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SAP financial tools were sought after by Walmart having realised that they needed to replace their financial systems with a more scalable and flexible one.
Walmart is pushing ahead with the implementation of SAP financial tools across their global locations having successfully piloted the installation at Asda in the UK.
Asda reported improved financial reporting ability which has confirmed that Walmart’s objectives for implementing SAP financial tools can be achieved.
The SAP system replaces Walmart’s legacy, in-house developed system, which had grown over 30 years.
“The SAP implementation gave us the ability to improve our methodology for valuing inventory under the retail method of inventory accounting,” Walmart said in its financial report. “We have improved our ability to measure inventory at more granular levels.”
Meanwhile, Doug McMillon, Walmart’s international president and CEO, said: “In the United Kingdom, Asda continues to make good progress towards their strategic goals.”
“Walmart realised they needed to replace their financial systems for a more scalable and flexible one, “said David Dixon, SAP Programme Manager at Asda.
“It selected the UK to be the pilot for the global rollout because we are a reasonable size, second to the US in terms of business size, and language wasn’t a barrier. They also felt it [Asda] was a willing business.”
“The main rationale [behind the SAP rollout] was to have a ‘one version of the truth’ approach, to standardise and gain a degree of control around the world,” said Dixon, who added that one of the biggest challenges of the implementation was connecting the system to the global business.
Dixon said that the SAP system has introduced a number of benefits to Asda. “We have now reduced the time to close at the end of the month, we have got a more flexible and streamlined payment process and we have got improved reporting. We have also seen efficiency and control improvements,” he explained.
Asda were recognised by SAP in May of this year for their successful implementation and the approach they had taken. They were the gold winners within the Large Implementation category.
“Strong quality project planning pervaded the entire process and throughout the implementation the plan was matched to actual activity every step of the way. Asda Stores Ltd also agreed pre-defined success measures with all parties involved to ensure that everyone was working towards a common goal. These success measures were met and the judges considered the overall quality planning processes exemplary.”
SAP News
Adapted: Computer Weekly
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