Navicon, a systems integrator and developer, has adapted the ERP solution used by Smith & Nephew global office for the company's Russian branch, LLC Smith&Nephew (Russia). As a result of the project, the Russian office of Smith & Nephew got an automated information system which allows keeping financial, tax, and managerial accounting under the European standard (IFRS) and Russian standard (RAS) simultaneously.
Smith & Nephew is a multinational corporation that specialises in the development and manufacturing of advanced medical products for wound management, traumatology, orthopedic reconstruction, etc. The corporation is employing around 16,000 persons all over the world and has local branches in over 100 countries.
In 2017, Smith & Nephew decided to expand its global enterprise resource management system to its Russian office. The goals were to ensure compliance with the global corporate requirements, to unify the key business processes, and to automatically collect the local reports.
Smith & Nephew global developer team was carrying out the rollout project in partnership with Navicon, a Russia-based systems integrator that boasts extensive expertise in the automation of pharmaceutical production as well as many other industries. Navicon's task was to tailor the ERP solution to the Russian legislation and the industry standards.
«We chose Navicon for ERP system adaptation on the basis of the company's expertise, its successful history of complex international projects on Microsoft Dynamics AX implementation, and positive feedback from Navicon's clients. The time we had for the project fulfillment was limited, whereas the functionality of the solution to be implemented was complicated and demanding – in regard to, for instance, the parallel accounting. Navicon team proved to be competent and experienced, as they completed all the tasks and resolved all the matters emerging during the project in time. To a large degree, this was possible because of the close cooperation between the integrator's team and the Smith & Nephew project team».
Nikolay Shiparov, Projects Manager at Smith & Nephew Russia.
It took the teams 8 months to roll out the information ERP system in the medical manufacturer's Russian office. Thanks to the adaptation, the system allows parallel accounting under RAS (Russian standards) and IFRS (International Standards). Besides, the new system helped Smith & Nephew Russia to optimize its commodity import management along with the processing of customer orders.
Despite the fact that the original, globally used solution has been significantly adjusted according to the requirements of the Russian market, the modification of the ERP core logic was minimal.
«During an IT solution rollout, it's not uncommon for a global company to face an uncontrolled increase in the project duration and costs. To avoid this, we at Navicon practise the Gap Arbitration process, which means that any new proposal or request emerging during the project would undergo trilateral verification – by the client headquarters' representatives, the international IT partner, and the Navicon project team. That said, every decision taken by the joint committee is recorded on paper. This approach allows our team to reduce to the minimum the uncertainty risks and the probability of the conflict of interests during the project».
Evgeniy Rodnyanskiy, Director of Microsoft AX Department at Navicon.
Around 100 employees of LLC Smith&Nephew (Russia) are currently using the system. Navicon is going to provide maintenance and support to the users on a regular basis.
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