Business Transformation

Overview

Large retail organisation completed the aquisition of a new business with 24 stocking points throughout Australia. The two businesses needed to completely integrate within a defined timeframe to utilise a single supply chain model, one system at a lower cost.

Core Problem

The option of operating two different ERP systems was cost prohibutive from a licensing perspective and duplication of effort for users and support resources
Financials, suppliers, customers, purchasing, warehousing and distribution neede to be fully integrated.
Supply chain foot print consisted of retail sites, holding over $36m in Inventory and over 150 FTE’s.
Purchasing and Planning processes we inadequate and highly reactive, lacking analysis for decision making.
Warehouse operation was highly manual throughout, focused on processing speed not inventory accuracy and integrity.

Problem resolution

All systems were integrated to an AS400 ERP to support financials, procurement, inventory and distribution.
Some key retail sites were maintained while others were integrated into existing retail sites.
Inventory management and planning were standardized and became integrated to a single SOP process.
Inventory holding costs reduced from $36m to $24m over 6 months due to greater focus on inventory integrity.
Warehouse operations became integrated with standard business processes using paperless picking tools.