Coop Danmark

Coop Danmark

Largest S/4HANA transformation in the Nordics

Case Study

Shopping app, differentiated assortments and fulfilment options

Coop Danmark has a complex corporate and logistics structure with more than eight sub-brands, numerous external partners, a franchise business structure, various goods flows and six warehouses that also involve local retailers and markets. Nevertheless, Coop wanted to face new digital challenges: a modern shopping app, self-checkout, staff-less point of sales possibilities, increased involvement of local producers and locally adapted and differentiated assortments, serving multiple sales channels and fulfilment options or even technical support to optimize the carbon footprint. 

Initial Situation

Partner sought for largest SAP S/4HANA transformation in the Nordics

Even before the project started, Coop had already focused on digitalisation and developed the Coop app, an intelligent shopping app for Coop members. It has received many awards for its operation and well-integrated functions and has topped the AppStore lists of Apple and Google in Denmark for a long time. However, the company's supply chain systems were several decades old and could no longer be upgraded timely enough for the transition into the 21st century or expand to meet new requirements. 

Challenges

New back-end IT infrastructure established via SAP S/4HANA

The central challenge was to set up an entirely new back-end IT infrastructure via SAP S/4HANA to establish an always up-to-date end-to-end transparency of all processes in the company. This includes all flows of goods from vendors through the supply chains and transportation routes, the warehouses and their stocks, all the way into the customer basket. The new system also had to handle all related financial transactions and make them transparent with instant visibility of logistic and financial transactions.

Benefits

Supply chain becomes more robust against delays and delivery bottlenecks

In addition to the greatest possible transparency across the entire supply chain, other goals were that the new platform – integrated with a newly implemented forecasting and replenishment system from RELEX - should also make the supply chain more robust against delays and delivery bottlenecks. It needs to predict goods demand seasonally, on promotion or even weather-dependent, and ensure sufficient stock in the local stores to meet peaks in demand. 

Standardisation + individualisation

High degree of standardisation for rapid implementation of the new SAP platform

The successful implementation was possible because KPS could already draw on various business scenarios and best practice use cases from the past for the retail and grocery industry. The consultants had to adapt and expand these accordingly for Coop.

Change Management

The conversion of the IT infrastructure challenges employees

The complete transformation of IT infrastructure is indeed a business project. Dealing with the business changes in the daily operations of each employee can be a significant mental challenge. The Coop family know that almost everything will change, and there will be a lot to learn. 

Contact

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Jørgen Klüwer, Business Development


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