Store ProfitabilityAt a Glance

RetailJuly 2010

The Challenges Facing Today’s

Retail CFOs

CFO Pain Points:

� Poor visibility into performance at the store level and across the enterprise

� Ongoing cost of operations, with volatile raw material and shipping costs, and work to mitigate where possible

� Multiple systems (through acquisition) and accounting standards (international) must be quickly consolidated and reconciled

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(international) must be quickly consolidated and reconciled

� Compliance with ever-changing financial and trade regulations

� Enable future growth, evaluate different opportunities and making key investment decisions

How can we help the CFO better manage profitability in this difficult retail environment?

Opportunities for Optimization

� Are you able to calculate fully burdened profitability by store?

� What is your current process for determining where to make investments of additional staffing?

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� What’s the process for determining the cost of individual store activities?

Solution Overview

Store Profitability Solution Components:

� Crystal Xcelsius

� Profitability and Cost Management

� Business Planning and Consolidation

Value / Benefits:

� Monitor and analyze store-level key performance indicators

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performance indicators

� Break down cost drivers and perform What If modeling

� Real-time visibility into updated company-wide forecasts

Store Profitability – Pain Points

Improve store-level

performance� No visibility to Store

impact

� Inability to do what –if Modeling

� Visibility is difficult. Allocated costs are not apparent for superior performance

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Perform What-If Analysis

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Evaluate Costing Opportunities

Approve & Update Store

Plans

Modeling

� Fractured process results in costs not being updated to Store Plans

� Cost of Key Activities – No visibility into Total Service Cost

� True cost to serve each customer

Store Profitability– Solution Enablers

Improve store-level

performance

� Role-based dashboards

� Track key metrics by exception alerting

� Interactive what-if modeling speeds

� Find new opportunities to improve store performance

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Perform What-If Analysis

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Evaluate Costing

Opportunity

Approve & Update Store

Plans

modeling speeds decision making

� Update store plans

� Automatically tie back into the overall company forecast� Quickly change variables and

see resulting cost implications in real time

� Break down the cost drivers

� See resulting cost implications in real time. True Service Cost

� Model your business based upon manageable activities

ERP

Store Profitability Solution

Benefits

Flexible dashboards that can deliver information vi a Web or Microsoft Office

Scalable enterprise -class solution

Visibility

Alignment

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Scalable enterprise -class solution

Updates to full P&L forecasts by store in real time

Reliable on-demand what-if analysis and scenario modeling

Alignment

Incisive decision making

Real time

Information Delivery Without

Boundaries

� Communicate financial and operational information via web or live inside Presentations or Outlook

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� Monitor and analyze store-level key performance indicators

� Real-time visibility into performance

Enhance Operational Efficiency

� Break down cost drivers

� Model your business based

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business based upon manageable activities

� Interactive what-if modeling

Real time updates to Forecasts

� Update store-level plans with automated business process flows

� Real-time visibility into

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visibility into updated company-wide forecasts

� Flexibility to update drivers and models on the fly

Store Profitability Solution

� Find new ways to understand opportunities

� Visibility into true store profitability cost alloc ation

Proactively address cost drivers

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� Proactively address cost drivers

� Impact store profitability

Contacts

Pedro San Martín

Capgemini Iberoamérica

Tel. +34 6767 65 947

pesanmar@capgemini.com

www.capgemini.com

www.innovaciónfinanciera.org

Miguel A. García H.

Capgemini México

Tel. +52 55 8503 2430

miguel.garcia@capgemini.com