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General Pants Group is a leading apparel retailer in Australia, influencing the latest in cutting edge street and surf wear for the fashion industry. The company offers a wide variety of fashion apparel primarily targeted at the 16-28 year age group. It offers a range of apparel brands that cover a broad customer base. With 69 stores the company has a wide presence in Australia and is looking at further expansion. The company’s operation is supported by a workforce of around 1,500 employees, which includes both part time and permanent staff. General Pants, with a turnover of AUD$200.0 million, invested AUD$281,800 with Fujitsu Enterprise Solutions to implement the mySAP All-in-One enterprise solution, to address its core business challenges.
mySAP All-in-One benefited Australian retailer General Pants by increasing the efficiency of its operations with faster reporting, improved financial processing and analytics, reduced error rates, and more accurate data. The solution is expected to lay the foundation for possible future solutions such as SAP’s Mechandising and Fujitsu Enterprise Solutions Management Solution.
In 2004 General Pants sought to improve its overall financial and operational efficiency. This improvement should not only serve its customers better, it should also expand the company’s business in the future. Therefore a transparent accounting and financial system, along with efficient analytics, was identified as the fundamental step to make key decisions necessary for future expansion.
Based on various internal discussions and comparisons with various products, General Pants decided to invest in SAP Financials. The company not only chose mySAP All-in-One because the solution addressed its key business pain areas, the solution was also recognised as a highly competitive investment compared to other vendors. mySAP All-in-One’s ability to easily integrate with existing applications, including third party Point of Sale (POS) and Inventory Management systems, was crucial. Moreover the solution was able to support and provide technical solutions especially built for the fashion and retail industry.
Key costs incurred were from the purchase of consulting services, software, personnel, hardware, and training Consulting made up the largest portion and accounted for 36.2 percent of the total project cost. This includes the time spent by four consultants from Fujitsu Enterprise Solutions for the implementation of the solution. The software cost including annual maintenance accounted for 29.8 percent of the total costs.
Personnel accounted for 18.2 percent of the total cost, and included the time spent by two internal General Pants’ employees to support the implementation. The initial cost incurred on the hardware purchases for the mySAP All-in-One solution implementation accounted for 11.4 percent of the total costs. The cost of training totalled about 4.4 percent of the company’s total investment in the mySAP All-in-One solution. The cost of training included both trainer cost and cost of employee time spent on training.
Frost & Sullivan, a global growth consulting company, has estimated that 15.0 percent of the incremental revenues and a savings of 25.0 percent ensued through the implementation of the mySAP All-in-One solution. Intangible benefits of the implementation of the mySAP All-in-One solution include a positive impact on corporate image and customer satisfaction. According to Frost & Sullivan the annual ROI will be 15.8 percent.
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