Coles turns to SAP S/4HANA for ERP

Will roll out SAP S/4HANA, as well as Ariba and SuccessFactors

Coles Group will roll out SAP’s S/4HANA ERP platform as part of a drive to optimise its operations.

“Making life easier for our customers and team members is a key focus for Coles. This partnership with SAP will allow us to innovate more with both groups to ensure we are as efficient as possible across our retail environment,” said Roger Sniezek, Coles’ chief information and digital officer, in a statement.

The deal, detailed today by SAP, will see Coles also roll out the German software vendor’s SuccessFactors HR platform and Ariba procurement platform.

Implementation of the new SAP platforms will begin this month.

Coles in 2007 initially tapped SAP for its payroll processing.

“Investing in its people, processes and supply chain, Coles is putting a focus on simplifying the experience for its people and customers,” said Damien Bueno, SAP Australia and New Zealand’s president and managing director.

“The retail industry is focused on continuous innovation and anticipating customer needs,” Bueno said in a statement.

“To be successful in this era of change and build for a digital future, it is critical to get your digital business framework right. I look forward to seeing this long-term and strategic partnership with Coles grow as it innovates the experience for its people, suppliers, partners and customers.”

In January, Coles announced that it had signed contracts with WITRON Australia — the local subsidiary of Germany’s WITRON Logistik + Informatik GmbH — to develop automated ambient distribution centres in Queensland and New South Wales as part of a major supply chain modernisation project.

“With the signing of these important contracts, Coles is one step closer to implementing a key element of its supply chain modernisation strategy," Coles CEO Steven Cain said at the time.

“This will provide a safer working environment for our team members, lower supply chain costs, enhance our overall business competitiveness and make life easier for our customers by having the right offer in the right location.”

Coles expects to spend some $950 million over six years on supply chain modernisation.

Coles Group has some 115,000 employees across Australia and more than 7000 suppliers. In November, the group — which along with Coles supermarkets and Coles Express includes Coles Liquor (First Choice Liquor, Liquorland and Vintage Cellars), and 50 per cent ownership of Flybuys — was spun out of Wesfarmers and listed on the ASX.

It operates more than 800 supermarkets and more than 700 Coles Express sites.

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