STLD SAP Go Live

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STLD SAP Go Live

• The good, the bad the ugly.

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BA-CBG 19th Nov 08

• What we are attempting to do
• Why did we do it at this time?
• Issues that arose
• Where are we up to?
• Wesley Owen
• Impact on the CBC market

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What we are attempting to do

• Replacing a 20 year old IT infrastructure
• Pre EPOS
• Pre Internet
• Pre Onix
• New Medias
• .Changing a business,not just the IT system

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Why did we do it at this time?

• 2 year project
• Original projection plan was for summer 2008
• Reforecast for August 08
• Last minute delays meant Oct
• If delayed to early 09, we would lose the
  specialists
• Scale of business change issues couldnt have
  been predicted.
• Simply not an option to delay

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What happened at Go-Live

• Closed for 4 days
• Data Migration
• System came on online as planned
• First few days fairly smooth
• Problems arose with replenishment
• Undertook Business process review
• Meant backlog issues grew to todays situation

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Issues that arose

• Delay in orders being sent out
• Incorrect or no invoicing
• Fill rate reduced

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Typical Issue Pattern Systems Implementation
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Where are we up to?

• SAP now is running the warehouse system totally
  (i.e. theres no going back!)
• Though the majority of SAP processes are running
  well, but there are still some issues, but they
  arent insurmountable, they need time and
  resources.
• There are still issues with deliveries, some IT,
  some business process, some purely human error
  due to a new system.

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Where are we up to?

• There is a backlog of orders, both new and
  incomplete. Priority is being given to older
  orders.
• There are ongoing issues with organising
  replenishment from bulk to picking bins.
• The warehouse are working nearly 24 hours a day
  and all weekend.
• This situation isnt over yet,
• But improving each day

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Wesley Owen

• Stopped stock orders on Oct 23rd
• Started placing orders on Mon 3rd Nov
• 75 of WO stock comes from Carlisle
• Picking in strict date order
• Our stores are suffering

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Impact on the CBC market

• We recognise the problems
• We are truly sorry
• We are working as hard as possible
• We are focussing all energy on getting back to
  normal service
• We will look at ways to say thank you for your
  support

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Questions??