Legacy systems at Kaiser's Tengelmann replaced by Compex Commerce

In the course of the rollout of Compex Commerce, Kaiser's Tengelmann has shut down its last legacy systems at the end of 2010.

Success in the food trade sector requires intelligent business software covering all processes from central category management, rack optimization, promotion management, replenishment planning and logistics up to the store cash register. This is what Kaiser's Tengelmann GmbH is convinced of. The sixth-largest food retailer in Germany has optimized all of its processes and replaced ten legacy systems with an integrated and future-oriented IT solution. The system components for the processes master data, listing, promotion/distribution, MDF, invoice verification, store replenishment planning, logistics, warehouse control, fruit & vegetable logistics and fruit & vegetable purchase were replaced step by step by the new Compex Commerce merchandise management system with integrated logistics.

From 10 to 1

KT_LagerThe central warehouses now use Compex Commerce for the control and optimization of the operative processes, including goods receipt, forklift control, storage location management, picking and goods issue. Relevant information is entered online by using mobile terminals. This saves a lot of time compared to the traditional method using paper documents.The graphical illustration of the warehouse management system from different perspectives allows for the optimization, control and evaluation of goods movements and business processes. The virtual view of the warehouse displays the storage locations, their contents, doors and lanes as well as the picking sequences.


All 16,000 employees at Kaiser's Tengelmann in 550 stores may now profit from the benefits of fully integrated, transparent and modern real-time processing. What is new is the article-specific stock management in all stores as well as the stock and value systematics. With this new feature, Kaiser's Tengelmann will be able to control the replenishment planning and assortment creation processes in a sales-driven manner once the store rollout will have been completed by the middle of this year. All store processes may be performed online by using mobile terminals. The support of the POS system is ensured by an intelligent updating feature for cash data and rack labels. Upon request, the stores may also be supplied with data immediately while open. The automated stock management monitors stock variances and ensures the control of stock quantities so that the store and article-specific replenishment process that is executed at night uses correct data to suggest the right quantities to be ordered.

KT_GemüseabteilungThe assortment in the stores is controlled with the assortment management process and the integrated shelf management software "Spaceman". The integrated software solution ensures that the planograms of each store match the central listings and that the articles are ordered and delivered according to the listing dates.

A promotion calendar ensures that all processes are triggered automatically according to a specific schedule. These processes include the annual section topic processing, the precise planning of article and sales quantities as well as promotion replenishment planning and logistics.

The administration, control and internal distribution of the market development fund are part of the MDF settlement. There are various options for the stipulation of MDF agreements. They ensure that the account of the MDF donor is debited with the amount that corresponds to the quantity and value of the goods. The calculation of this amount may, for instance, be based on the received goods, the stock or the sales figures.

The invoice verification of nearly 70% of the central warehouse documents is carried out without manual interference – with increasing tendency. The incoming invoices are imported via EDI and then automatically compared with the goods receipt documents. Possible differences are added to the workflow-controlled follow-up view of the employees in charge.

The trouble-free invoice verification requires the maintenance of master data and the purchase terms of the suppliers in particular. These are integrated into the Master Data Management component of Compex and are thus available for all process steps; e.g. for the integrated web shop with delivery service.

Cost-efficient to the core

"The saved costs regarding the hardware, licenses and maintenance are enormous", says Dieter Beye, IT Manager at Kaiser's Tengelmann and Project Manager of the new merchandise management module. The integrated standard software solution Compex Commerce replaces the previous isolated solutions of different providers on different operating system platforms. This way, all business processes in merchandise management and logistics run on a single system.

"We are now able to quickly respond to the needs of our customers in the stores, on the Internet or in the call centers; we may directly realize innovations and promote efficient trade via all channels of distribution – with less effort. Only if we invest more time in our customers, will we be able to increase our sales potential in the long term", concludes Dieter Beye.

Compex Commerce covers all processes of the centrally controlled retail, wholesale and e-commerce sectors of different industries. It is also used at ProMarkt, Penny Italia and CZ, COOP d'Alsace and many other trading companies.