The Editorial Office continues to follow with interest how AXA's test marking implementation is progressing. AT previous articlepublished in the December Shoes Report (№163), we tried to tell as much as possible about the solution of all kinds of problems that may be encountered not only by a wholesale shoe company, but also by retail when working under the new system. In this material, we will talk about the intermediate results and conclusions for the entire time of the company's participation in the labeling experiment. The experts of the shoe market - Dmitry Lavrukhin, General Director of AXA, and Alexander Senko, Director of the Information Technology Department - are again answering the questions of the editors in detail. AXA.
SR: At what stage is the introduction of the labeling system in your company?
DL: Since the previous meeting with Shoes Report, we have had global changes in business. Our IT system is fully prepared for integration with the marking system. In addition, we visited our main production in Italy and reached with our partners all the necessary agreements for printing and labeling. Then we met with the leaders of several other warehouses with Italian shoes and suggested labeling them. I must say, Italians very warmly received the news about the introduction of marking in Russia, since for them it is an extra income. We have not yet met global misunderstanding.
A.S .: We have done all the necessary work to begin marking on our test site - a partner warehouse in Italy. During this time, we trained staff to work with the new system, integrated the 1 version of our own software, installed the equipment and can already make orders for the issue of marking codes and their application.
SR: Do you plan to involve other countries in the experiment? If so, which ones?
DL: Yes, and we have already begun to implement these plans. Following Italy, we visited Turkey, where at a meeting with the local Union of shoe manufacturers and a number of interested companies, we proposed the idea of joint construction of a logistics center for labeling and transportation of goods. We hope that the negotiations will end successfully and the project will be implemented. In the near future we will have a trip to Germany to meet with partners from the company ARA. Since we are their distributors in Russia, we want to try to jointly conduct a labeling experiment based on this company. In the future, we plan to conduct negotiations with other German companies and warehouses with the aim of creating a marking center in Germany. But from the point of view of the legislative and tax base, there are some nuances.
SR: How has the logistics in the company changed?
A.S .: We faced a number of difficulties. The first difficulty is that the logistic warehouses have huge lines that automatically scan the boxes, but so far there is no experience integrating the marking system with this equipment. Plus, how this system will be integrated with 1С is also not yet clear. Now, when we, as part of the experiment, glue the marking codes on the box, we already know for sure who he will come to in Russia. The main thing is that warehouse employees do not confuse anything. Otherwise, the goods will be shipped to the wrong customers, and it will be impossible to sell it. Now, as an experiment, we decided to cover the Wi-fi warehouse and purchased storage equipment for reading in order to immediately check where which boxes are.
DL: We realized that without automation in the warehouse it will be impossible to work, and we try to exclude the human factor as much as possible.
SR: What will retail store owners need to do? What changes will marking make to retail stores?
A.S .: In any case, it will be necessary to update the box office firmware, as well as conduct a complete inventory. Plus, in order not to double punch the goods at the checkout, you have to abandon the linear 1D barcode. With the new system, it will be enough to scan the 2D code of the marking, and this code will identify and account for the goods. It is very important to carefully monitor the compliance of the marked product with the information in the database, otherwise it will not be possible to implement it. In my opinion, all this will lead to the improvement of business processes inside the store. So far, the question of how to label and what to do with the leftovers remains open, but soon we should receive new regulations from the RF Ministry of Industry and Trade.
DL: It’s not yet clear to all participants in the shoe market what will happen after the July 1 of the 2019 of the year. I’m afraid that in the first year we’ll be faced with counterfeit products brought in earlier and marked as leftovers. Let us hope that the idea of the government of the Russian Federation will be fully implemented. And one more thing: colleagues from the CRTC once mentioned the construction of “Labeling and Labeling Centers,” but nothing is known about it at the moment.
SR: What difficulties did you encounter when implementing the project?
A.S .: The first is to convey to people what we want to get as a result. When we first arrived in Italy, we learned that in some warehouses there is no necessary equipment and software for marking. We agreed to introduce our IT systems. Then we tried to transport equipment from Russia, but, as practice has shown, it is completely inexpedient and expensive. Another point - everything must comply with the requirements of the MDG. Even a printer requires supplies that are located in the country where the labels are applied. We had to abandon the idea of producing and printing labels online. That is, before we start the production of shoes, we first order the marking codes, and only then the shoes go off the assembly line.
The most difficult and unresolved issue is customs. The system in the form that is now is completely inoperative. We have not yet received the necessary regulations on how to link our software and customs representatives. There is no generation of labels and codes on the box, that is, when you put labeled boxes in one big box, you need to understand what marking codes are inside the box. It turns out that marking on shoe pairs requires marking on the box so as not to open it, and on the pallet one more is needed - with codes for marking boxes.
SR: What experience have you gained by participating in a pilot project?
A.S. The greatest experience is working in new conditions and an attempt to automate all internal processes in the company in order to minimize, and somewhere completely eliminate the human factor. We have not had such an experience before.
D.L. My colleagues and I were already convinced that 80% of the success of the whole business depends on IT. The pilot project has made us more focused, we are doing all the processes officially. As noted in the previous article, we are ready to solve the problem of any shoe company by marking their shoes and import them into the territory of the Russian Federation under an agent or sales contract.
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