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    TCS is here to make a difference through technology.

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      TCS is here to make a difference through technology.

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      15 May 2025 TCS Recognized as One of the World’s Top 50 Brands by Kantar BrandZ; Brand Value Soars 28% YoY to $57.3Bn
      14 May 2025 TCS Partners with Khan Bank to Future-Proof its Operations, Enhance Customer Experience and Propel Innovation leveraging AI and ML
      12 May 2025 TCS Partners with Dhofar Insurance Company to Transform its Core Insurance Platform
      View all
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      View all
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      22 Apr 2025 TCS Ranked #6 Amongst Banking Technology Providers and Recognized as a Regional Leader across all Geographies by Everest Group
      17 Apr 2025 TCS BaNCS Named a Leader Among Wealth Management Products by Everest Group
      13 Feb 2025 TCS Positioned as a Leader in IDC MarketScape for Worldwide Life Science R&D ITO Services 2024
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    • Retail
    • Case Study

    The Co-op Group modernizes retail business with SAP ERP

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    INDUSTRY

    Retail This will open an overlay

    Omnichannel CX and Intelligent Innovation – The Future of Retail

    Read how TCS’ agile and AI-powered retail solutions help businesses strengthen supply chains, reimagine operations, and deliver improved customer experience.
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    TCS Consulting Services to Achieve Success in the Digital Era

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    Highlights

    • The Co-operative Group, one of the world’s largest consumer co-operatives owned by more than eight million members, is the UK’s fifth-biggest food retailer with over 2,500 stores.
    • As part of its transformation plan, the group modernized most of its key legacy platforms with robust SAP retail solutions.
    • The group partnered with TCS for innovative use of technology to improve on-shelf availability of products, increase operational efficiency, and drive better supplier collaboration.

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    Overview

    The Co-operative (Co-op) Group is one of the world’s largest consumer co-operatives.

    Owned by more than eight million members, it is the UK’s fifth-biggest food retailer. They operate 13 distribution centers and more than 2,600 stores, dealing in 55,000 products and servicing 1,700 wholesale customers.

    The Co-op Group aims to focus on driving B2B revenue, thereby growing top line to about $1 billion (about £800 million) in three years.

    Challenge 

    In 2020, the Co-op Group initiated a business process automation program as part of their long-term strategic initiatives for transformation-led growth.

    The retailer wanted to do away with legacy platforms and modernize the IT landscape with robust JDA and SAP retail solutions at over 2,000 stores.

    Most of their systems were relatively old, with lots of different applications added through various acquisitions and mergers over the years.

    Due to a high number of legacy systems, data synchronization was a challenge, which made it difficult to retrieve information, hampering the delivery of services. The systems were rather inefficient and highly expensive to maintain. There were, for instance, more than 90 legacy systems with over 2,000 interfaces that made them unwieldy. The business could no longer sustain this way of working, as it impacted efforts to improve customer and colleague experience.

    Solution 

    The Co-op Group collaborated with TCS to implement a scalable model to modernize the IT landscape.

    TCS successfully completed IT modernization at over 40 franchise stores of The Co-op Group, laying the groundwork for further rollout at the remaining over 250 franchise stores. Legacy systems were sunset, and the retail business was modernized with greenfield implementation of SAP ERP solution.

    The franchise stores were equipped with:

    • Advanced, automated, multilevel forecast and replenishment capabilities
    • Automation of ordering and replenishment processes

    The solution had the right blend of inhouse applications for product and supplier introduction, JDA solution for range and space, and SAP solution bundle from ERP Central Component (ECC), Secure Network Communication (SNC), Forecasting and Replenishment (F and R), Customer Activity Repository (CAR), and Business Warehouse (BW).

    This streamlined inventories along with the supply chain and helped lower overall inventory levels and cost while optimizing fulfilment rates. Legacy data synchronization was handled with SAP data migration tool during go-live and cutover.

    By 2022, The Co-op Group had rolled out the SAP system across 2,600 stores in the UK. At this time, TCS, along with stakeholders from the client’s team started thinking about a stabilization and performance improvement strategy for the system. This would help ensure robust and seamless delivery of services, especially during the holiday season when sales peak.

    As part of the stabilization strategy, we focused on:

    • System stability: Implementing SAP technical performance improvement recommendations and enforcing performance volume testing as part of all upgrades and patches
    • Shift left and automation: Creating reconciliation reports, ensuring standard operation procedure- (SOP) based recovery, developing sanity check guides
    • Operational rigor and assurance: Conducting weekly major incident mock up drills, organizing major incident management team meeting refreshers, and conducting peak sales period preparation eight weeks prior
    • Enhanced visibility: Conducting daily recon report run and fix, setting up ops dashboard and internal war rooms
    • Business enablement and ownership: Creating order journey ops dashboard, enforcing data setup cut off during the peak, planning for peak readiness and daily catch ups
    • Process harmonization: Conducting regular independent center of excellence reviews of application managed services to further align with best practices

     

     

     

    Benefits

    With TCS modernizing their IT landscape, The Co-op Group is equipped with advanced forecasting capabilities.

    Partnering with TCS has helped The Co-op Group:

    • Improve on-shelf availability
    • Drive efficient operations
    • Ensure strong supplier collaboration

    The new platform enables end-to-end tracking of all terms of trade with vendors and has introduced unparalleled promotions and price modelling platform transparency to track actual retained margins.

    It has also brought in forecasting and replenishment models, which use complex and accurate calculations for store business orders based on SAP’s forecasting module. New customized implementation has reduced wastage at stores and unified scheduling platform for future, time-based business orders and deliveries.

    Additionally, TCS’ system stabilization strategy has ensured smooth operations for the retailer. The Co-op Group achieved 99.5% in-store availability and zero hours of trading loss during the last holiday season, with a whopping 96% success in batch processing.

    Related reading

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    The Co-op Group and TCS–building a partnership with purpose

    Customer Testimonial | 19 Mar 2024   Opens in new tab

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    Kingfisher Plc transforms CX with TCS OmniStore™

    Customer Testimonial | 21 Sep 2023   Opens in new tab

    Fine-tune pricing strategies with AI-ML to drive competitive advantage

    White Paper | 31 Oct 2023   Opens in new tab

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