group of experts with comprehensive experience of the retail sector. They have impressive skills, knowledge and experience in the field of recording goods flows and in integrating SAP with other systems. This was very helpful when it came to finding to a multi-layered solution to match M.video’s requirements”, comments Mikhail Dereshev, Head of the ERP Department at M.video.

Project goals achieved
The two primary project goals – the provision of a clear overview of both the warehouse stock and of the associated current goods acquisition prices - were achieved within the scheduled project time by virtue of the precise procedural methods used and the professional implementation measures. S&T Russia first logged the company’s main goods in the SAP system and then recorded the warehouse storage areas (storage halls, shops and service centers). In the next step, the various types of order were harmonized. Now it is possible to automatically place and process orders using the corporate data system - but manual orders can be executed too without any additional fine tuning. Further work was then carried out to consolidate the various types of sales orders as well as the types of goods flows (movement of goods between subsidiaries, product depletion, difference calculations during the dispatch of goods). And the final step was to carry out a fine tuning of the recording of all retail sales with regard to depreciation of the acquisition price. “The solution implemented by our Russian experts has created a foundation for the utilization of corporate data at M.video and demonstrates the skills we can offer to our customers in the retail sector“, explains Christian Rosner, CEO S&T.

Detailed Reports
Thanks to the project, the M.video management now has access to a whole range of reports which greatly facilitate the decision making processes and management of the company. There is, for instance, a report available that details goods availability broken down by date and time period. The flow of goods between subsidiaries is now also well documented; the goods are accurately and uniformly classified and labeled with their current status (sellable/unsellable). Furthermore, a comprehensive stock directory, in detail and for each subsidiary, provides an overview of the goods situation in the business. In addition, there are reports detailing bottlenecks experienced during the picking as well as the purchase prices paid for goods at each subsidiary.