Pavithra Ganeshan FT13153 Prashant Mishra FT13155 Puneet Rastogi FT13157

Pragya Jain FT13154 Preeti Singh FT13156

Contents
ERP Introduction What is ERP ?

ERP in Apparel Industry oCriticalities of Apparel Industry oNecessity of ERP in Apparel Industry oHow it actually works oBenefits of ERP in Apparel Industry oChallenges of ERP in Apparel Industry oExamples of ERP implementation in Retail India oFuture trends for Retail outlets

What is ERP ?
- ERP is a tool to integrate all Enterprise wide resources on single platform for optimizing their usage with better planning. - A solution which integrates all Departments and functions across a company into a computer system that can serve all those different departments particular needs. - Software solution that addresses the enterprise needs taking the process view of an Organization to meet the Organizational goals tightly integrating all functions of an enterprise. - A system which makes sure that there is a proper communication flow between the departments and they share the required information on a common platform to be used by everyone.

Integration of Functions
Enterprise Resource Planning
Production Management

Material Management

Sales & Ditribution

Production Planning

Costing

Quality Management

Finance & Controlling

HR/Payroll

Work flow in an ERP system

Criticalities in Apparel Industry

Some more issues with Apparel Industry?

Excess/redundant inventory or Stock shortages/out of stock Intense market competition required real time data for customers Complex Manufacturing Operations Greater customer bargaining power due to a vast number of available options. Limited competitive edge due to no barrier to entry Reducing Profit margins Ever changing demand of customers Shrinking lead times needs a very flexible manufacturing and distribution channel

How does ERP help my business ????

ERP in Apparel Industry by function

Product Development Merchandising Sales order Processing Planning
Serves as a database for all the styles Gives greater power to the customers

Merchandiser can prepare an online BOM based on size and color dependency Automatic calculation of product pricing based on the cost of the raw materials

When a customer order is received over mail, the sales department punch in the order in the system and generates a Sales order document

Once sales order is confirmed, automatic confirmation goes to planning department. The order data gets queued in planning dept.

Production Purchase Inventory

Provision to track the units in each stage of production Production demand for each color and size was created in planning

If the material is already in stock, it will not raise a requisition Passes through multiple levels of approvals before converting to purchase orders.

Linked to POS counters, so whenever the stock falls below min. level, replenishment orders are raised Tracking of rejected pieces from suppliers at any point of time

Finance

Whenever Purchase orders are raised, A/P are automatically updated. Automatic calculation and posting of taxes in corresponding ledgers.

Benefits of ERP
Retail Specific Components Segment Specific expandability option Support for the Store System Configuration and Scalability Phased Implementation Support Support for advanced functionality Workflow Automation and enterprise process management Technology and Application Integration

ERP Constraints
Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive. Rigid or difficult to adapt to the specific workflow & business processes

It has to be done in Phased manner.

Resistance in sharing sensitive internal information between departments can reduce the effectiveness of ERP

ERP once implemented is the lifeline of the business and downtime costs are very high & impact the business critically

Causes of ERP Failure

Underestimation of Complexity of planning, development and training

Failure to involve affected employees in planning and development

Trying to do too much fast in the conversion process

Insufficient training of tasks required by the ERP system

Overreliance on ERP vendor for assistance

ERP implementation in Indian Retail

Pantaloon

Lifestyle Replaced Legacy systems with newer solutions Implemented by ADI Services Business Process re-engineering was made to suit the changes. ERP connected: Manufacturing unit Dyeing unit Warehouse (Inventory management) Sales team Administrative teams (Accounts and HR)

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 Phase one: Blueprinting Second phase: Development of SAP platform Third phase: Deployment

Future trend of IT in Retail

Mobile POS as a customer Service Opportunity

Integrated Customer Loyalty Management

Online Retail
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