Moving Away from Legacy Systems and Choosing the Right ERP Solution Ron Grilli, CEO, Simparel David Cropper, CIO, Mamiye Brothers Simparel, Inc. 2010 Slide 1
Today s ERP Solution Pressures Business Agility launching new product lines, new markets, complex channels, evolving processes Collaborative Demands global supply chains, quick response, unified business and data processing Mandated Compliance ever changing import and export requirements, retailer demands, consumer product requirements Processing Efficiencies data accuracy, completeness, timeliness, consistency Simparel, Inc. 2010 Slide 2
What s Your Game Plan for Tomorrow? Simparel, Inc. 2010 Slide 3
Technology & Processes Have Evolved Vintage 1980 to 2000 s Next Generation 2010 + Telex, Fax, Phone Fedex Courier Based Specification Exchange Drawings, Swatches, Pattern Parts Integrated Office, PDA devices, Messaging Virtual Collaboration Digital Design Tools Legacy ERP Traditional Software???? Simparel, Inc. 2010 Slide 4
Did Your Business Get Left Behind? Common Legacy Environment drawbacks: Rigid development & delivery methodologies Lengthy reaction time to address business changes Overly-complicated & difficult-to-manage programs Functionality gaps & user dissatisfaction Costly and/or painful version release upgrades Business applications written at different times with different tools, languages, etc. Simparel, Inc. 2010 Slide 5
What to look for in Advanced ERP Solutions Common Technology Platform across business functions Open Architecture for ease of configuration Common MS Office and related products integration Shared business views from concept to delivery Dynamic configuration and reconfiguration Ease of access via client or web or mobility devices Deployment capable of leveraging cloud computing Flexible user friendly forms and processes Simparel, Inc. 2010 Slide 6
Advanced ERP TCO Improvements Traditional ERP Total Cost of Ownership Next Generation ERP Requirements Definition Requirements Definition Complete definition Flexibility of definition required prior to allows for changing development. business requirements. $$$$ $ Development Cycle Rigid development requires significant effort even for minor changes. Development Cycle Metadata driven environment enables rapid development. $ Savings Areas: $ ERP Definition $ Configuration $ Deployment Ongoing Maintenance & Support Complex hard coded programs require specialized maintenance and support. Ongoing Maintenance & Support Configurable metadata reduces maintenance and simplifies ongoing support. $ Enhancements $ Support Simparel, Inc. 2010 Slide 7
Take Inventory of Your ERP Platform(s) Infrastructure your ability to leverage today s on-demand computing, web access, mobility devices, etc. ERP vintage its relevance in today s world of open architecture, xml standards, metadata, RAD tools Offline processes number of offline stand alone spreadsheet and email processes in use across the business Applications & interfaces systems that need to be connected, monitored and independently maintained Enhancements & support IT skill set, personnel, flexibility and support Simparel, Inc. 2010 Slide 8
Redefine Your Business Requirements PLM digital assets, design concepts, specifications, costing, approvals, etc. SCM RFQ, costing, procurement, production, inbound logistics, etc. MFG Capacity planning, material requirements, inventory, shop floor, etc. ERP product and business hierarchy, workflow, transactional processes, alerts, reporting views, customer compliance, etc. EDI role of EDI in sourcing, cataloging, retail trading, 3PL, finance processes, etc. WMS DC warehouse functions, RF & RFID, case pack, pick pack, reprocess, etc. Simparel, Inc. 2010 Slide 9
Advanced ERP $$$ ROI Potential Key Challenges Balancing supply with demand $$$ $$$ $$$ $$$ $$$ $$$$ Identifying trends & exceptions Removing supply chain bottlenecks Optimizing inventory levels Reducing complexity costs with growth Leveraging the power of the Internet Potential Net Income Opportunity Simparel, Inc. 2010 Slide 10
Deliver Business User Friendly Processes Intuitive Efficient Automated Alert Driven Customizable Web Accessible Collaborative Simparel, Inc. 2010 Slide 11
Best Practices at Work Simparel, Inc. 2010 Slide 12
65 Years Old Family Owned and Operated Apparel Company Simparel, Inc. 2010 Slide 13
About Mamiye Brothers Historically recognized as exclusively Children s apparel licensed products (Disney, Looney Tunes, etc.) Domestic distribution only 12 piece prepack business Transitioning since 2000 to more complex business offering Added Juniors and most recently Missy lines Macy s Affinity program Domestic and International Multi configured prepacks, single size replenishment, etc. Less reliance today on licensed product with own brands Little Me Flapdoodles Wallflower (jeans) Simparel, Inc. 2010 Slide 14
Current Business Challenges Economic recovery climate Increasing labor costs where products traditional sourced Increasing raw material costs Back office footprint expanding globally Deliver a value proposition that holds the line on cost while maintaining quality and fashion Flexible nimble infrastructure to support the needs and growth of the business Simparel, Inc. 2010 Slide 15
ERP Systems Background Current ERP legacy system in place for 12 years Highly modified and not supported by the Vendor Many bolt-ons Not considered user friendly Expensive to modify Simparel, Inc. 2010 Slide 16
New ERP Decision & Process Early 2010 decision to determine cost/benefit of newer solutions Reduction in headcount projected at 2% of payroll Other G&A savings projected at 5% Projecting significant growth in business with reduced headcount Flexibility to enter new markets SaaS requirement Moving away from being in the data center business Scalability, DR, subscription pricing Major pluses Ultimately allowing us to focus on the business Shortlisted 4 Vendors Interviews and in-depth demonstrations versus RFP checklist April 1 st contract signing Simparel, Inc. 2010 Slide 17
Roll-Out Minimal conversion, ramp up/wind down Little Me and Flapdoodles Business rules & references complete Styles for upcoming seasons loaded Sales & production orders Nov 1 st ready Integration with 3PL on track Document Management link on track Balance of Mamiye Business Divisions 1 st Quarter 2011 Simparel, Inc. 2010 Slide 18
Future Plans Fully Integrated Collaboration PLM processes Vendor Portal processes Enhanced Business Reporting Executive Dashboards Alerts Simparel, Inc. 2010 Slide 19
Don t Be This Guy?????? Session Questions? Simparel, Inc. 2010 Slide 20
Thank You! Ron Grilli ron.grilli@simparel.com 212-279-5800 David Cropper david.cropper@mambro.com 212-279-4150 www.simparel.com www.mamiye.com Simparel, Inc. 2010 Slide 21