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Coop Norway's travel towards Enterprise Service Management


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Coop Norway is the second largest grocery retailer in Norway, with yearly revenue of around 5 billion euros and 28.000 employees. Market shares were won quarter by quarter during the last two years. The shift from the old paradigm "retail is detail" to an overall strategic plan for managing services is indeed a giant leap. Opening up to letting other people see your flaws and bad statistics in order to help you improve, has been another. Establishing common governance structures and a common service management tool for all functions in business and IT – ServiceNow have been essential on this road towards success. In this presentation two of the main service management enthusiasts will describe the way Coop has worked to achieve professional shared services throughout the organization, their fully automated warehouse included.
Speaker: Anne Kristine Næss
Lisa Hugdahl

Published in: Technology
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Coop Norway's travel towards Enterprise Service Management

  1. 1. 1 © Copyright 2017 FUJITSU Fujitsu Forum 2017 #FujitsuForum
  2. 2. Coop Norway's travel towards Enterprise Service Management Anne Kristine Næss IT PMO and Head of Department Enterprise Business Support Systems, Coop Norway Lise Hugdahl Head of Portfolio Shared Service and Continuous Improvement, Coop Norway
  3. 3. The numbers This is Coop • 1.6 million members/co-owners • 28 000 employees • €750 million in annual sales • €75 million in purchase return in 2017 • 29,4 % market share in grocery • 32,1 % market share in DIY hardware(Do it yourself) • 1250 stores • 87 cooperatives • 6 retail chains • 3 DYI hardware chains «As a member I am also a co- owner»
  4. 4. This is Coop CO-OWNERS are members of a co-operative. CO-OPERATIVE SOCIETIES owns the stores and Coop Norway SA. The store employees are employed by the co-operative society. JOINT ORGANIZATION THECHAINS • Purchasing and assortment • Warehouse and supply chain mgt. • Brand management and Sales channels • Marketing and membership administration • Enterprise Shared Services COOP NORGE EIENDOM AS Property mgt. COOP NORGE INDUSTRI AS Food production COOP NORGE TRANSPORT AS Transport services NORSK BUTIKKDRIFT AS Operating Company for some of the stores COOP NORGE SA Administers the co-operative societies’ interests and delivers shared services SUBSIDIARIES Coop is owned by its customers
  5. 5. 1250 store locations spread across the country This is Coop • Six different ways of running a warehouse • Large geographical distance Six warehouse locations throughout Norway • Many are placed in deep valleys and on islands off coast. • The 87 Cooperatives decide where to place their stores. • There are 6 grocery chains and 4 hardware/non food chains
  6. 6. Coop Logistics Centre – Northern Europe’s largest fully automated warehouse This is Coop From traditional warehouse operation to modern, robot driven logistics center
  7. 7. We started with great complexity.. This is Coop Complex ownership structure. Day-to-day thinking. Ranging from fully manual to fully automated processes Great geographical distances giving variety in processes Each chain its own strategy and preferences Minimal cooperation between Hardware and Grocery divisions What is a service? Low awareness in the organisation Service orientation in stead of product focus Single Point of contact for all incidents One common strategy Harmonised processes Portfolio mgt. based on business service portfolios Logging all issues on all business services Continuous improvement based on facts ..but are about to step into order
  8. 8. Single Point of Contact for all business services 30 different points of contact with different opening hours Extended collabration between contact centers, harmonised processes, systems and opening hours Single Points Of Contact: - External SPOC - Internal SPOC Transformation from 30 to one single point of contact 2013 2015 2017
  9. 9. Logging all issues on all business services Creating order Leader boards/Meetings Supply chain Assortment and Goods production Sales Channels Customer and Membership Enterprise business support
  10. 10. Logging issues: Coop Logistics Centre App (Fujitsu app) Collecting data
  11. 11. Silo HardwareSilo Groceries Service orientation rather than product and function focus Structuring data to improve processes Common processes & tools Warehouse management Transportation Vendor management & Purchasing Chain concepts and branding Refurbishing, etc. In store processes Forecasting & replenishment Assortment planning Vegetables & Fruits Fresh foods Dairy products Etc. Etc. Dry goods Frozen goods Beverages Etc. Etc. Sports articles Building materials Sanitary products Home & kitchen Etc. Coop Norway Grocery Logistics Grocery Purchasing Purchasing Dried goods Purchasing Beverages Purchasing Dairy prod. Etc. Hardware Logistics Hardware Purchasing
  12. 12. Business Service Areas = Project Portfolios Service management is the nucleus of business processes improvement Supply chain Assortment and Goods production Sales Channels Customer and Membership Enterprise business support Project A.1 Project A.2 Project A.3 Project A.4 Project B.1 Project B.2 Project B.3 Project B.4 Project C.1 Project C.2 Project C.3 Project C.4 Project D.1 Project D.2 Project D.3 Project D.4 Project E.1 Project E.2 Project E.3 Project E.4 Coop Norways Overall Business Strategy and Roadmap 2017-2020
  13. 13. OperationTactics and transitionStrategy Portfolio management is part of Service Management Business roles Service Owner Process Owner Product/System Owner Governance arenas User Forum Reference Groups Service Manager System ManagerSolution Architect Business Architect IT-roles Customer Forum Process expert Portfolio Forum Portfolio Owner Portfolio Manager
  14. 14. Customer based continuous improvement Summary Collection of facts Service Now Improvement forum Delivering value to the stores Improved quality on service deliveries Avoid out of stock- situations Improved interaction with the service centers Shop personel can spend more time with their customers Policy Process Competence Tools Analyzing and prioritizing Portfolio optimisation Continous improvents Projects Minor changes