Reinventing Processes Oracle Retail Implementation

Jozo Dzakula, CIO

Strong regional footprint

Croatia Population of 4.5 mn Fairly consolidated market #1 market position

Serbia Population of 6.9 mn Fragmented market #3 market position

Bosnia and Herzegovina Population of 4.6 mn Fragmented market #1 market position

Agrokor retail - revenue Croatia Serbia Bosnia &

Herzegovina ’07(€): 1,8 bn ’08(€): 2,0 bn ’09(€): 2,0 bn ’10(€): 2,0 bn ’11(€): 2,1 bn ’12(€): 2,2 bn

’07(€): 151 mn ’08(€): 314 mn ’09(€): 361 mn ’10(€): 385 mn ’11(€): 497 mn ’12(€): 488 mn

’07(€): 105 mn ’08(€): 182 mn ’09(€): 231 mn ’10(€): 266 mn ’11(€): 303 mn ’12(€): 315 mn

2007: 2,1 bn € 2008: 2,5 bn € 2009: 2,6 bn € 2010: 2,6 bn € 2011: 2,9 bn € 2012: 3,0 bn €

Agrokor retail

Multi-format retailer More than 700.000 customers daily!

Multi-format retailer – Complex Supply Chain

Multi-format retailer – Customer services

Challenge

Legacy Supply Chain Management system –  Heavily customized –  Poor support –  Impossible to improve/develop –  Old technology – mainframe,

green on black

Opportunity

The goal for new Supply Chain Management system: –  Improve business processes –  Ability for business expansion – multi-channel, international –  Good support –  Improvement during time

What to choose?

­  Many solutions in the market

­  Goal – to have robust new system that will give us opportunity to improve business processes and support for growth

­  Dilemma – SAP or Oracle Retail? ­  SAP – simpler technology, same GUI, integrated solution

­  Oracle Retail – complex technology, different GUIs, complex integration between modules

­  Oracle Retail – better functionality and advanced modules

Implementation

­  Get the basics first – master data, SOH, transactions ­  Vanilla approach – avoid modifications if possible ­  Wholesale – custom development ­  Change/improve business processes with new system ­  System Integrator – small SI for personal approach

Implementation

Phase 1 Master Data Retail Items, stores, item ranging, prices, promotions

Wholesale Customers, contracts, pricelists

Phase 2 SOH & Transactions Retail Oracle Retail Sales Audit, Invoice Match, Trade Management, Merchandising System for stock on hand (SOH) and transactions from stores Wholesale Customer orders, shipments, invoices, credit/debit notes

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

Change management

­  The most important thing on this project

­  Changing processes – changing the way people work and live

­  Thinking ahead ­  Predicting future problems ­  Start solving problem’s causes in advance

Change management Manage changes during project

Lessons learned

­  Prepare business for long-lasting high-impact project

­  Thinking ahead

­  Change management – the most important part of the project

­  Manage expectations – yours and your colleagues

­  SI will not solve your problems – you have to do it yourself

­  Project team – take only the best people

Benefits ­  Price management – flexible and automated ­  Before – manual item by item ­  Now – pricing strategies, rounding rules

­  Bill back deals ­  Before – manual spreadsheets ­  Now – automated

­  Visibility ­  All data in one system (Oracle Retail

Merchandising System) ­  Invoice matching ­  Much faster and more accurate ­  Visibility of error causes

Thank you for your time