Magnit starts implementing a single transportation management system

Krasnodar, June 17, 2021: Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia’s leading retailers, has started implementation of SAP Transportation Management – a single transportation management system powered by SAP S/4HANA. By using the system, the Company plans to reduce transportation costs, increase the transparency of supply chains and optimize the turnover of its own transport.

Implementation of the IT system powered by SAP Transportation Management is one of the key stages of the large program of Magnit's digital transformation. The key goal of the project is to meet the needs of the business for managing the full cycle of transportation and improving the level of transport logistics service. LeverX was selected as a partner for this implementation.

A single system will replace more than ten different uncoordinated IT systems. It will cover all the Company's business processes related to logistics. The system will let Magnit improve the quality and speed of processes and minimize transport downtime. In addition to that, a single-window solution will be introduced in the system to enable interaction with hired carriers in a real-time mode.

“We are happy to launch one of the largest SAP Transportation Management implementation projects in the world. For many years, we have been using our own Legacy systems, and now our primary task is to transfer all processes to the target system. We hope to achieve all our goals, including the cost optimization of IT systems maintenance. We plan to share the first results of our project by the end of the year,”- noted Fedor Pavlovsky, Logistics Director of Magnit Retail Chain.

“The SAP Transportation Management implementation project in Magnit is one of the largest in the world of retail. The system will enable the Company to provide the necessary support for business growth and open up new opportunities for scaling. It is important to note that as part of the quality management, the team of experts of SAP Services CIS conducted a quality assurance check of the project, assessing the functional and technical risks. This will ensure the best implementation efficiency, help in reaching maximum return on investment and in using all the features of the solution’s native functionality,”- commented Andrey Goryainov, Deputy Chief Executive Officer of SAP CIS.

“For many years, the LeverX Group team has been implementing SAP Transportation Management for its customers, and today we possess a unique expertise in this area. Using the best practices and the latest approaches, our specialists will ensure a high-quality transfer of Magnit's business processes to the new system,” - said Vladimir Karely, Consulting Director of LeverX.