[News brief] ADEO and the benefits of SAAS

Published on 3 January 2017

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Adeo (Leroy Merlin Group) is the number one retailer in France, and third in the world, when it comes to DIY and home decor consumer goods. The group runs a total of 15 chain store retailers in 12 countries worldwide, and saw nearly €18 billion in turnover in 2015. During the 2016 Perspectives Day, Bernard Barfety, Adeo’s Enterprise Architecture and IT Strategic Plan Director, provided details on the group’s launch in Russia, and how the use of a SaaS model helped establish Adeo rapidly in a new and complex market, enabling them to become competitive almost from the very start.  

L’apparition des solutions cross-canal à complexifié la donne, ce qui contraint les enseignes à trouver une solution pour gérer la multitude de points de contact et les donnés consommateurs de façon accessible et homogène. En réponse à ce phénomène, nous avons identifié les sept principaux défis du cross-canal qui se dressent face aux entreprises multi-enseignes et aux franchises.

The logistical challenges of setting up base in Russia

Deploying a supply chain in Russia is no small feat, and comes with many unique challenges that would not be present in other European countries. With the largest spanning territory in Europe, most of which is difficult to navigate during the long winter months, the 17-million square miles of Russian land come with very specific logistical requirements.  While the main cities benefit from a functional infrastructure in terms of routes, the rest of the country lacks organized and well-maintained highways. In addition, the 11 different time zones add an extra concern to the mix, so navigating all of these different country-specific challenges requires some serious logistical planning from the get-go. Adeo took their first steps by modernizing their IT and network system tools, in particular their ERP software. 

To learn more about the Russian market and its opportunities, please read the editorial piece written by Jean-Charles Deconninck as well as the interview with the Country Manager. 

Why Adeo chose SaaS

If you take all of the above into account, it’s clear that the choice of using a SaaS model was the best way forward for Adeo. Their aim was to jump on an opportunity and establish themselves rapidly and easily without running into roadblocks that would set them back. Bernard Barfety explains it well when he says, “We went with the approach of following a state-of-the-art set-up where upgrade releases and the addition of new system functionalities happen a lot more naturally.” When time and speed are of the essence, SaaS can help a large company set up and be ready for business in a new location much faster than a more traditional software method. 

The benefits of SaaS for a very large company

There are many ways SaaS can provide great advantages to a large company: the quickness and ease of deployment, a proven way to really maximize productivity, and an increase of customer satisfaction and retention.  The main advantages stand out immediately and are the reason many companies are modernizing their systems to include SaaS models and functionalities, especially when moving into new markets.  

Time and money, always of the essence 

SaaS models are revolutionizing the way businesses are able to function, removing the drawbacks of installing and maintaining software, and streamlining efficiency and productivity. As in Adeo’s case, SaaS is also extremely effective in helping a company to quickly set up and establish themselves in a new market, thereby efficiently navigating what could have been a logistical and structural nightmare.