Anna Potapova Furniture Lays Foundation for Expansion to 15 Stores Across Russia with Optimal Supply Chain and Reporting
 
 

Anna Potapova Furniture Lays Foundation for Expansion to 15 Stores Across Russia with Optimal Supply Chain and Reporting

Anna Potapova Furniture operates 15 furniture stores across Russia, showcasing a wide range of home furniture, office furniture, and accessories to customers ranging from individuals and companies to large furniture retailers across Russia. The product portfolio includes brands designed in-house, Russian popular brands such as 8 Marta and Kalinka, as well as international brands such as Relotti from Italy. The company also custom designs furniture for customers.

Anna Potapova Furniture needed to facilitate greater insight into the company’s geographically widespread furniture production and distribution facilities and reduce costs by increasing supply chain management efficiency, leveraging economies of scale, and establishing up-to-date information on stock availability.

By deploying Oracle’s JD Edwards EnterpriseOne 9.0 applications, the company was able to track orders, inventory levels, expected deliveries, and projected demand in real-time to optimize buying decisions and margins. It also minimize supply chain disruptions, and reduced inventory levels, creating the basis for Anna Potapova Furniture’s expansion to 15 branded stores and strengthening its position as a market leader in high-quality furniture distribution in Russia. According to a survey, customer satisfaction with the company’s products and services increased from 82% to 93%.

 
 

 
 

Challenges

A word from Anna Potapova Furniture

  • “We have a complex organizational structure, geographically remote offices, and an extensive range of products and services. With our Oracle’s JD Edwards EnterpriseOne implementation, we completely revamped our business processes and opened several new stores with ease. This platform provides us with the flexibility required for meeting our ambitious growth expectations.” – Ivan Leonidovich Zalesov, Chief Executive Officer, Anna Potapova Furniture

  • Facilitate greater insight into the company’s geographically widespread furniture production and distribution facilities by standardizing procurement, sales, logistics, and finance with an integrated enterprise resource planning (ERP) system instead of dealing with scattered IT systems, processes, and file formats
  • Reduce costs by increasing supply chain management efficiency, leveraging economies of scale, and establishing up-to-date information on stock availability
  • Establish standardized financial processes according to generally accepted accounting principles (GAAP) and introduce multicurrency accounting to optimize decision-making and enable faster month-end closings

Solutions

  • Enabled the company to track orders, inventory levels, expected deliveries, and projected demand in real-time to optimize buying decisions and margins, minimize supply chain disruptions, and optimize inventory levels, laying the basis for Anna Potapova Furniture’s expansion to 15 branded stores and strengthening its position as a market leader in distributing high-quality furniture in Russia
  • Increased customer satisfaction with the company’s products and services from 82% to 93%, according to a customer survey
  • Achieved better visibility and control over the company’s logistics, increasing up-to-date information on stock availability from 80% to 99.7% and enabling product traceability throughout the order lifecycle
  • Enhanced data integrity and data security by granting users appropriate access to data, on a role-based security model and standardized, security best practices
  • Increased data reliability by ensuring that authorized users have access to a single set of up-to-date information on financials, logistics, sales, and services—providing the company with more efficient planning capabilities, amplified control over day-to-day operations, and faster settlement of claims from customers or suppliers
  • Introduced automated calculation procedures for different types of creditors and debtors, including sales made through agents and on commission, allowing for precisely estimating receivables and payables for supplied goods and services at any time
  • Provided companywide, standardized, and automated financial processes in accordance with GAAP—such as procure-to-pay, order-to-receive, order-to-cash, and request-to-resolve—and established transparent, multicurrency accounting to optimize decision-making and enable the company to react quickly to sales opportunities for any particular product, region, and furniture reseller
  • Enabled the company to easily create managerial intelligence reports to achieve greater control over budgeting, procurement, and sales for each of the company's outlets
  • Enabled 40 concurrent JD Edwards EnterpriseOne 9.0 users to close financial books faster, improving managerial reporting timeliness and accuracy

Why Oracle

“We chose JD Edwards EnterpriseOne because it is an affordable solution for midsize companies that enables us to meet our business requirements as a large-scale, high-quality furniture distributor,” said Nickolay Eletskiy, head of information technology, Anna Potapova Furniture. Compared to its competitors, Oracle offered the best cost-to-quality ratio.”

Implementation Process

The project team completed the entire implementation in 14 months and within budget, going live in August 2010.

During the first five months, the company’s IT specialists, in conjunction with Oracle Partner KM Ware Consulting, completed training and the definition, design, and configuration of the standard functionalities of the system. During the following nine-month period, the company’s IT specialists completed configuration and customizations, data conversion, migration, release into production, and system maintenance.

KM Ware Consulting prepared end-user training manuals and test scripts specific to the company’s user roles and responsibilities and conducted training. KM Ware Consulting also designed a special training course for sales representatives within JD Edwards EnterpriseOne.

Partner

“When our company fully realized a need for moving to the next level of enterprise application, the economic downturn had already hit, and it was clearly a buyer’s market. We ran a rigorous selection process, and awarded Oracle Gold Partner KM Ware Consulting this business-critical engagemen,t due to the quality of its people and the comprehensiveness of JD Edwards EnterpriseOne, which covered our requirements, end-to-end. We successfully went live after a year of working hard together and decided to continue with KM Ware Consulting, along the product development roadmap,” said Ivan Leonidovich Zalesov, chief executive officer, Anna Potapova Furniture.