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Extreme implementation of 1C: ERP in alcohol production and distribution in Kazakhstan

Customer
MSD
IT Provider
KT: Alcohol
Year of project completion
2021
Project timeline
November, 2020 – April, 2021
Project scope
PROJECT SCALE: 300 workstations
Goals
  • Automate business processes in the shortest possible time and launch bottling lines at a plant for the production of alcoholic beverages in Kazakhstan;
  • To provide internal demand for alcoholic products for own distribution in the Republic of Kazakhstan, export to the Russian Federation and Uzbekistan of manufactured products at a plant in Kazakhstan;
  • Automate business processes as soon as possible when launching your own distribution in Kazakhstan;
  • Reduce transportation costs for the delivery of alcoholic products to the Urals and Siberia due to a short logistical "shoulder" from the plant in the Republic of Kazakhstan to the Russian Federation;
  • Absolute leadership in the sale of strong alcohol on the territory of the Republic of Kazakhstan for 1.5 years.

The uniqueness of the project

For 2 years, the MSD holding has been participating in the development of legislative acts in the Republic of Kazakhstan in order to reduce the counterfeit of alcoholic products. With the participation of the holding's experts, a tool (IS ESF Virtual Warehouse) was developed to control the circulation of alcoholic products on the territory of the Republic of Kazakhstan. The holding entered the pilot group for testing the IS system ESF Virtual Warehouse. The strategic goal of the MSD holding in 2030 is to be the absolute leader in the sale (in liters) of strong alcohol. To achieve this goal, one of the steps towards it, a plant for the production of alcoholic beverages was purchased on the territory of the Republic of Kazakhstan. The management of the holding has determined the launch date of the plant at 3 weeks, and after the launch of production at the plant, within 2 weeks, the start of its own distribution in 6 cities of the Republic of Kazakhstan for the sale of alcohol products produced at the plant.

In the CIS, there are no analogues of similar projects implemented in such a short time.

Used software
  1. 1C:ERP 2.4 Enterprise Management for the Russian Federation + 1C:Production of alcoholic beverages. Module for 1C:ERP;
  2. 1C:ERP 2.4 Enterprise Management for the Republic of Kazakhstan;
  3. Microsoft SQL Server software;
  4. Hewlett-Packard server hardware;
  5. CISCO network equipment.
Difficulty of implementation

  1. Pandemic and red zones in the Russian Federation and the Republic of Kazakhstan, closed borders at the time of the project launch, the inability of the project team to enter the territory of the Republic of Kazakhstan;
  2. Limited time (3 weeks) for the preparation and development of business processes for the automation of the acquired plant in the Republic of Kazakhstan;
  3. Limited time (2 weeks) for the preparation and development of business processes to automate their own distribution in the Republic of Kazakhstan;
  4. Lack of knowledge of the project team about the laws of the Republic of Kazakhstan, forms and rules for submitting regulated reports;
  5. Lack of knowledge and practical experience among factory employees and distribution employees when working with 1C:ERP.
Project Description

PROJECT DESCRIPTION

Preparation and progress of the project:

Due to the limited time and resources in the IT department of the holding, a decision was made to hold a tender to find a contractor capable of implementing 1C: ERP at the acquired distillery and its own distribution in the Republic of Kazakhstan in such a short time and conditions. 10 companies from the Russian Federation and the Republic of Kazakhstan participated in the tender, 9 companies refused during the tender for the main reason - "It is impossible to complete the project within such a timeframe." The winner of the tender and the contractor was the company KT-Alcohol, part-time developer of the module 1C:Production of alcoholic beverages used in the implementation of 1C:ERP. To speed up the implementation of the project, it was decided not to use project technologies in the implementation of 1C: ERP implementation projects, to apply the approach of daily meetings with the analysis of completed tasks and operational planning of tasks for the next day. ZOOM was used to communicate with project team members, each meeting was recorded in Confluence, and responsible persons with deadlines were determined. During the implementation of the project, the tactics of using the typical 1C: ERP functionality and finalizing the functionality were applied only when it was not possible for the business process to function on a typical mechanism.

Automated functions and business processes:

  1. Production (accounting for materials and finished products, excise stamps for export to the Russian Federation);
  2. Finance (accounting, regulated reporting);
  3. Personnel accounting and payroll;
  4. Sales (through sales agents and EDI);
  5. Marketing (promotions, bonuses, individual commercial conditions);
  6. Warehouse and transport logistics (acceptance of goods and assembly of orders, shipment of finished products, routes);
  7. NSI (reference books);
  8. Management reporting (corporate data warehouse, reporting portal).

Project results:

  1. 12 times increase in distribution sales revenue compared to 2020 (the period of work of an external distributor) and 2021;
  2. Reduction by 15% of logistics costs when exporting alcoholic products to the Russian Federation;
  3. Reducing by 1.5 times the time spent on the delivery of products at the distillery to distribution warehouses;
  4. 100% readiness to export products to Uzbekistan and Kyrgyzstan;
  5. 50% reserve capacity of production lines at the acquired and automated alcohol plant in the Republic of Kazakhstan, 100% readiness of lines for the production of low-alcohol energy drinks;
  6. In the TOP-3 market leaders in the sale of alcoholic products in the territory of the Republic of Kazakhstan.
  7. Return on investment of the project: 2 years.
Project geography

PROJECT GEOGRAPHY

Cities:

  1. Kokshetau - Plant;
  2. Almaty - Distribution CO;
  3. Nur-Sultan - Representation;
  4. Karaganda - Representation;
  5. Semey - Representation;
  6. Shymkent - Representation;
  7. Aktobe - Representation.
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