With over 25,000 employees, Veyseloglu Group of Companies is one of the largest employers in the nonoil sector of Azerbaijan. The group started out in 1994 as a sales and distribution company importing chocolate and cookies from Turkey to Azerbaijan. After continuously expanding its activities, the company currently distributes 4,025 global brand products through its various distribution companies and supermarket chains.
But after experiencing serious economic headwinds, the company embraced a different way of doing business—and partnered with global firms like SAP to help turn things around.
An unusual business model
“One of our most successful partnerships is with SPAR, a multinational retail chain based in the Netherlands. Our retail brand, “Araz” creates unique value for the national economy by bringing together the international brand of SPAR and local individual entrepreneurs,” stated Aydın Talıbov, founder and CEO of Veyseloglu in an exclusive interview with SAP Voice on Forbes. He went on to explain how Araz creates new business opportunities for local entrepreneurs by having the right to franchise the SPAR network.
In Azerbaijan, entrepreneurs who want to open a store under the SPAR brand are supported by experienced Araz specialists at all stages, from the preparation of a business plan to the opening of a store. At the same time, retail stores belonging to different entrepreneurs that are not connected to each other can join forces and use their experience and purchasing power to present products at more suitable prices and favorable conditions.
The model is a win-win for Araz and SPAR, as well as for consumers and employees. The group has many other similar partnerships, including Rossmann, one of Europe’s largest drug store chains, and its distribution brands include Nestlé, Mars, and Colgate-Palmolive.
The big challenges
The wholesale and retail industries face several challenges driven by economic, technological, and consumer trends.
In our post-COVID-19 world, supply chain disruptions are pervasive. Whether they’re caused by global events such as geopolitical tensions or natural disasters, they can lead to delays, increased costs, and inventory shortages. Organizations like the Veyseloglu Group can counter these trends by diversifying suppliers, investing in supply chain technology, and adopting local sourcing.
At the same time, consumers demand personalized experiences, faster deliveries, and sustainable products. Technology can be a differentiator in this space, helping companies leverage data analytics and omnichannel strategies to create seamless experiences. Technology can also help monitor supply chain data to create greater efficiency and drive more sustainable practices.
“In addition to these challenges, in a small country like Azerbaijan, we also face high turnover rates and difficulty in attracting skilled workers,” said Talibov. “We’re very focused on upskilling, offering competitive benefits, and fostering a positive workplace culture to retain our people.”
To help deal with some of these challenges, the Veyseloglu Group decided to implement a range of SAP solutions. The Group’s SAP solution portfolio includes 32 modules, as well as the SAP TM (Transportation Management) application for managing its retail distribution business. It uses SAP EWM (Extended Warehouse Management) to oversee its extensive warehouse activities and integrate complex supply chain logistics with its warehousing and distribution processes, offering enhanced visibility and control.
In the Retail and Distribution industries, where multiple companies collaborate, master data management is crucial. Ensuring consistent and centralized control of key data such as products, customers, and suppliers is vital for efficiency and accuracy. SAP MDG (Master Data Governance) automates large-scale data management, enhances data quality, reduces errors, and standardizes processes across enterprises.
Additionally, running SAP F&R (Forecasting and Replenishment) and SAP aATP (Advanced Available-to-Promise) helps the Group achieve greater forecasting accuracy, optimize the replenishment process in stores and improve its overall supply chain efficiency. It also runs SAP SuccessFactors solutions to manage its core HR and payroll functions, recruit, onboard, and retain talent, and help deliver outstanding employee experiences.
“Every retailer has a unique starting point, and ours begins with our vision,” said Talibov, referring to the group’s goal to best meet customer needs and create value for the socioeconomic and sustainable development of the country. “Previously, some of our reports were not completely accurate, but with SAP, we’ve achieved data stability and quality.”
The underlying technology
SAP S/4HANA Retail enables Araz and SPAR to monitor real-time stock levels across stores. It optimizes processes by auto-replenishing high-demand items while reducing wastage of perishables. The solution drives engagement by launching personalized offers to loyalty members through mobile apps. And finally, it streamlines and manages end-to-end operations, from supplier orders to in-store sales, on a single platform.
“For us, SAP S/4HANA Retail is a key differentiator,” Talibov concluded. “It empowers our wholesale and retail businesses to operate more efficiently, meet customer demands, and stay competitive in a fast-evolving market.”
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