SPLAT
- Contractor: 1С-Rarus
- Automated workplaces (AWP): 30
- Implemented solutions: 1C:Drive
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30automated workplaces, AWP
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2.9klabor costs, man-hrs
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5speed, AWP/ month
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10client satisfaction, score
We are very pleased with the result since all the goals were achieved in a short time and without distracting a large number of employees.
We managed to build business processes in the UK and Germany and implement them in the information system. This was imperative because the modern environment requires quick reaction and monitoring of the situation, especially on new markets. This is simply impossible without an information system. This Project allowed us to build all operating activities abroad from scratch according to the standards of the head office.
The project was carried out by a cross-functional team. It was a success largely thanks to the professionalism of the 1C-Rarus team who showed the skills of fine communication, ensured a minimum of document workflow and observed strict control of deadlines and budgets.
It was very interesting to take part in the creation of the 1C:DRIVE system as business experts. This experience will be useful for us, for the 1C-Rarus team, and for the 1C-International vendor. As a result, the system meets the maximum requirements for entering the foreign markets, and such an improvement of the standard product will optimize implementation costs.
International development. Automation of operating
activities of SPLAT’s foreign offices using 1C:DRIVE.
- Implementation period: July 2019 — January 2020
- Labor costs: 2 880 MAN-HRS
- Region: Central Federal district of the Russian Federation, Asia, Central and Eastern Europe
- Project popularity: 68
Functional area
- Corporate Performance Management (CPM)
- Financial Responsibility Plan (FRP)
- Trade Management
Industries
- Trade
Description of the project
Goals
SPLAT GLOBAL LLC continuously develops and grows, actively expanding on the international markets. The top management of the company decided to endeavor with the project of automating the operating activities and accounting of the offices in the countries of Europe and Asia.
The following goals were accentuated at the beginning of the project:
- Development and implementation of a flexible and scalable system that would allow managing the operating activity and assist the business development on the international market.
- Creation of a single business model. The information system needed to reflect the processes of procurement, sales, planning, pricing, treasury, and contracting. Development of regulations for the local processes and processes of interaction with head office.
- Ensuring the integration of foreign companies’ activities into the business processes of the holding.
- Activities and financial results reporting receipt of the foreign office in a real-time mode to facilitate management decisions making.
- Improving control over budget adherence, automation of the budget control system and forecasting future expenses.
- Establishment of a centralized treasury based on a single IT product, control of payments and cash flow budgets.
- Implementation of a reporting system on the activities of foreign offices according to IFRS, integrated with the Splat’s single information system.
Before 1C:Drive implementation
SPLAT GLOBAL LLC is a rapidly growing Russian company. It is the lead developer and manufacturer of oral care products, cleaning products and cosmetics with about 18% market share in this segment. SPLAT products are sold in over 60 countries around the world, such as Russia, China, the UK, Germany, France, Latvia, Turkey, Ukraine, Belarus, Kazakhstan, Azerbaijan, etc.
The company’s strategy is focused on active international expansion since 2013. The distribution channels are hypermarkets, supermarkets, national retail chains, convenience stores and pharmacies. On the territory of the Russian Federation, 80% of sales are made through national retail chains. They have their own manufacturing, along with the certificate of compliance with international standards of GMP Cosmetics, ISO 9001 and a scientific laboratory for research and invention of unique products. The holding is a workplace of over 2,000 employees.
In January 2019, the head office of SPLAT had successfully completed the project on the creation of a single information system based on the following integrated software: 1C:ERP, 1C:Document Management, 1C:WMS Logistics. Warehouse management and 1C:Corporate Performance Management. They received an award 1C:Project of the year in the nomination Best industry project: Chemical, petrochemical and pharmaceutical industry.
Automation of the company's foreign offices based on the 1C:Drive solution has become a new stage in the development of information infrastructure. With the rapidly evolving marketplace and the need to respond quickly to changes and make decisions, spreadsheets were no longer effective. There was a problem of duplication and exchange of information. Moreover, the collection and preparation of analytical reports was time consuming.
