Implementation of E-tender solution basedon SAP SRM in M.Video
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M.Video

Implementation of E-tender solution based
on SAP SRM in M.Video.

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About
Company:
LLC Mvb Trade

Head office:
Moscow
Industry:
Retail

Website:
mvideo.ru
M.Video is one of the largest retail chains in Russia in terms of appliances and electronics sales. M.Video has been operating since 1993. The company was the first to realize a comprehensive omnichannel approach to sales i.e., Same assortment, prices and services both in offline and online stores.
Goals
 

To implement a corporate system for running tenders with suppliers that would automate company operation required on the background of growing assortment.

Solutions
 

The Constantly growing assortment from M.Video required an implementation of the corporate system for running tenders with supliers. To fulfill this requirement E-tender solution based on SAP SERM was chosen. This solution is focused on business process optimization and reduction of total expenses related to inventory and logistics management and purchases of services.

During the implementation of digital marketplace, the company faced a difficult task of choosing a common approach and an IT-platform for project realization. M.Video had options to choose from: to use a third-party digital marketplace, or to create an own solution based on a configurable out-of-the-box product.

Analysis of advantages and disadvantages of both approaches resulted in a decision to realize the required IT solution based on SAP Supplier Relationship Management. High flexibility of the system, and its ability to be modified in the future according to the developing business processes, contributed to the final decision.
Result
2к
More users registered at the portal after SAP SRM implementation
5x
Better progress on cost reduction target
70%
Growth in the number of procurement procedures





Implementation of E-tender based on SAP SRM facilitated 5 times reduction in highest tender price and aggregated purchases and regional tenders. This led to a more standardized purchasing process.
E-tender solution based on SAP SRM has strategic importance, as after realization of the project, SRM system was effectively integrated with the existing SAP architecture.
Company's branches received a tool for operations including “not for resale goods”, while potential suppliers were provided with opportunities to participate in company's procedures.
Review
 


Ruslan Aitkupov

Leading Manager of Tendering Procedures Department
M.Video
«New functions facilitated a more effective management over tenders and relationships with suppliers of “not for resale goods” involved in them. Integration of SAP SRM with open digital marketplaces doubled the number of purchase procedures participants. Implementation of the portal allowed us to achieve the objective of running open and transparent purchases leading to their higher effectiveness and lower expenses. It is worth noting that now we exceed the target of reducing costs five times over; the number of companies registered at our portal has reached 2000».
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