Asda signs TCS deal to overhaul IT operating model

Asda has signed a multi-year partnership with Tata Consultancy Services (TCS) to support its digital transformation and implement a new organisation-wide IT operating model.

The move follows its separation from former owner Walmart, with TCS noting its cloud, AI, and security solutions will now help ASDA deliver the divestiture “smoothly, on-time and securely”. 

It added it will further enable the supermarket to enhance its customer experience and innovation capabilities to help “increase its market share and retain price leadership”.

TCS will build a new digital core by implementing multiple cloud-based ERP platforms to streamline Asda’s supply chain forecasting, buying and merchandising processes, HR processes, warehouse management, and e-commerce processes. 

Additionally, TCS will use its Machine First™ Delivery Model to automate the retailer’s IT operations, “providing a seamless experience for employees and customers, and improving operational resilience”.

Mohsin Issa, CEO of Asda, said: “We have a long term vision to grow Asda and bring our great heritage in value to even more communities – and our technology will form a key part of delivering this vision. We have partnered with TCS because they bring experience in retail technology transformation and innovation. We look forward to working with them to accelerate our digital transformation journey and to unlock the potential of our business.”

Carl Dawson, chief digital and technology officer, Asda, added: “We are confident that this collaboration with TCS will be one of the engines to deliver such a large technology transformation, where we are in the process of reimagining retail. TCS is going to bring together cutting-edge technologies and help Asda employees and customers have a seamless experience.”

Abhijit Niyogi, business head, Retail – UK and Europe, TCS, concluded: “We are proud to extend our partnership with Asda and look forward to working closely with them to drive this massive enterprise reinvention. 

“We will leverage the power of data and AI, and deliver innovative, industry-leading retail technology solutions to transform their core retail operations, employee experience, supply chain and create opportunities for new business models. Leveraging TCS’ deep contextual knowledge, next-gen retail technology solutions and industry experience, we will help them build a new future-ready digital stack to support their growth and transformation ambitions.”

Last month, Asda briefed colleagues on plans to introduce a new operating model for its commercial function at its home office in Leeds.

It said the change was part of its ongoing transformation to “ensure it has the right structures, technology and people skills in place to support its long-term ambition to become the UK’s second-largest grocery retailer”.

The new model comprises eight integrated business units aligned to specific categories and led by a business unit director who has full responsibility for sales and profitability in their area. Within each unit there will be dedicated teams responsible for buying, ranging and pricing, replacing the current structure where these responsibilities are split across multiple functions.