Metcash signs up to new Microsoft supply chain platform

Metcash, parent to retail brands including IGA, will take another step in its Project Horizon core systems replacement project by adopting the Microsoft supply chain platform, a package of software products launched overnight.

First announced in July 2021, Project Horizon is a digital transformation project led by KPMG and Microsoft that started with the replacement of legacy systems with the Microsoft Dynamics 365 platform.

Under a 12-month project, Metcash will deploy Microsoft's supply chain platform to enhance its order fulfilment and distribution capabilities.

“By using our data more effectively, we see this as a real opportunity for us to drive better interactions with our suppliers and our customers to create a much more efficient supply chain," CIO David Reeve said in a statement.

Microsoft Dynamics 365 modules – for supply chain management, and finance – form the replacement of Metcash’s ERP system, with other applications including Teams providing the workplace environment. 

Legacy platforms will be migrated to Azure, with Azure Synapse providing analytics.

In an investor presentation published in October (pdf), Metcash said it was “revisiting [the] build and implementation timeline” for Project Horizon.

Recognising that the project’s greatest value is in its food and liquor businesses, Metcash said those will be the focus of Horizon for now.

The hardware brands (Mitre10, Home Hardware, Total Tools, Thrifty-Link, and True Value Hardware) remain “in scope” for the project, but an immediate focus on food an liquor lets the company access benefits faster and “reduce overall program risk and complexity”, the market update said.

“First deployments of finance and inventory management components” are performing well, the company said.