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New ERP improves sales management at retail locations

Published on 27 Jun 2008

Customer:
Model AG

Industry:
Industrial Products, Retail

Deployment country:
Switzerland

Solution:
Enterprise Resource Planning, Small & Medium Business

Overview

Model AG’s existing ERP solution for its Pack Shop retail locations was not very user-friendly and made it difficult for sales staff to find and retrieve necessary product information. Moreover, different outlets were sometimes using different processes for placing and tracking orders.

Business need:
To ensure stores had timely access to the information that would allow them to meet customer demands, the company needed a standardized ERP solution and processes.

Solution:
IBM Global Business Services implemented standardized processes and a new ERP solution for all Pack Shop locations. The solution is based on SAP ERP with components for financials, sales management, material management, and purchasing, and an interface to warehouse management. The IBM team successfully rolled-out the new integrated solution, migrated legacy information and provided end-user education.

Benefits:
The ERP solution provided automated processes between the parent company and retail shops, easier sales order management, and improved tracking and reporting capabilities (faster and easier company-wide and provides increased transparency).

Case Study

Model is a 100-year-old, privately owned enterprise headquartered in Weinfelden, Switzerland. The company specializes in the production of corrugated board and cardboard packaging products. It operates under the parent organization of Model Holding AG, which encompasses 13 production plants in Switzerland, Germany, the Czech Republic, Poland and Croatia. Also belonging to the Model Group are 10 Pack Shops found in the above mentioned countries as well as in Austria and in Slovakia. There are also an additional five sales offices under the group's auspices. Consolidated turnover of the group for the year 2006 totalled 371 Million Euro (US$550 Million). Model Holding has some 2,800 employees worldwide.

Business challenge
Model AG needed a streamlined ERP process and solution for its Pack Shop retail paper and carton locations to overcome integration issues with its existing platform. The existing solution linked sales to some production processes but inconsistently and often through a series of complex bridges. It was not very user-friendly for sales staff to find and retrieve necessary product and tracking information. Moreover, different Pack Shop outlets were sometimes using different processes for placing and tracking orders. To ensure stores had timely access to information that would allow stores to meet customer demands, Model AG needed to implement a standardized solution and process for all locations.

Solution
IBM Global Business Services implemented standardized processes and a new ERP solution for all Model AG Pack Shop locations. The solution is based on SAP ERP with components for financials, sales management, material management, and purchasing, and an interface to warehouse management. The IBM team successfully rolled out the new integrated solution, migrated legacy information to the new platform and provided end-user education. In addition to training, IBM also provided change management support, in helping the company establish new streamlined processes aligned with the solution's capabilities and requirements.

Benefits
The IBM solution provides automated processes, increased transparency and improved tracking and reporting:
  • Automated processes between the parent company and retail shops
  • Easier sales order management
  • Improved tracking and reporting capabilities: optimized structures and processes to make reporting faster and easier company-wide
  • Increased transparency and insight on revenue and costs

Components

IBM products and services that were used in this case study.

Service:
GBS Finance Strategy and Transformation, GBS ISV Community: SAP, GBS Supply Chain Operations, GBS Supply Chain Planning, GBS Supply Chain Strategy, IBM Global Business Services

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