Merchandise CoE

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Developing a Merchandising Solutions Framework : Developing a Merchandising Solutions Framework Submitted By: M. SALOMI DIANA ( t-salomi diana) Retail (Domain Competency Group) IIM Kozhikode June 2007

Retail & Manufacturing - Cognizant’s fastest growing practice.. : 1 Retail & Manufacturing - Cognizant’s fastest growing practice.. 5200+ Practice specialists - technical and functional consultants Serving Leading retailers in, Specialty, General Merchandise and Food & Drugs segment Comprehensive services – Domain Consulting, Vertical BPO, Application Development, Application Management to Transformational Outsourcing 12 of the Top 30 retailers in the US are currently active clients. Strong Package Implementation and consulting capabilities in key Retail Packages Won Computerworld Smithsonian Honors 3 years in a row for innovative solutions delivered to key clients Headcount Growth " This is a significant team accomplishment that has significant benefits to the enterprise. This was done in a very seamless manner without any disruption to the business. You all make this look easy when we know it takes hard work, many long and late hours, personal sacrifices, and teamwork to pull this off.“ ” It is truly a pleasure to work with you - a group of talented people who are so committed to hitting goals, focus on meeting business needs, keep quality top-of-mind, and can have a laugh or two throughout it all” Mike McCabe, Vice President, AC Nielsen David Bergen, CIO, Levis

Slide 3 : 2 Retail Experience : Expertise Supply Chain Planning Supplier Distribution Center Corporate Stores Customers Enterprise Management Merchandise Management Customer Relationship Management Store Management Category Management Price & Promotion Mgmt Space Management Assortment Planning Open to Buy Master Data Management Store Accounting POS Integration Display Management Labour Scheduling Store Communication Multi Channel Integration Sales Force Automation Loyalty Program Management Campaign Management Sales & Service Self Care Financial Management HR Management Supply Chain Execution Warehouse Management Transportation Management Supply Chain Visibility Procurement & Order Management Inventory Management Supplier Relationship Management Distribution Network Planning Forecasting & Replenishment Present PROJECT Work Area

What is a CoE… ?? : 3 What is a CoE… ?? A Center of Excellence (CoE) is a small focused group within the company that demonstrates leadership and excellence in a technology area Goals Support consistent and successful delivery of projects in the concerned technology Demonstrate the value of the technology and leading capability toprospects and customers Build organizational capabilities in the technology through mentoring, training and direct project support Reduce the cost of development through the harvesting, development and maintenance of assets

The R&D Center and CoE Lifecycle : 4 The R&D Center and CoE Lifecycle Visibility Emerging technology Trough ofDisillusionment Maturity HypePeak Mainstream Acceptance R&D Center - Technology Benchmarking - Proof of Concepts - Customer Consultation Center of Excellence Stage 1 - Prototypes - Training Expert Support Vendor alliances Center of Excellence Stage 2 - Large scale competencies - Leverageable assets - Customer solutions

Project Background : 5 Project Background The present project is a part of the Retail CoE. It comes under the ‘Domain Competency Group’ This team is involved in Broad training and competency Create and leverage assets Customer solution SCOPE OF PROJECT This project helps in building the CoE of retail. Area of focus ? Merchandise Management. Objective ? Solutions Framework for Merchandise Management Intended Result ? Solution Accelerator which can reduce time-to-market for the solutions delivered to the clients in the implementation process

Merchandising – Targeted Areas : 6 Merchandising – Targeted Areas

Merchandising CoE – What’s in it? : 7 Merchandising CoE – What’s in it? Reduced Time to Customer Facilitate Learning Merchandising Concepts Competency Development Industry Trends Capturing Emerging Technologies Project Artifacts Reusable Assets Process Blue Prints Business Requirements Case Study Repository Use Cases/Test Cases Merchandising Solution Framework Standardized solution framework for all merchandising area Detailed process mapping of core area Template for collecting customer as-is, to-be processes Constant updation with emerging concepts as solution offerings increase End-to-end process flows Use Cases

Project Methodology : 8 Generic Merchandise Process Flows Identifying the Merchandising Projects Collecting Relevant project artifacts Project specific Process flows Channelone site Interaction with project teams Retail Knowledge Repository Project Methodology Generation of the Solutions Framework Identifying key Merchandising Areas

Execution Methodology : 9 Execution Methodology Identify projects using CHANNELONE Collect KYCs of Projects

Slide 11 : 10 Project related case studies Sorting projects according to the areas of merchandise they belong to Execution Methodology Cont…

Framework Development : 11 Framework Development Identified areas of Merchandising to develop framework/process flows SKU Management Vendor Management Price Management Purchase Order Management Direct Store Delivery Assortment Planning Promotions Markdown Optimization Space Management

Slide 13 : 12 Step by step process development for all the areas identified Framework Development

Sample Process Steps : 13 Sample Process Steps

Requirements Gathering Template : 14 Requirements Gathering Template Serves as a standard template to gather client’s as-is and to-be processes

Developed Process flows : 15 Developed Process flows DSD Process flow Vendor Management Process flow

Challenges and Limitations : 16 Challenges and Limitations Project data collection. Confidentiality of project specific documents ? major hurdle in data availability Absence of a centralized project artifact repository. Its presence will enable in faster retrieval of the information and in further references. There are certain areas of merchandise like Markdown optimization, Space Management, Assortment planning where not much projects have been carried out by Cognizant. In these areas the process flows are developed purely on conceptual basis. 9 areas of Merchandising are dealt in total. Areas not covered due to lack of project information ? Open-to-buy, Category Management, Item Management.

Delivered Result : 17 Delivered Result The solution framework template highlights all the key areas of Merchandise Management Cognizant had delivered solutions Can serve as a requirement gathering tool. This can be used as a medium to highlight the domain expertise of Cognizant to the clients Easy to offer customized solutions based on client requirements The time involved in process mapping of the projects can be reduced by a significant extent

Recommendations : 18 Recommendations Need for a centralized artifact repository encompassing Cognizant’s projects details. Solution framework can also be extended to other areas of retailing Need to focus on upcoming areas/trends in merchandising ? Price/Promotions/Markdown Optimization

Slide 20 : 19 THANK YOU !!

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