PICK N PAY

ESTABLISHING A SOLID FOUNDATION FOR GROWTH

QUICK FACTS
Industry Retail Revenue R44.5 billion (3.5 billion) Employees 38,894 Headquarters Kenilworth, Cape Town, South Africa Web Site www.picknpay.co.za SAP Solutions and Services SAP for Retail solutions (including SAP Forecasting and Replenishment application and SAP POS Data Management application), SAP ERP application, SAP NetWeaver Business Warehouse component, SAP Business One application Implementation Partner UCS Solutions (Pty) Ltd Key Challenges Replace expensive-to-maintain in-house software solutions that limit ability to address business needs Sharpen competitive edge and improve ability to pursue opportunities Enhance decision making with access to integrated information Refocus on core business Improve operating efficiencies Implementation Best Practices Used ASAP methodology for implementation Supported by executive sponsorship Involved cross-functional team members Assigned audit team to keep project on track Created business transformation teams Adopted best practices supported by SAP Used postimplementation sweeper teams to resolve issues in each region Educated superusers to support other users Financial and Strategic Benets Integrated view of operations enabling optimal cash flow Automation of key financial processes, such as invoice verification Electronic transaction processing with business partners Faster access to higher level of detail in general ledger Easier, real-time ledger query resolution and analysis Better customer service and inventory accuracy Why SAP Was Selected Support for processes meeting key business requirements Advanced nature of technology Inherent integration of components Depth of industry-specific offerings Reliability of SAP brand Trusted implementation partner

Low Total Cost of Ownership Eliminated legacy systems Reduced number of applications to support Lessened need for custom work thanks to expanded functionality

Pick n Pay Group a market-leading retailer in South Africa operates hypermarkets, franchise stores, supermarkets, convenience stores, and clothing stores. To support new business models, the company needed to replace its in-house IT solutions with a foundation built on enterprise resource planning software. By standardizing on SAP software, Pick n Pay improved the way it runs its business.

Operational Benets Ability to support existing business model and new initiatives Ability to react quickly to changes Automated and streamlined processes that enable efficiencies Enhanced core retail processes Significant improvement in forecasting and replenishment Better produce quality and stock efficiency Better visibility and granularity of inventory and margin information Improved supplier conformance

SAP Business Transformation Study Retail

With SAP software as the foundation of our business system environment, we can pursue the business opportunities that distinguish us from the competition and allow us to be more responsive to customers.
Bronwen Rohland, Director of Strategy, Information Systems, and Supply Chain & Sustainability, Pick n Pay Group

www.sap.com /contactsap

Shopping for a New Way of Doing Business

First, it deployed support for financial and human capital management processes in the corporate head office. A template The Pick n Pay Group is one of Africas streamlined rollout to the remaining largest and most successful retailers of operating regions, allowing the company food, clothing, and general merchandise. to focus on data conversion and training. Over 40 years in business, the company Within 18 months, the first region had developed its own IT systems to including regional offices, a distribution address a lack of enterprise resource center, 70 stores, and 4,000 users was planning (ERP) software that catered to live with all functionality. its industry. Several factors helped ensure a successBut new growth objectives including ful implementation. With top-level commitconvenience stores, franchise models, ment, cross-functional resources were and multicountry operations required always available. The ASAP methodology Pick n Pay to revise its business sysand business transformation teams tems to support these efforts as well as enabled a disciplined process. Board the ever-changing needs of the consum- members had to sign off on stages that er. Recognizing the limitations posed by impacted their business processes. An its existing IT systems, Pick n Pay decided internal audit team helped keep the projto evaluate buying versus building an ect on track, and regional sweeper teams ERP solution. visited each location postcutover to help resolve issues. Superusers were educated Pick n Pay concluded the buy option within each region to assist personnel as would help it best control costs and needed. focus on its core business. The retailer chose the SAP for Retail set of soluRinging Up Results tions, the SAP ERP application, the SAP NetWeaver Business Warehouse Now Pick n Pay has consistent, companycomponent, and the SAP Business One wide processes in place. The retailer can application because of SAPs advanced support electronic trading and payment, technology, brand reliability, and depth as well as automated and streamlined of offerings. processes such as for allocations, replenishment, and promotions. Full support for Phasing in Best Practices and forecasting and replenishment enables Improvements better customer service with lower overall inventory levels. The software is also helpTo avoid disruptions, Pick n Pay ing improve supplier conformance to delivembarked on a phased implementation. ery schedules, packaging, and product

quality. Plus, with support for warehouse management within its newly built distribution center, Pick n Pay can handle high daily throughput and deliver higher-quality produce. Financial personnel can view detailed general ledgers, drill down for easier query resolution and analysis, and analyze regional ledgers online in real time. At the same time, stores can instantly access details of their actual spend. Access to comprehensive reporting and online franchise statements enables managers to improve decision making and productivity. An integrated view of their environment helps franchisees ensure smoother replenishment, optimizing stock holding and cash flow.

Improving the Customer Experience

With sound technology in place, Pick n Pay anticipates increasing the volume it can handle and driving a series of optimization initiatives that will lead to sophisticated category management. Finally, the retailer has the agility and flexibility to meet changing business requirements and pursue strategic initiatives, such as the establishment of a chain of convenience stores.

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