erp at pantaloons
TRANSCRIPT
Hand2Hand SolutionsKnowledge. Experience. Results
APPLICATION OF ERP IN APPAREL & RETAIL INDUSTRY
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Contents ERP Introductiono What is ERP
o Features & Benefits of ERP
ERP in Apparel & Retail Industryo Necessity of ERP in Apparel & Retail Industry
o Advantages of ERP in Apparel & Retail Industry
Case Study Pantaloon Retail
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ERPAn Introduction
Its a multi-module application software that supports broad set of business activities, that may include a combination any of these:o o o o o o o o o o Product development Pre and Post Costing Merchandising Planning Purchase Inventory management Production Exports Finance and Payroll
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ERPAn IntroductionProduct development Payroll Finance Pre and Post Costing
ERPMulti-module application software that supports broad set of business activities, that may include a combination any of these
Merchandising
Exports
ERPProduction Inventory management Purchase
Planning
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ERPFeatures & Benefits
Effective monitoring operations of the company An ERP system uses a central database called the unified Information System (IS) that holds all the data relating to the various system modules. a
Highly flexibility A good retail ERP system is highly flexible allows a high degree of customization and is easily scalable to attune itself to the size of the organization and its level and scope of operations.
All users and organizational components integrated ERP systems integrate all the data and the related processes of an organization. ERP software packages have an enterprise wide reach that offers cross-functional capabilities to the organization
Greater efficiency and performance ERP helps business process flow more smoothly and improves the efficiency of fulfillment process. It leads to reduced inventory. Eventually, it decreases the overall business cost.
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The need for ERPReason 1 : Market Competition
Efficiency is critical to survive in the retail industry
Margins & EfficiencyRespond to the various inputs in real time across the enterprise.
Consumer Specific Requirements TAT to Customer ResponseRespond to the various inputs in real time across the enterprise.
Competition
To beat the competition, retailers have to understand consumer demand at the point of interaction
Problems in the legacy Environment : Sans the ERP www.hand2handsolutions.in
The need for ERPReason 2 : Regulatory pressures
A combination of flexibility, process efficiency, reliable information and responsiveness is critical to a retail businessEfficiency
Data access and near-instant performance reporting Retailers require an enterprise wide process visibility
Need of an integrated IS infrastructure which continuously monitors and dispatches the information.
Only the complete integration can provide this.
To meet the regulatory standards
Retail business would benefit immensely from an integrated IS infrastructure
Inability of Legacy System to meet these Requirements www.hand2handsolutions.in
Challenges with the Retail SectorWhy cant they just move to ERP ?
Integration is the prime prerequisite but very difficult. As explained
Difficult to rip and replace the legacy systemsFragmented legacy software applications
Outdated Architecture
Limited Scope
Over Dynamic legacy systems
Integration & Scalability problems
Risk to business
Previous Investments would go waste
Problems with Legacy systemswww.hand2handsolutions.in
Challenges with the Retail SectorProblems With Legacy Systems WRT Retail - Explained Most of the legacy enterprise applications in retail have an outdated architecture that is inflexible and rigid. This inflexibility and rigidity pose a challenge to the business efficiency. The lack of flexibility prevents the legacy software to be used with the contemporary products available in the market that may add muscle to the retail operations. Todays business environment demands real time adaptability from the software systems. Most of the legacy systems were designed to take care of specific problems tasks and as a result, lacked an enterprise wide approach to the problem solving process. This makes such systems unsuitable for use in the contemporary business environment that is highly competitive in nature. Modern businesses require an enterprise wide approach to retail management process and legacy systems fall short of such a requirement. Legacy software does not allow addition and integration of new applications. This prevents such systems from scaling up or integrating with similar systems used by the associates or business partners. Such integration and scalability problems tend to multiply as the size and scope of retail operations increases. A combination of old and new information systems makes the whole system susceptible to failure or crash. The heterogeneity in the system is the primary cause of risk. The solution lies in a close knit, homogeneous information system that can integrate seamlessly with other such systems in real time while imparting the much-needed stability to the whole system.
