1C and SAP Solutions for Corporate Customers – Experience in Russia

Фридрих Науманн Генеральный директор ООО «Вортманн Восток» 29 сентября 2011, Москва AEB практический семинар: 1 C и SAP решения для корпоративных клиентов – опыт в России

Группа Вортманн Один из крупных производителей обуви в Европе Производство 67 млн. пар обуви в год обувных магазинов предлагают обувь торговой марки Tamaris примерно в 70 странах мира Оборот за 2010/11 составил более 950 млн. евро Тесное сотрудничество группы Wortmann с торговыми компаниями Современный дизайн с наилучшим соотношением цены и качества.

Корпоративная среда Управление заказами Интеграция с единой базой данных клиентов Централизированная ценовая политика Централизированное планирование производство Обновление продукции (сезонные коллекции)

Требования к IT проекту в России Загрузка данных о коллекциях Отгрузка товаров, рассылка счетов в PDF Загрузка заказов покупателей Импорт товара (загрузка поступлений и таможенной декларации) Отчет по остаткам товара с картинками Печать этикеток

Данные о коллекциях. Загрузка мастер - данных о товаре

Заказ покупателя

Подтверждение заказа

Импорт товара

Отгрузка товара

Рассылка счетов покупателям в формате PDF Генерация и отправка писем клиентам с вложенными счетами в формате PDF Печатная форма счета с логотипом Компании Печатная форма со штампом и подписью директора

Отчет по остаткам товара на складе с картинками

Печать этикеток Печать этикеток для конкретного заказа или ТОРГ- 12 Печать на принтер этикеток или в формате А4 Этикетки на русском языке (подсистема перевода, обновление словаря)

Печать этикеток Хранение переводов в 1С

Печать этикеток Печатная форма этикеток

Контроль кредитного лимита покупателей Рассылка напоминаний покупателям Автоматизация продаж на выставках CRM Развитие IT проекта

Спасибо за внимание !

R O O F S F O R L I V I N G How to organize an efficient cross border SAP implementation project in Russia September 29, 2010 Braas – DSK 1

East European SAP Platform, Group ERP May 2009 Page No. 19 MONIER – FACTS AND FIGURES 133 production sites in 33 countries Business activities in 40 countries Global headcount 8894 Net sales 2010 – euros Roofing tiles Roofing components Roofing systems Insulation Solar thermal and photovoltaic systems Chimney systems Ventilation systems MONIER OFFERS

East European SAP Platform, Group ERP May 2009 Page No. 20 BRAAS – DSK 1 FACTS AND FIGURES Sales Volume sq. m Net Sales15 mio. EUR Number of plants2 Number of branches3 Production Capacity2 - 2,5 mio. sq.m. Market Share in Concrete Tiles> 70% Number of employees150 Share of Monier67% Share of DSK-133%

East European SAP Platform, Group ERP May 2009 Page No. 21 ERP System Evolution at DSK – 1999COS/Westernacher (AS400) + BEST (MS DOS) –Implemented Functional Modules: Logistics/Local Accounting/ Wages –Number of users::6 –Number of locations: – 2003Concorde XAL –Implemented Functional Modules: General Ledger/Debitors Creditors/Fixed Assets/Wages –Number of users:10 –Number of locations: – 2010Axapta 3.0 –Implemented Functional Modules: General Ledger/Debitors Creditors/Fixed Assets Personell & Wages –Number of users:26 –Number of locations:4 Systems hosted internall Application support organized via an external partner

East European SAP Platform, Group ERP May 2009 Page No. 22 Why SAP ? SAP is the standard ERP solution for MONIER as a basis for further process harmonization and shared solutions Not using SAP has to be released by Group IS/IT Migration towards SAP when replacing existing solution always have to be considered Local ERP solutions are only allowed when SAP is not applicable MONIER IS/IT STANDARDS

East European SAP Platform, Group ERP May 2009 Page No. 23 MONIER ERP Landscape WESTERN EUROPE EASTERN EUROPE ASIA PACIFIC SOUTH AFRICA SAP Germany France UK Italy Benelux Scandinavia Baltic Central Europe SAP Local Solution Ukraine Turkey Poland Russia SAP Local Solution Japan China Indonesia Malasya India Philippines Thailand Local Solution

East European SAP Platform, Group ERP May 2009 Page No. 24 MONIER Customer Center of Expertise The Monier SAP CCoE is certified with 91 points out of 100. This is an excellent result compared to other certified SAP customers. It is settled in the upper third of the meanwhile more than 1000 worldwide certified CcoEs (SAP)

