Heritage Grocers Group

The Challenge

Heritage Grocers Group (HGG) is riding the wave of a booming market: Hispanic grocers. With 115 stores operating under four brands, HCC is well-positioned to benefit from the projected 20% growth in the Hispanic population over the next decade, a demographic with a purchasing power of $2 trillion. However, to fully harness this potential, HGG needed to modernize its systems to ensure efficiency and agility.

The company’s finance and warehouse systems were running on an aging AX2012 on-premise solution. This not only hindered operations but also required proficient users to spend valuable time on repetitive tasks and processes that offered little strategic value. HGG brought in seasoned IT executives from the retail and grocery sectors and partnered with Argano, setting the stage for a transformation that would align with the organization’s business needs and growth projections.

The Solution

Heritage Grocers Group (HGG) turned to Argano, a trusted Microsoft partner with a proven track record in the mid-market retail grocery niche. Argano's expertise in Dynamics 365 and their ability to build efficient business processes made them the ideal choice for HGG's ambitious goals. The project began with a thorough review of HGG's existing processes. This review aimed to:

• Identify and retain processes that were running smoothly
• Adjust or completely overhaul processes that needed improvement
• Optimize processes to enhance efficiency
• Eliminate redundant processes to streamline operations
• Modernize 40+ integrations to support the new system

HGG and Argano engaged in a strategic partnership, each bringing their unique strengths to the table. Argano provided deep expertise in finance and warehousing processes, along with robust Dynamics 365 application development skills. HGG contributed strategic vision and practical insights into process improvements. This collaboration ensured that the project remained on track, even when faced with complex workflows and unexpected challenges. Argano's support was instrumental in several key areas:

• Process optimization: Evaluated existing processes, maintaining operational strengths while eliminating inefficiencies
• System modernization: Seamlessly transitioned from legacy system to a modern, cloud-based solution
• Integration management: Modernized over 40 integrations, ensuring that the new system could work seamlessly with existing tools and processes
• Custom development: Developed new tools and capabilities tailored to HGG's specific needs, enhancing the overall functionality of the Dynamics 365 system
• Strategic guidance: Delivered strategic recommendations that aligned with the company's long-term goals

The Results

The rollout of Dynamics 365 across HGG's banner stores was nothing short of a success. With the grocer’s previous AX implementation as a “springboard” and its own proven expertise in the market, Argano was able to deploy Dynamics 365 quickly and cost-effectively.

The team was able to deliver the largest concept (Cardenas Markets) within 9 months, a second concept 2 months later (Tony’s Fresh Markets) and a new acquisition, fitted to the template developed and rolled off of an SAP legacy system (El Rancho Markets), 8 months later. El Rancho even brought new B2B processes to the HGG Dynamics 365 systems portfolio.

Typically, an enterprise-level ERP system implementation can take 18-24 months and cost upwards of $4-5 million. The HGG-Argano team delivered the updated solutions and integration infrastructure in half the time and for less than half the cost. The impact was immediate and profound.

HGG's new systems have enabled the company to scale operations and sales while reducing non-revenue-producing corporate headcount. The outdated infrastructure has been replaced with a more reliable and efficient structure, allowing HGG to focus on ensuring the right products are in the right places and analyzing the business for further growth and optimization.

Moreover, HGG's acquisition strategy has been significantly bolstered. The company was able to integrate two acquisitions that doubled its size, all while adding B2B workloads, just 8 months after the initial rollout. This rapid integration has been a game-changer, ensuring that HGG can continue to expand and serve its stores, customers, and communities effectively.

“In a rapidly evolving market, the right technology and partner are crucial. The Dynamics 365 solution, combined with Argano's unparalleled knowledge and implementation expertise, has helped us quickly replace legacy ERP software, streamline operations, and seamlessly integrate new acquisitions. This has allowed us to better serve our stores, customers, and communities." – Darla Sebastian, VP Special Projects | Heritage Grocers Group

A dynamic, expanding market like the one HGG serves demands a robust technology platform and a reliable partner to support continued growth. With the scalability and flexibility of Dynamics 365 and the expertise of Argano, HGG now has the capabilities it needs to excel in finance and warehouse management, driving increased greater efficiency that enables high-performance operations and accelerated growth.