Tech Data Corporation
Customer Snapshot: Overview
150,000+ IT products sold
One of the world’s largest wholesale IT distributors, Tech Data Corporation needed to streamline warehouse processes and operations. So they implemented warehouse management functionality within the SAP ERP application. Results: double-digit productivity gains – and more than 20% reduction in logistics-related operating costs.
Tech Data Corporation
US$26.5 billion (2011)
Number of Employees
Clearwater, Florida, USA
Line of Business
Finance, Human Resources, Supply Chain
SAP Business Suite, SAP Business Warehouse, SAP ERP
Within just a couple of months of going live with the warehouse management software from SAP, we started seeing impressive benefits, including reduced costs and improved productivity in our warehouses.
Customer Snapshot: History
Customer Snapshot: Business Model
Tech Data provides a range of products, logistics capabilities and value-added services that enable more than 125,000 technology makers and resellers to deploy powerful, cost-effective IT solutions in over 100 countries. The company’s products, services, programs and e-business tools help resellers operate their businesses more efficiently.
Customer Snapshot: Success Strategy
The company has evolved from a "pick, pack, and ship" operation into an "integrated supply chain specialist" model. Technology manufacturers and resellers rely on Tech Data as a strategic go-to-market partner focused on a three-part strategy:
The company’s North American enterprise resource planning (ERP) system – customized to support warehouse management – was expensive to maintain. It also lacked the agility Tech Data needed. As a result, warehouse employees relied on manual processes to accomplish their tasks, with insufficient support from the ERP system.
Tech be Nimble
Tech Data recognized the need to improve warehouse operations in the U.S. Having rolled out SAP business enterprise software in 17 countries in Europe, the company recognized the advantages of standardizing on a single platform, so they chose the warehouse management functionality in SAP ERP.
A number of factors made it advantageous to be on one platform: total cost of ownership, worldwide efficiencies, and streamlined customer support. Plus, if vendors ever want to purchase from us globally in the future, we will already have the right processes in place. With a single platform, we’ll be able to serve them consistently out of every warehouse.
Better Business: Benefits
After the warehouse management software was implemented across the eight logistics centers and 1,000 associates, Tech Data got quick results:
With enhanced inventory control, we have far more granular tracking inside the warehouse, which is tremendously valuable in satisfying our service-level agreements.
Better Business: Run Simple
Since the initial installation of the warehouse management functionality in SAP ERP, Tech Data has deployed additional SAP software to support business planning and consolidation and human capital management and pricing.
With SAP software, we can proactively expand our offerings and continue to meet customer requirements cost-effectively.