Grocery distribution company Metcash will invest in SAP ERP software and Fujitsu services to replacement its PeopleSoft core finance system.

The deal will see SAP’s finance, treasury and risk management, property management and compliance software be deployed at Metcash.

Listed on the Australian Stock Exchange, Metcash Trading is an $11 billion food and consumer goods marketing and distribution company. It operates the IGA Distribution, Campbells Cash & Carry and Australian Liquor Marketers businesses.

Metcash has been using Oracle’s PeopleSoft software for the past eight years and is looking to “improve process efficiencies” and ensure compliance with financial, corporate risk and environmental regulatory requirements, according to the company.

The SAP financials implementation will be done over a twelve month period with the additional functionality to be phased in later.

Metcash had previously spent $1.5 million on CRM software to consolidate its product management, merchandising activity and customer analytics.

Metcash’s general manager of finance Adrian Gratwicke said the decision to go with SAP and Fujitsu was based on “the breadth of SAP’s integrated platform and Fujitsu’s understanding of our business needs”.

“SAP will enable Metcash to bring together previously disparate third-party products like fixed assets, real estate and claim-backs into an integrated, controlled environment, increasing visibility and financial and operational efficiencies,” Gratwicke said.

As part of its selection process, Metcash chose Fujitsu as the systems integrator in part because of its recent acquisition of Supply Chain Consulting earlier this year.

As many as 20 Fujitsu SAP consultants will be working on-site at Metcash for the project.