Tractor Supply Company Successfully Implements SAP Retail System in Eleven Months and Under Budget.
On Feb. 18, 1999, Tractor Supply Company (NASDAQ:TSCO) successfully implemented SAP(TM) Retail(TM) 4.0b Enterprise System in 11 months, and under budget. Tractor Supply Company becomes the second North American implementation of the full suite of SAP Retail Functionality with over 100 users actively using SAP. This conversion from two legacy systems onto the SAP enterprise solution is responsible for management of all functional Merchandising, Distribution, and Financial Business Processes, interfacing with legacy Point of Sale, EDI, and Payroll and Space Management systems.
This successful implementation was lead and managed by Tractor Supply Company's "Genesis" team supplemented by outside consultants from Kurt Salmon Associates, Holland Technolgies, Precient, CSS, IBM(TM) and Pegasus utilizing SAP's(TM) Accelerated SAP(TM) methodology. Our "Genesis Project" team included key functional business associates and the entire I.T. Technical Team. The project was overseen by an Executive Steering Committee including Senior Executive and Key Business Process Owners meeting weekly to manage scope and make timely decisions to keep the project on track. TSC also made a strong commitment to develop and implement an end user training program managed by key executive and functional business associates supported by Patricia R. White & Associates Consulting.
Tractor Supply Company is utilizing Compaq(TM) Servers, Oracle(TM) DB and Windows(TM) NT in a three tier Client Server environment. SAP(TM) Go Live Service was employed as well as the SAP(TM) Performance Group to ensure adequate hardware resources and optimum system performance.
Tractor Supply's overall projected ROI on this project reflects a payback in 3 years. These new systems will allow the company to improve inventory turns and enhance gross margins through improved inventory management practices, purchasing efficiencies, regional merchandising, and logistical efficiencies.
Success was achieved due to a strong partnership with SAP(TM), teamwork, training and an enterprise-wide commitment to the project.
Tractor Supply Company operates over 250 stores in 26 states supported by 4 distribution centers. The company supplies the daily farming and maintenance needs of its target customers: hobby, part-time, fulltime farmers and ranchers as well as other rural customers. Typical store size range from 12,000-14,000 square feet of inside selling space and as much outside selling space. The stores are located in rural communities and in the outlying areas of large cities where farming is a significant factor in the local economy. Tractor Supply Company has been a public company since 1994 trading on the NASDAQ exchange under the "TSCO" symbol. Total 1998 revenues were in excess of $600 million. To learn more about the company, refer to our website at www.tractorsupplyco.com.
As with any business, all phases of the Company's operations are subject to influences outside its control. This report contains certain forward-looking statements. These statements include reference to certain factors, any one, or a combination, of which could materially affect the results of the Company's operations. These factors include general economic cycles affecting consumer spending, weather factors, pricing and other competitive factors, the timing and acceptance of new products in the stores, the mix of goods sold, capital market conditions in general and the seasonality of the Company's business. Forward-looking statements made by or on behalf of the Company are based on a knowledge of its business and the environment in which it operates, but because of the factors listed above, actual results could differ materially from those reflected by any forward-looking statements. Consequently, all of the forward-looking statements made are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business and operations.
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|Date:||Apr 15, 1999|
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