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APPLICATION OF ERP IN APPAREL & RETAIL INDUSTRY

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Contents
‡ ERP ² Introduction
o What is ERP o Features & Benefits of ERP

‡ ERP in Apparel & Retail Industry
o Necessity of ERP in Apparel & Retail Industry o Advantages of ERP in Apparel & Retail Industry

‡ Case Study ² Pantaloon Retail

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ERP An Introduction ‡ It·s a multi-module application software that supports broad set of business activities.in .hand2handsolutions. 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 www.

that may include a combination any of these Merchandising Exports ¶ERP· Production Inventory management Purchase Planning www.in .ERP An Introduction Product development Payroll Finance Pre and Post Costing ¶ERP· Multi-module application software that supports broad set of business activities.hand2handsolutions.

‡ All users and organizational components integrated ‡ ERP systems integrate all the data and the related processes of an organization. It leads to reduced inventory. 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.in .hand2handsolutions.ERP Features & 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. it decreases the overall business cost. Eventually. www. 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.

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Competition To beat the competition.in . retailers have to understand consumer demand at the point of interaction Problems in the legacy Environment : Sans the ERP www. Consumer Specific Requirements TAT to Customer Response Respond to the various inputs in real time across the enterprise.The need for ERP Reason 1 : Market Competition Efficiency is critical to survive in the retail industry Margins & Efficiency Respond to the various inputs in real time across the enterprise.hand2handsolutions.

Retail business would benefit immensely from an integrated IS infrastructure Inability of Legacy System to meet these Requirements www. reliable information and responsiveness is critical to a retail business Efficiency Data access and near-instant performance reporting Retailers require an enterprise wide process visibility To meet the regulatory standards Need of an integrated IS infrastructure which continuously monitors and dispatches the information.The need for ERP Reason 2 : Regulatory pressures A combination of flexibility.hand2handsolutions. Only the complete integration can provide this. process efficiency.in .

hand2handsolutions.in     Previous Investments would go waste .Chall s ith the Retail ector Why cant they just move to ERP ? Integration is the prime prerequisite but very difficult. As explained Difficult to rip and replace the legacy systems Fragmented legacy software applications Outdated Architecture Limited cope Over Dynamic legacy systems Integration & calability problems Risk to business Problems with Legacy systems www.

This prevents such systems from scaling up or integrating with similar systems used by the associates or business partners. ‡ Most of the legacy systems were designed to take care of specific problems tasks and as a result. Modern businesses require an enterprise wide approach to retail management process and legacy systems fall short of such a requirement.Explained ‡ Most of the legacy enterprise applications in retail have an outdated architecture that is inflexible and rigid. The solution lies in a close knit.Challenges with the Retail Sector Problems With Legacy Systems ² WRT Retail . lacked an enterprise wide approach to the problem solving process. The heterogeneity in the system is the primary cause of risk. Such integration and scalability problems tend to multiply as the size and scope of retail operations increases. Today·s business environment demands real time adaptability from the software systems. This inflexibility and rigidity pose a challenge to the business efficiency.hand2handsolutions. ‡ Legacy software does not allow addition and integration of new applications. 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. homogeneous information system that can integrate seamlessly with other such systems in real time while imparting the much-needed stability to the whole system. ‡ A combination of old and new information systems makes the whole system susceptible to failure or crash. This makes such systems unsuitable for use in the contemporary business environment that is highly competitive in nature.in . Outdated architecture Limited scope Integration and scalability problems Increased risk to the business www.

hand2handsolutions.Advantages of Using a ERP Retail Suit What 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 Suites Configuration and scalability Support for the store system Phased implementation support www.in .

This makes a retail ERP suite much more suitable to meet the specific requirements of a retail organization ‡ Within the retail sector. Such configuration and scalability prove to be a boon in managing the retail operations across an enterprise. there is a wide variety of different segments that vary in their nature and scope of operations.hand2handsolutions. ordering and replenishment.Advantages of Using a ERP Retail Suit Advantages Explained Retail specific components ‡ Unlike a general ERP package. 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. The critical functions include keeping track of the inventory. This allows a retail ERP system to grow with the organization Configuration and scalability www.in . A retail ERP package has provisions to meet the varying needs of the different segments within the retail sector Segment specific expandability option Support for the store system ‡ Retail ERP suite offers support for the store systems that form the pivot of a retail business. 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. loss prevention and task management.

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. This makes the transition to an ERP package a lot easier. ‡ Modern retail ERP systems provide support for advanced functionalities that is helpful in the decision making process such as formulating pricing strategies. 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. ‡ A good retail ERP system allows technology and application integration to allow a platform independent.in . The advanced functionalities help the users formulate business strategies to introduce efficiencies in the critical business processes.Advantages of Using a ERP Retail Suit Advantages Explained«contd Phased implementation support ‡ Modern retail ERP systems provide support for phased implementation.hand2handsolutions. This feature allows the users to acclimatize themselves to an ERP package that may initially seem complicated to use. merchandise planning. This feature allows the software package to be implemented in a step-by-step incremental manner rather than in one go. 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. inventory optimization and store execution. 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 www.

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Director.hand2handsolutions. Pantaloon www.in .´The basic need was to have a robust transaction management system and an enterprise wide platform to run the operations.µ Rakesh Biyani.

the management at Pantaloon decided to go in for SAP.Retail ERP @ Pantaloon What 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. www.in .hand2handsolutions.

Retail ERP @ Pantaloon What 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. www.hand2handsolutions. the management at Pantaloon decided to go in for SAP.in .

in .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 www.Retail ERP @ Pantaloon Snapshot ‡ ‡ ‡ ‡ ‡ ‡ ‡ Solution : SAP retail solution Implemented by : SAP team with the help of Novasoft. Singapore Number of users : Around 1.hand2handsolutions.

in .Our Managed Retail Services (mRS)Œareas 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 www..hand2handsolutions.

in .in www.contact@hand2handsolutions.hand2handsolutions.

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