Oracle Retail Provides Paltform for Teknosa Growth
September 30, 2009
Teknosa is the leading technology retailer in Turkey, operating 220 stores across 62 cities, providing half of the total sector revenue, as well as being the fifth largest retailer in the country.
But, in the face of growing competition, Teknosa wanted to reinforce its marketleading position and modernise its IT infrastructure. So the retailer implemented Oracle Retail applications as part of a threeyear transformation programme designed to implement ef ciencies and optimise agility across the business.
Mehmet T. Nane, Teknosa general managerMehmet T. Nane, Teknosa general manager (pictured) explained: “In order to reach the next level of retail maturity, we needed to enhance our customer experience. Oracle Retail is helping Teknosa to optimise inventory more accurately, enabling us to identify and plan to sell the right products, for the right prices and in the right numbers. The proven expertise of Oracle Retail solutions has helped us to implement best practice in retail through a phased roadmap delivering results and speed to value.”
The implementation of Oracle Retail applications as part of the three-year transformation programme has helped Teknosa to optimise inventory management, allocation and replenishment processes across its multiple sales channels. This has supported its expansion plans as it diversifes merchandise offerings, extends domestic operations in terms of new stores and formats and expands into new territories, extending its international reach into neighbouring countries. In the last year alone, Teknosa increased the size of its sales floors by 50%, reaching 70,000 square metres.
Taking advantage of the Oracle Retail Merchandising System has helped Teknosa to coordinate merchandise operations and support the expansion of its inventory portfolio by over 50% to 10,000 stock keeping units (SKUs). It has also supported the opening of the new Gezbe warehouse within a week of go-live, which manages stock for all Teknosa locations across Turkey.
“The improvements in data integrity, a more scientific approach to retailing and visibility to a coordinated set of retail processes have helped drive better insights and analysis that benefits all areas of the business including IT, HR [human resources], sales, supply chain and marketing. This insight enables Teknosa to revise its offerings, strategy and initiatives on a regular basis to ensure that we continue to meet customer demand,” said Nane.
Oracle Retail Allocation has enabled Teknosa to determine inventory requirements at the item and location level and supports more accurate distribution of tailored product assortments through the supply chain to local stores to meet customer demands. Aligning Oracle Retail Allocation with Oracle Retail Merchandising System has led to the development of a new replenishment model and driven improvements in supplier relationships.
More accurate allocations have also minimised lost sales and prevented overstocking, by ensuring that allocations are tied in with demand forecast and merchandise plans.
In January 2008, Teknosa opened Planet, an iconic flagship concept store format to provide customers in Istanbul with an innovative destination for technology retailing. Here, Oracle Retail Category Management has helped better manage key product and categories within Planet as well as its other stores, ensuring that assortments are tailored to customer preferences.
“By basing space recommendations on scientific calculations of demand, potential profit and space requirements, Teknosa has minimised inventory investments on products with lower consumer demand and lower profits,” said Nane.
He continued: “Our strategic relationship with Oracle has developed over the last six years and its credentials with global retail brands has helped us to implement best practices for retail processes, through a phased roadmap that delivers results and promotes rapid speed-to-value.”
Teknosa has also relied on Oracle E-Business Suite to provide the IT backbone for the business since 2006, enabling it to undersand the benefits that a deeper relationship with Oracle offered. In addition to long-standing retail commitment and expertise, the flexibility and scalability of the Oracle Retail applications has provided the retailer with the options to aggressively grow their business without compromising on customer-facing initiatives.