East European SAP Platform, Group ERP May 2009 Page No. 25 Situation before the Project Eastern Europe Poland: 10 years of stable SAP operation In-house hosting and system administration Long term successful external partner relationship for system support and development Russia: 6 years of Axapta (MS Business Solution) deployment A system upgrade decision is pending Dissatisfaction with an overall system performance, capabilities and running costs Dissatisfaction with the partner responsible for system support and development Ukraine: No ERP system in place

East European SAP Platform, Group ERP May 2009 Page No. 26 Drivers for the Project Braas DSK-1 internal drivers Axapta has been running since more than 6 years without any upgrade Growing dissatisfaction with an overall system performance Axapta upgrade is very expensive due to many system modifications Group drivers Group Initiative for ERP Platforms Available Polish SAP Platform and v. good experiences from Poland and Multi-client approach of ONE SAP in West Europe

East European SAP Platform, Group ERP May 2009 Page No. 27 SAP Architecture - ONE client -- Multi company approach - Hardware -- Server Operating System Database Data Structure (Cross-client Repository) Poland Russia Ukraine One SAP System on One Server with In House Hosting (Poland) One Common IT Language Standardized local processes Applications (Cross-client Customizing and Solutions) Infra StructureApplication Local Application Support and Development via Local Partners

East European SAP Platform, Group ERP May 2009 Page No. 28 SAP Architecture - Multi client - Hardware -- Server Operating System Database Data Structure (Cross-client Repository) Russia Poland Ukraine One SAP System on One Server with In House Hosting (Poland) One Common IT Language Multi local Processes Applications (Cross-client Customizing and Solutions) Infra StructureApplication Local Application Support and Development via Local Partners

East European SAP Platform, Group ERP May 2009 Page No. 29 Pros Ensuring high flexibility, stability Operational cost optimized solution Reduced to minimum coordination costs Good practice sharing possible not requiring sharing of business process System operational stability and reflecting the Moniers business need confirmed by west European successful approach Authorization concept enables complete business data segregation (supports Joint Venture situation) Cons Cross client business data aggregation possible only through third tools Pros Optimal platform for cross country shared services Platform for one business process – immediate practice sharing Deep process standardization ensured via system architecture Cons High costs of coordination and governance Lower flexibility to react on local needs Difficult to achieve local commitment for initial data harmonization and future governance Cultural and language issues in highly integrated system Multi client approachMulti company code approach SAP Multi client approach is strongly recommend SAP Architecture evaluation - Conclusions -

East European SAP Platform, Group ERP May 2009 Page No. 30 Fast Track Implementation - Methodology - 1. SAP Release ERP 6.0 as the basis for further roll out 2. Implementation of the ERP common IT language in the shared SAP environment 3. Copy of the Polish client Business process coverage is a prerequisite for an efficient client copy Good practices in all relevant fields of reporting and logistic will be taken over Implementation of legal adjustment of Russian Adaptation of business process at SAP level only if definitely needed Data migration 4. Local Infrastructure implementation (WAN Upgrade, SAP Client rollout, etc)

East European SAP Platform, Group ERP May 2009 Page No. 31 SAP Implementation and Customization for Russia SAP Multi Client Client Copy Poland" Business Process Design Russia SAP Training of Russian Key users Start: X Migration Training End User Go-live End: X Both phases to run simultaneously with continuous iteration Fast Track Implementation - General Approach -

East European SAP Platform, Group ERP May 2009 Page No. 32 Project Phases Project preparation and prototype documentation Knowledge transfer and Delta blueprint Customizing Key user training Integration test 1 Enhancement realization Integration test 2 Final preparation Go live and initial support

East European SAP Platform, Group ERP May 2009 Page No. 33 Project General Information Project scopeFI CO SD MM Duration7 months Go LiveMay 1, 2011 Implementation MetodologyASAP + Fast Track

East European SAP Platform, Group ERP May 2009 Page No. 34 ERP Project Success Statistics Standish Group

East European SAP Platform, Group ERP May 2009 Page No. 35 System Know-How Transfer Secured via implem. contract System change coordination based on agreed project operational processes Project Organization MONIER POLAND MONIER GROUP Steering Committee Escalation Process definitions SAP Multi-client know-how counterpart MONIER RUSSIA ALPE (fixed prise project) PLAUT (Strategic partner for Monier Poland) MONIER SP. Z O.O. Hosting partner Solution and know-how counterpart BRAAS – DSK 1 Project lead: D. Kriukov Key-User concept Project coordinationStandard support

East European SAP Platform, Group ERP May 2009 Page No. 36 Project Team Project Manager Module Managers FI CO MM/SD 10 Key Users

East European SAP Platform, Group ERP May 2009 Page No. 37 Project Budget Implementation Infrastructure Licenses

