Grocery Retail Case Studies

View a sampling of grocery retailers using Oracle Retail solutions to better control inventory, standardize operations, and establish more effective pricing strategies. Success stories feature Kroger, Makro, Panda Retail Company, and more.

/live_board/v2/downloads?uid=dfaa1366-ee48-4703-970d-159704dec0ed&redirect=true

Copyright © 2020, Oracle and/or its affiliates | Confidential: Restricted 1 Grocery Retail Success The Kroger Company replaced multiple legacy applications that were 20-30 years old with Oracle Retail solutions. The modernization eliminated legacy integration challenges between applications and the business gained enterprise-wide inventory and accurate data integration between the store and headquarters.

“Oracle Retail Merchandising simplifies the day to day activities while allowing for flexibility where the business demands it. We saw a marked improvement in the speed and efficiency in which previously tedious tasks were completed.” - Zelijka Mujezinovic, IT Manager, Konzum

“We chose Oracle Retail as our technology partner to grow our business and to develop more sophisticated strategies to provide a better experience for our customers.”

Marcelo Abrantes Pinheiro Chief Executive Officer, Makro Food Services

Embarked on a digital and business transformation to address essential changes in the cash-and-carry market Standardized operations to better control inventory, and improve in-store experiences across five countries in 170 stores and +17,000 employees in Latin America Moved from B2B high volume/bulk package to direct-to-consumer business Implemented Oracle Retail Merchandising System, Merchandise Financial Planning, and Demand Forecasting with Oracle Retail Consulting Makro Food Service Multi-country and Multi-Currency B2B and B2C Cash-and-Carry Grocer

Makro blog - October 1, 2019: https://blogs.oracle.com/retail/brazilian-grocer%e2%80%99s-use-of-oracle-boosts-customer-satisfaction Makro Video: https://www.youtube.com/watch?v=VoVLybJMKS8

Oracle Retail enables Makro to remake itself as B2C grocer and improve customer satisfaction by 96% Leading Brazilian grocer and wholesaler, Makro, has gone through a digital and business transformation with Oracle Retail to address essential changes in the cash-and-carry market. As part of SVH Group, Makro is a grocery wholesaler with 170 stores and over 17,000 employees across Latin America. Recently, the company moved from being solely a high volume and bulk package goods B2B provider to expanding in a direct-to-consumer business. With Oracle Retail, Makro will be able to better control inventory, standardize operations as well as improve in-store experiences in five countries. "We chose Oracle Retail as our technology partner to grow our business and to develop more sophisticated strategies to provide a better experience for our customers," said Marcel Abrantes Pinheiro, chief executive officer, Makro Food Services. "Inventory is a critical component of customer satisfaction. If your information is sharp and accurate, you can provide merchandise for the customer at every interaction in-store. As an example, after we deployed Oracle Retail Forecasting, we were able to improve our customer service rating to 96.5% while reducing inventory stock by 4.5 days." To support this business transformation, Makro chose Oracle Retail Merchandising System, Oracle Retail Merchandise Financial Planning, and Oracle Retail Demand Forecasting. The project started with Oracle Retail Merchandising System, which serves as the foundation for this modern retail platform and delivered a template with approximately 1,400 processes for a multi-country and multi-currency business. Oracle Retail Consulting (ORC) played a critical role as the design authority to ensure alignment with the best practices embedded in Oracle Retail solutions. Retail Consult, a Gold level member of Oracle PartnerNetwork (OPN), offered in-depth knowledge of the local retail markets, language skills and solution expertise across Brazil, Argentina, Peru, Colombia, and Venezuela. "A single view of orders, customers and inventory is the foundation upon which all other items get executed. Makro is focused on establishing those building blocks and ensure that the foundation is architected properly," said Mike Webster, senior vice president and general manager, Oracle Retail. "Already, Makro is seeing exceptional results from this complete transformational project aimed at delivering a better customer experience both online and in its physical stores."

