Leading distributor of groceries and fast-moving consumer goods, Metcash SA, has signed a groundbreaking multimillion-rand, five-year ICT outsourcing agreement in order to significantly reduce total cost of ownership, realise numerous cost savings and further optimise its operations.
Metcash retains its IT development team for internal software development, while its central infrastructure has been outsourced to Comparex Africa and its wide area network (WAN) services to Telkom Corporate Services.
"Now we can focus on our core business and reduce business risk by leveraging the professional ICT services and competencies of Telkom CS and Comparex Africa," says Nick Parsons of Metcash SA.
Following a due diligence process (part of Comparex Africa`s innovative outsourcing methodology) arising from an invitation by Metcash SA, which ended in December last year, Metcash now receives a world-class hosting service, a fully secured hosting site, Intel server maintenance and the backup and support of the full Comparex Africa operations and networking teams.
The company now also enjoys a complete managed Telkom IVPN WAN solution with redundancy in terms of bandwidth, and guaranteed WAN service level agreements (SLAs) with penalties, including router maintenance.
The deal follows a groundbreaking `coopetition` agreement, a term coined by Novell founder Ray Noorda to describe a business co-operating with its competitor, between the two ICT services providers Comparex Africa and Telkom.
"Comparex Africa and Telkom CS were able to win the deal by offering a comprehensive solution to Metcash`s outsourcing needs," says Johan Coetzee, Comparex Africa Business Executive. He adds: "Comparex Africa has an impeccable outsourcing record: because of our excellent methodologies and processes and careful management of relationships, we have never experienced an outsourcing contract cancellation."
On whether the ICT solutions provider overcame any major challenges, Coetzee says: "By involving affected Metcash staff in defining SLAs and clarifying roles and responsibilities from the outset, both we and Metcash ensured that any concerns or issues were addressed timeously. This also helped overcome any possible resistance to be expected in deals this size."
Metcash includes Cash & Carry stores, Trade Centres, liquor stores, regional distribution centres (which service petrol stations, convenience stores and independent supermarkets and its Friendly franchise operations), Stax, Capital Tobacco, Unitrade Management Services and is also in the process of obtaining the Seven Eleven stores.
Share
The Metro group of companies conducts business in 17 countries, as distributors of groceries and fast moving consumer goods, including liquor.
The group not only aims to supply quality products at competitive prices to consumers worldwide, but routes its supplier`s products throughout a far-reaching distribution network, while improving operational efficiencies throughout the group, establishing a winning culture and image, and championing the independent trader wherever it operates. It aims to do all this within a context of contributing towards the development of the social and economic futures of all countries in which it operates. For more information on Metcash SA, visit www.metro.co.za.
Comparex Africa
Comparex Africa is the leading integrator of ICT-based business solutions that make its clients more successful. Based on a strong customer-centric approach, Comparex Africa delivers technology-business solutions from the full range of competencies within its group that align its clients` strategic and operational business needs. Comparex Africa`s client-centric structure stems from its Systems Integration Model, a methodology that allows for flexibility and close client relationships.
Offering business solutions that address all areas of its clients business, Comparex Africa services organisations within the corporate and large enterprise, government and parastatal markets as well as within the medium enterprise sector in all vertical markets. As an organisation with its roots firmly embedded in Africa, Comparex Africa reflects a cultural diversity, relying on the unique contribution of each of its skilled employees to succeed. Transformation is an overriding business imperative for Comparex Africa and as such it has dedicated resources from across the organisation to drive employment equity, economic empowerment and social investment programmes. For more information on Comparex Africa, visit www.comparexafrica.co.za.
Editorial contacts