Development of an information system for logistics management based on “1C:ERP Holding Management” at “Razrez Stepnoy” Coal Company JSC
Find a solution
Photo from the website stepnoi.ru
Project background
Two years ago the company started the migration to “1C:ERP Holding Management” software product with a view of integrated automation of the company's processes.
When the work started, the company used the following software products:
- “1C: Production Enterprise Management + Career Management, edition 1.3” - a system of operational, production, personnel accounting, payroll and tax calculation, regulated accounting and planning.
- “1C: Document Management”, revision 3.0 – document approval system.
- BIT-FINANCE - information system for planning and executing purchases.
During the work in “1C:ERP Holding Management” accounting and treasury processes were automated, procurement and warehouse accounting processes were partially automated.
In the course of the work, difficulties were identified in the complex automation of operational and managerial accounting processes, taking into account the connection with the processes of procurement budgeting, accounting, treasury, and cost management.
In particular:
- There was no proper link between purchasing plans, supplier orders and warehouse operations, which did not allow for process control and plan-actual analysis.
- There were no structured processes for warehouse operations, purchases of goods and materials, and write-off of goods in regulated accounting.
- The following features were missing:
- Planning of equipment requirements.
- Procurement plan generation with the ability to adjust and monitor the limits.
- Inventory movement in terms of equipment for the purpose of cost accounting.
- Employees had to duplicate information in several information systems.
Considering the tight deadlines and the criticality of the tasks, the company decided to involve ITPS Group (Parma-Telecom LLC) in working on the transition to “1C:ERP Holding Management”.
Additional work performed during the project included:
- Regulation of the joint revision of the “1C:ERP Holding Management” configuration performed by the customer and the contractor.
- Advising the customer on typical “1C:ERP Holding Management” capabilities and analyzing the improvements made by the customer.
- Addressing additional priorities identified during project implementation.
- Direct consulting at users' workplaces at the start of pilot operation.
During the project, special attention was paid to documenting design and technical solutions, as well as transferring knowledge to the customer's employees.
- Comprehensive automation of the following logistics processes, taking into account the connection with the processes of budgeting procurement, accounting, treasury, management of costs of materials and supplies:
- Planning the need for logistical resources and controlling the provision.
- Planning and control of procurement.
- Preparation, execution and monitoring of contracts.
- Procurement execution.
- Warehouse operations.
- Designing a budget model describing the process of planning, adjustments and interrelations of the procurement budget, cash flow budget and income and expenditure budget, describing the rules for collecting actual data on the budgets.
The project met all of its objectives. The following results were achieved:
- More than 102 workplaces have been automated, including:
- Employees and heads of production departments and administrative services – 82 workplaces.
- Employees and managers of the Logistics and Warehouse Management Department - 8 workplaces.
- Planning and Economic Department – 5 workplaces.
- Accounting – 7 workplaces.
End-to-end processes are supported using control procedures that reduce the likelihood of user errors, and reports that facilitate reconciliation of operational, managerial and accounting data.
Double entry of information was eliminated by discontinuing the use of "BIT-FINANCE" information system and transferring the functionality for recording warehouse operations from “1C:Production Enterprise Management” in “1C:ERP Holding Management”.
Taking into account the achieved results, “Razrez Stepnoy” Coal Company JSC expresses its gratitude to ITPS group of companies for fulfillment of the assigned project tasks. We should especially note the effective and professional work of the ITPS project team, which showed deep knowledge of 1C products, focus on the result, ability to understand the needs of the customer, to offer and implement effective solutions. Our company is looking forward to further productive cooperation with the ITPS. E.B. FurtakGeneral Director of “Razrez Stepnoy” Coal Company JSC