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. | Confidential - Oracle Restricted For Internal Use Only 96.5% Improvement in customer service after deploying Oracle Retail Demand Forecasting 4.5 days Reducing inventory stock by 4.5 days 1,400 Delivered a template with approximately 1,400 processes for a multi-country and multi-currency business Makro Food Service Boosts Customer Satisfaction and Operations

Makro blog - October 1, 2019: https://blogs.oracle.com/retail/brazilian-grocer%e2%80%99s-use-of-oracle-boosts-customer-satisfaction Makro Video: https://www.youtube.com/watch?v=VoVLybJMKS8

Convenience retail with +18,840 stores in Mexico, Chile, Colombia, Peru, serving +11 million customers every day Needed agility to open new stores - in 2018 they opened an average of 5 stores per business day Implemented Oracle Merchandising System, Warehouse Management, Demand Forecasting, and Advanced Inventory Planning to bring agility to rapid expansion, flexibility, and scalability to support the company's business strategy OXXO Delivers Convenience to Latin American Shoppers 4 Copyright © 2020, Oracle [Date]

Blog authorized by the customer: https://blogs.oracle.com/retail/customer-oxxo-delivers-convenience-to-its-latin-american-shoppers 09/11/21

“The common user interface of our new retail merchandising system (RMS) simplifies the day to day activities while allowing for flexibility where the business demands it. Once our buyers got the hang of the new system we began to see a marked improvement in the speed and efficiency in which they could get their daily, previously tedious, tasks completed.”

Supported growth from 1,000 to 1,894 stores for the Fortenova Group representing Mercator and Konzum brands Automated the merchandising process and offered best practice to associates, enabling them to focus on strategic tasks that impact the bottom line and improve daily operational efficiency Implemented differential pricing strategies with multi-buy and transaction promotions easily; passing those savings on to customers at Konzum and Mercator BH

Company The Fortenova Group is the largest privately owned company in Croatia. Their core businesses are the production and distribution of food, beverages, and retail products, sold under the Konzum and Mercator brands.

Business Challenges Serving 1.2 million customers daily Replacing a legacy, heavily customized supply chain management system Mastering the basics: data and transactions

SolutionS Oracle Retail Merchandise Operations Management Suite Oracle Retail Demand Forecasting Oracle Retail Advanced Inventory Planning Oracle Retail Replenishment Optimization Implemented by mStart

“With the time saved they can spend more time on higher-value tasks and focusing on optimizing our merchandising strategy.”

Enabled the buyers to evaluate new promotion options to ensure more consistent pricing levels for store shoppers Avoided modifications and implemented a vanilla solution while implementing a custom solution for wholesale Upgraded to the latest release of Oracle Retail Oracle Retail Merchandise Operations Management Suite, Demand Forecasting, Advanced Inventory Planning and Replenishment Optimization with mStart

Grocers Konzum and Mercator Gain Operational Agility

Press Release Oracle Merchandising Solution Tops Shopping List for Bosnian Grocers Retail brands Konzum and Mercator gain operational agility with modern retail technology Redwood Shores Calif—May 23, 2019 When customers enter a Mercator or Konzum supermarket, they discover a plethora of organic products, fresh chopped salads, and meat ripening chambers intermingled with everyday grocery needs. The dominant grocery brands in Bosnia and Herzegovina (B&H) employ a visual standard and layout that maximizes the display of products across various segments. By upgrading to the latest release of Oracle Retail, the trading department can automate the merchandising process and offer guided best practice to associates, allowing them to focus on strategic tasks that impact the bottom line and improve daily operational efficiency. “The common user interface of our new retail merchandising system (RMS) simplifies the day to day activities while allowing for flexibility where the business demands it. Once our buyers got the hang of the new system we began to see a marked improvement in the speed and efficiency in which they could get their daily, previously tedious, tasks completed,” said Željka Mujezinović, IT manager, Mercator BH d.o.o. (B&H). The Mercator relationship with Oracle began in 2017. “With the time saved they can spend more time on higher-value tasks and focusing on optimizing our merchandising strategy,” said Džemal Vejsil, IT manager, Konzum d.o.o. (B&H). The Konzum relationship began in 2016. In the recent Topography of Retail Report, nearly 6,400 European consumers surveyed prioritized competitive pricing and general promotions (78 percent) as one of the most compelling attributes of shopping experience. With Oracle Retail Merchandising, Konzum and Mercator BH buyers will be able to implement differential pricing strategies and multi-buy and transaction promotions easily and pass those savings on to customers. In the future, consumers can take advantage of multi-buy transactions where the more you buy, the more you save. The buyers will be able to evaluate new promotion options to ensure more consistent pricing levels for store shoppers. “Retailers need a world-class, modern platform and the ability to interact across all areas of the organization seamlessly. We believe that every retail process should start and end with analytics and business intelligence. Oracle collaborated with 50 retailers, such as Mercator BH and Konzum, to rewrite our merchandising solution and establish the persona and correlated activities to drive operational agility and better business insights,” said Mike Webster, senior vice president and general manager, Oracle Retail. “We had mStart consultants and customer team members working closely with Oracle on this project. We aligned across the Trading and Purchasing departments to avoid disruption to the business, resulting in the implementation being completed on-time and on-budget for the customer in January 2019,” said Želimira Ivček, Director of Oracle Retail Systems at mStart Plus d.o.o. mStart Plus d.o.o. is a Gold level member of Oracle PartnerNetwork (OPN).

