assignment 5 adidas e-commerce solution - · pdf fileassignment 5 adidas e-commerce...

prepared by dmk media • [email protected] • 1121 N 44th St • 559 248 6613

E-Commerce Solut ion

E-Commerce Solution | Apri l 19, 2015

A D I D A S

E-COMMERCE SOLUTION

dmk media • [email protected] • 1121 N 44th St • 559 248 6613

Overv iew

The enterprise soft ware (ERP) I am recommending for Adidas e-commerce eff orts is the SAP Enterprise Soft ware Suite. German based SAP is one of the leading ERP soft ware makers out there specializing in helping large companies manage their retail, merchandising, supply chain, and business functi ons. SAP has one brand of ERP soft ware that specializes in apparel retail called SAP Fashion Management. The soft ware promises to shorten the ti me between concepts and the customer, boost collaborati on throughout your supply chain, and off ers fl exibility coupled with speed. Another soft ware that they off er is the SAP Hana soft ware that provides real ti me data reporti ng, analysis, and access via the cloud.

An Ideal F i t

I believe that the SAP Fashion Management ERP soft ware would be the perfect fi t for Adidas E-Commerce eff orts. The soft ware comes with specifi c features that would greatly help a major apparel makers online eff orts as well as its brick and mortar locati ons. One such feature is the forecasti ng ability of the soft ware as it carries algorithms to pre-dict future customer trends. This would be highly valuable to make sure the company carries the right line of clothing and enough quanti ty to fulfi ll customer needs. The soft ware is so advanced that it can predict what customers want tomorrow, in a month, and one year from now.

A Seamless Exper ience from Mobi le to Phys ica l

While some ERP soft wares are silo-ed into diff erent categories SAP’s soft ware unifi es units like retail, manufacturing, and supply chain under one roof. This also shows in SAP’s mobile ability as the soft ware off ers mobile opti ons and analyti cs that help business track their budding online business growths as well. SAP touts their soft ware as one plat-form for all operati ons and it provides tracking for all aspects of a business from the factory fl oor, retail shops, and the e-market sphere.

Streaml ined Exper ience

By uniti ng all business functi ons under one main business ERP soft ware Adidas will benefi t from a streamlined experi-ence. Workers will no longer have to jump from diff erent business soft wares as the SAP Fashion Management soft -ware would knock out 20 or so diff erent programs that would normally be needed to fulfi ll such duti es.

Why i t Works for Adidas

Purchasing these two soft wares for Adidas would be the best move in my opinion because of Adidas needs as a large company and what the SAP soft ware suite off ers. As a company with over 50,000 employees and 14.5 billion in revenue Adidas needs a soft ware both powerful enough as well accessible to feed its large business operati ons. SAP HANA soft ware is a cloud based program that allows business analysts from a company to access its data from Beijing to New York. This would be great for Adidas as they have many large business headquarters dispersed throughout the world. Having a central hub for informati on and analyti cs would save ti me and hassle from having to compile data from various markets from diff erent geographic sectors. The Fashion Management applicati on also meets the unique industry needs of Adidas. Having one soft ware that oversees supply chains, retail performance, warehousing, and forecasti ng for a large apparel maker like Adidas is a must.

COST-BENEFIT ANALYSIS


SavingsReduced Infrastructure Costs

Adidas would benefi t from having one effi cient soft ware ERP fi ll its needs. This would save money on hardware and infrastructure.

Lower Soft ware Costs Using the SAP Fashion Management and HANA would eliminate the need to use various other soft wares such as data analysis. By having one soft ware do a variety of functi ons with one license you could save a lot of money.

More Effi cient Business Processes Having one business ERP system would help streamline various business processes such as sharing informati on, data analysis, and real-ti me reporti ng on retail, supply chain, and producti on units.

Improved Producti vity Adidas could create leaner producti on with the new Fashion Management forecasti ng ability. Also with the data analyti cs that the HANA soft ware brings Adidas would be more effi cient in making business decisions.

CostsAppliance Delivery

A business has to pay to have the SAP soft ware and hardware delivered and integrated into their system

Soft ware Licensing Costs Adidas would have to pay the soft ware costs associated with the SAP HANA and Fashion Man- agement platf orms

Development and Updates Adidas would also incur costs to update their staff on the soft ware. They would also have to account for future updates that would require further training.

Administrati ve Costs These costs account for additi onal administrati ve costs to manage the system as well as other miscellaneous charges to adjust to the new ERP system.


PROS AND CONSPros

Would help Adidas become an multi -channel business with excellent mobility in e-commerce, physi- cal stores, and wholesale avenues

Allows the company to stay ahead of the curve on consumer demand

Unify diff erent business units like retail, wholesale, and e-commerce under one roof

Having SAP be sole business soft ware raises effi ciency

SAP Fashion Management soft ware is among the best in industry at forecasti ng consumer demand

Real-ti me data access, reporti ng, analysis with the Cloud Based HANA soft ware

Allows business analysts to oversee all steps of producti on from the factory to the retail fl oor

A centralized data analysis soft ware would provide a more consistent profi le of a customers behavior

One of the deepest industry soluti ons out there with excellent versati lity in providing soluti ons for a business

Provides automati on for a variety of business functi ons helping make such processes more effi cient

ConsComplex pricing means that it is hard to pinpoint how much it would actually cost

One of the most expensive ERP systems out there with high maintenance costs

SAP ERP systems are usually complex which means it could cost a lot to retrain business personnel within Adidas

No personalizati on means that you can kiss additi onal features and customizati ons goodbye

User Experience of the soft ware has been reported to be prett y hard to use

Soft ware cannot do payroll and HR functi ons so another soft ware would be needed to fulfi ll that ave- nue for a business


CONCLUSIONOveral l thoughts

Overall, I think the SAP soft ware suite would be the ideal soft ware for Adidas. It fi lls the large scale needs of Adidas as well as the unique industry needs of Adidas as a fashion and apparel retailer. While it does have some drawbacks on pricing, customizati on, and ease of use it is sti ll easily one of the best ERP soft wares out there for retailers. Having the Fashion Management soft ware helped me make the decision as having a dedicated program to help an apparel re-tailer is invaluable. With its ability to make logisti c, supply chain, merchandising, and retail decisions it truly is a must have program for businesses in the fashion industry.

SAP ’s Fashion Management ERP software interface a l lows users to compare a var iety of products quick ly

SOURCESPros and Cons of SAP

- htt p://www.asugnews.com/arti cle/gartner-the-pros-and-cons-of-saps-core-strategies

SAP Review - htt p://www.socialerp.com/sap-erp-review.php

Mountain Photo by Me (Cover Photo) - htt ps://www.fl ickr.com/photos/117583843@N04/

ERP Soft ware Types- htt p://www.webopedia.com/TERM/E/ERP.html

SOURCES


E-COMMERCE SOLUTION

A D I D A S


E-Commerce Solution | Apri l 19, 2015

assignment 5 adidas e-commerce solution - · pdf fileassignment 5 adidas e-commerce...

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