Wal-Mart begins global SAP rollout
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Wal-Mart has this week begun a global roll out of financial planning software from German applications-maker SAP. The project represents a departure from its usual practice of developing all applications internally.
The company said that its self-built financial system has failed to scale in line with business growth.
However, it added that the cost of moving to SAP would be significant and would be a dampener on profits for many years to come. WalMart has escalated recruitment in its IT department to meet demand.
“It is going to be expensive to implement,” said Tom Schoewe, WalMart’s CFO, “but it will be far more efficient once we’re up and running and it is scalable.”
Wal-Mart has not given up on making its own software. The company still has an RFID system and a global ecommerce platform in the works.
Wal-Mart had annual sales of $345 billion in its last financial year, up 11.7% from the year before.
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