19 February 2020, Moscow, Russia. PJSC M.Video (M.Video-Eldorado Group, the Company, or the Group), Russia's largest consumer electronics retailer by revenue (MOEX: MVID), together with SAP, the global market leader in corporate applications, announce the first commercial implementation of SAP Yard Logistics as a warehouse management solution in Russia. The logistics module, which has been customised to the Company’s needs, will enable M.Video-Eldorado to manage and control traffic at warehouses, as well as to automate workflow at all sites. The solution will help M.Video-Eldorado to build an integrated system for managing and monitoring all product flows, increasing the processing capacity of warehouses and the quality of logistics services.
M.Video-Eldorado Group is implementing SAP Yard Logistics, a system for managing incoming and outgoing product flows, as well as the movement of vehicles at the warehouses. Every year around 50,000 vehicles deliver goods to the Group's eight central warehouses from more than 300 suppliers. From there, the goods are transported to regional warehouses and M.Video and Eldorado stores throughout Russia. This process requires synchronisation and clear-cut, uniform rules that minimise queues and congestion. SAP Yard Logistics is the first product in the Russian market that allows central management of product flows across multiple sites simultaneously. An integrated solution displays the real-time situation in warehouses, as well as the status of planned and priority deliveries. This makes it possible to respond to unexpected situations and manage all goods flows.
This SAP Yard Logistics solution has been tailored to M.Video-Eldorado's needs and provides more detailed status information for deliveries at each step of their journey (checkpoint, documentation verification, gate allocation, start and end of unloading and departure). This enables employees to see exactly where a vehicle is and how long each processing step is likely to take. The system can also gather and analyse data for specific sites. An item's status is updated on both the system itself and on a dedicated web-portal. Via this web-portal, suppliers and transport contractors will be able to select a free time slot and arrange for loading or unloading at a specified depot. Partners will be able to track their vehicle's progress from when it enters the depot, all the way through to its departure.
Throughout this project M.Video-Eldorado Group adapted core features of SAP Yard Logistics to meet its own specific requirements, for example, the Company upgraded the web-portal to allow users to schedule entry to a warehouse and added relevant status updates. In addition, a delivery priority and quota system was established in the system, as well as the introduction of an information exchange with electronic registers. The Company also plans to introduce an auto-call service for truck drivers with a robotic call and/or SMS to notify early or late arriving and queuing drivers when they are able to enter the warehouse. The automated notification service will also specify the assigned gate number for unloading and loading. Moreover, SAP Yard Logistics will allow the tracking and recording of key indicators regarding the quality of deliveries sent by suppliers, namely: the timeliness of arrival, any product violations, errors in documentation or master data on goods.
“Our expertise as the largest consumer electronics retailer with high-quality customer service makes it possible, together with SAP, to tailor the new product not only for our specific needs but also for the Russian market as a whole. An expanded module for gate-in and gate-out management deployed at the central warehouses will serve as a foundation for transparent and automated logistics flow control and management system. According to our estimates, newly adopted technologies will reduce the processing time by 5% during peak season, thus increasing warehouse throughput. As a result, the product will be available for purchase on the Internet sooner and will reach the store faster,”commented Irina Dementieva, Head of Supply, Distribution and Logistics at M.Video-Eldorado Group.
“Seamless customer experience always begins with clearly structured work processes on the retailer side – from the warehouse to handing over the goods to a customer. Today, customers are not us ed to being kept waiting, which means that speedy delivery has become a competitive advantage. M.Video-Eldorado is continuously optimising its logistics processes to ensure customers receive their orders faster. SAP Yard Logistics is a reliable warehouse management system that will enable the Company to reduce vehicle processing time and the amount of time a product spends at the warehouse, as well as enabling more effective use of the Company's existing sites and resources,”said Andrei Goryainov, Deputy General Director of SAP CIS.
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About M.Video-Eldorado Group
M.Video-Eldorado Group (PJSC “M.video”) is the largest consumer electronics retailer in Russia, consolidating the M.Video and Eldorado brands. The Group’s combined annual sales exceed RUB 420 billion inc. VAT. M.Video-Eldorado Group is the only public consumer electronics retailer in Russia. The Company’s shares are traded on Moscow Exchange (ticker: MVID).
As of 31 December 2019, the Group operated 513 M.Video, 506 Eldorado, and 19 m_mobile stores in more than 250 cities in Russia. The Group’s selling space was 1,455 ths sqm, and total space was 1,997 ths sqm as of 31 December 2019.
SAP is the global market leader in enterprise application software. SAP solutions and services are used by more than 413,000 customers in 180 countries around the world. In 1992, the SAP SE office was opened in Moscow; and later SAP opened branches in St. Petersburg and Yekaterinburg. At present SAP CIS employs some 1,300 people, the company is represented in all CIS countries. In 2012, a SAP Labs research and development centre was opened in Moscow; it also has a branch in St. Petersburg.
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