Off-licence firm Thresher Group has completed a major IT overhaul that has cut technology budgets by 25 per cent.

The company had inherited disparate legacy IT systems from previous owners whose core businesses were not in the off-licence retailing industry.

Different product and supplier databases had to be consolidated to support more efficient stock and accounting systems containing important historical supply chain information.

The group also reviewed its desktops, laptops and server hardware, and reduced maintenance costs by outsourcing management of these systems.

Simon Thomas, Thresher Group IT and business change director, says the main challenge was to put in place systems that create value for the company.

'The business was thought of as a sleeping giant,' he said. 'It was felt that the business-related systems were dated, at store and head-office system level.'

In 2003 the group began installing new merchandising and replenishment software, to provide more effective management of stock from seven warehouses through to its 2,200 nationwide stores, which include chains such as Threshers, Victoria Wine and Bottoms Up off-licences.

'This was in support of a central replenishment model that could be used to manage the supply and sale of goods through each store,' said Thomas.

The IT systems overhaul was completed last month, and the project has also cut the amount of time store managers spend on administration.

'It took about a week's worth of stock out of the supply chain, and improved availability by giving us very accurate stock replenishment figures,' said Thomas.

Thomas says the group will now look at updating in-store and electronic point-of-sale systems as the last element of improving the technology infrastructure.

'Off-licence retailing no longer has the business to itself, with other retailers such as Tesco selling drinks. The business is under constant cost pressure,' he said.

In March, Thresher signed a deal to outsource the management of its warehouse and merchandising systems to supplier Astech Consultants (Computing, 31 March).