Hereto, the company had started the process of building one integrated planning system, which involved the inclusion of new markets in a single layout of demand planning, supply chain management and budgeting with a quick period-end closing procedure. Collecting information using local files did not allow this procedure to be carried out in a timely and efficient manner.
Why is the Project unique?
The activities of the holding’s foreign offices are automated in a single 1C:Drive system. Legal entities in England, Germany and Hong Kong were included in the pilot Project scope. A shared service center for Europe and the Asia-Pacific region was organized on the basis of the office in Latvia. The 1C-Rarus Project team solved a significant number of tasks remotely. The system interface supports English and German languages allowing native-speaking users to use the system.
The vision for 2020-2021 includes the addition of other European offices of the EMEA and APAC regions, primarily Latvia, Switzerland and Turkey, into the single system.
Results of the Project
The accounting system of the SPLAT’s foreign offices was built based on the 1C:Drive configuration.
The functionality of this software product meets the stated requirements as much as possible and ensures information exchange with the main accounting system of the head office, 1C:ERP, and the consolidated reporting system, 1C:Corporate Performance Management.
Key results of the Project
- Upgraded foreign offices to standardized company processes.
- All processes are centralized and vertically integrated with the headquarters systems.
- SPLAT achieved full automation of the entire functional and organizational aspects of the company.
- The solution allowed to create a shared service center in one of the countries offices, which covers Europe and the Asia-Pacific region. Customer service, Financial accounting, Supply chain.
- The month-end closing procedure now is as quick as 4-6 days.
- The reporting system allows the management to notice troubling areas in an «online mode» and quickly respond to the current situation.
- The timely data reflection accelerated the business response to the current changes.
- The project introduced a system of domestic cost control in the UK, Germany and Hong Kong.
The main scope and results of working in subsystems
Monthly and annual sales plans are being maintained in the 1C:Drive system under the Project. Plans can be created in the form of a script for an arbitrary period, as a list of products, contractors, sub-clients and CFD. The analytical capabilities of the program allow online monitoring of the dynamics of sales and deviations of actual indicators from the approved plan.
Based on the generated sales plans, production plans are formed, minimum stocks in warehouses are maintained, and shipments from the Russian Federation to other countries are planned.
The company is planning a further data exchange with the Demand Planning subsystem to develop tools for supporting Integrated Business Planning (IBP).
Working with retail chains (distributors), the manager saves the Expense Request in the system. Depending on the commercial terms with the distributor, the document is sent to the 1C:CPM system, where a specific approval route is launched. The financial controller checks for compliance with the planned budgets. A payment request can be generated only on the basis of an agreed expense request. The system allows you to attach and store the attached files digitally. Based on the scans of the attached documents, the accounting department either makes a positive decision on the processing and payment of the request or sends it back to the manager for revision. The status and priority of documents allows you to track the stages of work with requests and effectively build work based on the urgency. The exchange of information between the customer service department and the financial services takes place in real-time mode. Thus, it minimizes the errors when filling out and working with documents, and excludes the cases of data loss.
The system has an AWP for a sales manager that displays the information on overdue receivables from customers and sales of the current month. The importance of work stage with an order reflects the status of the Buyer's Order. The selection capabilities in the system allow users to display and analyze orders only at a given stage of work. The process of checking the expiration dates of products and control of debts when placing orders of buyers has been automated. The system automatically generates price-lists for buyers by specified types of prices, based on prices from suppliers. The barcoding mechanism has been improved according to the specifics of accounting. The barcode in the program is not unique and is assigned to item’ unit measure.
The accounting of batches of goods has been organized by expiration dates and batch numbers. Expiration dates are used and controlled when placing a Buyer's Order. The system allows you to create a procurement plan and analyze deviations from the actual data. The analytical capabilities of the program allow you to fully control the work of the warehouse at any time. Users can view items in stock, goods in transit, planned receipts and reserved products.
