Retailer Spar has had to inform its shareholders that a new software system blunder has cost the company R1.4 billion.
The household giant moved to a new SAP software system and started rolling it out at their KwaZulu-Natal distribution centre earlier this year.
The system cost R1.8 billion, according to Spar, and negatively impacting distribution operations in KZN.
“The impact of the SAP implementation at KZN amounted to an estimated loss of turnover to the Group of R1.4 billion for the period, being approximately R786 million for the six months ended March 31, 2023 as previously reported, and an additional R638 million for the five months to August 2023,” the company said on Thursday.
Despite this major financial blow, SAP is still “a supportive partner” to the retailer and the KZN distribution centre is once again servicing all stores in the region.
According to the retailer, the solution provided by SAP to resolve the issue with the software “is stable and performing consistently”.
It should be noted that IOL has reached out to SAP to comment on the software issue.
EXITING POLAND
Spar also noted that it was exiting Poland. The retailer “believes that it is in the best interests of the group and shareholders to engage in a process to dispose of its interests in Poland”.
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