DJ Magnit started ERP Transformation Program
MAGNIT PJSC (MGNT)
Magnit started ERP Transformation Program
26-Oct-2020 / 10:00 MSK
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The issuer is solely responsible for the content of this announcement.
Press-Release | Krasnodar | October 26, 2020
Magnit started ERP Transformation Program
Krasnodar, Russia (October 26, 2020): Magnit PJSC, one of Russia's leading
retailers, has finalized the planning phase of its SAP-based ERP
Transformation Program and chose the key partners to realize the four
underlying projects:
Novardis became the general contractor for the project of Goods movement and
Logistics. Technoserv Consulting was chosen as the general contractor for
Finance, Non-commercial procurement and Real Estate. Vitte Consulting will
be operating as the general integrator for the HR project. All partners are
leading Integrators delivering SAP solutions successfully within the Russian
market.
The fourth project, which is focused on the implementation of the necessary
middleware as well as the creation of an internal SAP Center of Excellence,
will be led by Magnit's internal team.
Accenture will proceed working as the Delivery Partner for Magnit and as
such will share world's best practices and control the quality of the
integration process and results.
«Our ERP Transformation Program based on SAP solutions will be the largest
project of its kind in the Russian retail. We are going to lean on not only
our partners' expertise, but we will also create appropriate and qualified
expertise inside our company. Thus, when our partners complete their work,
we will be capable to continue developing our SAP solutions independently»,
- says Svetlana Medvedeva, Magnit's ERP Transformation Program Director.
The entire ERP Transformation Program will take up to five years. By end of
2022, Magnit will complete piloting all planned solutions, and will have
about 3 years to roll them out across the company and geography.
The following SAP solutions are part of Magnit's ERP Transformation Program:
* SAP S/4HANA for Retail - high-performance system will allow to perform end
to end financial and logistics accounting and will become the digital core
for many business processes of the company;
* SAP Central Finance will enable consolidation of finances of the main
Magnit's entities;
* SAP CAR will be the base for creation of a modern data storage for
transactional data;
* SAP Advanced Track and Trace will allow compliant goods traceability as
per legislation requirements (EGAIS, Mercury, etc.);
* SAP Business Objects and SAP Analytics Cloud will support the development
of the corporate analytics and the unification of the management reporting.
The estimated net economic benefit of the ERP Transformation Program may
reach ten billion RUB within next couple of years. Magnit expects the major
economic benefits to come from the area of Goods Movement and Logistics
through the reduction of inventory and write-offs, etc. The ERP-driven
Supply Chain effects are expected to be amplified by successful delivery of
other core modernization projects such as Forecasting & Replenishment or WMS
relaunch. Besides, Magnit expects increased efficiency in finance,
non-commercial procurement and human resource processes as well.
« We appreciate this opportunity to take part in such a large-scale business
transformation of building a single digital platform in Magnit. Accenture
will engage Russian and international professionals in retail and S/4HANA to
deliver efficiency and high quality in Program realization that will help
business to develop necessary competence in modern IT know-how», - comments
Maria Grigorieva, Managing Director, Accenture Russia.
«NOVARDIS team and I are very proud that we are taking part in the most
outstanding digital transformation project in the Russian retail market. We
identify it as recognition of our deep expertise and broad experience in
goods movement management systems implementation. We are sure that together
with Magnit team we will be capable to realize all the ambitious goals that
are set in ERP Transformation Program applying the best practice and leading
methods of logistic processes management», - says Mark Roitenberg, Managing
Partner, Novardis.
«Modern ERP-system allows to store and process a majority of crucial data.
It increases decision-making speed and decreases human-factor risks. Scaling
flexibility and simplicity provide customer with a number of business
benefits in a short period of time and targeted prioritization. All of the
above makes the Company a strong competitor. We are sure that Magnit made
timely decision to implement ERP system given the current phase of its
business development. From our side we will provide Magnit with complete
support in realization of this project. Our confidence is based on our great
experience in IT-systems implementation and high quality project management,
its methodological and functional assistance», - says Kirill Bulgakov,
Managing Director, Technoserv Consulting.
«We run into this large scale, significant for the sector project with great
enthusiasm and desire to contribute the best practices, high quality
expertise in HR area and relevant experience of Vitte Consulting team in SAP
HCM projects realization. We appreciate Magnit Leadership loyalty and are
very grateful for the opportunity to get truly superb experience in retail.
We are glad to contribute into the ERP Transformation Program to increase
efficiency of the HR function and hope to serve as a reliable partner», -
says Andrey Li, HR Systems Department Director, Vitte Consulting.
For further information, please contact:
Dmitry Kovalenko
Director for Investor Relations
Email: dmitry_kovalenko@magnit.ru
Office: +7 (861) 210-48-80
Dina Chistyak
Director for Investor Relations
Email: dina_chistyak@magnit.ru
Office: +7 (861) 210-9810 x 15101
Media Inquiries
Media Relations Department
Email: press@magnit.ru
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers.
Founded in 1994, the company is headquartered in the southern Russian city
of Krasnodar. As of June 30, 2020, Magnit operated 38 distribution centres
and 20,894 stores (14,581 convenience, 472 supermarkets and 5,841 drogerie
stores) in 3,710 cities and towns throughout 7 federal regions of the
Russian Federation.
In accordance with the reviewed IFRS 16 management accounts results for 1H
2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9
billion. Magnit's local shares are traded on the Moscow Exchange (MOEX:
MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a
credit rating from Standard & Poor's of BB.
Forward-looking statements:
This document contains forward-looking statements that may or may not prove
accurate. For example, statements regarding expected sales growth rate and
store openings are forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other important factors
that could cause actual results to differ materially from what is expressed
or implied by the statements. Any forward-looking statement is based on
information available to Magnit as of the date of the statement. All written
or oral forward-looking statements attributable to Magnit are qualified by
this caution. Magnit does not undertake any obligation to update or revise
any forward-looking statement to reflect any change in circumstances.
ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 86510
EQS News ID: 1142901
End of Announcement EQS News Service
(END) Dow Jones Newswires
October 26, 2020 03:00 ET (07:00 GMT)
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