Leaders in Multi-Channel Retail

 

Case Study

Major renovation of a Japanese retail operation and supporting systems.

Client
A $23 billion Japanese department store and grocery chain.

Objective
Anticipating threats from Western retailers entering their markets, the client sought to implement global best practices in merchandising, logistics, and store operations across all divisions.

Situation
With more than 10 divisions, 350 store locations, over 120 cross-dock/distribution locations, the company was hampered by complicated systems (including six product masters) and inaccurate data.

Solution
Clicks and Mortar consultants established a Program Management office to coordinate a multitude of initiatives. After careful study of the existing environment, we introduced and a set of Global Best Practices to support improvements in process, organization, and system issues across the entire chain: product development, merchandise planning, merchandising, sourcing, importing, and logistics.

Re-engineered a number of business processes and implemented a merchandising solution, including:

• Package selection for ERP, warehouse management, store POS, and merchandise planning applications
• Implementation of the JDA ODBMS application
• Design, development, and testing of 40 interfaces
• 15,000 hours of testing " Converted and reconciled over $200 million in inventory in first pilot

Results

• Improved inventory performance and control
• Improved product merchandise control and profitability
• New, streamlined, merchandising organization and processes
• Integrated processes and improved visibility/communications across organizational boundaries

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