Largest Retailer in Brazil Selects SAP

by Debora Strum

Grupo Pao de Acucar Consolidates its IT Infrastructure With SAP Solutions

Demonstrating ongoing leadership in providing innovative solutions to retailers worldwide, SAP AG today announced that Grupo Pao de Acucar, the largest retailer in Brazil selling food and general merchandise, has selected SAP solutions to consolidate its IT infrastructure to gain increased visibility into its business operations. With 64,000 employees and 573 stores, the company will use SAP solutions to gain increased control over corporate governance processes, helping it comply with strict regulatory controls. The announcement was made at the National Retail Federation (NRF) 97th Annual Convention and Expo, being held in New York, NY, January 13-16.

"We anticipate a return on investment with SAP -- both qualitatively as well as financially," said Joaquim Dias Garcia, IT Manager, Grupo Pao de Acucar. "SAP knows the retail business, and this was the determining factor in our decision. As soon as the system is in production, we will obtain gains in agility and information quality because all our business operations will be consolidated on a single platform."

Following the SAP implementation, Grupo Pao de Acucar is expecting to achieve its goal of consolidating 10 in-house IT systems in order to manage and gain visibility across its entire business operations. The company will utilize an integrated platform and various applications from SAP, including the company's flagship enterprise resource planning application, SAP(R) ERP, to better manage risks, prepare for future trends and market changes and customer demands. In turn, Grupo Pao de Acucar's customers will experience increased support because its employees will have the tools they need to trace products more efficiently and reduce delivery time.

The implementation project consists of SAP applications for financial accounting and controlling, material management for indirect suppliers, plant maintenance and the solution for business planning and simulation, which will allow Grupo Pao de Acucar to improve business process control and provide accurate planning.

"Leading retailers throughout the world are turning to SAP because of our industry strength and proven technology and solutions," said Verlin Youd, senior vice president, Trading Industries, SAP AG. "Retailers in Latin America are facing increased pressures from within and outside of their country. Grupo Pao de Acucar is a fine example of an innovative retailer that is leveraging technology to address internal transparency issues, but at the same time focus on delivering quality service and products to its customers."