East European SAP Platform, Group ERP May 2009 Page No. 38 Project Status Controll Weekly Status Meetings Fixing all Project delays and problems Fast reaction Steering Committee CEO involvement

East European SAP Platform, Group ERP May 2009 Page No. 39 Master Data Migration Key users responsible for preparation Labour intensive work Thorough data verification

East European SAP Platform, Group ERP May 2009 Page No. 40 Key User Training Just before Integration test 1

East European SAP Platform, Group ERP May 2009 Page No. 41 Integration tests 1 and 2 Real data Personal responsibility

East European SAP Platform, Group ERP May 2009 Page No. 42 Data Migration Several days if possible

East European SAP Platform, Group ERP May 2009 Page No. 43 Go Live and Initial Support 1 – 2 month obligatory

East European SAP Platform, Group ERP May 2009 Page No. 44 Project results MONIER Group ERP Standarts conformity Reliable and comparable information for Group Management Fast period closing (RAS and IFRS)

Our experience Claus Buettner-Wobst, BIM BI Russia Using SAP in Russia

Company Presentation 2010 Boehringer Ingelheim Content I.Our Corporation II.Implementation of SAP III.Governance Model IV.Critical Topics V.Outlook 18 November 2014 Using SAP in Russia – our experience 46

I.Our Corporation

Company Presentation 2010 Boehringer Ingelheim Boehringer Ingelheim in brief Family-owned global corporation Founded 1885 in Ingelheim, Germany Focus on Human Pharmaceuticals and Animal Health Employees worldwide: 42,224 Research and Development 16.8% Production 29.9% Marketing and Sales 39.2% Administration 12.4% Apprentices (on average) 1.7% worldwide699 Germany685 in 28 professions R&D worldwide at 7 sites Expenses for R&D: EUR 2,453 million 20 production facilities in 13 countries Total revenue: EUR 12,586 million Affiliated companies: 145 worldwide Investment in tangible assets: EUR 519 million 18 November Boehringer Ingelheim Center Our headquarters in Ingelheim, Germany Using SAP in Russia – our experience

II.Implementation of SAP

Company Presentation 2010 Boehringer Ingelheim System Environment - History 2005 Kick-Off SAP project INSURE 2007 Go live for Austria 2008 Roll out for CEE- Countries 2010 Adaption SAP for RCV29 (new legal entity Russia) 2011 Adaption SAP for sales organization 2012 automatically interface to warehouse provider 18 November Using SAP in Russia – our experience

Company Presentation 2010 Boehringer Ingelheim System Environment - Functionality 18 November Production Processes Production Planning (PP) Inbound Logistics (IL) Outbound Logistics (OL) Plant Maintenance (PM) Quality Management (QM) [LIMS] Financial Processes Integrated Planning (IP) Accounting to Reporting (A2R) Treasury & Cash Management (TCM) Commercial Processes Order to Cash (O2C) Purchase to Pay (P2P) Human Resources Processes HR Development (HRD) International HR Management (RCV) (HRI) Procurement Accounting SalesLogistics Controlling MaintenanceProduction Human Resources Using SAP in Russia – our experience

III.Governance Model

Company Presentation 2010 Boehringer Ingelheim System Environment - Governance 18 November AED AEQAEP ASE ASQASP ABE ABQABP ECC SRM BI DevelopmentQualityProductive Using SAP in Russia – our experience

Company Presentation 2010 Boehringer Ingelheim System Landscape 18 November BISRMECC D Q P Terminal Service with SAP GUI Terminal Clients Terminal Clients (only for tech. administration) Moscw Ingelheim MS Internet Explorer User Admin. E Q P E Q P Using SAP in Russia – our experience

IV.Critical Topics

Company Presentation 2010 Boehringer Ingelheim Critical topics Legal environment –Forms –Tax requirements –Prepayment environment Communication –System provider –Internal and external consultants Strong involvement of SAP 18 November Using SAP in Russia – our experience

V.Outlook

Company Presentation 2010 Boehringer Ingelheim Outlook Warehouse Interface Optimization of processes Payroll … 18 November Using SAP in Russia – our experience

Questions ?

