Clothing retailer Postie Plus cites its implementation of SAP as one of the factors driving its better-than-average performance in consulting firm Deloitte’s latest South Island index.
The index is a regular survey conducted by Deloitte of South Island-based companies listed on the NZX and NZAX, which tracks the firms’ market capitalisation.
The latest index, released this month, compares South Island companies’ market cap at the end of the September-December quarter compared with their position at the end of the previous quarter, from July to September.
While many southern firms experienced a decline in market cap, leading to an overall decline of $694 million — or 18.4% — for the 34 companies in the index during the quarter, Postie Plus was one of the few to buck the trend, recording an increase in market cap of $1.2 million, or 10%.
Postie Plus CEO Ron Boskell, who is interviewed in the Index report, cites a number of factors, including implementing a system from SAP in 2006-07, as key to its performance during the quarter.
Talking to Deloitte, Boskell noted “Duplication is the unpardonable sin in business and it was a focus to cut out any areas in our business where we were doubling up.
“In SAP we now have one version of the truth across the business and SAP is gaining traction.
“It is now saving us considerable time with day-to-day tasks, and as a result, this allows us more time for analysis of the business,” he is quoted as saying in the Index report.
Boskell also cites inventory reduction, the sale of the Arbuckles division and other measures as contributing to Postie Plus’ performance.
Postie Plus decided to implement several SAP applications from SAP’s mySAP ERP product, in 2006, following a review of its systems the previous year.
The systems included financials, Warehouse Management and SAP’s Business Warehouse business intelligence product. The package was installed by SAP partner Ciber.
Christchurch sharebroker Grant Williamson told The Christchurch Press that not too much should be read into the Postie Plus market cap increase, as its shares were thinly traded and were priced so low that it would take a move of only a few cents for them to rise 10%.
Nonetheless, Postie Plus CEO Boskell says in the Deloitte interview that he is positive about the future.
Decreases in the market cap of large South Island-based primary industry companies were the main reason for the overall 18.4% decrease in the index.