Merchandising software evaluation, selection and subsequent solution programme management for a fashion retailer
The Situation
For the CFO and Buying & Merchandising Director he was requested to undertake an initial feasibility study and RFP for the adoption of COTS to bring about a common way of working for the Italian buyers and merchandisers of this fashion retailer.
He was the chosen consultant to provide Solution Architecture & Programme Management on an interim basis for Conbipel S.A., an Italian fashion retailer. The engagement was part of a wider turnaround programme for this recently acquired and distressed business.
The Executive team were driving a turnaround of this established fashion retailer (170 stores) following acquisition by Oaktree Capital Management (their private equity investors).
The Task
He was responsible for programme management and business transformation consultancy on the selection of systems covering financial budgeting & reporting, Retail Merchandise & Assortment Planning and Supply Chain with the vendors. The tasks were to be serial based on successful communication at board level and approval.
He was to capture and document the business requirements and undertake a feasibility study to ascertain the opportunity to cost along with a long list of possible vendors for this kind of undertaking.
He was quickly requested to move to a formal RFP stage and facilitate key stakeholders with an evaluation of the various short-listed vendors.
Following vendor selection, he was tasked with all the contractual negotiation, project planning, vendor & IT/IS change management.
He was subsequently tasked to led the programme for the solution design and, interfacing with their existing SAP core merchandise management system, configuration development, testing, and ensuring go-live readiness.
The Action / Approach
His key actions included:
- Software and Vendor Selection Programme Management: Led the programme for selecting suitable Retail Merchandise Supply Chain & Financial Planning software and vendors.
- Vendor Evaluation and Shortlisting: Evaluated multiple vendors (JDA, SAS, Oracle, SAP, Torex/Micros) based on Conbipel business needs and the turnaround programme objectives.
- Commercial Negotiations and PID Agreement: Successfully managed negotiations with the preferred vendors, Torex Compass and Oracle Hyperion, to agree on CAPEX, budgeting, commercial contracts, and the Project Initiation Document (PID).
- Solution Design and Interfacing: Managed the solution design process, including the critical task of interfacing the new software with Conbipel existing SAP core merchandise management system.
- Configuration Development and Testing Oversight: Oversaw the configuration development and testing phases to ensure the chosen solutions met the business requirements and integrated seamlessly with existing systems.
- Go-Live Readiness Management: Managed the activities required to ensure a smooth and successful go-live of the selected software solutions.
The Result
His leadership and efforts resulted in:
- Successful Vendor Selection at speed (in 4 weeks): Preferred vendors (Torex Compass and Oracle Hyperion) were successfully selected for the Retail Merchandise Supply Chain & Financial Planning software.
- Agreed Commercial Terms and Project Initiation: CAPEX, budgeting, commercial contracts, and the PID were successfully agreed upon with the chosen vendors.
- Established Integration Strategy: A plan for interfacing the new software with the existing SAP core merchandise management system was defined.
- Progress Towards Solution Implementation: The project progressed through the solution design, configuration development, and testing phases under his management, moving towards go-live readiness.
- Contribution to Business Turnaround: The selection and planned implementation of appropriate software solutions contributed to the wider programme aimed at turning around the distressed Conbipel business.
- Increases in Operational Efficiency: Automation and improved data accuracy lead to cost savings and better resource utilisation.
- Enhanced Strategic Planning: Access to real-time data supports more agile and informed business decisions. Furthermore, competitive advantage improved by margin focused & targeted assortment ranges for customer satisfaction and ability to re-plan adapting more quickly to market changes.
Financial Performance: By 2014, Conbipel reported revenues of €223 million and an EBITDA of €20 million, with projections to reach €27–28 million in 2015.
Retail Expansion: The company expanded its retail footprint, opening 11 new stores while closing 5, indicating a strategic approach to growth and store location.
