Spar believes worst SAP deployment problems behind them

[Jan]

Spar estimates SAP rollout problems cost R1.6 billion in lost turnover

The Spar Group says the launch of its new SAP software system at its distribution centre in KwaZulu-Natal has resulted in an estimated turnover loss of R1.6 billion.

Moreover, its implementation led to an estimated loss of R720 million in profits. However, Spar says it has learnt a lot and will delay the rollout of SAP's system in other Southern African regions until management is satisfied with its optimisation.

 

[Itsa Trap]

We know, we can see they're trying to recoup those losses when we look at the prices in store.

 

[r00igev@@r]

Not much causation to the root causes.

 

[CPTBoy]

I've never heard of one SAP implementation that went smoothly

 

[karnuffel]

I've never heard of one SAP implementation that went smoothly

There are many. I did about 15 years of SAP consulting work and 99% of the full life cycle implementations I worked on worked well.

Also keep in mind SAP ERP is not the same as SAP EWM etc.

Many many companies runs SAP products very successfully.

 

[CPTBoy]

There are many. I did about 15 years of SAP consulting work and 99% of the full life cycle implementations I worked on worked well.

Also keep in mind SAP ERP is not the same as SAP EWM etc.

Many many companies runs SAP products very successfully.

In budget and on time?

 

[Bliksis]

That's ok, just raise the prices even more, and make more pricing "mistakes" to make up for that.

 

[Bliksis]

I've never heard of one SAP implementation that went smoothly

How many have you heard of in total?

 

[karnuffel]

In budget and on time?

yes. 2 actually under budget

 

[LandyMan]

I've never heard of one SAP implementation that went smoothly

You listening to the wrong stories

 

[My_King]

I heard once you go SAP, you go broke in a few years?

Nah can't be SAP that is the problem.

MyBBers knows best here.

 

[SpiderGear]

Someone (Spar CIO) is getting fired!

 

[MisterFiftySomething]

Someone (Spar CIO) is getting fired!

He already quit in September for "personal reasons". I'm sure it's totally unrelated, though.

https://techcentral.co.za/spar-cio-resigns-amid-botched-sap-project/231737/

 

[Sapphiron]

I've never heard of one SAP implementation that went smoothly

To be fair, the companies that can afford SAP also have hellishly complicated requirements, mostly self inflicted because they are squeezing their suppliers and customers so hard.

Imagine trying to keep a product in stock, when you ask your suppliers to only deliver the minimum so you save on storage space and save cashflow on supplier payments, then you expect your logistics company never to miss a delivery so you run fewer trips. Then you short staff the stores that keep the shelves stocked.

They can make things so much simpler if they simply built better margins for disruption. You will have happier customers, a happier workforce and more reliable suppliers if you do. But your profits might be 0.5% lower.

 

[Dan C]

I've never heard of one SAP implementation that went smoothly

Where do you get your info from. Many have implemented SAP smoothly and under budget.

 

[SAguy]

Where do you get your info from. Many have implemented SAP smoothly and under budget.

Not Shoprite, PnP or Spar... that's for sure
I've experienced the hell of all of these first hand.

 

[rvZA]

The economy is f***ed and probably the biggest reason behind their decline, just like any of the other companies reporting huge losses. If they still want to blame SAP, they are idiots, so are those buying franchises or investing in them.

 

[SAguy]

Someone (Spar CIO) is getting fired!

Never, the CIO and everyone else will blame and have blamed implementation partners instead of taking ownership for their own mess.

 

[Jet-Fighter7700]

so SAP is impossible to deploy to a retailer?

 

[rh1]

so SAP is impossible to deploy to a retailer?

Apparently, ShopriteCheckers is doing well because of SAP, at least that what a MyBB article stated a while back.