Cherkizovo Group has implemented the SAP ERP solution on the HANA platform at its Petelino trading house.
The project was launched simultaneously across 14 sites, making this one of the largest business transformation project to have taken place in the Russian food industry to date.
Cherkizovo Group’s ultra-fresh products, which are delivered from slaughter to store within twenty four hours, were the main driver behind the implementation of SAP ERP.
For Cherkizovo to deliver these products within such a short time frame, it has to have a fully-automated system in place, along with a quick-response system to help address any production and logistics issues that may arise. The SAP ERP solution has streamlined business processes at the Petelino trading house, enhancing efficiency.
As a result of implementing SAP ERP, Cherkizovo Group is now able to track and satisfy primary demand of its products. Communication with the federal retail chains is now fully automated, Service Level improved and a unified information processing system has been established, providing accurate and real time information.
The supply chain is now tailored to each of our customers and an automated warehouse management system is in place, enabling the Company to monitor the availability and expiration date of its stock. In addition, Cherkizovo Group now has access to a new suite of analytical tools it can use for its sales and marketing activities.
The benefits of SAP ERP are already evident. The Group has been able to halve headcount in the sales department and reallocate these members of staff to other departments, leading to increased efficiency in other areas of the business. Order processing time has also fallen by 1.5 times.
Sergey Mikhailov, CEO of Cherkizovo Group recognised the newly implemented changes: “The SAP project has been transformational for our company. We now have a centralised platform and effective business processes that have helped us to streamline our operations and improve efficiency. The project is unique in scale in the entire Russian food sector, proving our credentials as an innovator in our industry. Following the success of SAP ERP at Petelino, we will seek to roll out a unified, company-wide sales system.”
Tatiana Anikina, director of the SAP implementation team at Cherkizovo Group, added: “To successfully launch SAP we had to provide training to our employees, perform over 150 changes on sites operating remotely from each other and revise the objectives of the sales team. We also revamped the operations processes at Petelino, including the sales function.”
Pavel Gontarev, CEO of SAP CIS, commented: “We had an ambitious target ahead of us. The system had to go live on all production sites of the trading house, which are in operation 24 hours a day. The successful launch of this project, unique to Russia’s food industry, has proven our effective partnership and confirmed Cherkizovo’s status as an innovative technological leader in the Russian agriculture industry.”