SAP does $35m deal to rollout ERP at Corporate Express

By: Jason Whittaker


Office supplies distributor Corporate Express will spend $34.5 million on rolling out SAP's enterprise resource planning (ERP) platform throughout its

Office supplies distributor Corporate Express will spend $34.5 million on rolling out SAP's enterprise resource planning (ERP) platform throughout its network.

The company announced details of Project nXtgen, including the SAP rollout, at its full-year results briefing last week.

The SAP system will be introduced over three years, as part of a two-phase implementation.

Corporate Express Managing Director Grant Harrod says the system will deliver cost savings, margin expansion and working capital efficiency benefits of $14 million per annum once implemented.

"Our nXtgen system will provide the company with its next generation IT platform to support a much larger enterprise, allow for the integration of acquisitions and expansion into new products and markets," he says.

"Our current IT system has served the company extremely well however its ability to scale and support the future strategic objectives of our business are limited."

Harrod says he is confident of a "smooth implementation". An implementation team has been working on the project for two years.

Phase one of the project, including building an enterprise portal and master data management solution, is scheduled for completion by the end of 2009.

"This will provide the foundation required for the new SAP ERP to be subsequently integrated and fully operational by the end of 2010," he says.

Meanwhile, the company is consolidating its New South Wales warehouse and distribution facilities into a new Sydney facility.

Harrod says the move is "on track".

"This new facility will provide us additional capacity to further expand our focus on new business," he says.

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