7-Eleven Stores Pty Ltd

SAP Forum Retail & CPG

Dennis Lewis April 2009
CIO
7-Eleven Stores Pty Ltd
• Privately owned Australian company
• 7-Eleven brand under license from 7-Eleven
International
• Revenues in excess of AUS$1.3b
• Approximately 380 stores on the Australian
eastern seaboard
• Approximately half of the stores sell fuel
• Compliant franchise model
• In operation in Australia for 31 years
• Approx 225 corporate employees
• Approx 3,500 franchise store staff
7-Eleven IT Landscape

ERP SAP ECC6

Integration SAP PI
Business Intelligence SAP BI7
SAP POSDM
SAP BIA
Portal SAP Portal 7
Point of Sale Radiant Systems
eService Integration Touch Systems
Payroll Micropay
Store network Broadband - ADSL
Technical System Landscape

SAP NetWeaver Portal 7.0 BI Reporting SAP NetWeaver Portal 7.0

SAP NetWeaver BI 7.0 BIA SAP ERP Central Component 6.0

POS DM
Transaction Data

Master Data
PIPE

Flat Files

IX Retail Content Converter

SAP NetWeaver PI 7.0

File Adapter

POS Data

POS System (Radiant)

 7-Eleven’s Current IT Status and Strategy
• 7-Eleven selected SAP as its core system in 1998 and went live with release 4.0 in 1999.
The system was upgraded in 2003 and extended during 2004 to support the changes in the
supply chain processes when 7-Eleven changed from mainly Direct-Store-Deliveries (DSD) to
cross-docking using Metcash as the main distributor. A store portal was rolled out in
parallel to provide stores with ordering and inventory management functionality. Retail
Interchange, the original middleware solution, was replaced with SAP PI in 2007. In 2008
SAP was upgraded to Ecc6 and BI was implemented.
• Radiant is 7-Eleven’s POS system for all stores, it was implemented and rolled out during
the 2d and 3rth quarter of 2004
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Technical Upgrade Store Portal

SAP
to SAP 4.6 C
4.0
PI
Supply Chain ECC6
Radiant Roll-out Enhancements BI

• SAP is the core system for 7-Eleven, and leveraging the investments made so far is one of
the guiding principles for 7-Eleven’s IT. Other solutions are considered where SAP does not
provide sufficient functionality or where it cannot be used in a cost-effective way. 7-Eleven
has also chosen a ‘vanilla’ approach for any system implementation, i.e. implementing
standard functionality wherever possible and minimising systems modifications.
• Another guiding principle is to stay on supported versions of the software products.

•
 IT Roadmap: Approach
Analyse Impact
Project Determine Develop Develop
and Agree
Planning Requirements Roadmap Business Case
Priority

Idea Development Solution Definition

Understand
Understand
Corporate
Corporate Define
DefineProcess
Process Determine
Determine
Define
DefineProject
Project Strategies
Strategiesand
and Requirements
Requirements Benefit
BenefitAreas
Areas
Targets
Targets

Define
DefineKey
Key Assess
Assess Define
DefineIT
IT
Requirements
Requirements Business
Business Requirements
Requirements
and
andDrivers
Drivers Impact
Impact

Evaluate
EvaluateSAP
SAP

Develop
DevelopIT
IT Develop
Develop
Roadmap
Roadmap Business
BusinessCase
Case

Key Deliverables

Updated
Updated
Project
Project Outline
OutlineKey
Key Business
Business
Key
Key IT
ITRoadmap
Roadmap
Charter
Charter Requirements
Requirements Case
Case
Requirements
Requirements
Prioritisation

During the Steering Committee meeting on the 14th of August 2007, the findings were presented
and discusses for prioritisation.
The following requirements were rated High:
Grouped Requirement Priority
G013 Efficient, Integrated Enterprise-wide Reporting High
G001 End-to-End Category Management High
G002 Effective Price Management High
G005 Integrated Space Management High
G003 End-to-End Promotions Management High
G028 Improve Franchisee Communication High
G023 Collaborative, Flexible Forecasting High
Roadmap: Summary
2007/2008 2008/2009 2009/2010

