Manufacturer of unique patented oxygen cosmetic products that offers skin and hair care cosmetics, exclusive perfumes, home care products, сlothes and more. Faberlic representative offices are open in 24 countries with delivery operations in 42 countries.
ERP Software for Cosmetics - Challenges


Challenges and goals

Products under the Faberlic brand come from the main distribution center to more than 500 regional warehouses and are distributed through a direct sales network consisting of more than five thousand partners and more than two hundred thousand consultants. The volume of produced and sold products is several billion rubles per month with the number of transactions exceeding twenty million. The company employs more than two and a half thousand employees.

Before the project, the company's main business processes were automated with the help of several information systems united by a single infrastructure, while the existing information system could not cope with all accounting tasks. As a result of "chaotic" and fragmentary automation, critical processes - such as sales planning, production planning and procurement, budgeting, cash management, and management reporting - constantly required a large amount of manual labor, were poorly documented, tied to specific performers.

Project Objectives

Implementation of an information system capable of supporting a fivefold increase in company's turnover

Identification of inefficient business processes and development of common standards for the execution of processes

Implement means to ensure the quality and availability of data

Minimization of the cost of owning an IT infrastructure by reducing expenses on software licenses, user support and software updates, and by reducing manual data processing

The company's management, together with the integration partner Kairos IT, chose to use 1C:ERP solutions to achieve those goals. 

This decision was based on the following key factors:

High-performance and powerful functionality of the engine
Ability to provide flexible customization when implementing the key (and specific) business processes
Ability to ensure standardization and automation of standard business processes
Maximum compliance with the accounting and tax legislation
Ability to improve the process of keeping business transaction records and the regulatory accounting in the shortest possible time
ERP Software for Cosmetics - Results


New information system to support all processes

The integrator had developed a new corporate information system on the basis of 1C:ERP that supported all processes in the operational loop and collected data on business transactions for the management and regulated reporting.

Taking into account the specifics, the initial state of automation, and the requirement to deploy the system without stopping the enterprise, the project team agreed upon a phased implementation plan.

As a result, the entire work was carried out in several phases:

Integration of a new payroll and HR system based on the 1C:Enterprise platform
Implementation of regulated accounting in full compliance with the legislation requirements
Development of data exchange mechanisms when working with other information systems: MS Dynamics AX 2009, 1C:Accounting 7.7, back-office sales, etc.
Resolving the problem of reducing the intensity of business processes in the financial period
Reducing downtime of the warehouses
Automation of accounting processes for goods and products coming to the main distribution center
Automation of operating activities in 1C:ERP (up to 7000 payments per day)
Automation of production planning including oxygen cosmetics, decorative cosmetics, perfumery, and household chemicals (monthly assortment of products exceeds 6,000 items, with the number of lines in the plan — over 130,000)

The implemented solution also provided effective control over the following functional areas:

Logistics of central and regional distribution centers (more than 500 vans, more than 20,000,000 items of products and goods, about 3,000 items a month)
Supply management (up to 1,000 shipments per month from more than 4,000 local and foreign suppliers)
Production planning in accordance with the catalog sales plans (up to 19 campaigns per year)
Reference data (more than 120,000 nomenclature units and over 7,000 counterparts)
Treasury (up to 7000 outgoing payments per day)
Mechanisms for calculating free cash balances and planning short-term deposits)
Regulatory accounting (up to 40 export and import transactions daily, up to 2 million retail sales per day)

The new solution was seamlessly integrated with other specialized systems providing: retail sales management, production management, collection and analysis of results (BI), warehouse management (WMS), personnel accounting and payroll accounting.

Information on this page is from the 1C implementation base.

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