Bapcor, the parent company of automotive retailers like Autobarn and Midas, is progressing with its multi-year transformation initiative, ‘Better than Before’, as it enters the implementation and execution phase.
Originally unveiled in November of the previous year, the transformation project has now reached a new stage. The company has begun investing in IT-related aspects of the transformation, with $3.2 million allocated for the implementation of a new data warehouse, customer integration, and e-commerce systems. This expenditure is part of a larger budget of over $15 million dedicated to “fit-for-purpose” capital expenditure.
To support the transformation, Bapcor has allocated more than $20 million in new operating expenses, which includes a one-time “kickstart” initiative. Over $19 million of this opex allocation has been spent in the current financial year on critical interim resources and transformation infrastructure.
One of the central components of the Better than Before initiative is the enhancement of the company’s procurement systems. Bapcor has introduced a “data-driven” sourcing process called One Bapcor RFX, which was developed over a three-month period under the project.
CEO and Managing Director Noel Meehan announced the completion of all pilot initiatives under the Better than Before program. The company is now poised to start reaping commercial benefits from these efforts beginning in 2024.
In its broader technology strategy for the year 2022-2023, Bapcor has developed a new customer loyalty platform on its CRM system. Additionally, the company has rolled out analytical tools to support a newly introduced data-based “strategic pricing” tool.
Despite achieving a revenue of just over $2 billion, reflecting a 9.7 percent increase from the previous year, Bapcor’s net profit after tax experienced a decline of over 15 percent, amounting to $106 million.
