Badly-Implemented IT System Causes Losses To TXM

TXM, a discount clothing chain, lost a big share of its profits due to badly implemented SAP system. As Bogusz Kruszyński, acting as the President of TXM, admits, the level of SAP system complexity and related hurdles had not been taken into account. Because of computer problems, the company appointed a new Management Board and resigned from expanding its operations in the Czech Republic.

The company responsible for system implementation was Prime Global. Kruszyński as for now has not declared if they will be seeking compensation. Sales at the beginning of the year were 72.4 million PLN and, as the person acting as the President of TXM claims, without disruptions, it should be at least 90 million PLN. Incorrectly implemented SAP system froze receiving and dispatching goods from the warehouse, which resulted in product shortages in stores.

Tomasz Waluś is to be the new President of the company. He will carry out the function from October. As Kruszyński claims, Waluś is to make a chance to increase the turnover at least by half in the next three years.

Problems with the system, which became apparent in the first quarter of 2017, are also going to affect the second quarter, yet, as TXM notes, the situation is already in control and it seems the effects of improper implementation of SAP will not be felt in the third quarter. The company is aware that it needs to rebuild its reputation and attract clients who may be put off visiting its stores.