Outdated architecture
Limited scope
Integration and scalability problems
Increased risk to the business
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Advantages of Using a ERP Retail SuitWhat if Legacy Systems are replaced with Retail ERP Suits ?Retail specific components
Technology and application integration
Segment specific expandability option
Workflow automation and enterprise process management Support for advanced functionality
Advantages of ERP SuitesConfiguration and scalability
Support for the store system
Phased implementation support
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Advantages of Using a ERP Retail SuitAdvantages ExplainedRetail specific Unlike a general ERP package, retail ERP suite offers retail centric components that are customized to meet the specific requirements of a retail organization in an effective and efficient manner. This makes a retail ERP suite much more suitable to meet the specific requirements of a retail organization Within the retail sector, there is a wide variety of different segments that vary in their nature and scope of operations. A retail ERP package has provisions to meet the varying needs of the different segments within the retail sector Retail ERP suite offers support for the store systems that form the pivot of a retail business. The critical functions include keeping track of the inventory, ordering and replenishment, loss prevention and task management. This makes retail ERP system suited to the specific needs of a retail organization A good retail ERP system allows a high degree of customization and is easily scalable to attune itself to the size of the organization and its level and scope of operations. Such configuration and scalability prove to be a boon in managing the retail operations across an enterprise. This allows a retail ERP system to grow with the organization
components
Segment specific expandability option
Support for the store system
Configuration and scalability
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Advantages of Using a ERP Retail SuitAdvantages ExplainedcontdPhased implementation support Modern retail ERP systems provide support for phased implementation. This feature allows the software package to be implemented in a step-by-step incremental manner rather than in one go. This makes the transition to an ERP package a lot easier. This feature allows the users to acclimatize themselves to an ERP package that may initially seem complicated to use. Modern retail ERP systems provide support for advanced functionalities that is helpful in the decision making process such as formulating pricing strategies, merchandise planning, inventory optimization and store execution. The advanced functionalities help the users formulate business strategies to introduce efficiencies in the critical business processes. The top management uses this feature to set the benchmarks and achieve the desired results Modern day retail ERP packages offer workflow automation and enterprise process management to make the workflow smooth and seamless across the entire enterprise. This allows the management to monitor and keep track of the workflow while also undertaking the enterprise process management leading to the identification and removal of any inconsistencies in the business process. A good retail ERP system allows technology and application integration to allow a platform independent, seamless transfer of processes across different modules running on different technologies in an enterprise wide environment that may include interaction with legacy systems and external entities such as the suppliers and the customers. Such integration provides the critical enterprise-wide view to the management
Support for advanced functionality
Workflow automation and enterprise process management
Technology and application integration
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The basic need was to have a robust transaction management system and an enterprise wide platform to run the operations.Rakesh Biyani, Director, Pantaloon
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Retail ERP @ PantaloonWhat led to it !
Pantaloon was regularly opening stores in the metros and there was an urgent need for a reliable enterprise wide application to help run its business effectively
The company was looking for a solution that would bring all of its businesses and processes together
After a comprehensive evaluation of different options and software companies, the management at Pantaloon decided to go in for SAP.www.hand2handsolutions.in
Retail ERP @ PantaloonWhat led to it !
Pantaloon was regularly opening stores in the metros and there was an urgent need for a reliable enterprise wide application to help run its business effectively
The company was looking for a solution that would bring all of its businesses and processes together
After a comprehensive evaluation of different options and software companies, the management at Pantaloon decided to go in for SAP.www.hand2handsolutions.in
Retail ERP @ PantaloonSnapshot Solution : SAP retail solution Implemented by : SAP team with the help of Novasoft, Singapore Number of users : Around 1,200 Time taken : About six months Cost of implementation : About $10 million Implemented in three phases o Phase one: Blueprinting o Second phase: Development of SAP platform o Third phase: Deployment
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.Our Managed Retail Services (mRS)areas Include Retail ERP & IT Solutions Evaluation & Process Mapping Retail CRM & BI Tool Mapping Location Mapping & Site Assessment Operations Effectiveness Merchandising and Category Management Supplier & Manufactures Tie Ups Logistics & Supply Chain Management
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