7-Eleven Stores Pty Ltd SAP Forum Retail & CPG Dennis Lewis April 2009 CIO
Oct 08, 2014
7-Eleven Stores Pty Ltd
SAP Forum Retail & CPG
Dennis Lewis April 2009CIO
7-Eleven Stores Pty Ltd
• Privately owned Australian company• 7-Eleven brand under license from 7-Eleven
International• Revenues in excess of AUS$1.3b• Approximately 380 stores on the Australian
eastern seaboard• Approximately half of the stores sell fuel• Compliant franchise model• In operation in Australia for 31 years• Approx 225 corporate employees• Approx 3,500 franchise store staff
7-Eleven IT Landscape
ERPIntegration
Business Intelligence
PortalPoint of Sale
eService IntegrationPayroll
Store network
SAP ECC6SAP PISAP BI7SAP POSDMSAP BIASAP Portal 7Radiant SystemsTouch SystemsMicropayBroadband - ADSL
Technical System Landscape
Converter
SAP NetWeaver PI 7.0
PIPE
SAP NetWeaver BI 7.0 SAP ERP Central Component 6.0
POS System (Radiant)
File Adapter
Master Data
Transaction Data
POS Data
IX Retail Content
POS DM
SAP NetWeaver Portal 7.0 SAP NetWeaver Portal 7.0BI Reporting
BIA
Flat Files
7-Eleven’s Current IT Status and Strategy• 7-Eleven selected SAP as its core system in 1998 and went live with release 4.0 in 1999.
The system was upgraded in 2003 and extended during 2004 to support the changes in thesupply chain processes when 7-Eleven changed from mainly Direct-Store-Deliveries (DSD) tocross-docking using Metcash as the main distributor. A store portal was rolled out inparallel to provide stores with ordering and inventory management functionality. RetailInterchange, the original middleware solution, was replaced with SAP PI in 2007. In 2008SAP was upgraded to Ecc6 and BI was implemented.
• Radiant is 7-Eleven’s POS system for all stores, it was implemented and rolled out duringthe 2d and 3rth quarter of 2004
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
SAP4.0
• SAP is the core system for 7-Eleven, and leveraging the investments made so far is one ofthe guiding principles for 7-Eleven’s IT. Other solutions are considered where SAP does notprovide sufficient functionality or where it cannot be used in a cost-effective way. 7-Elevenhas also chosen a ‘vanilla’ approach for any system implementation, i.e. implementingstandard functionality wherever possible and minimising systems modifications.
• Another guiding principle is to stay on supported versions of the software products.
•
Technical Upgradeto SAP 4.6 C
Radiant Roll-out
Store Portal
Supply ChainEnhancements
PI
2008 2009
ECC6 BI
Idea Development Solution Definition
Define ProjectDefine Project
ProjectCharterProjectCharter
UnderstandCorporate
Strategies andTargets
UnderstandCorporate
Strategies andTargets
Define KeyRequirementsand Drivers
Define KeyRequirementsand Drivers
AssessBusinessImpact
AssessBusinessImpact
Define ProcessRequirements
Define ProcessRequirements
DetermineBenefit AreasDetermine
Benefit Areas
Define ITRequirements
Define ITRequirements
Evaluate SAPEvaluate SAP
DevelopBusiness Case
DevelopBusiness Case
Develop ITRoadmap
Develop ITRoadmap
Outline KeyRequirementsOutline Key
RequirementsBusiness
CaseBusiness
CaseIT RoadmapIT Roadmap
Key Deliverables
IT Roadmap: ApproachProjectPlanning
DetermineRequirements
Analyse Impactand AgreePriority
DevelopRoadmap
DevelopBusiness Case
UpdatedKey
Requirements
UpdatedKey
Requirements
Prioritisation
During the Steering Committee meeting on the 14th of August 2007, the findings were presentedand discusses for prioritisation.
The following requirements were rated High:
HighG023 Collaborative, Flexible Forecasting
HighG028 Improve Franchisee Communication
HighG003 End-to-End Promotions Management
HighG005 Integrated Space Management
HighG002 Effective Price Management
HighG001 End-to-End Category Management
HighG013 Efficient, Integrated Enterprise-wide Reporting
PriorityGrouped Requirement
Roadmap: Summary
2007/2008 2008/2009 2009/2010
Phase 1: Upgrade to SAP ECC 6
Phase 2: Implementation of BIand POS DM
Phase 3: Portal Upgrade andRoll-out
Phase 4: Extendedfunctionality
The decision to upgrade first and then to implement BI and POS DM was driven by the arguments listed abovebut also by 7-Eleven’s desire to guarantee IT readiness for the significant growth strategy it has chosen. Thisequally determines the scope for the functional upgrade to ECC6. In order to reduce the risk of the upgradeand to meet the requirement G013 to provide ‘Efficient, Integrated Enterprise-wide Reporting’ as quickly aspossible only requirements with a high cost/benefit analyses and relatively low risk profile have beenincluded into the scope.
