RETAIL CHAIN SPECIALIZED ERP – SAMSUNG TESCO HOMEPLUS
Feb 01, 2016
CONTENTS
1. Samsung Tesco1. Samsung Tesco
2. Background2. Background
3. ERP construction3. ERP construction
4. Retail chain specialized ERP 4. Retail chain specialized ERP
5. After construction5. After construction
SAMSUNG-TESCO
Samsung-TESCO
Korean no.2 Retail chain. Joint venture of Samsung C&T and TESCO
Founded on 99.5.1. Sales about $7 billon (2008)
Sales 47%Profit 175%
SAMSUNG-TESCOWon 3 Customer satisfaction
surveysNCSI(National Customer Satisfaction Index) -2002, 2004 KCSI(Korea Customer Satisfaction Index) -2005
KS-SQI(Korean Standard-Service Quality Index) -3 times
1st Samsung Electronics 14 th Homeplus
2nd POSCO 15 th Mirae asset
3 th Yuhan kimberly 16 th Shinhan bank
5 th LG Electronics 17 th Doosan heavy industries and construction co.
7 th Hyundai motor 18 th Kookmin bank
8 th SK Telecom 19 th KT
10 th Samsung C&T 20 th Samsung life
11 th NHN 21 th KTF
Most admired company
CONTENTS
1. Samsung Tesco1. Samsung Tesco
2. Background2. Background
3. ERP construction3. ERP construction
4. Retail chain specialized ERP 4. Retail chain specialized ERP
5. After construction5. After construction
BACKGROUND
Retail Market is getting filled. It is getting harder to survive in this Red-Ocean.It is needed to increase own market share not only for sales, but survival.
M&A of Major Retail companies
Global competitors invasion
Needs of IT
strategies
Effective Resource
management
Customer management
Analysis& prediction
of global trends
Supply system’s efficiency
improvement.
Strategies for Competitive advantage
BACKGROUND OF ERP
BACKGROUND
Needs of flexible task process and IT Environment to achieve position of market dominance of Korea. Competitors already started to analysis the
customers information and use market segmentation strategy with that information.
Because of it’s rapid growth, pre-existing management system couldn’t supports it’s huge number of transactions.
For IT strategies, Standard ERP
Applications are Needed at first.For IT strategies, Standard ERP
Applications are Needed at first.
CONTENTS
1. Samsung Tesco1. Samsung Tesco
2. Background2. Background
3. ERP construction3. ERP construction
4. Retail chain specialized ERP 4. Retail chain specialized ERP
5. After construction5. After construction
RANGE OF ERP CONSTRUCTION
OrderingOrdering PurchasePurchase loanloan SellingSelling StockStock
DemandForecasting
DemandForecasting AccountingAccounting
EIP DW Exhibition ReportReport
Electronic payment
Web-EDI-E-Tax-information
DistributionAccountin
gPOS Credit card
Gift certificate
Balance Management
I/F
I/F
I/F
I/F
Pre-existing System
New ERP System
Interface
New ERP System
Master ( Product, supplier, product classification system, organization, cost, coupons, subsidies, etc) Master ( Product, supplier, product classification system, organization, cost, coupons, subsidies, etc)
I/F
I/F
I/F
I/F
RDF
ReSA
In tactic
RDM Oracle
RMS
• RMS : Retek Merchandising System• RDF : Retek Demand Forecasting• ReSA : Retek Sales Audit• RDM : Retek Distribution Management
Group CRP Korean CRP ` `User Training
1st Implementation
2ndImplementation
3rd
Process Changes (Change Management)
7 Oct. ‘02 17 Feb 03.
11 April 1 Jan ‘04 1 Jul
Aug. 2000Dec. 2000Aug. 2001Jan. 2002
Jan-Aug.Mar-May
Apr-MayOct-Jang.2003 – Feb.2003Feb.-AprMay0Aug.Sep.-Nov.Dec.-Feb. 2004
Raised the need for the New MD systemAnnounced a global pilot projectDocumented the requirements for the new systemOrganized Samsung Tesco BPI T/F(Business Process Innovation Taskforce Team) Made the ‘As-Is Business Scenario’Quick-wins project: code management, inventory accuracy improvement stores, MIS reportsSelected Package vendor & intergrator : Retek and IBM Strated Group CRPGroup CRODesigned Group Manual ProcessUnit test & Interface testIntegration test, UAT, Report test, End User TrainingCut Over & Go-Live
HISTORY OF ERP CONSTRUCTION
CONTENTS
1. Samsung Tesco1. Samsung Tesco
2. Background2. Background
3. ERP construction3. ERP construction
4. Retail chain specialized ERP 4. Retail chain specialized ERP
5. After construction5. After construction
Partner2
Partner1
Store1 Store2 Store3
Product
Store /Product / Partner Flexible organization classification System
Company
Country
Partner
Category
Region
Branch
6 Classification
Free Grouping
Easy integration
system
Efficient product management Efficient master input
Top Item
Sub Item
Shirts
Item code ResisterEasy change of Classification
Supplier Logistics Buyers Code team
Enter Basic information
Simplify the approval
procedure
Powerful master
management
RETAIL CHAIN SPECIALIZED ERP – FEATURE 1
Multi Unit Discount
Mix & Match
Simple Discount
800 Won
500 Won
20% Discoun
t
Purchase of two
5% Discount
Purchase of five
14% Discount
1 + 1 Event 2 + 1 Event
Multiple quantity,
Related Promotion, Mix & Match
-Various promotion Feature -
Can make a variety of events
Take advantage of the opportunity to
improve sales
RETAIL CHAIN SPECIALIZED ERP – FEATURE 2
CONTENTS
1. Samsung Tesco1. Samsung Tesco
2. Background2. Background
3. ERP construction3. ERP construction
4. Retail chain specialized ERP 4. Retail chain specialized ERP
5. After construction5. After construction
AFTER CONSTRUCTION - EARLY STABILIZATION
Unsolved issue graph
Issue
11 12 1 2 PeriodGo-live
Help desk
12 1 2 3 PeriodGo-live
Using help desk
• Continuous effort for resolving issues• Help desk had done their job great• Stabilization in early time
Construction ERP is huge project How we done great ?
Integration of issues that occurs from each stepsCheckup the schedule through dashboards and meetings
Management
Issue & schedule
Function test, interface test, modification test, report test, parallel testBefore the test, manager must confirm the list of non-testedIn each test, define scenario and schedule
Systematic &
repeating test
Search and modifying a error of data and program Adjustment cut over schedule Making single communication channel in each managers
Safety data
translation
1st education 2nd education 3rd education for end-user 4th final education additional education after the system Making good quality education manual
Managing education method
FOR SUCCESSFUL CONSTRUCTION
AFTER CONSTRUCTION – SALES PROMOTION
Increasing competition power through sales promotion
“Increase”
-Revenue-Customer Loyalty-Customer Frequency-Competitiveness
•e- catalog system
•Product management system is effective
•Enter information directly to the inventory management system
AFTER CONSTRUCTION – MEDIA