A quandary facing retailers is whether to build or buy their systems, but the mindset seems to be changing to the latter, says Christoph Schwarzl, SAP director for business development retail and wholesale.
Schwarzl is in the country to meet with SAP's retail user group.
The German-based software house recently won a R34 million contract from local retailer Pick 'n Pay to supply a solution to run the chain's human resources, financial and supply chain management system. This will replace Pick 'n Pay's Advanced Retail Management System, which was developed in-house.
He says retailers are beginning to recognise that building complex IT systems is not a retail core focus.
"We have to overcome the 'best-of-breed legacy systems' that many retailers still have in place," Schwarzl says.
Many local and international retailers began developing their own systems when there were no commercial products available.
"This means many of these systems have become outdated and are difficult to maintain," Schwarzl says.
Retail is now the group's largest business unit, with more than 2 500 retailers around the world using its products. The local installed base includes Makro, Italtile and Builders Warehouse. Other retailers using parts of the company's systems include Shoprite, Metro Cash & Carry and Clicks.
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