Specsavers halts Oracle ERP standardization to save millions

In a significant shift for its operations, the international optometry company Specsavers announced that it has halted the global standardization of its Oracle E-Business Suite (EBS) ERP system. The company, which also offers hearing tests through numerous retail outlets, made this decision to transition to third-party support, thereby realizing substantial cost savings of £5 million over the next three years. This formidable financial relief is set to be redirected into enhancing various aspects of its business operations, particularly in retail. Over the last fourteen years, Specsavers has worked on a project aimed at achieving a standardized ERP using Oracle, but the complexities associated with dynamic market demands and rapid expansion stymied progress. Notably, in 2021, the company acquired Image Optometry in Canada, further complicating uniform ERP deployment and revealing fundamental misalignment between the project and the entrepreneurial culture of the organization. These challenges, described by Kieran Mazur, head of IT, underscored the difficulty in securing buy-in for a global ERP template from various stakeholders. The evolution of customer requirements over the years also influenced Specsavers' decision to pause the ERP standardization efforts. The changing landscape necessitated more agile interactions with customers through various channels, including mobile apps and online platforms, all of which have significant implications on operations and supply chain management. Consequently, Specsavers will focus on transitioning from Oracle's support model, locking the system into its current configuration while minimizing investment in its infrastructure. Moving forward, the company intends to explore options among several vendors for ERP and supply chain management solutions. In the months following this pause, Specsavers engaged in discussions with multiple vendors, including SAP, Workday, and Microsoft, to replace its key ERP systems. Following commercial negotiations, the company expects to initiate the new ERP solution deployment by February next year. This timeline provides the organization with a three-year window to adopt and fine-tune the new system across its largest markets, an imperative move as companies increasingly search for third-party support. As digital transformation continues, Specsavers is poised to embrace innovative technological solutions while maximizing the effectiveness of its operations.