Background
A leading cosmetics company with a global presence needed to streamline its business processes across various functions, including procurement, sales, financial accounting, human resource management, and analytics. The company sourced products from its parent company in the UK.
Challenges
- Procurement: Managing imports from the parent company, local procurement, and asset procurement.
- Goods Movement: Ensuring smooth stock transfers from the central warehouse to stores and maintaining accurate stock reconciliation.
- Sales: Handling store sales, sales to distributors, and managing scraps.
- Financial Accounting: Streamlining accounts payable and receivables, asset management, auto bank reconciliation, foreign currency gain & loss, and statutory return & reporting.
- Human Resource: Managing employee administration, organization management, payroll, and legal reporting.
- Third-party System Integration: Integrating company’s internal systems with POS systems and e-commerce portals for real-time data flow.
- Analytics & MIS: Generating detailed reports on retail and corporate sales, stock management, vendor and customer outstanding, and daily/monthly collections.
Solution
To address these challenges, an SAP IS-Retail Solution was proposed with the following components:
- Procure to Pay
- Order to Cash
- Financial Accounting & Controlling
- SAP Analytics on HANA
- SAP Fiori-Based Transactions
- Point of Sales Integration for Retail Sales
- E-commerce Portal Integration
Solution Approach
- Fusion workshop to finalize business process solution
- SAP recommended sizing tool to optimize server cost
- Utilized HANA capabilities
- HANA studio for custom development
- Adobe forms developments
- CDS view maintenance for BW analytics
- LTMC for master data maintenance
- REST API interface for E-commerce
- DB to DB interface for POS integration
- Solution manager incident management tools
Implementation Approach
- SAP on-Premise License: The solution was implemented on-premise with the server hosted on a private cloud.
- SAP Activate Methodology: Applied for the implementation, encompassing project planning, strategy, team finalization, documentation, testing, training, communication, change management, cutover strategy, hypercare strategy, and project closure.
- New Policies & Templates: Developed for TR movement, change requests, master data creation/change, and support SLAs.
Outcome
- The implementation of the SAP IS-Retail Solution led to significant improvements in the company’s operational efficiency.
- The integration of third-party systems allowed for real-time data flow, enhancing decision-making processes.
- The comprehensive analytics and reporting capabilities provided the company with valuable insights into sales, stock management, and financial performance, enabling them to make informed business decisions.
- The robust financial controls and streamlined HR management processes ensured compliance and operational excellence across all functions.
- Overall, the solution empowered the company to achieve its business goals with greater agility and precision.
