Obviously, making changes to a system that runs from morning to evening, seven days a week, at 13 massive outlets across the country is not a project that is hastily implemented, and requires strong business focus.
UCS Solutions - as an accredited and expert provider of SAP solutions - has been partner of choice to Makro for over a decade and was yet again selected to deploy the latest SAP technology in this major project.
“Makro was in a fortunate position because we first went live with SAP's retail solution as far back as 2001,” says Pieter Schoeman, IT and Projects Director for Makro South Africa. “From that point, we had a long run of very successful results from using the solution.
“In 2006, when it became necessary for us to upgrade the solution, we realised that we had to upgrade the database as well - meaning this project was more complicated than simply upgrading the system functionality to a newer version. It required an underlying platform and database change as well. “Despite this challenge, it gave us the chance to revisit our business processes and take advantage of enhanced functionality in the latest SAP solution. We were also supported by seven years of previous experience, which helped greatly with the project.”
Planning for growth
The new solution was some four generations ahead of what it was replacing and this provided a wide range of new possibilities and a foundation for future growth.
“Areas like finance, merchandising and logistics were foremost in reaping the benefits of the new functionality,” says Schoeman. “There is a lot more we will be rolling out in further phases after the initial deployment.”
“The primary business risk for Makro was that the existing solution was going to run out of support in the application and database layer,” says Chris Shortt, Senior Executive for Applications Services at UCS. “There was also a concern that it would run out of capacity as the business expanded and the opportunity to implement a platform strategically geared for the future of SOA was a strong consideration.
“One possibility was a simple upgrade - but there was little that could offer in terms of future value for the company. The opportunity was to make an investment in a new implementation that would answer immediate needs, provide ongoing and improved value and finally, create a platform for future growth.
“The new solution provides a wide range of improvements for both Makro and its customers. The less visible improvement is that the database has been greatly reduced in size. We have been able to cleanse and eliminate a lot of outdated data and this means that backups are much quicker and the overall performance has been enhanced.”
Managing supply chain
Another major concern for retailers is supply chain management. “The latest SAP solution allows Makro to highlight a range of its SCM needs,” says Shortt. “The difference in functionality between the two versions of the software illustrates the strength of the SAP solution for retail today.
“Efficiency is the name of the game in retail and this has been improved in all areas of Makro's business - from the supply chain, to the warehouse, to the store stock controls, the forecasting and even on to the IT department itself.”
As one of the largest retail operations in the country, Makro is a leader in the adoption of complete IT systems that could drive the company's business processes and provide the reporting of sales and stock levels that are critical to the business as a whole.
IT staff benefit from easier administration, fewer support calls and faster database management, so they can focus on generating value for the business, instead of just being a support desk. “Another area where there are opportunities to generate further value for the company is business intelligence. That, along with customer relations management, offers Makro extensive abilities to improve its business efficiency and service to its customers far into the future.
“We are already busy with the third phase of the deployment, which sees these systems being built on the established platform of the new solution.”
From Makro's viewpoint, the project started with a focus on risk aversion and mitigation. The new SAP solution that UCS has supplied is now providing even greater value and return on the investment made by Makro.
“Flexibility and a stable platform for future improvements are key elements of the new solution,” says Schoeman. “We anticipate the new solution will offer the same longevity and even better value than its predecessor.”
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