Company “Interoko” is the largest Ukrainian optical network where customers can receive professional consultations from ophthalmologists, assistance in selecting and purchasing modern and comfortable eyewear, as well as eyeglass manufacturing and repair services, warranty, and post-warranty maintenance. Today, the network comprises over 200 fully functional optical stores located in 23 cities across Ukraine. All network stores operate according to unified high-quality customer service standards. Additionally, the company has wholesale and e-commerce directions, through which it provides not only sales but also services using internet platforms.
The background and objectives
Before the implementation project, managerial accounting in the company was carried out using an outdated system whose functionality did not meet the company’s needs. A new platform was needed to help the company move to a new level of development:
- To support business processes;
- To fully digitize part of the accounting and management processes;
- To provide reliable information about all business areas in a short time.
With the aim of increasing the efficiency of the enterprise and obtaining operational managerial reporting from all business areas, the management of “Interoko” LLC decided to implement comprehensive automation of the company’s managerial business processes.
- Restructuring and standardization of business
For the implementation of the project, the implementation center CONTO was chosen. During the selection process, this company demonstrated deep expertise in automation for both trade and manufacturing, service enterprises, and the ability to implement large projects involving hundreds of workstations or more. The company has a positive reputation in the market and excellent feedback from other domestic and foreign enterprises in Ukraine. After a detailed study of our needs by CONTO specialists, it was proposed to choose “BAS ERP” solution as the basis for the new information system. This system was selected for several reasons:
- Many functions of the system, in its standard version, largely met the requirements of the business processes.
- The system offers great flexibility and adaptability to the unique processes of the enterprise, with the possibility of local customization in short terms, which is particularly important for a company undergoing radical business restructuring.
- Advanced functionality in managerial accounting allows accurate representation of processes in the system, as well as planning and quality management of enterprise resources.
- It is technologically modern platform with the potential for functional development and excellent integration capabilities with other systems.
Project Progress
During the project, conceptual design was carried out by CONTO experts in close collaboration with the financial department, HR department, as well as all business line managers, support services, and departments of the company. All business requirements were considered and clearly interpreted in the system. CONTO consultants provided recommendations based on their best practices for trade and manufacturing enterprises.
Based on the concept, technical specifications were created for each functional block, and adjustments were made to the specialized configuration of BAS ERP for our enterprise.
During the preparation and launch of the system into operation, user training was conducted, data migration from old systems was performed, and settings and environments were adjusted according to the new processes. CONTO analytics consultants demonstrated themselves not only as technical experts but also as business consultants, providing timely recommendations and support to key system users in both business processes and system usage. During the launch, implementation center experts continued to refine our processes and promptly address errors, as well as implement previously unaccounted requirements.
The overall duration of the project, from the start of conceptual design to deployment, was 10 months. For us, it was crucial to have tight deadlines because rapid changes were important for the company’s development. The system was launched into industrial operation on April 1, 2019, with 350 workplaces. As of today, an average of 300 users are working in the system.
During the project, the following subsystems were implemented: Wholesale Sales, E-commerce Sales, Procurement, Treasury, Production, Warehouse Logistics, HR and Payroll, Fixed Assets Accounting, Regulatory and Financial Accounting, and operational and managerial reporting were implemented.
The “Retail Sales” and “HR and Payroll” subsystems were highlighted as separate subprojects.
During the implementation of the “Retail Sales” subsystem, a new system called “Front” based on the “Retail 2.0” system was developed. During the BAS ERP implementation project, integration with the “Front” retail sales system was performed to manage the retail sales channel and effectively manage inventory across the company’s retail network.
During the implementation of the “HR and Payroll” subsystem, accounting mechanisms were refined in accordance with our company’s accounting policy and the adopted remuneration systems for specialists in various business areas and sales regions. The subsystem was properly configured, ensuring integration with managerial and regulatory accounting.
As part of the project implementation, our main business requirements were successfully addressed:
- Unified sales accounting across all business directions in a single information environment.
- Flexible pricing and discount models for effective marketing activities.
- Unified procurement process within the company, considering the specifics of procurement for different product groups, forming reserves for supplier bonuses, and automating the creation of purchase orders.
- Automation of bank statement uploads with minimal user involvement.
- Automation of logistic processes from receiving tasks for shipment to delivering goods to internal and external clients while simultaneously reducing task completion time.
- Ensuring prompt execution of customer orders through e-commerce channels using various delivery methods (retail point, transport company, etc.).
- Obtaining timely financial reports from all business areas of the company.
An important component of the project was the integration of the corporate-wide system based on “BAS ERP” with other systems:
- “Retail” (sales accounting at retail outlets).
- “Intalov” (approval of expenditure requests).
- Integration with electronic cabinets of transport companies, automatic exchange of electronic invoices, and conducting settlements.
Project Results
As a result of the project, the company obtained a comprehensive information system that integrated the management of key business processes into a single information space. Implementing a unified information system allowed consolidating accounting systems for different business areas into one, standardizing and systematizing business processes and information, setting up management accounting for the group of companies, and receiving financial reports promptly.
After 6 months of system operation, the new ERP system enabled:
- Reducing order fulfillment times by 15-20% across different categories.
- Accelerating order processing estimation by 1.5-2 times.
- Increasing data accuracy in information systems by 30%.
- Speeding up the closing of the reporting period across all accounting units by 2 times.
- Decreasing operational expenses by 8% in relation to each hryvnia of revenue, positively impacting the company’s profit dynamics.
- Increasing inventory turnover by 18-20%, while reducing the volume of material reserves by 15%.
- Reducing production-logistics losses by approximately 10%.
- Cutting the time for payroll calculation across the entire enterprise by 1.5 times.
The most important effect we consider is the increased transparency of overall business processes for the company.
The system provides the management of LLC “Interoko” with comprehensive, timely, and reliable information regarding the company’s activities in all necessary aspects to make informed management decisions using developed financial reports:
– P&L;
– Cash flow;
– Balance sheet.
Based on the results of the first half-year of operation, we generally assess the project’s outcomes positively and consider the “BAS ERP” system to meet the requirements expected of modern, scalable enterprise management systems.