An Oracle-based IT overhaul at Morrisons will contribute to an additional £20 million savings by next year.
The supermarket chain was already targeting £200 million savings by January, under its Optimisation Plan that was launched in 2006. Those targets have now been extended to £220 million.
The company has invested £110 million implementing a complete Oracle retail suite of merchandising, planning and stores applications, plus the Oracle E-Business Suite for financials, HR/payroll and manufacturing.
It is also rolling out Oracle's Siebel platform for CRM and Oracle Fusion middleware including Oracle SOA Suite and Oracle Identity Management - all underpinned by Oracle databases on HP servers.
Other parts of the £450 million overall Optimisation Plan include improving the company's manufacturing and its supply chain, and refurbishing stores.
The plan is delivering "better than projected improvements" to margins, Morrisons told investors in a financial update today.
"The remaining Optimisation Plan initiatives are progressing well and are also expected to exceed our expectations, by £20m," it said.
The company indicated its full year profits would be approximately £70 million better than expected, with an eight percent growth in sales.
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