Phase 1: Upgrade to SAP ECC 6

Phase 2: Implementation of BI Phase 3: Portal Upgrade and Phase 4: Extended

and POS DM Roll-out functionality

The decision to upgrade first and then to implement BI and POS DM was driven by the arguments listed above
but also by 7-Eleven’s desire to guarantee IT readiness for the significant growth strategy it has chosen. This
equally determines the scope for the functional upgrade to ECC6. In order to reduce the risk of the upgrade
and to meet the requirement G013 to provide ‘Efficient, Integrated Enterprise-wide Reporting’ as quickly as
possible only requirements with a high cost/benefit analyses and relatively low risk profile have been
included into the scope.
A fourth phase has been designed in order to address the requirements with a higher risk profile such as the
switch to the new GL functionality.
It is also important to note that the phases of the IT roadmap have significant process and change
implications. The benefits can only be achieved if the identified process changes will be implemented
together with the IT changes. Each of the requirements have been analysed with regards to their process and
IT implications, for further detail please refer to Appendix 1.
BI System Business Case
Prioritised benefits were classified into three
categories:
• Hard, annualised cost savings which are
quantifiable and directly attributable to
process/systems changes; typically including
reduced staff costs and improvements in the use
of working capital.
• Benefits that are quantifiable, but are more
subjective in their association with
process/systems changes, typically including
revenue and margin improvements.
• Benefits that are hard to quantify, but
recognised as valuable or strategic to the
organisation or are seen as a risk mitigation
benefit.
Income/savings Original SAP fit Proposed Phase Benefit
estimate benefit first
(workshops) realised
Type B: Revenue increases

Increase sales and profit through enhanced category

management and better reporting

Increase sales and profit through effective price management

More effective basket building promotions, increased customer

transactions, increase revenue from suppliers through end to
end promotions management
Increase sales and profit through more better and customer
focussed layouts and better execution

Type A: Cost savings OPEX

Cost reduction due to efficient, integrated enterprise-wide

reporting

Cost reduction due to reduced shrinkage/improved loss

prevention

Reduced supply chain cost due to improved order management

Reduced data management cost, reduced marketing dept cost

due to effective price management

Reduced out of stocks due to capacity planning

Deliverables
• Article Sales Analysis
• Sales Basket Analysis
• Sales Price Analysis
• Promotional Analysis
• Store and Category
Analysis
• Article Sales, Purchase
and Stock Analysis
• Vendor Scorecard
• Orders and Purchases
Analysis
• Stock Availability
Analysis
• Forecast Analysis
• Supply Chain Scorecard
• POS Statistics
• Store Matrix
• Audit Variation Analysis
• "Store Surveys"
• Article Movements
Analysis
• General Ledger Analysis
• Accounts Payable
Analysis
• Cash Flow Analysis
• Balanced Scorecard
 Project Stakeholders

7-Eleven BI Project Organisation

Business Stakeholders Steering Committee

Project Sponsor
- Bernie Hallam - David Ginsberg (COO)
David Ginsberg (COO)
- Tracy Hammon - Dennis Lewis (CIO)
- Michael Cullen - Andrew Manning (CFO)
- Johni Hii - Julie Laycock (Marketing)
- Andrew Banard - Jim den Ouden (S-Chain)
- Jacqui Cain - Tam Mc Quinlan (PM)
- Sue Owen Project Management - Brian Molloy (PM, SAP)
- Natalie Dalbo Tam Mc Quinlan - Mona Da Gama (SAP)
- John Pettit Charmaine Steward (SAP) - Mark Giles (SAP)
- Linda Chia - Michaela Wagner (PWC)
- Gary Tocknell
- Greg Neave
- Chris Centra

Training & Change

Management
- Cathy Brancatisano
- Kasey Edwards (SAP)
- 7-Eleven Trainer (TBD)
- Training Analyst (SAP)
BI Functional
- Evan Michailidis (BA Team Lead)
- Cathy Brancatisano (BA)
- Adam Mills (SAP Solution Specialist)
- Ramon Wong (BI Solution Specialist)
- Bella De Freitas (BI Team Lead, SAP)
- Elangovan Subbiah (BI, SAP)
- Thomas Schleiter (PosDM, SAP)
- Rahul Pradhan – (PosDM, SAP)
- Bjorn Goller – (Solution Architect, SAP)
BI Technical/Development
- Chitra Ashok (ABAP, XI Lead)
- Archana Baxi (ABAP, XI)
- Nilusha Perera (ABAP, XI)
- Alex Tambellini (Basis/Author Lead)
- Wi Tanto (Basis/Authorisations)
- Joe Zooeff (Infrastructure)
- Rahul Pradhan (PIPE, SAP)
- Thomas Schleiter (PIPE/Basis, SAP)

© SAP 2007 / Page 1

BI System Overview
The current 7-Eleven BI system landscape
consists of:
20 MultiProviders
19 InfoCubes
8 Data Store Objects
26 Queries
106 Users

