Pavithra Ganeshan FT13153 Pragya Jain FT13154

Prashant Mishra FT13155 Preeti Singh FT13156

Puneet Rastogi FT13157
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 department’s 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 Production
Material Sales &
Planning Management
Management Ditribution

Quality Finance & HR/Payroll

Costing Controlling
Management
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 • Serves as a database for all the styles
• Gives greater power to the customers
Development

• Merchandiser can prepare an online BOM based on size

and color dependency
Merchandising • Automatic calculation of product pricing based on the cost
of the raw materials

Sales order • When a customer order is received over mail,

the sales department punch in the order in the
Processing system and generates a Sales order document

• Once sales order is confirmed, automatic

Planning confirmation goes to planning department.
• The order data gets queued in planning dept.
 • Provision to track the units in each stage of production
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
Purchase • 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
Inventory • Tracking of rejected pieces from suppliers at any point
of time

• Whenever Purchase orders are raised, A/P are

automatically updated.
Finance • 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
• 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
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)
Future trend of IT in Retail
Mobile POS as a customer Service Opportunity

Integrated Customer Loyalty Management

Online Retail
• Speak live
• Chat live
• Broadcast Live
• Mail Live
• Answer Live
• Be Social
Retail management Solution
Thanks