Spar revises Sap rollout strategy as legal risk escalates
In a Sens announcement, the retailer said it has amended its Sap implementation strategy to prioritise capability enablement over full distribution centre integration. The initial approach integrated warehouse, finance and purchasing systems simultaneously. The revised plan decouples finance from operational systems at distribution centres.
The finance transition to a single Sap environment with a unified chart of accounts will be executed in the current financial year. Spar said this will establish a single version of financial data while improving governance and operational efficiency.
Once finance goes live, the next phase will focus on enhancing drop shipment reporting, strengthening credit management, centralising purchasing and tightening pricing governance.
“We continue to manage the ongoing roll-out with risk mitigations to our business operations at the forefront of our planning,” the group said.
Legal pressure follows earlier rollout disruption
The Sap reset comes as Spar confirmed it has been served with a summons relating to alleged claims arising from the Sap implementation at its KwaZulu-Natal (KZN) distribution centre.
The group said it previously engaged the claimant in an attempt to resolve the matter, but discussions did not result in agreement. The current amount claimed now significantly exceeds the initial R5m cited earlier.
All other affected KZN retailers, except the claimant and one additional retailer, have reached settlements with the group. Spar said service levels at the distribution centre have stabilised and are now consistent with industry standards.
The retailer said it will respond to the summons through appropriate legal processes while maintaining operational stability across its network.