ERP implementation plan for S&S Focus on Stage II

Industry overview  retail apparel industry shifting towards a greater online presence to ensure better customer coverage than a physical store  main competitors : GAP, ZARA, H&M, Benetton and Forever 21  Low margin levels due to the stiff competition  just-on-time store deliveries and excellent supply chain organisation

The 3-stage implementation for an Integrated ERP

The need of an integrated ERP system  S&S should concentrate its strategic efforts on three industry CSFs: Short response time in orders Lower quantities to eliminate surplus inventory levels Bigger choice of styles and variety of clothes Simplified and efficient supply chain Efficient procurement process Added value Reduction of operating expenses Better customer service

Procurement-to-Payment process within S&S

ERP proposed upgrade  Possible vendors  Solution selected: SAP MM Procurement module (Material Management)

Problem-solution approach Introduction of an approval level scheme Reduction of Procurement phases Constantly updated data flow ; information extract tools Full automation of the process Problem: heavy approval process Problem: paper- based purchase order Problem: time loss and log procurement cycle Problem: Multiple data errors and doubled POs

Data Flow Chart showing the ERP supported Procurement process

Expected benefits of the Procurement module implementation  Data accessibility in real-time through cloud technology  Automation, visibility and flowability of the information  forecasting, simulation and sensitive analysis are possible on all levels and in all departments  strict record of all the communication and thus allows a written proof in case of litigation  Facilitates hierarchy and decision making process interactions HOWEVER to achieve all these benefits, S&S should examine its business process internally and should not rely on the new module to drive added-value

Project management

Project management issues and Scenario planning The 10 biggest risk factors in the ERP implementation (Huang et al, 2004)

Return on Investment Scenario S&S company is expected to achieve a positive % ROI six months after new module implementation

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