Developing system to manage information

Project summary

Borlas Group developed a unified corporate information system powered by 1C:ERP Enterprise Management 2 at Region company. The project implemented accounting and managing features related to the state defense order. Borlas Group developed a single enterprise management network at GNPP Region to cover most of the services and departments of the enterprise. The customer's experience had shown that the new information system to manage enterprise allowed the company to obtain end-to-end analytics from the Customer Order to the lowest levels of source documents.

Project goals and objectives

The project aims at uniting all the credentials of GNPP Region in a single corporate information system.

Here are the tasks solved to achieve the project goal:

• development of a management accounting methodology;
• implementation of ERP system and automation of the following functional areas:
  • document management;
  • purchasing (supply) and supplier relationship management;
  • sales, logistics and transport management;
  • management and financial (business and tax) accounting;
  • data analysis and forecasting;
• integration of the enterprise management information system with third-party automation systems.

Project deadlines

March 2016 – April 2017

Baseline

The control system of GNPP Region was a combination of several local solutions before. Many operations related to, for example, registration and data transfer, were paper-based and carried out by users manually. There were problems with the speed in providing information. The company's management sought to optimize operations and control enterprise resources more effectively, revised divisions operating procedures used before and supported course for the import substitution, which resulted in the decision to centralize all the company's data in one system of a domestic vendor.

Solution architecture and project scope

Region enterprise management information system is powered by 1C:ERP Enterprise Management 2 solution. Here are the functional areas automated:

• purchasing (supply) and supplier relationship management;
• sales, logistics and transport management;
• management and financial (business and tax) accounting;
• data analysis and forecasting.

Here are the works performed in the project:

• business accounting subsystem:
  • warehouse inventory unit:
    • developing and cleaning the inventory reference book by establishing an enterprise group to work with the book;
    • detailing the location of goods and materials by storage locations, indicating specific parameters for each storage location;
    • developing functions of order accounting and segregation of goods and materials to meet the customer's requirements;
    • developing schemes to meet order requirements.
  • Purchase management unit:
    • accounting procedure for orders to suppliers and managing their execution developed;
    • accounting procedure for mutual settlements with suppliers by orders to suppliers adjusted;
    • purchase accounting for own production introduced;
    • schemes to cooperate developed.
  • Sales management unit:
    • managing procedure for portfolio of customer orders with additional business analytics set up;
    • accounting procedure for mutual settlements with buyers in the context of orders with buyers adjusted;
    • costing procedure developed.
• Treasury subsystem:
  • developing cash flow budget plans;
  • developing payment schedule, managing cash balance;
  • submitting requests for spending funds;
  • requests collection, coordination and approval;
  • compiling the list of payments to execute;
  • reflecting the execution status of requests for spending money;
  • generating reports on cash flows.
• Business and tax accounting subsystem.

GNPP Region information system framework

In total, 100 workstations were automated (over 70 users work in the system daily). The system processes about 500 documents every day.

Project unique features

Here are the positive features of this implementation:

• integration with corporate reporting systems and a centralized master data management system of Tactical Missiles Corporation;
• accounting of cost calculation features in implementation in the new cost accounting subsystem (Version 2.2) for the state defense order requirements;
• implementation of individual mechanisms for planning the write-off in inventory records and building a Scheme of Cooperation for the Implementation of the State Defense Order.

Tactical Missiles Corporation puts detailed demands on GNPP Region reporting and, consequently, on articles, sections and analytics of relevant indicators. The system implemented these demands. For example, accounting for stock, arrivals and disposals from the warehouse not only by warehouses and product range, but also by supplier orders, line of business and contracts, accounting for mutual settlements in the context of supplier orders, accounting for the movement of capital investments by types of fixed assets and intangible assets, accounting for the movement of finished products in the warehouse in value terms by cost elements in the context of customer orders and the range of finished products.

Project results

Development of an information management system at GNPP Region made it possible to fully replace obsolete disparate IT systems and automate major operations. Borlas Group developed a single enterprise management network to cover most of the services and departments of the enterprise.

Identifying efficiency gains of the implemented solution:

• in the field of budgeting and treasury: transfer from manual registration of event data on budgets and planned payments to automatic collection and transmission of data to the corporate system;
• in the field of procurement management: the users previously transmitted data requests in hard copies, and supply service employees consolidated the received data, information on the procurement status was also requested from service managers; now users register the request for goods and materials and services in the system, and the system provides information on the status of the purchase;
• in the field of sales management and warehouse management: the efficiency of providing managers with information about the portfolio of orders (fulfillment status, settlement status, etc.) and stock balances has increased, managers have the opportunity to receive information online.

The customer's experience had shown that the new information system to manage enterprise allowed the company to obtain end-to-end analytics from the Customer Order to the lowest levels of source documents. This resulted in a more efficient internal document management, quick delivery of the required information to the addressee and further reduction in the time to make managerial decisions.