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Accenture helps this international clothing retailer implement SAP solutions and affiliated processes to achieve high performance

This clothing retailer is an international lifestyle brand which operates multiple established product lines--including women's wear, men's wear, kids' wear, and youth wear, as well as shoes and accessories--through more than 800 directly managed retail stores and more than 14,000 wholesale locations internationally.

Summary

Accenture helped this international clothing retailer with an ambitious business change program aimed at reengineering business processes and replacing its existing enterprise resource planning (ERP) system with a cutting-edge SAP solution. The comprehensive solution, which is currently being deployed, is transforming a number of the company's key processes and helping to ensure that the retailer continues to grow and move towards high performance.

Business challenge

This clothing retailer has grown rapidly over the past 10 years, more than quadrupling its sales of approximately US$1 billion in 2000. To maintain its impressive growth trajectory and continue its international expansion, the company knew it needed to invest in core technical infrastructure and business processes. Specifically: · The company's legacy ERP system was stretched to the limit and would soon be unable to adequately support additional growth. · Certain business processes were not as effective and efficient as they needed to be. The retailer recognized that achieving its aggressive growth targets required the introduction of best practice processes in several key business capabilities: supply chain management, product assortment and pricing, and reporting. The company decided to launch a program to improve excellence in process and systems--the clothing retailer's first largescale business change program. The aim of the program, which involved reengineering business processes and replacing the existing ERP system with a cutting-edge SAP solution, was to enable the company to improve its flexibility, speed to market, stock visibility and overall business performance. Initiating this program posed a challenge, however, since the retailer was not experienced in carrying out significant process and system changes. To help manage the transformation, this clothing company looked to team with a provider that brought deep SAP implementation skills, process know-how, change management capabilities, industry knowledge and proven experience in helping retail clients achieve high performance. Accenture, which had strong relationships and track record in the company, was selected as a significant contributor to the chosen team.

new processes and ERP functionality across its global organization. The program was complex, representing the first ever implementation of SAP Apparel and Footwear (AFS), SAP for Retail, SAP Business Intelligence (BI) with Integrated Planning, and SAP Merchandise Assortment Planning (MAP) with Integrated Planning (IP) in the industry. In the merchandise assortment planning work stream, Accenture: · Deployedretailprofessionalsfromthe United Kingdom and United States to help design new assortment planning processes in the wholesale and retail businesses for the SAP MAP module. · Leverageditsalliancerelationshipwith SAP to collaborate on the MAP design, implementation and on the integration of the MAP module with SAP-AFS and SAP for Retail. · Assumedresponsibilityfordelivering system testing, training and go-live support activities. · LeveragedtheAccentureRetail Industry Solution Center in Bilbao, Spain, to assist in developing the process architecture, and to support all phases of the MAP work--from design to testing and deployment. In the change management area, Accenture: · AppliedtheAccentureERPChange Management Methodology to support the clothing retailer in developing and delivering communications about the program, engaging the company's executive team. · Supportedtheimplementationofthe new processes through job design and aligned the changes in roles and responsibilities with the retailer's line management. Provided extensive training support. In addition to defining the training requirements and curricula, the Accenture team applied an industrialized model of training development. This model, based on RWDuPerform®,incorporatedinput from training specialists within the Accenture BPO Organization's Training Kompetenz Zentrum in Germany, as well as from management consultants deeply skilled in supply chain management, systems integration and other areas.

"Accenture applied the change management and training expertise needed to get our organization to accept and embrace the solution." --Group Chief Financial Officer of the Retailer

· Collaboratedwiththeclothing company to deliver training that was customized to meet the needs of eight targeted groups, including product development, sourcing and buying, customer service, logistics and retail management. This training commenced in February 2010. · Implemented--injustsixmonths--the SAPLearningSolution(SAPLSO), which enabled the retailer to track and monitor business users' attendance in various training courses. In addition, Accenture: · Providedgeneralprogrammanagement support. · Helpedtheclothingretailertocreate a comprehensive business case for the Excellence in Process and Systems program. · Conductedaqualityassuranceassessment of the improvement program for the company's board of directors. · Proposedadeploymentapproach for the APAC region of the retailer's business.

