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.
To implement a corporate system for running tenders with suppliers that would automate company
operation required on the background of growing assortment.
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
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.
More users registered at the portal after SAP SRM implementation
Better progress on cost reduction target
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.
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».