The 1C:Drive system provides a single mechanism for managing funds in foreign offices. The data is uploaded to the ERP accounting system and the catalog of cash flow items is standardized for the entire SPLAT company. The system introduced accounting for loan liabilities and automated the work on drawing up a payment calendar. The system lets allows us to monitor the limits of accounts receivable and limits for shipments of goods shipment in case of non-payment of previous orders.
The software was also integrated into the centralized treasury of the company as an integral part, which ultimately led to an increase of cash management efficiency between legal entities.
A unified chart of accounts, according to IFRS, was created for all offices of the holding under the Project. The subsystem also has a single catalog of income and expense items, centers of financial responsibility and their hierarchy. The system allows you to quickly receive data on the financial results data in different periods, analyze and work on the constant growth of the holding's profits, as well as significantly reduce the costs of generating consolidated financial statements of the company, including Balance and P&L. The IFRS system became equal to the management accounting in the Holding, which made it possible to reduce the costs of additional reporting.
The Project team created a system for reflecting actual costs using user estimates in the period in which the costs occurred (accruals). This system fully complies with IFRS requirements and is transparent for financial audit purposes.
This unit, among other things, covers the need to obtain information for tax reporting of any legal entity. Standard VAT reports and others have been developed for this purpose.
The plans for 2020 include the development of accounting postings for each country, using mapping to the second chart of accounts. Also, there will be a workplace for a tax consultant who checks and corrects the postings.
Scale of the project
Implemented software
- Sales Planning
- Sales management
- Procurement management
- Warehouse management
- Treasury
- Account receivables management
- Financial IFRS reporting
- Subsystem for expense requests approval
- Payroll and staff management
Architecture of the solution and scale of the project
The Project followed the classic WaterFall methodology with Agile elements at different stages:
- 1st stage — Analysis of business requirements. Result: requirement specifications are prepared for each functional unit.
- 2nd stage — Design of business processes. Result: requirement specifications are prepared.
- 3rd stage — Development and test. Result: development is completed following the approved technical requirement specifications.
- 4th stage — Putting into operation. Result: users had been trained and completed the testing under the process of putting the system into operation. Primary data was entered. Management reporting was prepared.
Scale of the project:
- Total AWP: 30
- Number of simultaneously working users: 30
- Countries: 3
- Functional units: 9
Architecture of the information system
A single information system based on 1C:Drive, located in the cloud, was used for the automation of foreign companies of the SPLAT group. The access to the cloud server is managed inside the company’s shared secure network.
Integration with: 1С:ERP, 1С:Corporate Performance Management, 1C:Document Management CORP.
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30TOTAL AWP
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1NUMBER OF 1C SOLUTIONS (STANDARD, CUSTOM, INDUSTRY) IMPLEMENTED DURING THE PROJECT
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9NUMBER OF IMPLEMENTED SUBSYSTEMS OF DIFFERENT 1C SOLUTIONS
Labor costs and efficiency of implementation
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5SPEED OF AUTOMATION,
AWP/MONTH -
2880TOTAL NUMBER OF MAN-HRS OF THE PROJECT TEAM
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96LABOR COSTS OF THE PROJECT TEAM PER 1 AWP, MAN-HRS
Deadlines and quality
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0%MISSED DEADLINES
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0%BUDGET DEFICIT
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10CORRESPONDENCE OF THE FUNCTIONAL CAPABILITIES OF THE IMPLEMENTED SOLUTIONS AND USER TASKS, 10-POINT SYSTEM
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10GENERAL USER SATISFACTION WITH THE CONTRACTOR’S SERVICES, 10-POINT SYSTEM
Economic effect after the implementation
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20%LABOR COST CUTS IN DEPARTMENTS, %
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50%ACCELERATION OF MANAGEMENT REPORTING RECEIPT, %
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25%ACCELERATION OF REGULATED REPORTING RECEIPT, %
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15%INCREASE IN INVENTORY TURNOVER RATE, %
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30%TIME REDUCTION FOR ORDER EXECUTION/ SERVICE PROVISION, %
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35%ACCELERATION IN ORDER PROCESSING, %
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10%DECREASE IN ACCOUNT RECEIVABLES, %
