1C-Rarus and Gulliver have completed the implementation of 1C:ERP Enterprise Management 2. The new system has synced 650 workplaces. The system ensured prompt reservation of goods for the individual needs of thousands of customers, taking into account the sales dynamics. Warehouse stocks have been optimized, and the turnover of goods has been increased. The preparation of management reports has become two times faster. Control over accounts receivables has been strengthened. The system helped reduce the time spent on negotiating contracts and loyalty programs. 1C:ERP accelerated the launch of marketing campaigns. The new items now hit the shelves quicker. The company timely provides over 200 own and partner stores in more than 100 cities of Russia, the CIS, and Europe with popular goods such as toys, children's clothing and clothing for adults.
The Gulliver company was founded in 1997. The company has been one of the three leading toy distributors in Russia over many years. In addition, the company produces children's clothing under its own brands Gulliver and Button blue. The company also has a wholesale direction for menswear. In 2013, the online store sections of Clothes and Toys were successfully launched. The company's products are sold in more than 200 own and partner stores throughout Russia, in Europe, and the CIS.
The company has to daily provide large federal retail chains with an assortment, taking into account tough delivery conditions of the chains and a large number of small wholesale customers, which are more than 1000 stores throughout the country, to be exact. For that matter, the company needs to promptly respond to supply requests from buyers, predict a sudden increase in demand, and maintain marketing activity in stores. That is, to conduct promotions, and implement loyalty programs for customers. It is necessary to collect accurate data on sales and in-demand products, analyze and plan further work according to the data obtained.
Previously, all data for management reporting was consolidated from 32 different systems used in various company divisions. It was taking about a month to make financial reports because the information received required additional time for reconciliation. The lack of up-to-date information made it difficult to plan and control the activities of units. It was difficult to manage sales and product reservations. Agreements and loyalty programs were negotiated on paper. In the case when responsible employees had to leave for business trips, the finalization of deals or the launch of marketing campaigns could have been postponed.
The enterprise was in the need of a system that would ease inventory management by allowing timely reserve goods for orders, improve the interaction with own and franchise stores, speed up the supply of the goods to stores and reduce the time for launching the marketing campaigns. Besides, the top management needed a tool to receive actual management data about the activities of the divisions.
1C-Rarus won a pitch for the implementation of a new information system. 1C-Rarus carried out projects based on its methodology, founded on the project management book of knowledge (PMBOK).
Today, the new corporate system, built on 1C:ERP Enterprise management 2, allows the work of financial service officers, logistic managers, sales and procurement specialists, marketing experts, HR managers, and employees in branch offices. The system automated 650 workplaces.
- The process of placing goods on reserve for the individual needs of clients has been improved. There are over a thousand active clients of a distributing business in a Toy segment. The system considers the sales dynamics of every single one of them and controls the volume of stocks in reserves for clients on its own. At the same time, customers receive final information on the best possible volume of goods and deadlines for order execution. The use of such a reservation process helps more rationally distribute inventory, which leads to an increase in turnover and reduction in the cost of storing the goods in a warehouse. According to the expectations of the company's management, an increase in the turnover of goods in reserves for large chain clients of the Toy segment will be at least 10% by the end of the next financial year.
- The work with agreements and invoices is now done electronically. It has reduced the risks of losing documents and eliminated the possibility of signing unapproved contracts and invoices. Negotiation of agreements has been significantly accelerated and became more manageable. A user can at any time view the online status of the document in the system: the stage of the approval process, the deadline for approval, and the responsible person. Savings on consumables (cartridges, paper, etc.) were an additional positive result.
- The system allows users to work remotely in the thin client mode. Now managers and CEOs can quickly resolve important issues from anywhere in the world. Signing important contracts with partners or launching promotions are no longer delayed by the responsible employees having to leave for business trips.
- The system helped centralize the maintenance of the reference data. Unification of data has accelerated the update of information about the product range, prices and goods in stock on the company’s web-platforms, and the partners’ information systems. New items now become available for sale faster. A regulatory data transfer process minimizes the risk of duplication and errors.
- Thanks to the new system, the Marketing Department now independently manages promotions - from individual discounts for a specific client and seasonal promotions to special conditions for purchasing goods in one order or for a certain period. At the same time, the system allows employees to regulate the minimum allowed cost of goods and assign an individual discount threshold for customers. Users can set different prices for the goods within one day ("It’s cheaper in the morning!"). This helps respond more quickly to market changes and stimulate sales.
- All settlements with the partners are now immediately reflected in the special company reports. The responsible employees no longer have to manually collect and check the reports from each department. The system helped increase the efficiency of accounts receivable management and keep track of its growth. In return, it decreased the risk of overdue receivables.
- The system gets financial reports ready twice as fast. Timely receipt of the information and automated reporting forms made this result possible.
Eugene Turin, business administration director of the Gulliver Trading House, notes:
«The new ERP system allowed us to create one environment for all the main business processes of the company. The system centralized the maintenance of the reference data for all business areas. The system meets the requirements of the in-house information security policy and allows us to easily manage access rights across the group, as well as step-by-step track any changes made by users. 1C:ERP quickly integrates with the websites and information systems of our clients, large online stores, and chains such as X5, Auchan, Korablik, and Wildberries (integration via EDI, API, etc.), which is especially important for our company. Besides, the ERP system is flexible for users. Each employee can easily customize his or her workplace and a set of analytical tools (for example, reports), taking into account his or her requirements. And finally, the experts of 1C-Rarus helped us save 15% on the project budget while maintaining the high quality of work and speed of execution.»
Maria Ryazanova, Chief financial officer of the Gulliver Trading House, adds:
«Gulliver has been one of the leading manufacturers, retailers, and distributors of products for children in Russia for many years. The 1C: ERP helped us significantly increase work performance and optimize key business processes in the company. We have managed to eliminate the overlapping duties of staff, grow the stock turn and accounts receivable management, and decreased time for receipt of analytical data. The system prepares financial reports twice as fast while the speed of submitting the regulatory reports increased by an average of 30%.»
Gulliver Trading House won the award for the Best industry project: Holistic enterprise resource planning (ERP) in the 1C:Project of the Year-2016 contest.