A fourth phase has been designed in order to address the requirements with a higher risk profile such as theswitch to the new GL functionality.
It is also important to note that the phases of the IT roadmap have significant process and changeimplications. The benefits can only be achieved if the identified process changes will be implementedtogether with the IT changes. Each of the requirements have been analysed with regards to their process andIT implications, for further detail please refer to Appendix 1.
BI System Business CasePrioritised benefits were classified into three
categories:• Hard, annualised cost savings which are
quantifiable and directly attributable toprocess/systems changes; typically includingreduced staff costs and improvements in the useof working capital.
• Benefits that are quantifiable, but are moresubjective in their association withprocess/systems changes, typically includingrevenue and margin improvements.
• Benefits that are hard to quantify, butrecognised as valuable or strategic to theorganisation or are seen as a risk mitigationbenefit.
Reduced out of stocks due to capacity planning
Reduced data management cost, reduced marketing dept costdue to effective price management
Reduced supply chain cost due to improved order management
Cost reduction due to reduced shrinkage/improved lossprevention
Cost reduction due to efficient, integrated enterprise-widereporting
Type A: Cost savings OPEX
Increase sales and profit through more better and customerfocussed layouts and better execution
More effective basket building promotions, increased customertransactions, increase revenue from suppliers through end toend promotions management
Increase sales and profit through effective price management
Increase sales and profit through enhanced categorymanagement and better reporting
Type B: Revenue increases
Benefitfirst
realised
PhaseProposedbenefit
SAP fitOriginalestimate
(workshops)
Income/savings
Deliverables• Article Sales Analysis• Sales Basket Analysis• Sales Price Analysis• Promotional Analysis• Store and Category
Analysis• Article Sales, Purchase
and Stock Analysis• Vendor Scorecard• Orders and Purchases
Analysis• Stock Availability
Analysis• Forecast Analysis
• Supply Chain Scorecard• POS Statistics• Store Matrix• Audit Variation Analysis• "Store Surveys"• Article Movements
Analysis• General Ledger Analysis• Accounts Payable
Analysis• Cash Flow Analysis• Balanced Scorecard
Project Stakeholders
© SAP 2007 / Page 1
7-Eleven BI Project Organisation
Project ManagementTam Mc Quinlan
Charmaine Steward (SAP)
Project SponsorDavid Ginsberg (COO)
Steering Committee- David Ginsberg (COO)- Dennis Lewis (CIO)- Andrew Manning (CFO)- Julie Laycock (Marketing)- Jim den Ouden (S-Chain)- Tam Mc Quinlan (PM)- Brian Molloy (PM, SAP)- Mona Da Gama (SAP)- Mark Giles (SAP)- Michaela Wagner (PWC)
Training & ChangeManagement
- Cathy Brancatisano- Kasey Edwards (SAP)- 7-Eleven Trainer (TBD)- Training Analyst (SAP)
BI Functional- Evan Michailidis (BA Team Lead)- Cathy Brancatisano (BA)- Adam Mills (SAP Solution Specialist)- Ramon Wong (BI Solution Specialist)- Bella De Freitas (BI Team Lead, SAP)- Elangovan Subbiah (BI, SAP)- Thomas Schleiter (PosDM, SAP)- Rahul Pradhan – (PosDM, SAP)- Bjorn Goller – (Solution Architect, SAP)
BI Technical/Development- Chitra Ashok (ABAP, XI Lead)- Archana Baxi (ABAP, XI)- Nilusha Perera (ABAP, XI)- Alex Tambellini (Basis/Author Lead)- Wi Tanto (Basis/Authorisations)- Joe Zooeff (Infrastructure)- Rahul Pradhan (PIPE, SAP)- Thomas Schleiter (PIPE/Basis, SAP)
Business Stakeholders- Bernie Hallam- Tracy Hammon- Michael Cullen- Johni Hii- Andrew Banard- Jacqui Cain- Sue Owen- Natalie Dalbo- John Pettit- Linda Chia- Gary Tocknell- Greg Neave- Chris Centra
BI System OverviewThe current 7-Eleven BI system landscapeconsists of:
20 MultiProviders19 InfoCubes8 Data Store Objects26 Queries106 Users
Number of transaction records: 528.2 million
Number of Database tables: 21211
Total size of Database: 730.31 GB
Data Retention StrategyTransaction data for the following cubes are retained for 15months:
Article MovementsCustomer (Billing)Merchandise Procurement
Data older than 15 months is moved to a correspondingMonth level detail cube for each of the cubes above
The Month level cubes will hold data between 15 – 36months old
Data older than 36 months is deleted from the systempermanently
This strategy allows for better management of data volumesand yet provide an avenue for historical data up to 3 yearsprior to be available for analysis at Month level detail
POS Data Volume ManagementCurrently, the average number of POS transaction data loadedinto BI is approximately 32 - 33 million records per month (~ 1.1million per day)
To manage this kind of data volume and maintain an optimumlevel of performance for reporting (i.e. to avoid reading fromhuge database tables), the POS Receipts data is logicallypartitioned into Quarterly POS Receipts cubes (i.e. POS ReceiptsQ4 2008, POS Receipts Q1 2009)
Each POS Receipts Quarter cube holds close to 100 million records
A POS Receipts Last 3 Months cube has been implemented toalways store the most current 3 months worth of data. This cubeis the most commonly used POS cube for performing Sales Basketanalysis and is accelerated with the BIA.
