Elkjøp Nordic increases product availability in 383 stores with automated replenishment planning
Elkjøp replaces its entire sales system. The low-code, SAP-centric platform selection, Neptune DXP, and approach give Elkjøp a digital retail solution that is ready for the future.
Watch their story from IMPACT 2022!
-Elkjøp replaces its old-fashion legacy system with a new modern version to match their website
-Platform launched in 3 months saving Elkjøp 9 months of development time
-Built on mobile and desktop, eliminating the need to travel from storefront to desktop to check product information, update orders, check stock availability, etc. allowing users to move freely with customers throughout the sales process
-60% of orders in distribution centers are now triggered by the new solution
-Elkjøp is continuing to grow their scope of work to include support for its “store operations processes” such as goods receipts, delivery of goods, inventory, and more!
Continue reading below…
A legacy system gets a face lift to ready it for the future
“Everyone who has been to an Elkjøp store probably remembers our old DOS application with a blue window and white print. This old-fashioned solution has since been replaced with a much more modern version similar to our website,” says Sebastian Andersson, Nordic Operations Project Manager at Elkjøp.
He states that the technological system in all Elkjøp’s stores has been replaced with a new and far more flexible digital retail solution. One where the seller can switch between the use of desktop and mobile.
“With the new solution, the seller can help the customers in the store without having to go back to their desktop PC to retrieve information about the product, update the order or check if the item is in stock. This means that sales work will be considerably more efficient to the benefit of both the employees and customers,” says Andersson.
A smooth rollout that employees and customers love
The roll-out of the new solution started in Denmark in May, 2020, and continued throughout the Nordic region into 2021. The investment makes Elkjøp one of the most modern retail chains in the world.
“When we reach our goal, we will have 10,000 new users using the system. Our legacy solution enabled changing functionality only twice a year, and, amazingly, the previous system that is now 30 years old has worked for as long as it has. But now the new system can be updated regularly, the architecture is service-based so new functionality can be pushed continuously,” says Andersson.
Andersson emphasizes that the upgrade also benefits customers just as much as the employees. Today, many customers check out items on the website before heading to the physical store. Despite the increasing focus on e-commerce, it turns out that only 15 percent of Elkjøp’s customers choose to buy items online.
“This means that the customer service representative is still important, and they can now use information about what the customer has searched for or added to the basket, and in the process give even more precise and expedited advice. The sale can be completed outside the store or with updated offers in the shopping cart, without ever having to go check out with a cashier,” says Andersson.
Listen to Sebastian Andersson and Camilla Eikeland share their journey of
In this video, Sebastian Andersson, Elkjøp’s Operations Project Manager describes the scale of the organization’s “Next Generation Retail” project. And Camilla Eikeland, partner at specialist retail consultancy firm EINR, describes how they quickly and easily built a launchpad and mobile apps, using Neptune DXP.
Elkjøp's SAP Replenishment app explained
After more reviews of its IT systems, Elkjøp Nordic began running core processes on SAP — including SAP Replenishment. With almost 16,000 product offerings, automating replenishment and reordering is vital, so deploying a solution to help minimize friction between stores and warehouses was a top priority.
“The more automated this process, the better. Our existing systems were no longer able to accommodate our growing requirements. We needed to do something urgently.” said Björn Dalen, Director of IT Systems and Operations at Elkjøp.
Modern consumer experiences need real-time product availability, accurate stock forecasting, and effective planning. To achieve these — and as the first step toward digitization — Elkjøp deployed SAP Forecasting and Replenishment, augmented with an HTML launchpad, built using Neptune Software. Now in-store employees can easily check on orders and include other products into store reorders.
The Neptune Software-based launchpad enables users to do more, by:
- Working with multiple apps at the same time via Spilt View
- Using fingerprint authentication
- Opening multiple SAPUI5 instances, running parallel in the same system
- Updating apps on any mobile device when the backend changes
- Housing and accessing non-SAPUI5-based apps, such as Webdynpro, WebGUI Transactions, and URLs
Making Forecasting and Replenishment easier
“During the pilot phase, we saw how well the solution served our requirements and that implementation was easier than expected,” explained Dalen.
Neptune Software makes creating applications quick and easy, and within three months, the platform was ready for enterprise-wide deployment — saving Elkjøp nine months of development time. The solution is now rolled out across Norway, Denmark, Sweden, and Finland – improving product availability in more than 383 stores.
About 60% of orders in the distribution center are now triggered by the new SAP Forecasting and Replenishment solution. And according to Ronny Steng, Supply Chain Manager, Elkjøp, “The biggest process automation we achieved was the activation of articles based on references. This approach has enabled us to increase availability considerably – by up to 20% for products with historically low availability.”
A perfect match for creating a modern POS
Neptune Software is now helping Elkjøp modernize its POS system — the most modern system of its kind in retail — optimizing in-store sales for B2C and B2B customers.
Matching Elkjøp’s microservice-centric approach with Neptune DXP’s API support created a tool that simplifies every customer-focused service — home deliveries, installations, digital products, subscriptions, insurances, financing, cancellations, rebooking, and sales reporting.
Built for desktop and mobile, this consumer-grade application enables users to move freely with customers throughout the sales process. And a strong omnichannel focus means customers can start and finish the buying journey wherever and whenever it’s convenient — online, in-store, any time.
Elkjøp chose Neptune Software’s low-code, SAP-Centric rapid application development platform, Neptune DXP, to develop its original solution and is already moving forward beyond the initial project scope. They are continuing to build a number of additional applications to support its ‘store operation processes’, including goods receipts, delivery of goods, inventory, and more.
“Elkjøp chose EINR as a development partner to build a completely new tool to optimize the sales process for its customers. With Elkjøp’s microservice-centric architecture approach, Neptune Software and its added API support is a perfect match,” says Camilla Eikeland, Partner at EINR.
“During the pilot phase, we saw how well the solution served our requirements and that implementation was easier than expected.”
-Björn Dalen, Director of IT Systems and Operations at Elkjøp
“The more automated this process, the better. Our existing systems were no longer able to accommodate our growing requirements. We needed to do something urgently.”
-Björn Dalen, Director of IT Systems and Operations at Elkjøp
“We wanted a solution to be able to run without being fully dependent on SAP ERP and centralize around Elkjøp’s Azure microservices layer. Neptune DXP with its good API support was a natural choice… Neptune DXP has become an important development platform for Elkjøp.”
-Camilla Eikeland, Partner at EINR
About Neptune Software
Neptune Software is a rapid application development platform vendor with more than 660 enterprise customers and over 3.5 million licensed end users globally that empowers IT departments to deliver tangible business outcomes. Neptune Software offers with its Neptune DXP, a leading low-code, SAP-centric, enterprise app development platform to digitize and optimize business processes and user interfaces – at scale and with ease. Neptune DXP provides a fast and cost-effective way to industrialize the development of custom applications – saving companies time and money on development, integration, and operations.
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