KPS supports Coop Danmark in one of the largest SAP S/4HANA transformation projects in the Nordics

KPS supports Coop Danmark in one of the largest SAP S/4HANA transformation projects

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New back-end IT infrastructure running SAP S/4HANA has replaced existing host solutions

Copenhagen, November 22, 2022 – It is one of the world's largest and most successful transformation programs with SAP in the food retail sector: the Danish retail group Coop Danmark has replaced existing host solutions with a completely new backend IT infrastructure with SAP S/4HANA. KPS provided valuable support during the implementation. As a result, Coop benefits from numerous advantages such as more efficient workflows, lower working capital, better supplier management, optimised assortment availability, and faster time-to-market IT innovations.

Coop is one of Denmark's largest food suppliers, with a market share of over 30 percent.

As part of its digitisation strategy, the company wanted to modernise its outdated logistics systems and align them with the increased demands of the 21st century. 

Therefore, it was necessary to create end-to-end transparency along the entire value chain in the company. A completely new back-end IT infrastructure with SAP S/4HANA was to serve as the technological basis for this.

Coop brought the consultants from KPS on board for the professional implementation. The partner has in-depth SAP expertise and many years of experience in the retail segment to successfully manage the largest SAP S4/HANA transformation project in the Nordics to date.

This involved seamlessly integrating technical systems such as the Coop App, existing warehouses, checkout systems and the e-commerce web store into the new SAP S/4HANA platform. To be able to introduce enhancements easily and in a short time, KPS focused on a high degree of standardisation. The SAP landscape was designed to conform to the standards as closely as possible to support the rapid import of SAP updates.

A particular challenge in the project was that the entire transformation took place under difficult conditions due to the pandemic.

Coop is one of Denmark's largest food suppliers, with a market share of over 30 percent.

As part of its digitization strategy, the company wanted to modernize its outdated logistics systems and align them with the increased demands of the 21st century. Therefore, it was necessary to create end-to-end transparency along the entire value chain in the company. A completely new back-end IT infrastructure with SAP S/4HANA was to serve as the technological basis for this. Coop brought the consultants from KPS on board for the professional implementation. The partner has in-depth SAP expertise and many years of experience in the retail segment to successfully manage the largest SAP S4/HANA transformation project in the Nordics to date.

This involved seamlessly integrating technical systems such as the Coop app, existing warehouses, checkout systems and the e-commerce web store into the new SAP S/4HANA platform. To be able to introduce enhancements easily and in a short time, KPS focused on a high degree of standardization. The SAP landscape was designed to conform to the standards as closely as possible to support the rapid import of SAP updates. A particular challenge in the project was that the entire transformation took place under difficult conditions due to the pandemic.

236,000 items from a wide range of categories successfully migrated

During the implementation of SAP S/4HANA in close cooperation with Coop Danmark, KPS was able to draw on numerous best-practice use cases for the retail industry. As a result, KPS consultants only had to adapt the existing scenarios to the parameters specific to the Coop project, saving great effort and time.

Starting in 2018, the Coop One project has gradually been rolled out to all Coop stores in Denmark and was successfully set live for the final 25% of the product categories at the end of October 2022. The final go-live completed the migration of approx 236,000 items in the non-food, bread, frozen food and meat categories to Coop's SAP range. With this significant milestone, the retail group operates its entire item portfolio in the SAP S/4HANA Retail solution delivered by KPS.

Project update

Transfer of finance and accounting planned for 2023

In the process, the roll-in allows complex functions to be used and improvements to be made: For example, the complicated SAP white spot for items with variable weight could be fixed and order/delivery scheduling by hour & minute was introduced. The complete end-to-end backend e-commerce functionality, including drop shipping, was implemented. 

Furthermore, in-store food production could be realised for all production areas, such as the bakery, butchery, delicatessen, and fish department. The plan is that by mid-2023, the entire finance and accounting system will also be finalised and completely transferred to the new SAP environment as part of the Coop One project.

" KPS has supported us in this very challenging project with a high level of professionalism and commitment. The consultants' in-depth expertise and a change management-based strategy helped us to successfully manage the changeover under the difficult conditions of the Covid-19 pandemic. We look forward to further high-potential projects in cooperation with the KPS team."
Kræn Østergaard Nielsen CEO Coop Danmark

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