Case study: Pick n Pay - UCS Solutions · Case study: Pick n Pay UCS Solutions deploys world...
Transcript of Case study: Pick n Pay - UCS Solutions · Case study: Pick n Pay UCS Solutions deploys world...
Case study: Pick n PayUCS Solutions deploys world competitive solution for Pick n Pay
Business Challenge
Pick n Pay needed to replace its legacy in-house system with a fully
integrated world-class packaged solution to enable a wide range
of strategic business initiatives and increase competitiveness.
Strategic Goals
To rapidly implement a world-class, integrated systems platform
to underpin strategic business improvement and competitiveness
initiatives, including:
Improved Inventory management through:
• Realtimevisibilityofinventoryacrossthewholesupplychain.
• Automated and optimised replenishment decisions – vital in
relation to the introduction of
convenience food lines.
• Improved integration with
suppliers.
• Ability to support centralised
distribution–theLongmeadow
Distribution Centre was opened
in September 2007 on a state
of the art SAP WM system
– supports all stores in the
inlandregionsofPicknPay–
up to 120 000 cases per day.
Improved Operational Efficiencies
• Increased automation of clerical functions in the Finance
Department.
• PaperlessoperationwithinWarehouses.
The Solution
What was chosen:
• SAP for Retail Solution (including SAP Forecasting and
ReplenishmentandSAPPOSDataManagement)
• SAPERP
• SAPNetWeaver®
• BusinessWarehouseComponent
•SAPBusinessOne
Why it was chosen:
• Most Integrated solution with widest range of functionality
includingRetail,Finance,WarehouseManagement,HR/Payroll,
BI.
• SAP had best support structures in South Africa and
Internationally.
• SAPisthelargestapplicationsoftwareproviderworld-wideand
hasthelargestR&Dbudgetwhichmeansthatfunctionalityand
technology platform will continue to grow and change.
Deployment Time:
• 1 year for Group Finance and HR. Running concurrently 18
months for full Retail, Operational Finance and Warehouse
Management.
Business Benefit
• A number of business processes thatwere not fully effective
wereidentifiedbytheimprovedSAPreporting.
• Accurate information and management reporting systems
enable the ability to make the “right” decisions.
• Customerservice,efficiency,productivityandcostsavings,are
always the primary goals but none of these can be properly
achieved without the right information. The overall integration
of SAPmodules and the ease of reportingmake this a very
powerfulERPsolutionforPicknPay.
About Pick n Pay
Grocery,Clothing,General
Merchandiseretailingthrough
company owned and franchised
stores.
Size of company:
• 400+stores.
Location:
• SouthAfrica.
The Solution - A World Class Deployment
“With400outletsandmillionsofcustomersacrossSouthAfrica
and its neighbouring states, Pick n Pay focused on implementing
a new retail software solution without disruption of its many stores,”
TonyNugent,SeniorExecutiveforstrategicprojectsatUCSSolutions.
UCS Solutions, as an accredited and expert provider of SAP
solutions,wasthefirstchoiceasapartnerforthismajorproject
that would see the deployment of the
latestSAPtechnology.
“Many of SAP’s components were
included in the scope,” says Nugent.
“These included Retail, Warehouse
Management, Finance, Human
Resources and Payroll. Additionally,
wealsodeployedsystemsforBusiness
Intelligence and Customer Relations
Management.
“We also used the SAP NetWeaver ®
Process Integrator (PI) and PoS Data
Manager (PoS DM) components to
build a seamless integration platform
between SAP and other systems such
as the Point of Sale and store Back
Officesystems.”
Pick n Pay has extensive IT staff
resources and expertise of its own.
For most of the company’s 40-plus
years of operation and growth, it ran a
mainly custom-built, in-house solution
for its central Merchandising and
Administrativesystems.
Eventually,expansionandtheneedto
operate cost-effectively in an always
connected trading environment drove
the need for a comprehensive retail and business process solution,
SAPbeingthevendorofchoice.
“Whiletheprimarygoalsarealwaysfactorslikecustomerservice,
efficiency, productivity and cost savings, none of these can be
properlyachievedwithouttherightinformation,”UrsulaWarner,
BusinessApplicationsDirectoratPicknPay.
