With annual revenues at around 27.9 Billion RMB (€ 3.1 billion) and an annual growth rate of 40%, Wumart is one of the largest chain stores in China. In order to keep up with its fast growth spurt, in 2007, Wumart’s Management Team decided to focus on improving operational effectiveness by simplifying the organization’s store sales model and optimizing various systems including demand forecasting, specialized procurement, assortment and space management and the demand-driven internal supply chain. With acquisition being a key component of Wumart’s business model, the organization also wanted a solution that would integrate the business and IT systems of acquired enterprises seamlessly.

Wumart looked to SAP for help. Despite the complexity of creating a scalable system for such a huge, fast-growing organization, SAP deployed a combination of standardized processes and software and comprehensive support to bring about the project’s success. SAP’s solution comprised of both software and consulting services to improve efficiency, streamline processes and implement cost savings. SAP consultants from more than 13 countries shared core retail best practices with Wumart’s Management. SAP helped Wumart to implement SAP ECC 6.0, thus simplifying the company’s IT landscape.

The new system replaced several legacy systems and reduced maintenance costs. The successful rollout of WINBOX@SAP helped the marketing, purchasing, logistics, and operations departments improve their performance, leading to a 30% EBIT increase. As a result of the ERP system’s heightened efficiency, employee productivity increased. In addition, the centralized ERP system produces cleaner business data and supports multiple formats as well as the seamless integration of financial and business data.

Wumart will rollout the SAP ERP solution throughout its store network and is considering implementing SAP Financial Asset Management in order to obtain real-time, transparent data and thereby make faster, better-informed business decisions.

“Choosing SAP was one of our wisest decisions,” says Yu Jianbo, Vice President of Wumart. “SAP is a dependable partner delivering consistently high-quality service to its customers.”