Magnit decided to scale up the Implant project, in which suppliers are integrating their in-house manager into the internal business processes of the retailer in order to improve interaction and sales performance. At the end of last year, representatives of 13 suppliers worked at Magnit, this year the number of “implants” will increase by at least another 30.
The main goal of the implant manager is to study the internal processes of the retailer, identify and eliminate bottlenecks in cooperation, improve joint planning and sales performance. The implant located in the office of "Magnet" gets access to the internal systems of the retail network, but at the same time sees only information about its company.
Joint work within the framework of the project takes from three months, and its content depends on the needs, the scale of interaction with the supplier and the tasks at hand. During this time, the "implant" is immersed in the retailer's processes, optimizing the current and testing new schemes of collaboration. One of the key tasks in his work is case analysis, which allows him to analyze the problem together with the specialists of Magnit and find a new solution.
At the end of 2020, within the framework of the "Implant" project, the level of service of participating suppliers increased by an average of 4,9%, the completeness and timeliness of deliveries - by 7,4%. In addition, the availability of goods on the shelf among some of Magnit's partners increased by an average of 10,6%, the accuracy of the forecast of purchases at the distribution center (DC) increased by 10,3%, and the level of service for shipments from the DC increased by another 6,7%. to retail outlets.
“This year we intend to expand our cooperation and connect another 30 suppliers to the project in order to improve joint business performance. It is important for us to be as open as possible to partners. By giving them more information about ourselves, we improve our collaboration. At the same time, the "Implant" project not only solves current problems in interaction, but also helps to introduce systemic changes in business processes, which increase the efficiency of both the retailer and the supplier as a whole ”, - commented Anastasia Sorokoumova, Director of the Operational Planning Department of the Magnit network.
Note that in 2019-2020. the retail chain has launched a number of new projects for suppliers. In particular, the Magnit Service portal now allows you to exchange logistics data and track the timeliness and quality of product shipment to distribution centers. Suppliers can familiarize themselves with any deviations in logistics, adjust tasks, and quickly respond to emerging difficulties. Pooling groupage cargo delivery allows partners to reduce logistics costs — on average from 10 to 30% —and expand the geography of delivery.
In addition, Magnit introduced a digital form of contracts with suppliers and switched to an electronic format, significantly reducing the time for document verification. The company also launched an analytical portal RetailService.Magnit, which allows suppliers to receive up-to-date information on the availability of products on the shelves of Magnit stores throughout Russia almost online, track demand, analyze the effectiveness of promotional campaigns, goods in checks, and balances at distribution centers.