IT Consulting & Implementation SAP Roll out in Russia Alexander Schachner IT Consulting & Implementation

your SAP partner Founded in 2006 Offices in Moscow and Saint Petersburg > 45 employees > 40 successful projects 20 certificates: FI, CO, MM, SD, PP, PS, Basis, ABAP SAP Channel & Service Partner Official partner of Basware – the world leader in Purchase-to-Pay solutions A partner of Union of Independent Networks of Russia A member of: Association of European Business (AEB) Russian-German Chamber of Foreign Trade (AHK) Austrian Economic Forum (AEF) your SAP partner ALPE consulting

IT Consulting & Implementation SAP in Russia Since 1992 in Russia, offices in many Russian regions. > 700 employees, with own Development Team responsible for localization issues Fully localized & adapted (meets requirements of Russian legislation) Market leader in Russia with >50% market share

IT Consulting & Implementation SAP in Russia SAP software fully meets Russian legislation requirements

IT Consulting & Implementation SAP Roll-Out Adaptation in accordance with Russian legal requirements Standardization of global business processes Optimization of business processes between companies Higher information transparency Documen- tation IMG structures and settings Global customer developments Organiza- tional structure Master data documents Country versions Local develop- ments Global and intergra- ted processes Local processes Local requirements Global template

IT Consulting & Implementation Characteristics of SAP Roll Outs No separate installation for Russia one or more client system hosted by the headquarter own company code for Russia Licenses are purchased centrally (mostly in accordance with SAP Enterprise Agreement) Business processes mainly in logistics are usually identical or very similar Difference between sales and production operations in Russia (see next slide) Copy – paste approach is not sufficient enough. Accounting should be fully adapted Statutory Accounting (VAT, creditors, debtors, bank, cash,..) Corporate chart of accounts as the main chart of accounts (Russian chart of accounts as an alternative chart of accounts) Asset Accounting Tax accounting Controlling Relatively low effort for controlling in the case of one controlling area (except for production companies – determination of production costs according to RAS) HR is usually covered from external systems. High complexity in Russia

IT Consulting & Implementation Project Size (Sales- or Production company) ModuleSales company *Production company* FIHigh consulting complexity FI SL High consulting complexity (depends on differences in tax accounting) High consulting complexity COLow consulting complexity High consulting complexity ( Production costs calculation, cost of semi-finished products,…) MMLow consulting complexityMedium consulting complexity SDLow consulting complexityMedium consulting complexity PP-Medium consulting complexity ABAPLower programming effortRelatively high effort Assuming that processes are mostly identical in logistics

IT Consulting & Implementation Project Phases Project preparation Project preparation Testing Fit-Gap Analyzes Fit-Gap Analyzes Info seminars Info seminars Customization Go-Live and support Go-Live and support Go – Live preparation Go – Live preparation Kick Off Workshop Clarifiying of responsibilities within project team Installation of Russian System (SAP Basis preparation works) GAP list formation concerning differences to corporate template incl. Russian legal requirements Customer's Master Data evaluation Definition of Reports and Forms which need to be adopted Customization of business- processes Adjustment of the organizational structure Planning of training (can be organized in a flexible way, depending from project volume) Training of the project team (Key user) Preparation of data for the integration test (test scenarios are being prepared by key users) Testing of the system through all modules Correction of the mistakes Data preparation for the upload Data transfer Preparation of productive system (done by SAP Basis consultants – mainly in house) Evaluation of the System Readiness before Go-Live Organization of After Go-Live support Transfer to productive system (Go-Live) Open problems solution Closure of the first period Evaluation of work of the productive system System support Project closure Project Start The system is adjusted Go-Live

IT Consulting & Implementation Clear commitment of the project sponsor to support the project Involvement of the whole project team (Management, Key-users, IT,…) Fast decision making process Availability of the customers key-users (business process owners) Active cooperation with the corporate SAP competence center!! Open Communication Experts in Russian accounting and tax requirements Use of standard solutions as much as possible and programming only when this is necessary Clear definition of responsibilities within project team Authorization to the project team to access the system Preparation of Master Data Success Factors of a Roll-Out Project

IT Consulting & Implementation Some of our customers The best demonstration of ALPE consulting competency and experience is the list of our customers

IT Consulting & Implementation North-West office: IT Park Business Center Krasnogo Kursanta Str., 25, B, office 7, Saint Petersburg Tel./Fax: Central office: Krasnoproletarskaya Str., 16, bld.1, Moscow Tel./Fax: ALPE Consulting, LLC

IT Consulting & Implementation Evaluation of possible ERP solutions / Example Option IIIIIIIV Option 1Option 2Option3Option 4 SAP ALLSAP + 1C1 COther Technical feasiblity/complexity of implementation Manage complexity of integration/interfaces Flexibility / adaptability to new legal requirements Implement/set-up standard Companies processes Transparency on business Labour market condiditions PM support/supervision (incl. organization, access) Transparency about changes (amend vs. cancelation) Technical Support Authority concept IT Infrastructure (server, backup, archive,...) Bilingual version available (engl/russ) Sum Possible evaluation criteria

06 th of July 2011 Retail Trade Committee