agrokor: the new age in grocery retail - oracle · common cultural heritage, i.e. ... •get the...
TRANSCRIPT
Tomislav Jukić
Agrokor: The New Age in Grocery Retail
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
Agenda
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
4
‘A Small Country for a Great Holiday’ #CroatiaFullOfLife
5
The Mediterranean As It Once Was
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
7
Strategic decision to cover the entire Croatian market
180 stores
19.000 m2
3.000 emp
1.000 stores
520.000 m2
19.000 emp
First store opening
2014
Mercator integration
1.900 stores
950.000 m2
39.000 emp.
Historical Development
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1 Market share excluding hard discounters (Hofer, Lidl) 2 Based on estimated banner sales in 2013 owned or operated by the group including VAT, franchised operations and partly owned stores / chains, with the exception of
Mercator and Konzum which are as reported. SEE defined as Albania, B&H, Bulgaria, Croatia, Greece, Macedonia, Montenegro, Romania, Serbia, Slovenia. 3 Includes Croatia, Slovenia, Serbia, Bosnia, Montenegro
#1
#1
#1
#1 #1
2013 sales in SEE2, EUR m
Key features of the Adria market
▪ Dynamic market with GDP of EUR 137 billion3
▪ EU integration path driving acceleration in growth
▪ 18,5 million inhabitants3
▪ Fragmented retail market
▪ Retail grocery market growth expected
▪ Common cultural heritage, i.e. consumption trends, ex-Yu consumer brands
▪ Tourism segment growth – Croatia, Montenegro....
Metro Group 3,917
Tesco 4,365
Rewe Group 4,374
3,303
Delhaize Group 3,491
CO OP Euro
Konzum + Mercator
6,025
4,736
Schwarz Group 9,044
2,873
CBA
3,151 Konzum
Mercator
SPAR
2,824 Carrefour
2,428
Slovenia Mercator
Croatia Konzum + Mercator
Bosnia & Herzegovina Konzum + Mercator
Montenegro Mercator
Serbia Konzum + Mercator
Market share
33%/40%1
31%/35%1
23%
13%
14%
Total sales, EUR bn
1.7
2.5
0.5
0.1
1.1
The Largest Retailer in The Adria Region
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More than 1.200.000 customers daily!
Multibrand & Multichannel
Floor space in m2 934.000
Number of stores 1.894
Total
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Innovative services
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
12
WHY? Legacy Supply Chain Management system
• Heavily customized
• Weak support
• Impossible to improve/develop
• Old technology – mainframe, green on black
Motivation and Goals
WHAT? HOW? • Get the basics first – master data, transactions
• Wholesale – custom development
• Vanilla approach – avoid modifications
• Change/improve business processes
• A small SI, for a personal approach
• KNOWLEDGE TRANSFER & ENABLEMENT
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Oracle Retail Footprint
Business Operations Merchandise Operations Cost & Deal
Mgmt Pricing Mgmt
Purchasing Import & Trade
Mgmt
Sales Auditing Invoice
Matching
Inventory Mgmt & Valuation
Promo Price Optimization
Markdown Price Optimization
Space Profiling Regular Price Optimization
Item Planning Category Mgmt Macro Space Space
Compliance
Merchandise Financial Planning Assortment Planning
Store & Multi-Channel Operations
Supply Chain Planning
Point-of-Service Store Inventory
Mgmt
Returns Mgmt Workforce Scheduling
Order Management
Warehouse Mgmt Transportation Mgmt
Home Delivery
Inventory Planning Value Chain Collaboration
Demand Forecasting Allocation
Supply Chain Execution
Replenishment Replenish Optimization
Sourcing & PLM
Mfg
PLM
Sourcing
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Discovery
2008-2009
• GAP Analysis
• Modules evaluation
• Legal requirements
Phase 1:
2010-2011
• Master Data
• Retail
• Items, stores, item ranging, prices, promotions
• Wholesale
• Customers, contracts, pricelists
Phase 2:
2012-2014
• SOH & Transactions
• Retail
• Oracle Retail Sales Audit, Oracle Retail Invoice Match, Retail Trade Mgmt, RMS for SOH and transactions from stores
• Wholesale
• Customer orders, shipments, invoices, credit/debit notes
Phase 3:
2015-2017
Konzum Deploys Oracle Retail
• RDF
• AIP
• CatMan
• RO
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• If it's vanilla – it works! (most of the time)
• If it's a modification – patching and bug fixing (will never end)
• Change Management – the most important part of the project
• An SI will NOT solve your problems – you have to do it yourself
• Project team – only take the best (NO BUTS!) and cherish them!
