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ERP IN PANTALOON

ERP IN PANTALOON

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Published by: shaiksuhaib on Oct 19, 2010
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12/07/2012

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Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.

The group’s specialty retail formats include supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others. It also operates popular shopping portal - .

blends the look. a chain of seamless destination malls. Home Solutions Retail (India) Limited. Future Value Retail Limited will continue to deliver more value to its customers.000 people. a chain of fashion outlets. Pantaloon Retail is the flagship company of Future Group. Big Bazaar. The company also operates an online portal. Top 10 and Star and Sitara. Some of its other formats include Brand Factory. a supermarket chain. Headquartered in Mumbai (Bombay).Pantaloon Retail (India) Limited Pantaloon Retail (India) Limited. touch and feel of Indian bazaars with aspects of modern retail like choice. A subsidiary company. the company operates over 16 million square feet of retail space. convenience and quality and Central. selling home furniture products and eZone focused on catering to the consumer electronics segment. has over 1000 stores across 73 cities in India and employs over 30. Big Bazaar and Food Bazaar. operates Home Town. Blue Sky. Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian . covering an operational retail space of over 6 million square feet. a large-format home solutions store. all. As a focused entity driving the growth of the group's value retail business. a uniquely Indian hypermarket chain. The company operates 120 Big Bazaar stores.com. stakeholders and communities across the country and shape the growth of modern retail in India. 170 Food Bazaar stores. a business group catering to the entire Indian consumption space. supply partners. Food Bazaar. The company’s leading formats include Pantaloons. among other formats. Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. in over 70 cities across the country. futurebazaar. Collection i. led by its format divisions. This entity has been created keeping in mind the growth and the current size of the company’s value retail business. is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.

‘Rewrite rules. as espoused in the group’s core value of ‘Indianness.’ ENTERPRISE RESOURCE PLANNING TERM PAPER ERP IMPLEMENTATION IN PANTALOON SUBMITTED TO C. Retain values.M.’ The group’s corporate credo is.ideas.MARAN SUBMITTED BY .

SHAIK SUHAIB ALI 09MBA050 .S.K.

and market demand patterns change. and collaboration with partners in the supply chain. 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. quality. managing mark-downs and capturing customer reactions. which requires marketing and brand management. managing the supply chain. “The basic need was to have a robust transaction management system and an enterprise wide platform to run the operations. Director. Successful retailers are those who know that the battle for customers is only won at the frontline.Pantaloon: ERP in retail More than eight years after it forayed into the retail business. . The company was looking for a solution that would bring all of its businesses and processes together. which involves handling the logistics of moving finished goods from the source into stores and overseeing global trade and procurement requirements.” says Rakesh Biyani. which in the case of a retail chain is at its stores. sourcing and procurement. the management at Pantaloon decided to go in for SAP. buying plans. and Pantaloon. Pantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing Indian retail market. which involves working with manufacturers to fulfill orders according to strategic merchandising plans and optimize cost. and using it to optimize the next phase of the design process. selling goods across a variety of channels to customers. After a comprehensive evaluation of different options and software companies. and speed–variables that must be weighted differently as business needs. which includes ideation. Store operations have never been as important to retailers as they are now. trend analysis. analyzing data. The Solution Some of the qualities of SAP retail solutions are that it supports product development.

200 About six months About $10 million Solution Implemented by Number of users Time taken Cost of implementation : : : : : The implementation “The implementation was outsourced to a third party. SAP was chosen as the outsourcing party on a turnkey basis.In a Nutshell Aim : To deploy a robust transaction management system and an enterprise-wide platform to run its operations. SAP retail solution SAP team with the help of Nova soft.” says Biyani. The implementation was done by the SAP team with help of Nova soft which is based out of Singapore. Some people from Pantaloon also assisted in the project. About 24 qualified people worked on this SAP implementation. Singapore Around 1. Chinar Deshpande. This project was headed by Pantaloon’s Chief Information Technology Officer. .

.

In this phase. all the data was unorganized. analyzed and drafted them. The project was divided into three phases. . the SAP platform was developed with the help of Nova soft’s template which was predefined by SAP after evaluation of Pantaloon’s needs and expertise in retail solutions. the entire project team worked on current processes within the structure of the organization. It went live at the head office on 1st January 2006. Since the SAP would combine all the processes. SECOND PHASE: In the second phase. This blueprint was later used in the formation of new states of the solution. each and every one of these had to be evaluated.Three Phases SAP implementation is not a single phase process. THIRD PHASE: The last phase in this project was for stores to switch over to the new system and for current data to be ported. FIRST PHASE: The first phase involved blueprinting existing processes and mapping them to the desired state. Before the SAP implementation. This data had to be migrated to the new SAP application. The stores went live on SAP from 1st January 2006 to 30th June 2006. The project was flagged off on 15th June 2005 and took about six months to finish.

.Benefits and Challenges The key challenges in this project were not in the implementation. We hope to use these systems to optimize our inventory and cut it by about two to four weeks (depending on the line of business). “It is too early to calculate RoI. Pantaloon has not been able to see immediate benefits from this implementation. We have already started working on MAP (Merchandise Assortment Planning). They are also in the process of setting up a SAP Competency Centre. the difficulties were faced during the data migration and in managing the interim period when the project was underway for about six months. Rather. Auto-Replenishment and Purchase Orders.200 employees across the organization. Migrating unorganized data to an organized format is a challenging task. This application certainly has long term benefits which will be seen when the performance of various aspects will be analyzed. The system runs on a HP Superdome server on HP UNIX 11i and the database is from Oracle.” says Biyani. For maintaining this implementation and its related applications. Maintenance & Hardware This application is currently being used by around 1. Pantaloon has an in-house team and it has outsourced ABAP resources. The cost of this project was about $10 million.

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