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Submitted to:
Ms. Rashmi Gulati

Submitted by:
Ruchi Singh
MFM 2009-11

 
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ë RP ² Introduction
a 3hat is RP
a Features & Benefits of RP

ë RP in Apparel & Retail Industry

a Necessity of RP in Apparel & Retail Industry
a Advantages of RP in Apparel & Retail Industry
a Disadvantages of RP in Apparel & Retail Industry

ë
ase Study ² Pantaloon Retail

 
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RP IN APPAR  & R AI INDUSRY ² BY Ruchi Singh

 
An Introduction
ë It·s a multi-module application software that
supports broad set of business activities, that may
include a combination any of these:
a Product development
a Pre and Post
osting
a Merchandising
a Planning
a Purchase
a Inventory management
a Production
a ports
a Finance and
a Payroll

 
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An Introduction
Product
development
Pre and
Payroll Post
osting

Finance
¶ RP· Merc andising
Multi-module application software
t at supports broad set of business
activities, t at may include a
combination any of t ese
ports Planning
¶ RP·
Production Purc ase

Inventory
management

 
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Features & Benefits

ë ffective monitoring operations of the company

ë An RP system uses a central database called the unified Information
System (IS) that holds all the data relating to the various system modules. a
ë ighly fleibility
ë A good retail RP system is highly fleible 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.
ë All users and organisational components integrated
ë RP systems integrate all the data and the related processes of an
organization. RP software packages have an enterprise wide reach that
offers cross-functional capabilities to the organization
ë Greater efficiency and performance
ë RP helps business process flow more smoothly and improves the efficiency
of fulfillment process. It leads to reduced inventory. ventually, it
decreases the overall business cost.

 
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RP IN APPAR  & R AI INDUSRY ² BY Ruchi Singh

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Reason 1 : Market
ompetition


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Margins &
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onsumer Specific
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Reason 2 : Regulatory pressures

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Data access and near-instant
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Retailers require an enterprise
wide process visibility

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3hy cant they just move to RP ?



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Problems 3ith egacy Systems ² 3R Retail - plained

ë Most of the legacy enterprise applications in retail have an outdated architecture

that is infleible and rigid. his infleibility and rigidity pose a challenge to the
Outdated business efficiency. he lack of fleibility prevents the legacy software to be used
architecture with the contemporary products available in the market that may add muscle to
the retail operations. oday·s business environment demands real time adaptability
from the software systems.
ë 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.
his makes such systems unsuitable for use in the contemporary business
imited scope
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.

ë egacy software does not allow addition and integration of new applications. his
Integration and prevents such systems from scaling up or integrating with similar systems used by
scalability problems the associates or business partners. Such integration and scalability problems tend
to multiply as the size and scope of retail operations increases.

ë A combination of old and new information systems makes the whole system
Increased risk to the susceptible to failure or crash. he heterogeneity in the system is the primary
cause of risk. he solution lies in a close knit, homogeneous information system
business that can integrate seamlessly with other such systems in real time while imparting
the much-needed stability to the whole system.

 
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3hat if egacy Systems are replaced with Retail RP Suits ?

Retail specific
components

echnology and Segment

application specific
integration epandability
option

3orkflow
automation and m
 Support for the
enterprise store system
process    

management

Support for
onfiguration

advanced and scalability
functionality

Phased
implementation
support

 
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m
   
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Advantages plained

ë Unlike a general RP package, retail RP suite offers retail centric components that
Retail specific are customized to meet the specific requirements of a retail organization in an
components effective and efficient manner. his makes a retail RP suite much more suitable to
meet the specific requirements of a retail organization


ë ithin the retail sector, there is a ide variet of different segments that var in

Segment specific
their nature and scope of operations. A retail RP package has provisions to meet
epandabilit option 
the var ing needs of the different segments ithin the retail sector

ë Retail RP suite offers support for the store s stems that form the pivot of a retail
Support for the store
business. he critical functions include keeping track of the inventor , ordering and
replenishment, loss prevention and task management. his makes retail RP s stem

s stem
suited to the specific needs of a retail organization


ë A good retail RP s stem allo s a high degree of customization and is easil


onfiguration and scalable to attune itself to the size of the organization and its level and scope of

operations. Such configuration and scalabilit prove to be a boon in managing the

scalabilit    ith
retail operations across an enterprise. his allo s a retail RP s stem to gro
the organization

 
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Advantages plained«contd

ë Modern retail RP systems provide support for phased implementation. his feature
Phased allows the software package to be implemented in a step-by-step incremental
implementation manner rather than in one go. his makes the transition to an RP package a lot
support easier. his feature allows the users to acclimatize themselves to an RP package
that may initially seem complicated to use.
ë Modern retail RP systems provide support for advanced functionalities that is
helpful in the decision making process such as formulating pricing strategies,
Support for
merchandise planning, inventory optimization and store eecution. he advanced
advanced
functionalities help the users formulate business strategies to introduce efficiencies
functionality
in the critical business processes. he top management uses this feature to set the
benchmarks and achieve the desired results

ë Modern day retail RP packages offer workflow automation and enterprise process
3orkflow
management to make the workflow smooth and seamless across the entire
automation and
enterprise. his allows the management to monitor and keep track of the workflow
enterprise process
while also undertaking the enterprise process management leading to the
management
identification and removal of any inconsistencies in the business process.

ë A good retail RP system allows technology and application integration to allow a

platform independent, seamless transfer of processes across different modules
echnology and
running on different technologies in an enterprise wide environment that may
application
include interaction with legacy systems and eternal entities such as the suppliers
integration
and the customers. Such integration provides the critical enterprise-wide view to
the management

 
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ë Re-engineering of business processes to fit the "industry standard" prescribed by the
RP system may lead to a loss of competitive advantage.
ë RP systems can be very epensive.
ë Once a system is established, switching costs are very high for any one of the
partners (reducing fleibility and strategic control at the corporate level).
ë Resistance in sharing sensitive internal information between departments can reduce
the effectiveness of the software.
ë Some large organizations may have multiple departments with separate,
independent resources, missions, chains-of-command, etc, and consolidation into a
single enterprise may yield limited benefits.
ë RP Systems centralize the data in one place. his can increase the risk of loss of
sensitive information in the event of a security breach

 
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RP IN APPAR  & R AI INDUSRY ² BY Ruchi Singh

p&!*(!!#!&
!!%!!% %!*!
$(*$"!%
$!
Rakesh Biyani,
Director, Pantaloon

 
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" + "
3hat led to it !

Pantaloon was regularly he company was

opening stores in the looking for a solution
metros and there was that would bring all of
an urgent need for a its businesses and
reliable enterprise wide processes together
application to help run
its business effectively

After a comprehensive evaluation of different

options and software companies, the management
at Pantaloon decided to go in for SAP.

 
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" + "
3hat led to it !

Pantaloon was regularly he company was

opening stores in the looking for a solution
metros and there was that would bring all of
an urgent need for a its businesses and
reliable enterprise wide processes together
application to help run
its business effectively

After a comprehensive evaluation of different

options and software companies, the management
at Pantaloon decided to go in for SAP.

 
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" + "
Snapshot

ë Solution : SAP retail solution

ë Implemented by : SAP team with the help of Novasoft,
ë Singapore
ë Number of users : Around 1,200
ë ime taken : About si months
ë
ost of implementation : About $10 million
ë Implemented in three phases
a Phase one: Blueprinting
a Second phase: Development of SAP platform
a hird phase: Deployment

 
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RP IN APPAR  & R AI INDUSRY ² BY Ruchi Singh

 
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