NEWS AND EVENTS
Flink now controls goods and financial movements via Oracle
Flink builds its IT backend system with off-the-shelf software from Oracle for potential growth. The merchandise management system is already live. For Oracle, this means its big comeback into German food retailing.Flink has chosen one of the world's two most important high-end solutions to build up its ERP and supply chain IT landscape: Oracle. In this performance class, SAP Retail has so far been the monopolist in the three German-speaking countries. Therefore, the decision is not only important for Flink, but also for Oracle as a possible door opener into the D-A-CH market.
For its IT landscape, the quick commerce company generally has a best-of-breed strategy, explains Peter Bröcker, the top manager responsible for supply chain, processes and ERP at Flink. This ranges from in-house developments for typical delivery service functions to a new automatic replenishment system and the current rollout of several backend modules from Oracle.
The merchandise management system from Oracle Retail is already live since the end of January. It is complemented by Oracle Fusion Finance, which Flink has implemented from July to the end of December 2022. Currently, the implementation of the Oracle Retail Supply Chain Hub module is underway, which, according to Bröcker, should go live in the third quarter of this year. In parallel, is also in progress the implementation of analytics functions from Oracle.
"We want full transparency over financial and goods flows - at all times," explains Flink's supply chain leader. “Another important requirement, is that the system is auditable without much effort”, he adds.
Software from the Cloud
For both the new forecasting and automatic replenishment, as well as Oracle, Flink relies 100% on solutions in the cloud, running as software-as-a-service (SaaS). The company combines that with a decision to stay close to the Oracle’s standard solution. Less than 5% of the functionalities were changes according to Flink’s needs. For other functionalities, it was sufficient to configure the controls provided by the manufacturer of the standard software. The great advantage of such an approach is that if the IT supplier changes its system, no extensive work is required at the retailer. Improvements and further developments can be used immediately thanks to cloud operation.
An important point for Flink is the close link between the merchandise management, Oracle Retail’s logistics module and their replenishment system. The overall system shows the stocks in near-real time with a maximum delay of two minutes.
According to Bröcker, Flink implemented the replenishment system in just four months from project start to going live. The Oracle implementation took only seven months - exceptionally short for an ERP implementation. The retailer has between 2,000 and 2,500 items (SKUS) listed in each of its three countries, Germany, the Netherlands, and France. The implementation partner was Retail Consult, based in Porto. Prior to Oracle, Flink used Haufe's Lexbizz SME program as its ERP system.
Currently, Flink is implementing Oracle Retail’s Supply Chain Hub module, based on a thorough process analysis. This includes the exchange of master and transaction data with suppliers. Here, Flink will use EDI with large suppliers such as REWE in Germany and Carrefour in France, while small suppliers from local bakers to organic butchers will be connected via this self-service web portal. "Automation requires perfect data and master data quality," emphasizes Bröcker as a requirement for quick commerce companies.
In-house developments for customer-oriented systems
Flink's IT department has developed three important systems itself: The web store, the tour planning system called "Rider App" for the cargo bike drivers, and the warehouse management system for the small warehouses called "hubs", where the orders are picked. This warehouse management system is also closely linked to the Oracle software.
Flink reported sales of around 400 million euros in 2022. The company delivers e-food from around 100 hubs in Germany, 60 in the Netherlands and 20 in France, covering the corresponding number of neighborhoods that can be reached from a hub by cargo bike.
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News source: Lebensmittel Zeitung
Photo Credit: Bildquelle/Stefan Papp
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