Corporate Express invests $34.5 million in new IT platform

Savings of $14 million per annum

Corporate Express is investing $34.5 million in a new IT platform that will be rolled out over three years.

The project include's the implementation of a SAP Enterprise Resource Planning (ERP) solution to support the expansion of the business.

The supplier of office products expects cost savings, margin expansion and working capital benefits of $14 million per annum as a result of the project.

Corporate Express CIO, Garry Whatley, has named the phased implementation Project nXtgen.

"The nXtgen system will provide the company with an IT platform for the future," he said.

"It will support our rapidly growing enterprise and allow for the integration of acquisitions as well as expansion into new markets and geographies.

"After an exhaustive evaluation of potential ERP technology platforms, we selected SAP. The decision was made on the basis of the strong product offering but also SAP's readiness to work in partnership with the Corporate Express team."

Whatley said while the previous IT system has served the company well, its ability to scale and support the future strategic objectives of the business is limited.

"The new solution will replace our legacy ERP system," he said.

"We have a highly experienced and dedicated team who have been working closely with the business for the past two years in standardising and simplifying processes.

"With this knowledge of our business, the phased rollout strategy and the support of SAP, we are confident of a smooth implementation."

The first phase of the implementation is scheduled to be completed towards the end of 2009 and will include Employee Portal and Master Data Management.

"This will serve to provide the foundation for the new SAP ERP system to be subsequently integrated and fully operational by the end of 2010," Whatley said.

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