The following are the runtimes for the data loads that have beenscheduled to run daily to extract data from ECC6 to BI:
Master Data: ~ 1 hour
Transaction Data:
Total Daily load time: ~ 3 hours 25 minutes
Data Loading Timings
~ 14 minutesPrior to loading the POS data to cubes, data isactually extracted from POS DM 7 timesthroughout the day to the Persistent Storage Areain BI. Each extraction takes ~ 2 minutes
~ 18 minutesMerchandise Procurement
~ 6 minutesProfit Center Accounting
~ 1 hour 30 minutesPOS (including POS Receipts Last 3 Month cube,POS Receipts Quarter cubes, POS ReceiptsCancellation cubes)
~ 12 minutesArticle Movements and Stock
~ 5 minutesCustomer (Billing)
~ 2 hours 25 minutesTotal
RuntimeArea
BI Accelerator PerformanceBI Accelerator indexes are created on 12 InfoCubes containing a total of352.8 million records – the indexes take up 10.66 GB in memory and 13.75GB on diskThe runtimes for retrieving the data out of the BI InfoCube source tablesduring execution of the 10 most used 7-Eleven queries are:
~ 69x faster0.7 sec48.1 secArticle Movements Analysis
~ 19x faster8.2 sec158.2 secArticle Sales Analysis - Month
~ 66x faster2.4 sec157.3 secStore Franchisee Matrix
~ 64x faster1.49 sec96.0 secPurchases, Sales and Stock Analysis
~ 14x faster2.4 sec33.9 secStore and Category Analysis - Day
~ 10x faster31.5 sec322.3 secStore and Category Analysis - Month
~ 34x faster2.8 sec96.3 secArticle Sales Analysis
~ 118x faster0.4 sec47.1 secOrders and Purchases Analysis
1.3 sec
0.6 sec
With BIA
~ 56x faster
~ 105x faster
Improvement
62.7 secSales Basket Transaction Analysis Last 3 Month
72.8 secProduct Movements Analysis (PMA) Report
Without BIAQuery
On average, there is a reduction of 96.7% in data retrieval runtime
Note: All the queries were run with default selection values
Benefits Realisation• Pre-defined Benefits
• Business owner• KPIs• Target value• Business changes• Enablers
• Unplanned Benefits• Monthly capture by business area• What is the new capability• Business value
Analysing 7-Eleven at High Speed -Short focused project
• Leverage investment in SAP technology• Minimise integration issues• Utilise Business Content as much as
possible• Leverage SAP Consulting skills & experience
• International team• Deliver business benefits quickly:
• Initial delivery in 5 months
Analysing 7-Eleven at High Speed –Business Benefits
• Provide reporting we could not do before:• Promotions, out of stocks, affinity analysis• Merge our data and market data
• Provide useful information at speed• Up to date at start of each day
• Put analytical capability in the hands of theend users• Power users in each business area
• Embraced business wide• ROI of less than 2 years• Just the beginning of our BI journey
7-Eleven IT Focus 2009 - SAP
• Store Portal Functionality Upgrade• Use our BI capability to drive store retail
performance:• Business focussed store level reporting• Online communication – All Retail Activity• Store KPIs & performance reporting• Store cluster benchmarking• Store layouts• Local range tailoring• Fresh food in-stock position