Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

      Treasury backs down on crypto rules after ‘thousands’ of comments

      21 October 2026
      Discovery ranks cybercrime as its top risk, citing frontier AI

      Discovery ranks cybercrime as its top risk, citing frontier AI

      21 October 2026
      Godongwana cuts fuel levy again, with diesel getting the bigger break

      Godongwana cuts fuel levy again, with diesel getting the bigger break

      21 October 2026
      Bolt EVs hit Sandton and the OR Tambo airport run

      Bolt EVs hit Sandton and the OR Tambo airport run

      21 October 2026
      Treasury puts R150-million behind MyMzansi government app - Enoch Godongwana

      Treasury puts R150-million behind MyMzansi government app

      21 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » IT services » Spar still taking pain from botched SAP project

    Spar still taking pain from botched SAP project

    Although the system is functioning as designed, Spar's ability to predict demand and manage availability is not yet optimal.
    By Sandra Laurence21 February 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Spar Group said on Wednesday that system-related business disruption experienced in KwaZulu-Natal as a result of the botched SAP project has had an extensive effect on its profitability over the past 12 months, without disclosing the most recent quantum of the impact.

    Spar Southern Africa’s total wholesale sales growth of 5.6% was impacted by a weaker-than-expected grocery business performance, the group said in a trading update for the 20 weeks to 16 February 2024 – although its trading performance was “resilient”, with turnover increasing by 9.3%.

    It said although the system is functioning as designed, the business’s ability to predict demand and manage availability is not yet optimal.

    The suboptimal use of the system is still impacting margin and exaggerating costs for this region

    The suboptimal use of the system is still impacting margin and exaggerating costs for this region, it added.

    The group performed a “thorough reassessment” of the SAP project over the past six months that involved stabilising the KZN implementation; reassessing the warehouse management system and whether it is fit for purpose; and reviewing how the system can continue to be rolled out at a significantly reduced risk level.

    “This will include separating the ERP from the warehouse system and implementing them independently.”

    Spar said in September that SAP – the German-headquartered enterprise software giant – had “remained a supportive partner throughout the project”.

    The botched IT project, which went live in October 2022 at its KZN distribution centre, severely affected full-year profits for the period to end-September 2023 for the Pinetown-based retailer. SAP-related losses totalled R1.8-billion in that period.

    Profit impact

    “Profit after tax for the 2023 financial year was R0.4-billion, a substantial decrease of 80% on the previous year,” Spar said in its annual report. “This result was severely impacted by the unsuccessful SAP implementation at the KZN distribution centre.”

    Its KZN logistics hub was incapacitated, forcing the retailer to use distribution centres further afield to plug the gap. According to group CEO Angelo Swartz, the Eastern Cape, North Rand and South Rand distribution centres were used to keep KZN stores supplied.

    Read: Spar on why its big SAP project went pear-shaped

    The complicated logistics led to a 12.8% increase in fuel and distribution costs that compounded the impact that issues affecting the entire retail sector had on Spar in particular: ongoing food price inflation along with higher interest rates, fuel and energy costs.  — (c) 2024 NewsCentral Media

    Get breaking news alerts from TechCentral on WhatsApp

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    SAP Spar
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleState pension fund administrator staves off cyberattack
    Next Article Budget: new EV policy incentives – too little, too late?

    Related Posts

    Shoprite ranks cybersecurity as its number one risk - Pieter Engelbrecht

    Shoprite ranks cybersecurity as its number one risk

    9 October 2026
    Spar2U to get a do-over

    Spar2U to get a do-over

    28 September 2026
    Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

    Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

    9 September 2026
    Company News
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Opinion
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

    Treasury backs down on crypto rules after ‘thousands’ of comments

    21 October 2026
    Discovery ranks cybercrime as its top risk, citing frontier AI

    Discovery ranks cybercrime as its top risk, citing frontier AI

    21 October 2026
    Godongwana cuts fuel levy again, with diesel getting the bigger break

    Godongwana cuts fuel levy again, with diesel getting the bigger break

    21 October 2026
    Bolt EVs hit Sandton and the OR Tambo airport run

    Bolt EVs hit Sandton and the OR Tambo airport run

    21 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter