Ranch Market Revamps their Business Operations with SAP All-in-One for Retail

Ranch Market, one of Jakarta’s most renowned high-end supermarkets, focuses on genuine customer value and lean operations by successfully implementing SAP All-in-One for Retail

JakartaSAP Indonesia today announced the successful implementation of SAP All-in-One for Retail at Ranch Market Indonesia. SAP All-in-One is a prepackaged, industry-specific version of SAP Business Suite with built-in content, tools, and methodologies for a cost-effective, turnkey implementation. SAP All-in-One solutions offer out-of-the-box flexibility combined with the power of SAP’s world-class business solutions. The implementation by PT SCS Astragraphia Technologies (SCS.Agit) was done for 67 users across 5 Ranch Market Stores and the head office in Jakarta. The core retail scenarios were powered by SAP’s IS Retail for their core merchandising.

Starting operations in 1997, Ranch Market Indonesia currently employs 600 staff and has 5 branches in Indonesia (four in Jakarta and one in Surabaya). Genuine Customer orientation and customer service – anyone shopping in any of the Ranch Market Supermarkets can be sure that the entire goods available are on the shelves and that the fresh goods really are as fresh as vendors say. Nearly 28,000 products are processed in the branches everyday, all subject to various retail-specific requirements. Specifications such as weight or best-before dates have to be considered when stock is being picked or moved to or around their warehouse and stores. In short, the company has to meet all kinds of major logistical challenges and requirements.

Ranch market’s goal was to meet all these challenges head on and focus on future growth by using a new, powerful, and future-proof solution. Their previous in-house solution was an inhibitor to their expansion plans, and so Ranch Market went looking for a scaleable, easy to implement solution to meet their future business needs.

After evaluating systems currently available on the market, the retail company found good reason to opt for SAP All-in-One . “From the demo and various discussions with industry experts from SAP and SCS.Agit, it was clear to us that SAP was the best fit to address our immediate and future business needs.” said Nugroho, President Director of Ranch Market Indonesia. He further elaborated that “SAP All-in-One for Retail offered end-to-end integration of our entire business processes. More importantly, SAP offers visibility into our entire supply chain. In conclusion, SAP fulfilled our requirements with regard to functionality, integration, and future orientation better than any of the systems we tried.”

Benefits After Go Live

The company wanted to use SAP All-in-One to realize a whole range of improvements, which in summary increases competitiveness and customer orientation. That meant introducing new, optimized business processes for stock distribution, and avoiding stock-outs – while at the same time minimizing stock levels, cutting costs, improving customer service, and substantially increasing the level of automation. The implementation of SAP All-in-One at Ranch Market took 4 months. After the successful go-live on December 2006, Ranch Market could reap several important benefits across their various business functions.
Business process enhancements are felt across Store Operations (Inventory Management, Sales Reporting), Merchandising (Master Data Management and Pricing Management) and Finance (Chart of Account, Reporting & Integration) .

“With nearly 28,000 number of product items in our store, inventory management is an extremely complex task. With the solution, our in-store inventory is optimized, ensuring that products are always available for sale. In addition, with accurate real-time sales reporting we can accurately analyze the various goods in each of our branches – which are the most popular, what the seasons are and so forth” said Nugroho. “With this system, we can offer our stores an optimal and timely supply of goods of the highest quality.”

Currently, Ranch Market also enjoys reliable and consistent information across all stores. They can greatly reduce administrative work and significantly reduce pricing errors.

From the financial department standpoint, reporting & consolidation of results from multiple entities are simplified. In addition, accurate financial reporting can be done instantaneously as all data are updated online and integration across modules for all transactions is achieved.

“We now also have much more transparent business processes that are supported by workflows, which make us much more competitive as a retailer” added Nugroho.

The Ranch Market management team is certain that SAP All-in-One was the right choice “With SAP, we have clearly revamped our business operations. Undoubtedly this improves our decision making process, efficiency of operations, our service to customers and collaboration with suppliers. SAP is our highly effective instrument with which to achieve further success in this tough, competitive industry.”

“SCS.Agit is pleased to work with SAP to deliver SAP All-in-One to Ranch Market, leveraging our competencies and track record in SAP implementations for the consumer product group, banking, telecommunication and automotive sectors,” said Alvin Kok, President Director of SCS.Agit.

About Ranch Market

Ranch Market was established in 1984 by Mr. Roger H. Chen in Westminster, CA (Little Saigon). As of the end of 2001, their supermarket division owns twenty-one full-service stores in California and one store in Washington. Ranch Market has also successfully opened independent licensee stores in Nevada, Hawaii, Arizona, and Indonesia.
Ranch Market was opened in Indonesia in 1997 under PT. Supra Boga Lestari. It now employs 600 staffs and successfully operates 5 branches. Ranch Market was certified with HACCP 9000 (Hazard Analytical Critical Control Point) in 2002, the only supermarket in Indonesia to receive food safety certification. Success can be attributed to its customer-first philosophy, convenient locations, pleasant shopping environment, and the wide variety of products. Anyone shopping in Jakarta in any of the many Ranch Market Supermarkets can be sure that the entire goods available are as fresh as can be.