How Accenture helped

Approximately 30 Accenture professionals from the United Kingdom, Germany, Spain, Switzerland and the United States worked closely with the company and other providers such as SAP to carry out the retailer's ambitious plan to introduce

High performance delivered

The international clothing company launched the pilot of the global template program across 16 European countries in July 2010. This pilot, which affected 1600 users, focused on providing the retailer with the "must-have" processes, training and SAP functionality in areas related to assortment planning and supply chain management. The rollout of new functionality and capabilities to all divisions and into North America will be completed by 2013. With Accenture's help, the company has developed a new set of capabilities that support its growth agenda and enable it to achieve the goals set forth in the Excellence in Process and Systems program's business case. Specifically, these capabilities are helping the clothing retailer to: · Respondmorequicklyandeffectively to challenges and growth opportunities with efficient, harmonized processes that span business divisions and countries. · Developbetterassortmentplanswith more relevant products for customers across its store portfolio, thereby driving an increase in style-level profitability. · Usebusinessinsightsandautomated processes to improve product forecasting, which leads to a reduction in inventory and more appropriate allocations of merchandise to stores. · Achievebettertransparency, consistency and quality of business information to guide decision-making and reduce overall supply chain costs. · Takeadvantageofbetteranalytical reporting capabilities to perform root cause analyses. Accenture's change management expertise was particularly important in helping the clothing retailer meet the objectives of its Excellence in Process and Systems program. According to the retailer's, Group Chief Financial Officer, "The company was inexperienced in managing change--particularly when it came to programs of this size, scope and complexity. Accenture applied the change

management and training expertise needed to get our organization to accept and embrace the solution." The retailer's Excellence in Process andSystemsProgramLead,concurs. "Accenture was an important part of our Excellence in Process and Systems program. We had a long journey to get our users to be ready to accept the solution. Accenture's structured approach and strong collaborative culture helped us to successfully conduct more than 26 training sessions and communicate to our end users what was happening in the program. Accenture's focus on change management enabled the company to: · Trainmorethan1,900endusers through a train-the-trainer approach. · DeliveraLearningManagement solution to help the company monitor training activities. · Createacomprehensivesetof training materials for both future releases and new joiners to the business. · Buildanexperiencedcommunications team within the program, supported by comprehensive communication materials such as an intranet site, information packs and quick guides. · Ensuretherightroles,jobsandclear responsibilities are in place in the organization. These to be agreed upon by line management and the workers council and include updated job descriptions. Accenture'songoingHighPerformance Business Research initiative has shown that strengthening core business processes and implementing robust ERP systems can drive corporate financial performance and support the development of distinctive capabilities that define market leaders. Thanks to Accenture's change management expertise, process know-how and SAP skills, the Excellence in Process and Systems program is doing what was intended: retrofitting the business for growth and high performance.

(SAP Retail Industry Solution Center in Bilbao, Spain) · AccentureDemandGeneration Foundation offering for optimizing assortments · Accenture'sERPChangeManagement Methodology (customized for the retailer) · AccentureBPOOrganization'sTraining Kompetenz Zentrum training specialists (for training development)

Technologies

· SAPApparelandFootwearSolutions (SAP-AFS) · SAPforRetail · SAPMerchandiseAssortmentPlanning with Integrated Planning (SAP-MAP/IP) · SAPBusinessIntelligencewith Integrated Planning (SAP-BI/IP) · RWDuPerform®(Performancesupport solution for training development) · SAPLearningSolution(SAP-LSO)

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 211,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended August 31, 2010. Its home page is www.accenture.com. .

Assets

· AccentureGlobalDeliveryNetwork

Copyright © 2011 Accenture All rights reserved. Accenture, its logo, and HighPerformanceDelivered are trademarks of Accenture.

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