The impact of Alko’s ERP-version update to orders and replenishments

Alko is updating it’s Enterprise Resource Planning (ERP) system to a new version during the fall 2018. 

ERP system is used to manage the stores’ assortment and replenishment orders. In large scale, the updates have been successful, and any disturbances to operative business have been avoided. Isolated issues have been identified, and they have been caused by both technical problems as well as human errors. As the update roll-out has progressed, all issues have been fixed without delay. Also to be taken into consideration is the fact, that some surfaced issues during the last weeks have been caused by human errors by some of Alko’s logistics partners. Enclosed a list of clarifications to Alko’s identified process and system issues.

Shop coverage and allocation of products

  • As stores have updated to a new version of the ERP system, some stores have experienced difficulties in activating mandatory products to assortment. In addition, some novelty products’ activation to stores’ assortments were delayed in September.

  • Errors have been fixed on 4 October 2018 and the mandatory products have been centrally activated to stores, the impact has realized by 12 October 2018 according to regular logistic lead times. Alko has also increased the frequency of systematic assortment checks to allow immediate identification and correction of errors.

Dolly products

  • Some stores have experienced difficulties in replenishing Dollys in the new system.

  • An identified error in the system has been fixed on 11 October 2018, in addition the faulty or missing orders have been centrally fixed. An intensified analysis of Dolly-product orders is in place for the time being.

  • Best practices are being communicated to stores to ensure product availability.

Oversize orders to stores

  • For some products the replenishment orders have been too large compared to the corresponding demand. These have been caused by both human errors and faulty system logic.

  • System logic has been fixed on 15 October 2018.

  • Best practices are being communicated to stores to ensure appropriate order sizes.

Other errors in product data

  • Also some other isolated errors in product master data have been identified during the system update process. These have been caused by both human errors and expired product information.

  • These isolated cases are not recurring issues, but they pass always as the source data has been fixed.

  • Systematic data screenings are in place during the system update process to minimize any potential error impacts.

Despite these challenges the availability at Alko’s stores has remained constantly on normal level. Any impact to for example Alko’s assortment calculation model have not been identified.

Even though most of the updates as well as the corrective actions to any risen issues have already been implemented, Alko asks it’s partners to monitor the replenishment order traffic and notify any irregular behavior to Alko’s material flow center at This allows immediate investigation of issues always when needed.

Feedback to the person in charge: EVP of Online and Supply Chain Paula Kujansivu (