• Manage expectations (Design vs. Reality)
Lessons Learned
Paper documents
Phone
Mail Archiving
Legacy system
Paper documents
Phone
Mail Archiving
Oracle Retail Paper
documents Phone
Mail Archiving
Oracle Retail
Design
Reality
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
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mStart – A Digital Transformation Partner
• ERP
• Analytics, DWH/BI
• DMS
• CRM
• EDI
• eCOMM/mCOMM
• PSP
• Cloud/SaaS
• Datacentre/PaaS
Initially: A Consolidated Shared Services Center
Revenue FTE EBITDA
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ORCC Organization and Competencies – AS IS
Competency mStart Konzum SI
RMS (Phase I)
RMS (Phase II)
RPM
ReIM
ReSA
KWS
Modifications
(incl. Legal)
Weblogic
OSB
Interfaces (incl. RIB)
System monitoring
& night chain
Database
Hardware & OS
Ap
plic
atio
ns
Inte
grat
ion
Ho
use
keep
ing
Proficiency
level / capacity
Good
Medium
Poor
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ORCC Organization and Competencies – TO BE
Proficiency
level / capacity
Good
Medium
Poor
Competency mStart Konzum SI
RMS (Phase I)
RMS (Phase II)
RPM
ReIM
ReSA
KWS
Modifications
(incl. Legal)
Weblogic
OSB
Interfaces (incl. RIB)
System monitoring
& night chain
Database
Hardware & OS
Inte
grat
ion
Ho
use
keep
ing
Ap
plic
atio
ns
Don’t forget to
them!
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Roll-out Plan
2016 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
▪ RDF
Croatia
▪ CatMan
▪ RO
▪ AIP
Serbia
▪ Phase 3
▪ Phase 2
▪ Phase 1
SCM Slovenia
Bosnia
1.3.
10.4.
▪ Phase 3
▪ Phase 2
▪ Phase 1
Croatia • Total Budget 20,0
• SI 85% (= 17,0)
Bosnia • Total Budget 3,0
• SI 30% (= 0,9)
Croatia on the map
Agrokor Retail business
KonDOR over time
OR Competency Center
Recent Developments
22
Main activities
► IT systems
► Rebranding - in-store and external
► Mentoring teams - support for each store
Kick-Off - first inventory 09-09-2014
► Customer loyalty database integration
► Replacement of PL products
► Central distribution
Week 1 Week 2 Week 3
29 STORES
22 STORES
22 STORES
1 warehouse
1.515 employees
133.953 sqm
TURNOVER - 250 mil EUR
73 stores 2 wholesales
Integration of Mercator in Croatia (9/2014)
‘Think Fast, Talk Fast, Act Fast!’
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KonzumKlik (11/2015)
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KonzumKlik (11/2015)
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Abrakadabra.com (4/2016)
The 1st 9 months
• Non-food
• Retail and Marketplace models
The next 9 months
• Regional expansion
• C2C model
• ENABLEMENT
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The Big Question…
Can a € 5 Bil. Company beat a € 100 Bil. Company?
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The Answer…
I don’t know, but I know it can fight!
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Thank you…
On Your Future Projects…