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Quick Facts Success Story SAP implementation Success Story….. SAP Project Implementat ions SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present in many cities (140-plus locations) all over India. These stores are mainly known for selling music and movies and related accessories. They also sell gaming consoles and handhelds like PlayStation Portable, PS2, PS3 and Xbox 360. Planet M is also a new entrant in the mobile retail business. They offer a wide range of mobile handsets with lucrative schemes. The questions baffling the customer… Do we have instantaneous and reliable visibility of the Inventory and working capital today? How insightful information do we get to make the pricing decisions today? Do we have visibility towards the margins and profitability today across categories to the depth of articles and also profitability by every outlet/region or zone? To what extent are the business decision driven by up to minute real time information on business status? Are the business operations integrated end to end and do the financial statements emerge out of direct integration with operations? How long and manual working is being done for assortment planning? Are we able to efficiently manage the promotions and do we have a scientific information on impact of the promotions that we run? How secured and integrated is the HR information and operations? Are we able to manage our working capital effectively? Proposed Solution: SAP Retail with PoS Integration

Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

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Page 1: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

SAP Retail for Planet M The CustomerPlanet M is an Indian music retail store. It is present in many cities (140-plus locations) all over India. These stores are mainly known for selling music and movies and related accessories. They also sell gaming consoles and handhelds like PlayStation Portable, PS2, PS3 and Xbox 360. Planet M is also a new entrant in the mobile retail business. They offer a wide range of mobile handsets with lucrative schemes.

The questions baffling the customer…Do we have instantaneous and reliable visibility of the Inventory and working capital today?How insightful information do we get to make the pricing decisions today?Do we have visibility towards the margins and profitability today across categories to the depth of

articles and  also profitability by every outlet/region or zone?To what extent are the business decision driven by up to minute real time information on business

status? Are the business operations integrated end to end and do the financial statements emerge out of direct

integration with operations?How long and manual working is being done for assortment planning?Are we able to efficiently manage the promotions and do we have a scientific information on impact of

the promotions that we run?How secured and integrated is the HR information and operations?Are we able to manage our working capital effectively?

Proposed Solution:SAP Retail with PoS Integration

Page 2: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

The need understood…

…… It Delivers

Why Planet M Needed Change ?

How Infodart Can Help?

What Benefits can be realized?

Disintegrated IT Backbone with multiple master data sources, manual planning and promotion management which makes it difficult to get a single central view of business.

Multiple repetitive operational processes are labor intensive and consume large productive time in backend processes which could rather be spent in core retail businesses

Need to have robust IT backbone which is scalable can support the growth plans of the organization

Complexity in the Supply Chain will only increase in the number of stores/formats

Provide a scalable state-of-the-art industry solution incorporating global best practices

Provide a fully integrated Retail Merchandising, Supply chain, �Warehousing and Financial Solution

Infodart can partner with business, providing an integrated view �of inventory across all stores, warehouses, distribution centres.

Provide a completely Integrated enterprise solution platform �which can support current and future business needs

Provide a single Version of Truth Across the Enterprise enabling dependable and robust insight into customer demand, buying behaviour

Grow customer stickiness with detailed insight into customer preferences through better merchandise planning and execution leading to better in store conversion

Develop a robust and lean supply chain which can support multi retail formats(COCO, Franchisee , Shop in Shop and Satellite store) and can handle largetransaction volumes due to ever-growing number of stores

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The project outline…Functional Scope - SAP ECC 6.0 with IS Retail, FI, CO, SD, MM and HCM

Integration Scope - SAP ECC 6.0 integration with RetialPro as PoS

Organization Scope - 140 Stores, 6 warehouses, 4 regional offices, Headquarter

Duration – 20 Weeks with Big Bang GO LIVE at all Stores at a time….

Page 3: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

The real painand real benefits

…… It Delivers

Merchandise Life Cycle Management

Area of Improvement/ Pain Area How Infodart Has Helped

New Item Creation is decentralized across 6 locations.

