Rusta’s way to a performance management solution based on user requirements 

In January 2012, Mercur started to help Rusta implement a new solution for performance management. The first reports were made available to users in May of the same year, and within one year, the new system was functioning throughout the entire organization.

Background

Several factors contributed to the need for a new performance management solution at Rusta. Rusta had grown rapidly as an organization, leading to changes in many administrative processes. Their old solution was not in tune with the current organization and was not able to meet today's information needs, as access to data varied greatly. Store managers got general reports emailed to them once a month and didn’t have the ability to drill down and see detailed information behind the figures.

If employees wanted to know more, they had to call the finance department. Analytical work was time-consuming because many people developed reports for their own specific needs, and a great deal of time was required to compile the data.
 

Quick to implement throughout the organization

Due to due a lack of internal resources, Rusta chose to engage external consultant Maria Alkbrant, from Dirigus, as project manager. The aim from the outset was to introduce common, user-friendly tools for decision support, for the entire organization - stores, purchasing, regional managers and the head office. It was important that the new solution support both planning and analysis. One of the requirements was that the system be tried, tested and quick to implement, without needing to rely on consultants for everyday business.  The project began in January 2012 and the first reports were made available to users in May of the same year. Within one year, the new system was functioning throughout the entire organization, with 155 users.
 

Follow up of sales in department stores

Of Rusta’s 350 users 200 users have write and read access due to their budgeting responsibilities, while the remaining 150 users have read-only access. The role based authorization to Mercur is divided into three major groups - Stores, Purchasing and Head Office.
Department stores primarily follow sales, number of customers and average transaction size on a daily basis. On a monthly basis, the cost reports and income statements are most important. The business areas and the product line areas follow sales, contribution margin and contribution margin ratio on a daily, monthly and rolling 12 months basis.  

Mercur is also frequently used in Rusta’s open to buy-process. Planners regularly update forecasts in Mercur and receive updated basis for spending, which leads to an increased control of both stock and stock turnover. At the Head Office, Mercur is used to follow overhead and income statements for all companies.
 

"With Mercur, all store managers have access to dynamic reports and scorecards showing sales and hours worked per day and store, with comparison to budgets and forecasts. They can also see their ranking compared to other stores in the region."

Saved countless hours

With the introduction of Mercur, Rusta has saved countless hours of manual work in Excel and has an increased awareness about revenues and costs.  Purchase reports that previously took two days of manual work, due to large numbers of product groups and comprehensive reports, are now easily accessible and always updated in Mercur.   Ranking reports, produced by one person on a weekly and monthly basis, previously took three hours. Today, this is available as a standard report with multiple parameters that everyone has access to.
 

Integration with IFS and Medius

Rusta has integrated Mercur with the IFS ERP system and its BI systems, as well as the electronic invoice handling system Medius.
 

Daily work in Mercur 

For many Rusta employees, Mercur is a big part of their everyday work, and a large number of users look at sales reports on a daily basis. Every morning, an automatic email containing one of the sales reports is sent to selected parts of the organization. During budget and forecasting times, as well as at month-end closings, an even larger number of employees use Mercur to analyze their overheads and results.
 

The greatest advantages with Mercur

Rusta lists the main advantages with Mercur:

  • Faster reporting 

  • Controllers and others in the organization can spend more time analyzing data than compiling it

  • A better visibility of costs allocated to stores and cost centers, which provides insight into which costs and revenues that can be influenced  

  • Greater control contributing to lower risk 

  • Clarified ownership

  • Clear follow up against budget

 

Next steps for Rusta

The next step for Rusta is to take reporting and analysis to the next level.  Rusta has begun to distribute dashboards to store managers on a daily, weekly and monthly basis. In this way, managers can get a quick overview of sales (for example top selling articles) and how they are performing in relation to other stores in the region and throughout the country. With the upgrade to Mercur Business Control version 8, during the autumn of 2017, Rusta has experienced significant performance improvements, leading to faster response times and the opportunity to follow up data on an even more granular level.

 

Mercur´s solution 

SYSTEM:

Mercur Business Control 

PROCESSES:

Budgeting
Forecasting
Reporting
Analysis

 

OTHER INFORMATION:

Rusta has integrated Mercur with   the IFS ERP system and its BI systems, as well as the electronic invoice   handling system Medius.  

 

 

 

About Rusta

INDUSTRY:

Retail 

SALES:

4 500 MSEK (2017)

NUMBER OF EMPLOYEES:

1 700 (2017)

 

OTHER DESCRIPTION:

Rusta makes it easy for people to buy high quality products at the best prices. Their product range is extensive and revolves around life at home. Rusta offers seasonal products, furnishings, DIY goods and consumables, for both outdoor and indoor environments. Rusta currently has 86 department stores in Sweden. 

 
 

 

 

 

 

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