ENTERPRISE RESOURCE PLANNING

ASSIGNMENT 1
Presented by :- Gurnoor Kaur ( BFT/18/620)
Snigdha Das ( BFT/18/616)
 ERP
• ERP stands for Enterprise Resource Planning and refers to software
and systems used to plan and manage all the core supply chain,
manufacturing, services, financial and other processes of an
organization.
• Enterprise Resource Planning software can be used to automate
and simplify individual activities across a business or organization,
such as accounting and procurement, project management,
customer relationship management, risk management, compliance
and supply chain operations. 
ERP Benefits for Fashion Industry

Reduction in cycle time

Reduction in machinery downtime

Increase in sales

Cost saving

Costumer satisfaction
 Evolution Of ERP In Fashion &
Lifestyle Industry
• The beginning of ERP in fashion industry started in 1960s when an
open loop MRP (Material Requirement Planning) was introduced.
This MRP was linked to Bill of Material and Inventory Master File.
• The major drawback in this system was the control or check points.
To come out of these problems in 1970s, came into existence closed
loop MRP. This model of MRP was able to check the capacity
requirements before generating any kind of Purchase or Work
Order.
• But still it use to work in isolation of the Business Plan Financial and
Marketing. This resulted in MRP II in 1980s which on the constraint
of Marketing and Financial Planning use to run the closed loop
MRP.
• Still the industry felt the need that all the resources of an enterprise
need to be integrated which gave birth to ERP and as a result
all Enterprise wide resources were on single platform working
for optimization with better planning.
• 1990's early ERP used client server methodology where the client
systems use to have an application installed that could fetch the
information from the server.
• With the birth of internet ERP was pushed one more step in 2000s
where no installation of client application was required and the ERP
moved to Web.
• With the birth of Cloud computing and highly complex mobile
devices, ERP became faster and easily accessible.
 Current Trends In ERP In Fashion And
Lifestyle Industry
• The apparel industry is continually changing and shifting. As
consumers take on new mindsets and shopping culture adapts,
businesses need to find ways to keep up. These shifts create trends in
how companies use hardware and software to their advantage,
and Enterprise Resource Planning (ERP) is at the forefront of modern
needs.
• Cloud and mobile ERP are THE trend of 2020 for good reason. In
2020 we have seen a shift in a remote workforce that keeps
people safe and highly productive and has many advantages over
the traditional models
 FDM4

• This fully-integrated system

leverages fashion ERP to the
next level by allowing
enterprise-scale apparel
manufacturers to work
smarter, faster, and more
efficiently across the global
market.
 Infor Fashion
• Infor Fashion provides for
end-to-end resources
management operations
specifically based on fashion
industry requirements.
• The system is individually
configurable that
encompasses the entire
fashion process chain ranging
from design, materials
sourcing, and product
distribution, to
manufacturing, private brand
wholesale and retailing
 Apparel Connect

• Apparel Connect ERP defines

itself as a “complete garment
manufacturing system.” The
platform was developed
specifically by garment
manufacturers, in direct-support
of global buying houses.
• The system allows the apparel
enterprise to operate seamlessly
due to its highly-granular toolset.
 PolyPM

• This system offers

an integrated ERP and product
lifecycle management (PLM)
capability designed and
manufactured specifically for
the apparel industry.
• The platform is comprehensive
and ranges in value from style
development to product
execution, and finally global
buyer distribution.
 Popular ERP vendors in the world

• Sap
• Oracle and netsuite
• Microsoft
• Infor
• Ifs
• Workday
• Epicor
• Abas.
Processes for Successful ERP
Implementation
Benefits of ERP Implementation

Enhanced Business Reporting

Better customer service

Improved Inventory Costs

Boosted Cash Flow

 Cost Savings

Better Data & Cloud Security

Business Process Improvements

Supply Chain Management

ERP IMPLEMENTATION
SUCCESS
PANTALOONS
 COMPANY BACKGROUND
• Pantaloons Fashion & Retail Limited is an Indian
premium clothing retail chain.
• Pantaloons was previously controlled by the Future
Group, but has now been taken over by Aditya Birla Nuvo
Limited (ABNL).
• Headquartered in Mumbai (Maharashtra, India)
• Operates through nine million square feet of retail space,
Over 750 stores across 61 cities in India and employs over
34,000 people.
 NEED FOR ERP IN PANTALOONS

• To win the customer’s in the frontline.