Warnernotes: “Our in-housesolutionhadbeendevelopedover
atwentyyearperiod.Wewerenotgettingthedesiredoutcomes
froma recentproject to replace thatwith anew systemofour
own. The decision was made to investigate what was available as a
complete solution from software vendors.
“This had such positive results that we quickly decided to deploy
theSAPsolution–notjustforretail,butfornearlyallourbusiness
processes–andUCSSolutionswasselectedastheimplementation
partner,thankstotheirexperienceandabilitiesinthatarea.
“AmajorfactorwasthattheSAPsolutionhasbuilt-inintegration.
Often, a system this large and complex means months of
integration tweaking before it works reliably and we really needed
to avoid that possibility.”
Consideringthesizeoftheproject,itwasdecidedtorolloutthe
newsystem in theWesternCapeareafirstand then follow that
with other regions. There was also the opportunity to include
PicknPay’sstate-of-the-artdistributioncentreatLongmeadowin
Gautenginthesolutionframework.
“This project is practically a showcase of what amajor grocery
retailercanachievebyimplementingawall-to-wallSAPsolution,”
says Nugent. “UCS Solutions has a wealth of expertise in the
retail vertical and the success of this solution supports our belief
that packaged ERP solutions havematured to the point where
businessescanderiveexceptionalvaluebydeployingthem.”
“Oneofthebiggestchallengesinanimplementationofthisnature
is changemanagement,” saysWarner. “Therewereanumberof
systems and procedures that had been established within our
organisation over many years that had to be revised, especially
with the inclusion of our centralised distribution strategy and
bringingthenewGautengwarehouseintothesystem.
“UCS Solutions provided great support throughout the entire
process.”
Anotheraspect todeployingacompletelynewsystemis that it
often highlights problems which were not previously obvious.
“Anumberofbusinessprocessesthatwerenotfullyeffectivewere
identifiedby the improvedSAP reporting,” saysWarner. “When
you have accurate information and reporting to management, the
rightdecisionscanbemade.Thisisjustoneoftheimprovements
that are achieved when you have a better system in place.
“TheoverallintegrationofSAPmodulesandtheeaseofreporting
makethisaverypowerfulERPsolutionforourwholecompany,”
saysWarner.
ThefullrangeofSAPfunctionalityisnowfullyoperationalacross
the corporate head office and half of the operating regions. The
rollout to the remaining operational regions will be completed in
thenext18months.
In Pick n Pay’s recent financial results announcement Nick
Badminton,CEOof PicknPay, confirmed that the company is
seeingsignificantbenefitsfromtheimplementationofSAP.
“Those regions that have now run with the system for a full
financial year are seeing considerable benefits from the discipline
thatSAPbringstoourbusiness,”Badmintonconcludes.
About UCS Solutions
UCS Solutions is 70% owned by Business Connexion withthe remaining 30% owned by the UCS Solutions ExecutiveManagement Team. The companyprovides services to supportmany top South African and international businesses whosefocus is retail and the retail supply chain. UCS Solutions is acknowledgedtobeSouthAfrica’sleadingproviderofbusinesssolutions within the retail and wholesale sector. UCS Solutions has the expertise required to assists clients achieve better businessperformance through the delivery of turnkey solutions that span the complete range of retailers’ IT operations. The companyoffers a comprehensive range of services encompassing strategic and process consulting, implementation, applications support, hosting services and knowledge business outsourcing.
Size: • UCSSolutionshas+-350employees.
Location:• Gauteng( Johannesburg)• WesternCape(CapeTown)• Kwa-ZuluNatal(Durban)• UnitedArabEmirates(Dubai)
About Business Connexion
BusinessConnexionisablackempoweredintegratorofinnovativebusiness solutions based on information and communications technology (ICT). They run mission-critical ICT systems andmanage products, services and solutions for JSE listed and keypublic sector organisations, parastatals and medium-sized companies. Business Connexion is the largest JSE Listed ICTcompanyinAfricaandamarketleaderinitsfield.
Contact
Johannesburg:+27(0)115189000
Cape Town:+27(0)216804000
Durban:+27(0)312799860
www.ucs-solutions.co.za