Pick n Pay, one of Africa's largest retailers, implemented SAP across its operations to standardize its fragmented systems and take advantage of SAP's alignment with its business processes. The multi-year implementation involved rolling out SAP financials, retail, warehouse management and other solutions to different regions over time. Key challenges included losing internal focus during implementation and lack of IT skills. Critical success factors were teamwork across the ERP project, top management support, minimizing customization, and appointing project champions. Lessons learned highlighted the importance of buy-in, managing costs and skills, change management, and security during a large ERP rollout.

1. Unbundling the Pick n Pay SAP
Implementation
GROUP 1

2. Outline
• Background
• Why choose SAP?
• Implementation of SAP?
• End result, and prevailing challenges
• Critical success factors
• Learnings

3. Overview of Pick ‘n Pay
• One of Africa's largest
food retailers
• Historically, operated
on a decentralised
model with fragmented
information systems

4. Why SAP?
• Traditional reasons
- Defragmented systems
- Most SA suppliers on SAP
- Trusted implementation partner
• Non-traditional reasons
- Lack of IT skills
- Favourable commercial agreement
- Technology is aligned with the business processes

5. Implementation Approach and Rollout plans
(Timeline)
Step I: Live for Region 1
Step I: Live for Region 1

 SAP Financials
SAP Financials

 SAP Retail
SAP Retail

 SAP Back Office Template (IS-Retail)
SAP Back Office Template (IS-Retail)

 SAP Business Warehouse
SAP Business Warehouse

 SAP HR
SAP HR

 SAP Warehouse Management
SAP Warehouse Management
3
3 Step III: Optimisation
Step III: Optimisation
2
2
 Forecasting &
 Forecasting &
Replenishment
Replenishment
Optimisation
Optimisation
 Assortment Planning
 Assortment Planning
Step II: Roll-outs
Step II: Roll-outs  POS Management
 POS Management
 CPFR (Supplier Portals)
 CPFR (Supplier Portals)
 Roll-out to other Regions and Corporate and Franchise Stores
 Roll-out to other Regions and Corporate and Franchise Stores
 Distribution Centres
 Distribution Centres
1
1  Score
 Score
 Boxer Supertrade
 Boxer Supertrade
2004 2005 2006 2007 2008

6. Prevailing challenges
• Internal focus – loss in market share
• Lack on IT skills
• Lack of information

7. Critical success factors
• ERP Teamwork and composition
• Top management support
• Minimum Customisation
• Project champion

8. Learnings
• Challenging to solicit the buy-in from decision
makers
• The decision to invest into an ERP system is a
complex one
– Costs
– Appropriate skills
– Appetite for change
• Training is key
– Need qualified training facilitators with knowledge of business processes
• Security risk
• System enables customer centricity

9. Thank you & questions