SAP Solutions Accelerate the Digital Transformation of TECHNODOM Warehouse Operations

Executive Summary

TECHNODOM, a retail chain of consumer electronics and computer equipment, needed a solution for efficient warehouse operations. It implemented a warehouse management system based on SAP® EWM, which improved internal processes and provided first-class service to customers.

Customer Business Challenges

TECHNODOM is the leading local retail chain for consumer electronics and computer equipment. It has 83 stores in 28 cities in Kazakhstan, with 35,000 square meters of warehouse space. In 2019, the company began construction of a new 7,000 square meter logistics center, which is now operating at 60% capacity, holds 7,000 items, and serves customers throughout the country. Intensive development and growth in the number of stores and warehouses required well-organized logistics in order to make operations faster, without losing the accuracy of storage and delivery systems, and provide a better customer experience. Along with the new center’s construction, TECHNODOM decided to transform its warehouse management system.

TerraLink's Contribution

With TerraLink’s technical support, TECHNODOM deployed a flexible warehouse management system based on SAP® EWM to optimize the company’s processes. The solution enabled the company to implement new features, including delivery of goods, transfer of goods queuing, quality and shelf-life control, exception handling, and reordering processes. In addition, the company has been able to establish such functions as employee rights management and job assessments.

Customer Business Outcomes

The quality and speed of the company’s logistics operations have increased, the accuracy of the storage system and the collection of goods have improved and, as a result, the number of customer complaints has decreased. Therefore, the delivery time was reduced by 20%, the product range increased by 20%, and the number of places from which goods are unloaded has tripled. During the pandemic, when most of its stores were closed, the new system also enabled TECHNODOM to quickly process the increased number of online orders and train staff in a short period of time. All these factors allowed the company to anticipate customer demand and provide first-class service.

TECHNODOM plans to reduce the delivery time by another 20% and launch two more logistics centers managed by SAP® EWM. The company also aims to increase the volume of operations in all warehouses, and the system will allow this to be done smoothly. TECHNODOM will continue to cooperate with TerraLink experts at the stage of solution replication.

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