Modernizing Retail Operations: How a Global Retail Group Unified Systems Across Brands
This global retail group is a leader in the retail industry, owning and operating multiple prominent brands in the U.S. Together, these brands provide millions of consumers with unique video-driven shopping experiences on every screen, from smartphones and tablets to laptops and TVs.
The Challenge
This retailer was facing inefficiencies and escalating costs, due to a patchwork of disconnected systems following a series of acquisitions. One of its acquired companies was also running on an aging platform that would soon be unsupported.
To address these issues, the company embarked on a transformative journey to unify its business processes and systems under a single, modern ERP platform – SAP S/4HANA. This was more than just an IT project; it was a strategic move to unlock new efficiencies, reduce costs, and position the company for long-term growth and innovation.
Lack of Standardization
The absence of common processes and systems across brands and markets hindered efficiency and reduced the opportunity for synergy and further optimization.
Multiple ERP Systems
Operating across multiple platforms increased operational complexity and costs
Technical Debt
Outdated technology and disparate systems limited business agility and growth, requiring a strategic overhaul to align systems with future business capabilities.
The Solution
The transformation initiative was aimed at unifying the business processes under SAP S/4HANA – focusing on Finance, Merchandising and Supply Chain.
The company initially engaged Rizing to carry out a health check on the project.
Together with the company’s team, Rizing identified and recommended several steps to optimize the project execution.
Rizing was subsequently tasked with implementing SAP S/4HANA Retail
within its Merchandising and Supply Chain divisions, spanning five countries and two brands. The project required managing large transaction volumes and integrating complex legacy systems.
A global template was built, adopting global standards when appropriate while providing local flexibility.
This multi-year global implementation started with the rollout for one of their brands in the U.S. in June 2023 and will ultimately scale across all brands under the retail group.
Highlights of the SAP S/4HANA Retail Solution
SAP Solutions
- SAP S/4HANA® Retail
- SAP Solution Manager
- SAP Enable Now
- SAP Advanced Data Migration (ADM)
- SAP Analytics Cloud (SAC)
- Integration via MuleSoft
- SAP E-HANA and SLT
Global Template
Developed a global template leveraging Rizing’s experience from multiple SAP retail projects
Implementation
- Successfully rolled out SAP S/4HANA Retail for a brand based in the U.S. in June of 202
- Multi-year global implementation that will scale across all brands covering 2 brands and 5 countries
Project Outcome
The SAP S/4HANA transformation will enhance the retail group’s operational agility, enabling the company to better serve its millions of customers and drive long-term growth.
The transformation has already delivered significant outcomes. By adopting a phased approach, the company successfully laid the foundation for its larger SAP S/4HANA rollout, providing a more structured path forward.
The key to success has been establishing a business-led governance structure. This ensured alignment between business and IT, guiding the project through a series of critical milestones.
The company is now better positioned to manage its operations more efficiently, reducing complexity and costs tied to its previously fragmented systems.
Global template with harmonized processes:
Standardizing business processes across all brands will allow to eliminate inefficiencies from disparate systems, reducing complexity and enabling more efficient operations and streamlined workflows.
Consistent product costing ability:
Consistent product costing ability provides better insights into the drivers of product cost; indirectly aiding margins.
Inventory Management:
SAP S/4HANA provides the retail group’s brands with better ability to manage its inventory.
Enhanced controls and compliance:
Robust compliance ensures that the company adheres to regulatory requirements and policies, while improved visibility and audit trails allow for quick identification and resolution of issues.
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