Number of transaction records: 528.2 million

Number of Database tables: 21211

Total size of Database: 730.31 GB

Data Retention Strategy
Transaction data for the following cubes are retained for 15
months:
Article Movements
Customer (Billing)
Merchandise Procurement
Data older than 15 months is moved to a corresponding
Month level detail cube for each of the cubes above
The Month level cubes will hold data between 15 – 36
months old
Data older than 36 months is deleted from the system
permanently
This strategy allows for better management of data volumes
and yet provide an avenue for historical data up to 3 years
prior to be available for analysis at Month level detail
POS Data Volume Management
Currently, the average number of POS transaction data loaded
into BI is approximately 32 - 33 million records per month (~ 1.1
million per day)

To manage this kind of data volume and maintain an optimum

level of performance for reporting (i.e. to avoid reading from
huge database tables), the POS Receipts data is logically
partitioned into Quarterly POS Receipts cubes (i.e. POS Receipts
Q4 2008, POS Receipts Q1 2009)

Each POS Receipts Quarter cube holds close to 100 million records

A POS Receipts Last 3 Months cube has been implemented to

always store the most current 3 months worth of data. This cube
is the most commonly used POS cube for performing Sales Basket
analysis and is accelerated with the BIA.
Data Loading Timings
The following are the runtimes for the data loads that have been
scheduled to run daily to extract data from ECC6 to BI:
Master Data: ~ 1 hour
Transaction Data:
Area Runtime
Article Movements and Stock ~ 12 minutes
Customer (Billing) ~ 5 minutes
Merchandise Procurement ~ 18 minutes
Profit Center Accounting ~ 6 minutes
POS (including POS Receipts Last 3 Month cube, ~ 1 hour 30 minutes
POS Receipts Quarter cubes, POS Receipts
Cancellation cubes)

Prior to loading the POS data to cubes, data is ~ 14 minutes

actually extracted from POS DM 7 times
throughout the day to the Persistent Storage Area
in BI. Each extraction takes ~ 2 minutes

Total ~ 2 hours 25 minutes

Total Daily load time: ~ 3 hours 25 minutes

BI Accelerator Performance
BI Accelerator indexes are created on 12 InfoCubes containing a total of
352.8 million records – the indexes take up 10.66 GB in memory and 13.75
GB on disk
The runtimes for retrieving the data out of the BI InfoCube source tables
during execution of the 10 most used 7-Eleven queries are:
Query Without BIA With BIA Improvement
Sales Basket Transaction Analysis Last 3 Month 62.7 sec 0.6 sec ~ 105x faster
Article Sales Analysis 96.3 sec 2.8 sec ~ 34x faster
Article Sales Analysis - Month 158.2 sec 8.2 sec ~ 19x faster
Article Movements Analysis 48.1 sec 0.7 sec ~ 69x faster
Orders and Purchases Analysis 47.1 sec 0.4 sec ~ 118x faster
Store and Category Analysis - Day 33.9 sec 2.4 sec ~ 14x faster
Store and Category Analysis - Month 322.3 sec 31.5 sec ~ 10x faster
Store Franchisee Matrix 157.3 sec 2.4 sec ~ 66x faster
Purchases, Sales and Stock Analysis 96.0 sec 1.49 sec ~ 64x faster
Product Movements Analysis (PMA) Report 72.8 sec 1.3 sec ~ 56x faster

On average, there is a reduction of 96.7% in data retrieval runtime

Note: All the queries were run with default selection values
Benefits Realisation
• Pre-defined Benefits
• Business owner
• KPIs
• Target value
• Business changes
• Enablers

• Unplanned Benefits
• Monthly capture by business area
• What is the new capability
• Business value
Analysing 7-Eleven at High Speed -
Short focused project
• Leverage investment in SAP technology
• Minimise integration issues
• Utilise Business Content as much as
possible
• Leverage SAP Consulting skills & experience
• International team
• Deliver business benefits quickly:
• Initial delivery in 5 months
Analysing 7-Eleven at High Speed –
Business Benefits
• Provide reporting we could not do before:
• Promotions, out of stocks, affinity analysis
• Merge our data and market data
• Provide useful information at speed
• Up to date at start of each day
• Put analytical capability in the hands of the
end users
• Power users in each business area
• Embraced business wide
• ROI of less than 2 years
• Just the beginning of our BI journey
7-Eleven IT Focus 2009 - SAP

• Store Portal Functionality Upgrade

• Use our BI capability to drive store retail
performance:
• Business focussed store level reporting
• Online communication – All Retail Activity
• Store KPIs & performance reporting
• Store cluster benchmarking
• Store layouts
• Local range tailoring
• Fresh food in-stock position