Foodstuffs South Island transforms operations with cloud move

Foodstuffs South Island has successfully implemented a corporate digital makeover, deploying SAP S/4 HANA RISE as part of a 14-month cloud transformation. The New Zealand-based grocery retailer is an essential part of the South Island community, operating over 200 stores with more than 14,000 members and 1,200 suppliers.

The transformation now equips employees with a unified and real-time view of business data, thus empowering them to swiftly uncover key insights about customer preferences and pricing strategies. An essential breakthrough of the cloud transformation is the capability of machine learning to anticipate demand for products. Predicting consumer preference, particularly for short-dated items such as fresh produce, has significantly cut down food waste and optimised shelf space allocation for high turnover products.

Vendors, too, have profited from this transformation as their involvement has been enhanced, giving them the ability to upload and monitor promotions directly into Foodstuffs South Island's operational systems. With this improved accuracy, employees are now more capable of managing retail offers, freeing up time and resources to focus on essential tasks. The workforce has also been introduced to handheld technologies linked to SAP, allowing them to adjust inventory, prepare click and collect orders, and review product recommendations.

Shayne Tong, Chief Digital Officer, Foodstuffs South Island, emphasised the company's people-centric approach, stating "Our people are at the heart of our co-op and our members and suppliers are instrumental to our success – and we see technology as an enabler of improving the experience across all of them." He further explained that by updating their technology, systems, and tools through SAP, they have streamlined many aspects of their work, thus making operations "easier, simpler and quicker for our workers."

In a reaction to the successful implementation, Adrian Griffin, Managing Director SAP New Zealand, commended Foodstuffs South Island's digital evolution, praising their transition to a cloud-based model. He stated, "By turning to the cloud, Foodstuffs South Island is already enabling a data-driven approach to its operations, helping the business pave a path for sustainable future growth and deliver long-term value for its people and customers."

The implemented software further enables them to maintain the pace of technological advancement by leveraging real-time insights, embedded intelligence, and advanced technologies to build resilience into the business.

Foodstuffs South Island plans to continue this digital progression, with future plans to utilise SAP's artificial intelligence capabilities for improved forecasting and inventory management.