1С:ERP In Enterprise IT Landscape

Project 1C:ERP SPUTNIK FOR BANG & BONSOMER GROUP
BANG & BONSOMER 
wins 1C’s contest “Project of the Year”

International company Bang&Bonsomer had previously used an integrated ERP system at all its enterprises, regardless the geography. The 10-year-old system used to do well, but it constantly needed modifications to ensure it was in line with local regulations. Sadly, this meant that there was no way to update the system. The company faced a big challenge – it needed a new ERP system. The decision was made that rather than implementing one ERP system across the entire group, it is better to deploy various localized ERPs with a special focus on their integration. 




“Owing to a state-of-the-art software product “1С:ERP”, we were able to streamline the company’s performance and achieve sizeable improvements, such as, a 90% acceleration in some types of paperwork, a 15-20% reduction in lead time, and a lot more,” says Andrey Guryev, Cinimex’ Head of 1C. “The new system was fully integrated into the corporate IT landscape, that includes master data management. What makes the implemented «1С:ERP» solution unique is that it enables regulatory and IFRS accounting within the same database. 

The project was carried out by an international team, comprising members of the company’s European management (ICT Steering Committee Bang & Bonsomer). The official language of the project was English, all communications and paperwork were done in both Russian and English. Project team was distributed across different cities (from Helsinki to Voronezh), the whole project was carried out remotely.
Despite tight time limits, all of the company’s business processes were modeled.
"1С:ERP" was integrated with other corporate systems via an enterprise service bus (ESB). The exchange with "1С:ERP" is enabled by an ESB adaptor developed by Cinimex.
A corporate master data management system was set up to manage the company’s master data.
In order to comply with the client’s data security standards, Cinimex implemented customizable access permissions.
The following robotic elements were implemented to reduce labor load on users: a logistician's workplace, automatic upload of customs entries; automatic document generation when stock is moved and shipped; automatic control of hazardous goods’ shipment and storage in accordance with ADR, and many other, including customized reports.


“Implementation of 1C allowed automating our business processes, streamlining the group’s IT environment and lifting the burden of routine tasks off our staff. 1C’s flexible integration capabilities mean even higher accuracy and efficiency of our processes.”
“I was very impressed by the level of professionalism and teamwork between the Russian team of Bang&Bonsomer and Cinimex’s team led by Andrey Guryev. Especially, I would like to point out that Cinimex showed a high degree of flexibility and deep understanding of the complexity of a corporate system. Their approach to the integration of «1С:ERP» allowed to make this system an essential part of our corporate landscape. The Russian market is very important for Bang&Bonsomer, this is why the new system was implemented under the scrutiny of our senior management and the board of directors. «1С:ERP» was deployed in a very short time and without a single delay. We continue our cooperation to implement «1С:ERP» in other CIS markets.”



Project outcomes:
The new system has increased reporting transparency and staff performance efficiency.
More time is now left for analysis instead of routine tasks.
Business process improvements: new payments control system, simplified process for moving goods between warehouses; labor saving on goods shipping and acceptance; transparency in handling samples; new means to control hazardous goods shipment, and other operations, which used to be done manually.
IFRS-compliant accounting.
With the implementation of "1C:ERP", staff performance efficiency has increased substantially, fueled by automation of numerous operations, which used to be manual. The following expert highlights can be distinguished:

In “Warehouse and Shipping” subsystem":

  • Labor put into cargo preparation and consolidation has reduced from 7h to 0.5-1h;
  • Warehouse staff labor put into organization of movement has reduced from 1h to 5-10 min;
  • Further development of storage reporting forms, which used to be drawn manually and could lack reliability, for example, pallet reports;
  • Control of hazardous goods shipment on all levels, from customer order to generation of shipment assignments. The control used to be manual;
  • When creating a shipment assignment, the subsystem “Delivery” provides free volume and weight info. This allows optimizing trips and reducing transportation bills.


In “Treasury” subsystem:

  • Convenient system for approval of requisitions to payments and keeping payment calendar;
  • 5-10% lower error rates in payments generation (duplication, loss of data);
  • Transparency in checking up paid/unpaid counterparty invoices. Prior to the deployment, it took approx. 1 pers/h to clarify information on every counterparty;
  • With the new system in place, information is immediately available to the manager. This has not only helped to reduce working hours, but also bolstered the clients’ fiscal discipline;
  • Foreign currency payments: added features enable the selection of a date and exchange rate, thus eliminating the need to adjust the amount of the payment.


In “Sales” subsystem:

  • Lead times reduced by 15-20%;
  • As the sales manager can get a general picture of customer interactions – “product – payment terms – credit limit – contracts in force – outstanding debt – claims”, their efficiency has improved. Previously, information was scattered about, it took 4-5 minutes to gather. Now, data retrieval and analysis is completed within 0.5 min.;
  • Time spent on searching documents related to a particular order has reduced by 4 times;
  • New features enable claims management as part of the general system and access to the data on orders closed and cancelled;
  • Simplified batch shelf-life control through warehouse receipts. Previously, it took 15 min and above to find this information, now it is controlled automatically;
  • A product can be automatically reserved for the needs of a certain manager; you can even make a reservation in advance, before the product arrives into the warehouse.


Chief Accountant’s observations:

  • We can now hold management and regulatory accounting within the same system;
  • IFRS reflection setup is very easy and ensures that the IFRS accounting is in line with the corporate standards;
  • A new simplified approach to handling goods in transit;
  • Time of drafting expense reports has reduced by 15-20%;
  • Convenient month-end close – you can instantly spot errors and rectify them;
  • New feature – automatic initiation of product depreciation reserve;
  • New feature – automatic initiation of reserves for doubtful debts, and etc.

“Assignments” are widely used in the company to promote staff cooperation, which has allowed to improve the discipline and streamline operations in different departments and services. The system was fully integrated into the corporate IT landscape, that includes master data management. Integration was enabled through an EBS and 1C adaptor developed by Cinimex.

Functional blocks implemented within 1С:ERP

Customer relations management
Sales management
Procurement management
Warehouse and storage management
Production management
Financial management and budgeting
Contract management and centralized corporate treasury
Cost control and calculation of product costing
Regulated accounting
Separate and consolidated IFRS accounting and reporting


Solution architecture and project scale




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