CGI and Bell Distribution Inc. implement a first for SAP in North America
“CGI drove significant cost out of the business by allowing us to more effectively manage our inventories in the warehouse and in the retail stores. We were able to significantly lower the capital invested in our inventory.”
Phil Smith, Senior Director, ISIT, Bell Distribution Inc.
The Client
Bell Canada is Canada's largest supplier of telecommunications services. With one of the world’s most robust and reliable public switched networks, Bell Canada provides advanced voice, data and image communications to millions of business and residence customers across Canada. Through its Bell Distribution Inc. (BDI) division, Bell also offers numerous retail outlets throughout the country. Stores are both franchises and corporate, and all offer the full range of Bell products, including phones and phone services, mobile phones, Sympatico Internet, and Bell ExpressVu Direct to Home Satellite Television.
The Challenge
The system used by the Bell family of companies for a number of management functions is SAP. With BDI growing, however, it had become apparent that the division would require a more retail-focused solution to meet its current and future needs. The original SAP solution only supported wholesale distribution, and BDI was looking to move to a fully integrated multi-channel distribution environment. In 2001, CGI accepted the challenge to convert BDI from standard SAP to SAP Retail.
This would represent the first North American conversion of a live standard SAP system to SAP Retail. As such, specific SAP expertise would be required. Also, in addition to the inherent technical challenges of the project, a reengineering exercise would be involved, as BDI was transitioning from a wholesale to retail environment. CGI would therefore be called on to work with its client to develop new business processes.
The very growth that had triggered the conversion to SAP Retail brought its own set of challenges. For example, BDI’s personnel were extremely busy doing their day-to-day jobs, and CGI needed to recognize and respect the time constraints inherent in this situation. In addition, because the fourth quarter of the year represents BDI’s peak revenue period, the lion’s share of the testing and deployment would have to be scheduled around this quarter.
The Strategy
With solid support from BDI’s executive sponsors, the CGI team was able to forge a strong alliance with its BDI counterparts, which led to an invaluable sharing of SAP functionality knowledge and BDI processes. CGI also applied its ISO 9001-certified processes to the engagement to help manage the project’s scope, timetable and budget.
CGI and BDI began by dividing the complex project into four phases. The partners felt this would best support BDI in its retail expansion involving company-owned stores, local dealers, franchises, national retailers (such as Future Shop and Business Depot) and online store sales via the Bell.ca Web site. CGI also partnered with SAP Canada to offer customized training on the Retail Solution to project team members.
“CGI used SAP Retail to create a solid foundation upon which we have continued to build our business,” stated Diana Tripp, BDI’s Manager, BDI/SAP Logistic and Business Processes. CGI managed to accommodate our complicated pricing strategies and revenue analyses. The methodology used to manage the project was also a key factor in its success.”
The four project phases were: 1) the distribution channel structure, merchandise category hierarchy, requirements planning; 2) reorder point planning, vendor evaluation, logistics invoice verification; 3) all aspects of company-owned stores, such as the conversion of corporate stores from “customers” to “store sites,” the communication of sales and data from the point of sale (POS) system to SAP, and the communication of product and pricing changes from SAP to POS; 4) merchandise and assortment planning (MAP).
“Our teams worked very closely together with an integrated approach,” explained Phil Smith, Senior Director ISIT, BDI. “We complemented each others’ skill sets in delivering solutions to the business.”
The Technology
- Database: Oracle
- SAP, SAP Retail
The Results
This multi-phase, multi-year project was completed on schedule and within its overall budget. In successfully achieving the first North American live conversion from standard SAP to SAP Retail, CGI delivered an integrated retail solution to BDI, which provides advanced retail functionality and supply chain management as well as material and assortment planning.
“The success of the project was due in large part to the strong knowledge base and camaraderie of the CGI and BDI team,” added Ms. Tripp. “Inventory shrinkage was reduced dramatically. It stands at about one tenth of the industry average. This translates in to a savings of millions of dollars.”
Mr. Smith agreed. “CGI drove significant cost out of the business by allowing us to more effectively manage our inventories in the warehouse and in the retail stores,” he concluded. “We were able to significantly lower the capital invested in our inventory.”
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