{"id":514499,"date":"2023-11-09T15:30:57","date_gmt":"2023-11-09T13:30:57","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=514499"},"modified":"2023-11-09T15:35:55","modified_gmt":"2023-11-09T13:35:55","slug":"the-software-behind-shoprites-incredible-success","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/software\/514499-the-software-behind-shoprites-incredible-success.html","title":{"rendered":"The software behind Shoprite’s incredible success"},"content":{"rendered":"

SAP Enterprise Resource Planning (ERP) software has played an integral part in the success of the Shoprite Group’s business over the past five years.<\/p>\n

Despite major electricity challenges and consumer spending pressure during the period, South Africa’s biggest grocery retailer has seen its sales and net profit grow by annual average rates of 7.4% and 4.1%, respectively.<\/p>\n

The latter might not seem particularly outstanding, but it is impressive compared to Shoprite’s closest rival, Pick n Pay, which only saw its profit grow by an average of 0.6% over the same period.<\/p>\n

The Shoprite Holdings share price on the JSE has reflected significant investor confidence in the company’s trajectory.<\/p>\n

From R194.26 per share on 9 November 2018, the price had climbed to R248.04 per share on 8 November 2023, an increase of about 28.5%.<\/p>\n

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Shoprite’s most recent integrated report specifically acknowledged SAP ERP’s role\u00a0in achieving its operational efficiencies.<\/p>\n

“Our considerable base of 2,791 corporate-owned and managed stores, combined with our enterprise-wide IT system (SAP ERP), provides us with a proximity and platform advantage when it comes to executing our daily operations and delivering on strategic plans,” Shoprite said.\u00a0<\/span><\/p>\n

The retailer started using SAP’s human resource and finance software in the late 1990s.<\/p>\n

Its rollout of SAP Retail \u2014 an integrated ERP system for retailers \u2014 was completed at all its stores and distribution centres in 2018.<\/p>\n

This initiative saw the highest number of stores of any SAP customers in Europe, the Middle East, and Africa go live with the software within a year.<\/p>\n

“1,819 stores, 30,355 users and nine distribution centres moved onto SAP within 12 months,” Shoprite said.<\/p>\n

There are roughly 16,000 Shoprite employees on SAP ERP at any given time.<\/p>\n

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Shoprite told MyBroadband that SAP ERP provided an accurate and complete view of its business to drive strategic decision-making.<\/p>\n

“It supports many aspects of our business \u2014 from supply chain to store,” Shoprite said.<\/p>\n

“[It also] enables legislative governance and compliance across borders, as well as enabling our online and e-commerce offerings.”<\/p>\n

In addition, the retailer said that SAP ERP was core to business processes such as listing, pricing, ordering, and ensuring that Shoprite’s inventory was well managed.<\/p>\n

“When you walk into a Shoprite or Checkers supermarket and see a full range of products stocked, displayed, priced and with promotions clearly marked, that is what the ERP system does for us,” Shoprite said.<\/p>\n

Some of the specific areas in which SAP ERP supported Shoprite’s efficiencies include:<\/p>\n