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How to Achieve 17% Growth, Year after Year

100%

increase in online
sales orders

 

How does a retailer consistently achieve 17% annual revenue growth? Maintaining 100% control over costs and budgets is a great first step. SAP for Retail solutions made it possible for Brazilian department store chain Benchimol Irmão & Cia Ltda., helping it reduce out-of-stock situations, boost productivity, and cut costs in operations and IT.

 

“For over 10 years SAP for Retail solutions have supported our growth strategy because of their robustness, best practices, and flexibility for developing and improving our specific solutions.”

Company

Benchimol, Irmão & Cia Ltda. BEMOL

Headquarters

Manaus, Brazil

Customer Website

www.bemol.com.br

Revenue

US$375 million

Number of Employees

1,900

Implementation Partners

SAP Consulting

Line of Business

Service, Sales, Finance, Supply Chain

Industry

Retail

Featured Products

SAP for Retail, SAP NetWeaver Process Integration

History

Bemol background

Bemol is part of a group of companies that have been operating since 1942 in diverse businesses, including propane gas distribution (Fogás), department store retailing (Bemol), internet shopping (eCenter), and export of Amazonian natural products (Benchimol, Irmão). Headquartered in Manaus, a city in the Brazilian Amazon, Bemol operates 17 department stores that sell everything from appliances and electronics to furniture and telephony equipment.

 

With more than 600,000 credit card holders,
Bemol is the best-known department store
brand in the region.

The Challenge

Gaining control

Bemol suffered from common retailer problems. Inconsistent inventory management. Out of stock items. Disconnected business processes. Sub-par productivity. Spiraling costs. And management felt powerless to do anything about it. Bemol had ambitious growth goals, but it knew it could never achieve them until it gained better control.

Enter SAP

Finding the right partner

Bemol needed a strategic partner to provide the right business software for steady, profitable growth. The applications had to deliver accurate data to keep inventories properly stocked, and unify Bemol’s business processes while providing best-practice models for optimizing them. After researching the field, Bemol found their partner: SAP.

 

 

The SAP Experience

Running on SAP

Bemol selected SAP for Retail solutions to run its business and SAP Consulting to assist with implementation. After initial deployment, the company opened an expanded distribution center and added the SAP Extended Warehouse Management for Retail and Wholesale Distribution package for managing it, helping make it a great success.

 

“It would be impossible to manage a distribution center of this size without a good management tool.”

Benefits

Measurable results

With SAP, Bemol’s sales order approval productivity increased by 50%, online sales orders approved increased by 100%, it saw a 20% increase in productivity in furniture assembly, and it now takes 75% less time to receive goods.

 

Today

Best practices pay off

Productivity is up. So is customer satisfaction. Better inventory control minimizes out-of-stock situations. Improved financial data saves accounting time. Operational and IT costs are a very low percentage of revenue. Executives control their budgets and costs. And there’s a compound annual growth rate of 17% in the decade since adopting SAP.

 

Journey Ahead

More ways, better business

Bemol continues to improve. It’s currently looking at SAP Business Planning and Consolidation, while Mobility solutions from SAP will help deal with the increasing dispersion of Bemol’s operations. It’s also considering replacing the legacy reporting environment with SAP BusinessObjects Business Intelligence solutions.

 

“We made a wise decision choosing SAP, our partnership has produced more than a decade of success already, and there is much more to come.”

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