Every new item would need to be created centrally at each location to enable the item to be sold at the store(which could mean that SKU 01 could potentially be different items at different stores)Weak assortment management - Every item is assigned at each store independently

The physical inventory stock take module is not integrated

SAP IS Retail supports a centralized item creation model which would ensure a single version of truth across the business.The integrated item management also a one click store listing process which would define the stores that would be eligible to sell the product

SAP IS Retail enable maintenance of merchandise assortment which would allow the retailer to decide the products that would be sold at a store or a group of stores for a predefined period of time

The physical inventory module is integrated with IS retail with an option to conduct a cycle counts triggered at a predefined intervals or on a random basis with accurate reason code based stock adjustments

Page 4: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

The real painand real benefits

…… It Delivers

Merchandise Life Cycle Management

Area of Improvement/Pain Area How Infodart has helped

There is no direct integration with the PO and the GRM and there is a chance of PO – GRN Mismatch

Report management is labour intensive and inflexible

Merchandise planning is currently managed outside the system

Complex price management with a need to maintain separate price for each of the 6 server locations

Store level price �management is not possible

Manual price management �constrain the ability to react to competition and market dynamics

Completely integrated product costing process as the final landed purchase price would be the starting point for sales price managementProvide various price �modeling strategies for a dynamic price management at the store

Stores could be grouped into clusters not like stores based on factors which are not necessarily geography based

Price Family price modelling would ensure similar products priced similarly, vendor funded promotions

Different prices for different states or regions

Page 5: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

The real painand real benefits

…… It Delivers

Promotion ManagementArea of

Improvement/Pain Area How Infodart has helped

Manage Supplier Led PromotionsSupplier led Promotions are an areas of concernInability to manage supplier discounts on bulkPurchasesNeed to manage supplier promotion schemes on seasonal sales / threshold sales in the systemNeed to manage the supplier settlement process adjusting the supplier discounts/rebates which need to be managed retrospectively for the entire settlement period

Manage Instore Sales PromotionNeed to execute in store retail promotions CentrallyNeed to plan and execute retail promotions like Bonus Buy Schemes , Cash Discount on volume purchase �

Supplier Led DiscountsThe purchase price determination schema special condition types for supplier led discounts can be added.

Supplier rebates on sales value or thresholdsSupplier rebate contracts can be created in IS retail which will allow the creation of contracts on sales which would calculate the rebates through a subsequent settlement mode which is integrated to the finance for accounting adjustments or payouts

Promotion Planning and Execution Detailed promotion management

from planning to execution is supported in IS retail

The promotion suite includes setting of promotion event , promotion assortment and special promotional period pricing models

Multiple promotional schemes can be configured

Page 6: Quick Facts Success Story SAP implementation Success Story….. SAP Retail for Planet M The Customer Planet M is an Indian music retail store. It is present

Quick Facts

Success Story

SAP implementation Success Story…..

SAP Project Implementations

The real painand real benefits

…… It Delivers

Supply Chain Management

Area of Improvement/Pain Area How Infodart has helped

Limited inventory visibility across the supply chain and in the stores

Need Real time inventory information along with stock in store, stock in transit , stock at DC

Need for auto replenishment model – currently replenishment is based on sales and stock at hand model

GRN is a pain point where there is often a discrepancy in stock received leading to both process delays and invoice reconciliation

Need a warehouse management facility to manage stock IN DC for effective inventory management

Need a mechanism to have proper store stock receipt at the store . Currently stock sent to the store is deemed as received at the store , thereby losing visibility of damaged and lost in transit stock

An integrated solution with single master data across the stores, warehouse and head office would ensure visibility of stock across the supply chain with relevant stock status like shipped or in transit, warehouse stock, damaged stock , reserved stock etc

Receiving tolerance levels can be set to ensure that any excess or shortages can be accepted and actual stock received updated in the system

The SAP IS retail has in inbuilt warehouse management system to enable the warehousing processes like GR, Put away, replenishment and requirement planning, picking , dispatch and shipping

SAP POS Data Management performs a audit of all sales transaction for exception and error check and data consolidation from POS till to ensure accurate inventory update and POS analytics

SAP allows for a two step process of stock receipt at the store. When stock is dispatched from the warehouse it is shown as in transit and the stock for store is updated only when the stock is accepted at the destination store