Big annual operational savings of $4 million are anticipated by The Warehouse, following the modernisation of its core enterprise resource planning system.
New Zealand’s largest retailer went live in September with a new Jade system and Wintel platform, after switching off its Linc legacy system.
Jade won the three-year outsourcing contract in a competitive tender that included Unisys and IBM, as well as UK company APL, which was pitching Hewlett-Packard and Datacom solutions.
The Request for Proposal was issued late in 2006. The Warehouse CIO Owen McCall says Jade demonstrated the ability to move from Linc to Jade well.
“They did it through a prototype system,” he says.
“The process was started three years ago.”
McCall estimates the project will pay for itself within 12 months. It will cost $9-$10 million, including internal costs.
“Our old legacy mainframe cost millions of dollars,” he says. “We’re now running off an IBM Wintel box.”
McCall says Jade is open enough to publish services in an open environment. “I can publish a web service in any language.
“We can use Jade for processing, and to leverage our existing investment in relational databases for business intelligence and reporting — and preserve our business rules and processes, with minimal need for staff training.
“Jade supports future development in a number of technologies, including Java and .Net.”
Three months after going live, the new system is processing a higher daily volume of data transactions than originally expected, and manages a database of more than 80 million inventory items.