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Transforming Leading UK Distributor’s ERP System For The Future

Challenge

Outdated Systems Holding Back Growth

As companies grow, their systems often struggle to keep up with the increasing pace of change, leading to inefficiencies. One of our clients, a leading UK distributor, faced this challenge with its 30-year-old custom-built ERP system. Originally developed in-house, the system was critical to their operations. However, following substantial growth through acquisitions and the outdated technology on which it was built, it became a ‘sunsetted legacy product’.

Recognising the need for a transformative change, the board turned to PMC for expertise in exploring and implementing a modern solution that would align with their strategic goals.

Their existing system, built on 1980s ISAM file technology, was not just outdated but also under-documented. The knowledge and skills required to maintain and enhance it were dwindling, posing a significant risk to the business. The current IT vendor made it clear that any substantial changes would necessitate a complete overhaul.

By engaging the PMC consulting team, the client sought an honest evaluation and a pragmatic path forward. PMC was tasked with reviewing the existing ERP, understanding the business needs, identifying viable solutions that would future-proof their operations, and mapping out a strategy to underpin the future business growth plan.

Approach

Exploration and Stakeholder Engagement

The journey began with an in-depth assessment of the legacy system and its operational environment. The system was deeply entrenched, with large parts undocumented and the supporting skills becoming rare. Despite these challenges, the client’s leadership was open-minded and ready to explore new horizons.

The approach was straightforward – rather than pitching an immediate solution, the focus was on a thorough exploration of the market and the company’s needs.

Discovery and Market Analysis

The exploration phase was comprehensive. The current technical architecture and business processes were evaluated, engaging with key stakeholders to define their vision and objectives. The process involved: 

  • Market Analysis: Identifying and shortlisting potential ERP solutions and best of breed systems that could meet their needs.
  • Product Evaluation: Creating a shortlist of three ERP systems from an initial long list, focusing on suitability, cost of ownership, and market fit.

Solution

Designing a Future-Ready Transformation Strategy

The transformation strategy centred around people, processes, technology, and strategy. A target operating model and roadmap were developed, addressing each pillar:

People: Recognising the need for fresh skills, experienced professionals were recommended for roles such as CIO, enterprise architect, and vendor manager. This expertise in transformation was crucial to steering the project.

Process: The aim was to unify customer and product data across all trading entities, ensuring consistency and efficiency.

Technology: A phased approach was recommended, starting with the creation of a data lake to manage and centralise data before transitioning to the new ERP system.

Strategy: Aligning IT strategy with business goals, focusing on consolidation, centralisation, and market expansion.

Bringing the Vision to Life

With the strategy in place, implementation began. Key steps included:

  • Building a Data Lake: A data lake was established to facilitate a smooth transition from the legacy system, ensuring data consistency and integrity;
  • Engaging Vendors: RFPs were initiated and ERP vendors were engaged to select the best fit for the client needs.
  • Conference Room Pilots: CRPs for the new ERP system and trade centre automation were held to validate the solutions and demonstrate their business value.

Outcome

Transforming Operations for Agility and Growth

The transformation journey has yielded significant progress: 

  • ERP Selection and Implementation: The client is in the final stages of implementation planning after the RFP process, with the selection of a new ERP system completed. Proof of concept for the ERP system and finance systems is planned for completion by year-end. 
  • Operational Efficiencies: Substantial opportunities for improvement were identified, including a potential £20-30 million reduction in working capital and enhanced customer relationship management through unified data views. 
  • Strategic Alignment: The new ERP system, IT architecture and operating model are designed to support the client’s strategic goals, ensuring seamless integration and operational efficiency. 

As the client transitions to a modern ERP system, they are positioned to achieve greater agility and competitiveness. The ongoing implementation phases will solidify this transformation, enabling them to enhance its market leadership and operational efficiency. 


This transformation marks a critical milestone for our business. Working with PMC has proven invaluable; their independence, extensive market knowledge, and deep understanding of the retail sector have guided us seamlessly. Their approach is measured, well-thought-through, and truly focused on our needs. In the consulting market, few firms offer such genuine dedication and insight.

Client Representative

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