Moved to the Oracle Retail Cloud suite, after replacing legacy in-house and outdated vendor solutions Put in place a completely integrated system Empowered the organization to drive core operations with one single version of the truth across all lines of business Obtained store inventory accuracy Implemented Cloud Services for Merchandise Foundation, Pricing, Invoice Matching, Integration, Allocation and upgraded Store Inventory Management with Oracle Retail Consulting

Panda, Saudi Arabia’s largest hypermarket and supermarket chain, selected an integrated suite of Oracle Retail solutions to optimize core retail operations and underpin additional business diversity in line with its aggressive expansion strategy. Panda operates hypermarkets, supermarkets, and convenience stores in Saudi Arabia, Egypt, and UAE.

Problem/Opportunity: Store inventory accuracy was a real issue, receiving process had to be automated, and visibility of inventory-in store and in-transit was an important need Forecasting was not accurate as Panda was not able to segregate historical sales from promotional sales Needed to integrate all elements of the supply chain and drive all operations from a single forecast Lack of an automated replenishment process; relied on inaccurate information and people’s estimations Needed end-to-end capability across retail, BI, and back-office

Why Oracle Retail: Panda identified Oracle systems as key to increasing its market share by growing existing and new business models Panda selected other Oracle applications including the Oracle E-Business Suite, Oracle Business Intelligence, as well as Oracle Database and several components of Oracle Fusion Middleware to create an end-to-end enterprise platform The flexibility, agility, and functionality of the extended Oracle Retail platform, combined with Oracle’s proven experience and strategic relationships with international grocery retailers were key factors in their decision to choose Oracle Building on its existing deployment of Oracle E-Business Suite Financials, Panda plans to adopt a flexible deployment strategy that delivers rapid results to sustain its future development and growth

All solutions Oracle Retail Merchandise Foundation Cloud Services (RMFCS) Oracle Retail Pricing Cloud Services (RPCS) Oracle Retail Invoice Matching Cloud Services (ReIMCS) Oracle Retail Integration Cloud Services (RICS) Oracle Retail Allocation Cloud Services (RACS) Oracle Retail Store Inventory Management (SIM) from v14.x to v16.x Implemented by Oracle Retail Consulting

Why now? First project: Announcement 2017: https://blogs.oracle.com/retail/panda-retail-company-deploys-oracle-to-optimize-operations-and-support-business-transformation-v2 The company was facing problems with a collection of legacy solutions and in-house built solutions which brought in inflexibility, inefficiency, functional gaps, limited data access, poor integration, operational risk, issues with support, and being functionally deficient with no roadmap to meet changing retail trends and customer expectations. Their goal was to replace old legacy systems (JDA) and have a completely integrated system.

Second project: 2019 Migration to the Oracle Retail Cloud Suite

What was the value obtained? Increased market share by growing existing and new business models, including expanding its range of general merchandise and establishing further hypermarket operations Streamlined and integrated operations, optimized inventory management, enhanced pricing, and improved the value of data across the business Allowed single version of the truth across all lines of business, to enable better decision making Delivered the right balance between great availability of inventory vs. cost of stock holding Reduced burden of manually-driven processes Integrated applications and technology components to ensure speed to benefit on implementation Enabled the ability to provide insights into critical performance indicators that track sales, margin, inventory, and supplier activities, to drive more-profitable decisions and enhance the customer experience

09/11/21

Expanded the international presence, leveraging the benefits of Oracle Retail global grocery expertise Streamlined and integrated retail and enterprise operations Enhanced pricing and gained better control of product margins Allowed automatic management of stock Provided insights into critical performance indicators that track sales, margin, inventory, and supplier activities Enriched the customer experience Significantly lowered cost of ownership across the lifetime of the solution

Second project: 2019 Migration to the Oracle Retail Cloud Suite

09/11/21

Grocery Retail Case Studies

Item Type: pptx