Arbat Prestige is a retail company specializing in cosmetics and perfumery. Nowadays the chain includes 30 stores situated in Moscow and Moscow Region.
Assortment of goods contains about 10 thousand items. The company’s turnover has been gaining 30% annually for the last 3 years.
In view of business extension the company needed new software to forecast sales volume using statistics. The software was to present
mechanisms of operating and strategic commodity stock management, to provide data base for reasonable solutions concerning enlargement
of commodity group purchase or its withdrawal. They decided to apply to Andersen for solution.
In the beginning of the project implementation the Andersen specialists developed a methodology of product group profitability or
loss making estimation. The Pareto principle (20% of goods compile 80% of sales) was taken as a basis. The succeeding description
of business-processes was based on interviewing of department supervisors and medium-level managers. In the course of analysis we
studied such features of the customer’s product planning as product consumption seasonality, frequent alterations of articles and
procedures of inventory intake. The above mentioned features as well as further customer’s requirements, which arose in the course
of the project implementation, were taken into account when working out the software.
Picture. Input data before applying calculation method.
It took us 6 months to develop the system. The Andersen specialists worked out a special business process of putting new product.
According to it product group managers answered the questions, offered by the system, one by one and consequently assessed parcels
purchased and goods seasonality. It allows to reduce risks of casing warehouses with slow-moving articles and form common regulations of
decision-making concerning commodity item purchase. Well-selling goods automatically undergo a check on stock reduction tendency
correspondence. If the tendency is offended the goods get into a special list submitted to inventory check.
The system introduction lasted about 2 months. Along with relocating the system at working places, the Andersen specialists trained
the employees of the trade network to operate the system and adjusted the coefficients, which influence product consumption, for their
future use in forecasting procedures. The results of beta test showed that data calculated using the software not only reflect current
business situation but also specify it.
Picture. The result of calculation exported to Excel.
As a result 12% of floating assets economizing by means of flexible purchase planning.
Regular partial inventory check made prompt actions concerning lack of goods possible, increasing stores’ profit.
Exact calculation of seasonal sales coefficients allowed to plan purchases for a longer period of time and toprovide more favorable supplier terms.
Technologies and tools that were used: .Net Framework, C#, ASP.Net, MS Project, Component ONE, Ms SQL 2000.
Efforts: 8000 hours
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