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Dixons stops SAP supply chain rollout to slash costs

Dixons stops SAP supply chain rollout to slash costs

Electrical retailer looks to save cash by halting work for a year

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Dixons Retail has put on hold the rollout of an SAP enterprise resource planning system, in order to cut costs.

The company, which owns the PC World and Currys store chains, has already implemented financial moduiles of the ERP system, as well as migrated much of its core data to SAP, but has delayed the rollout of the supply chain module.

“The design is done for the supply chain system, and the rollout will restart in 2012,” a Dixons spokesperson told Computerworld UK.

The spokesperson insisted Dixons had “achieved a great deal with SAP” and that the company was only pausing the rollout as part of efforts to reduce costs in the financial year. Dixons was not looking to replace SAP, he said.

Dixons has not confirmed whether it has incurred penalty costs with any system integration firms by delaying the rollout.

Dixons said it had been facing rising costs maintaining its previous array of core systems. In January, Dixons disclosed it had missed out on £15 million in potential sales after its web platform crashed for long periods of time on 26 to 28 December. The heavy snow that month also made it lose out on £20 million of in-store sales, it estimated.

The SAP rollout is part of Dixons’ One Group and Step Change strategic programmes, under which it is moving to a common operating model across its stores, simplifying business processes, and improving systems and decision making. As part of the programmes, it is attempting to strengthen management of its supply chain and product stocks.

Last year, as the company proceeded the SAP integration, IT director Phil Greenwood said: "With this implementation we expect to have better access to accurate information and to have more efficient, automated processes in place. We also expect to build on our existing supplier relationships as a result of implementing better processes.”

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