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The car accessory and cycle retailer, which has 400 stores across the UK, began the project in August last year following its acquisition by CVC Venture Capital Partners from the Boots Company.
Nick Wharton, business development director at Halfords, hopes the SAP For Retail system, to be implemented by retail consultancy Novasoft over the next 20 months and managed by ITNet, will improve merchandising processes.
"The store replenishment capability with SAP is central to the business case of improving stock availability while reducing overall stockholding levels," he said.
Halfords expects SAP to enhance its supply chain, category management, finance and human resources capabilities, said Alison Vasey, the retailer's business process manager.