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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.
Benchimol, Irmão & Cia Ltda. BEMOL
Service, Sales, Finance, Supply Chain
SAP for Retail, SAP NetWeaver Process Integration
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.
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.
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.
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.
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.
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.