Metcash hardens existing ERP as it rejigs modernisation path

Metcash, which owns retail brands including IGA and Home Hardware, has “hardened” an existing enterprise resource planning (ERP) system, though will still seek to replace it with Dynamics 365.

At its FY23 results yesterday, group CEO Doug Jones said the company had “updated” its build and deployment approach for a core systems replacement codenamed Project Horizon.

This included work to “harden” an existing ERP system to make it more resilient and to de-risk its intended replacement, the company said in a slide deck.

It wasn’t immediately clear which existing ERP had been enhanced - the company has nine ERP systems [pdf], and consolidation is one of the main aims of Horizon.

The target system for a consolidated ERP across the group is Dynamics 365.

Jones said that timelines for core modernisation works had also been “extended”.

“We’ve done that to manage the deployment risk and to reduce the ongoing spend rate,” Jones said.

“Our development and deployment capability has been brought inhouse to protect our own IP and capability, so that once live, we can better support and leverage that investment. 

“I do want you to note that we focused on the existing systems as well, and improved the robustness and resilience of those systems, working closely with the vendor. 

“This means that we’re starting to mitigate the immediate risk of failure but do note that obviously it will require replacement.”

Jones also said that the phasing of future work had been “revised”, so that it will be performed in smaller pieces, and funded “inside of business-as-usual” allocations.

Once the new core is stood up, Jones said that future works would be “smaller, what I would call more BAU kind of interventions or initiatives, that allow us to take advantage of the backbone that we will have delivered.”