Moving Away from Legacy Systems and Choosing the Right ERP

Transcription

Moving Away from
Legacy Systems and
Choosing the Right
ERP Solution
Ron Grilli, CEO, Simparel
David Cropper, CIO, Mamiye Brothers
© Simparel, Inc. 2010
Slide 1
Today’s ERP Solution Pressures

Business Agility – launching new
product lines, new markets,
complex channels, evolving
processes
Collaborative Demands – global
supply chains, quick response,
unified business and data
processing
Mandated Compliance – ever
changing import and export
requirements, retailer demands,
consumer product requirements
Processing Efficiencies – data
accuracy, completeness,
timeliness, consistency
Slide 2
What’s Your Game Plan for Tomorrow?
Slide 3
Technology & Processes Have Evolved…
Vintage 1980 to 2000’s
Next Generation 2010 +
Telex, Fax, Phone
Integrated Office, PDA devices, Messaging
“Fedex “ Courier Based Specification Exchange
Virtual Collaboration
Drawings, Swatches, Pattern Parts
Digital Design Tools
Legacy ERP Traditional Software
????
Slide 4
Did Your Business Get Left Behind?
Common “Legacy Environment” drawbacks:

Rigid development & delivery methodologies

Lengthy reaction time to address business changes

Overly-complicated & difficult-to-manage programs

Functionality gaps & user dissatisfaction

Costly and/or painful version release upgrades

Business applications written at different times with different
tools, languages, etc.
Slide 5
What to look for in Advanced ERP Solutions

Common Technology Platform across business functions

Open Architecture for ease of configuration

Common MS Office and related products integration

Shared business views from concept to delivery

Dynamic configuration and reconfiguration

Ease of access via client or web or mobility devices

Deployment capable of leveraging cloud computing

Flexible user friendly forms and processes
Slide 6
Advanced ERP TCO Improvements
Total Cost of Ownership
Traditional ERP
Requirements Definition
Complete definition required prior to development.
$$$$
Next Generation ERP
Requirements Definition
Flexibility of definition allows for changing business requirements.
Development Cycle
Rigid development requires significant effort even for minor changes.
Development Cycle
Metadata‐driven environment enables rapid development.
Ongoing Maintenance & Support
Complex hard‐coded programs require specialized maintenance and support.
Ongoing Maintenance & Support
Configurable metadata reduces maintenance and simplifies ongoing support.
$ Savings Areas:
$

$ ERP Definition

$ Configuration

$ Deployment

$ Enhancements

$ Support
Slide 7
Take Inventory of Your ERP Platform(s)

Infrastructure − your ability to leverage
today’s on-demand computing, web
access, mobility devices, etc.
ERP vintage − its relevance in today’s
world of open architecture, xml standards,
metadata, RAD tools
Offline processes − number of offline
stand alone spreadsheet and email
processes in use across the business
Applications & interfaces − systems
that need to be connected, monitored and
independently maintained
Enhancements & support − IT skill set,
personnel, flexibility and support
Slide 8
Redefine Your Business Requirements

PLM − digital assets, design concepts,
specifications, costing, approvals, etc.
SCM − RFQ, costing, procurement,
production, inbound logistics, etc.
MFG – Capacity planning, material
requirements, inventory, shop floor, etc.
ERP − product and business hierarchy,
workflow, transactional processes, alerts,
reporting views, customer compliance, etc.
EDI − role of EDI in sourcing, cataloging,
retail trading, 3PL, finance processes, etc.
WMS − DC warehouse functions, RF &
RFID, case pack, pick pack, reprocess, etc.
Slide 9
Advanced ERP $$$ ROI Potential
Key Challenges

Balancing supply with demand
$$$

Identifying trends & exceptions
$$$

Removing supply chain bottlenecks
$$$

Optimizing inventory levels
$$$

Reducing complexity costs with growth
$$$

Leveraging the power of the Internet
$$$$
Potential Net Income Opportunity
Slide 10
Deliver Business User Friendly Processes

Intuitive

Efficient

Automated

Alert Driven

Customizable

Web Accessible

Collaborative
Slide 11
Best Practices at Work
Slide 12
65 Years Old Family Owned and
Operated Apparel Company
Slide 13
About Mamiye Brothers

Historically recognized as exclusively Children’s apparel licensed
products (Disney, Looney Tunes, etc.)
– Domestic distribution only
– “12 piece prepack” business

Transitioning since 2000 to more complex business offering
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Added Juniors and most recently Missy lines
Macy’s Affinity program
Domestic and International
Multi configured prepacks, single size replenishment, etc.
Less reliance today on licensed product with own brands
– Little Me
– Flapdoodles
– Wallflower (jeans)
Slide 14
Current Business Challenges

Economic recovery climate

Increasing labor costs where products traditional sourced

Increasing raw material costs

Back office footprint expanding globally

Deliver a value proposition that holds the line on cost while
maintaining quality and fashion

Flexible nimble infrastructure to support the needs and growth of
the business
Slide 15
ERP Systems Background

Current ERP legacy system in place for 12 years

Highly modified and not supported by the Vendor

Many “bolt-ons”

Not considered user friendly

Expensive to modify
Slide 16
New ERP Decision & Process

Early 2010 decision to determine cost/benefit of newer solutions
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Reduction in headcount projected at 2% of payroll
Other G&A savings projected at 5%
Projecting significant growth in business with reduced headcount
Flexibility to enter new markets
SaaS requirement
– Moving away from being in the data center business
– Scalability, DR, subscription pricing—Major pluses
– Ultimately allowing us to focus on the business

Shortlisted 4 Vendors
Interviews and in-depth demonstrations versus RFP checklist
April 1st contract signing
Slide 17
Roll-Out

Minimal conversion, ramp up/wind down

Little Me and Flapdoodles
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Business rules & references complete
Styles for upcoming seasons loaded
Sales & production orders Nov 1st ready
Integration with 3PL on track
Document Management link on track
Balance of Mamiye Business Divisions
– 1st Quarter 2011
Slide 18
Future Plans

Fully Integrated Collaboration
– PLM processes
– Vendor Portal processes

Enhanced Business Reporting
– Executive Dashboards
– Alerts
Slide 19
Don’t Be This Guy…
???
Session Questions?
???
Slide 20
Thank You!

Ron Grilli
ron.grilli@simparel.com
212-279-5800

David Cropper
david.cropper@mambro.com
212-279-4150

www.simparel.com

www.mamiye.com

Slide 21