• The basic need was to robust transaction management system and provide
enterprise wide platform to run the operations.

• Looking for a solution that will bring businesses together.

• To improve financial tracking and reporting for all retail locations .

• Enhanced decision making by providing more granular, real-time information

 THE SOLUTION
SOLUTION: SAP retail solution

Implemented by : SAP team with the

help of novasoft

Number of users : around 1200

Time taken : about six months

Cost of implementation: about $10

million

Implemented in three phases

1- blueprinting

2-development of sap platform

3- Deployment
 The Implementation
• The implementation was outsourced to a third party.
• The implementation was done by the SAP team with
help of Nova soft which is based out of Singapore
• Some people from Pantaloon also assisted in the
project.
• About24 qualified people worked on this SAP
implementation.
• SAP was chosen as the outsourcing party on a turnkey
basis. This project was headed by Pantaloon’s Chief
Information Technology Officer, Chinar Deshpande
 Challenges
The difficulties were faced during the data
migration and in managing the interim
period.
• People were Not convinced about the
need for ERP and did not see why it was
necessary.
• Pantaloons has not been able to see
immediate benefits from this
implementation.
• Pantaloons Earlier started working on
MAP (Merchandise Assortment Planning),
Auto-Replenishment and Purchase Orders.
 Conclusion
• • At Pantaloons ERP system made management of business a lot
easier by utilizing the computing power offered by the Information
Systems (IS) in an integrated and consistent manner.
• • The ERP Information Systems facilitates faster and better
management decisions in Pantaloons by providing crucial information
in a timely manner.
• • It also eliminates errors caused by multiple input of the same data
required in disparate legacy systems.
• • ERP Systems have been found to deliver high ROI despite their high
initial and maintenance costs.
ERP IMPLEMENTATION
FALIURE
 Overstock.com
• Overstock.com, is an American online retailer.
• Headquarter: Cottonwood Heights, near Salt Lake City, Utah, US
• CEO: Patrick M. Byrne
• Launched in: May 1999
• No. of Employees: 1500
• Overstock went public in May 2002, and after achieving significant
growth and profits in some early quarters, achieved a profit of $7.7
million in 2009
• In 2010, it reported its first billion-dollar year
• In early 2011, Overstock started rebranding as "O.co" to simplify
and unify its international operations but interrupted this effort a few
months later, citing consumer confusion over the new name.
 Need for ERP
• Before 2003, Overstock was using a home grown ERP package which
recorded customer transactions in batches.

In 2003, Overstock decided to implement Oracle Virtual Machine ERP to

record daily transactions and avail benefits.

• Oracle VM is a platform that provides a fully equipped environment to better

leverage the benefits of virtualization technology.

Expected Benefits

Improve service, quality Inventory and sales activities in one system

Provide responsive customer services Increase productivity, efficiency and effectiveness

Eliminate unnecessary activities

Integrate all facets of the business Compete against online giant’s like Amazon and e-Bay
 Impacts
• Overstock.com's customer tracking systems were down for nearly a
week.
• Investors lost money because for five and a half years overstock
had reported false financials and led the company in 2008 to reduce
its revenue over that time period by $12.9 million and a net loss of
$10.3 million.
• In October 2008,Overstock realized the new ERP system was not
reducing the amount of cash Overstock received from its credit
card processors on solve customer refunds.
• The new ERP system also failed to subtract shipping revenue for
those cancelled orders. The $2.95 charges per order eventually
added up over time and became huge loss.
 Reasons for failure
• Leader Centric:-Byrne’s authority and especially strong character
dominance contributed to the failure of the new ERP System.
• Lack Of Research: -The short timeline contributed to the lack of
research and development of the Oracle ERP system.
• Lack of Contingency Planning:- There was no contingency planning
to deal with changes in the business operations.
• Highly Controlled Implementation :- Overstock established its tasks,
timelines and executed the project like a machine, tightly
controlled.
• Insufficient Testing :- Due to the rushed schedule, some modules
testing was skipped. There was inadequate testing and insufficient
time to debug the system to ensure its functionality.
• Short Timeline
 How to prevent failure
• The failure of Overstock.com can be used as a lesson for
companies who plan to implement an ERP system. The
following recommendations could eliminate the incurrence
of a similar failure:
Software selection
Stakeholders’ involvement
Contingency plan:
Thorough testing:
Close monitoring of project status
Post implementatiomn review
Thank You!