RETAIL CHAIN
SPECIALIZED ERP
– SAMSUNG TESCO HOMEPLUS
CONTENTS
1. Samsung Tesco
2. Background
3. ERP construction
4. Retail chain specialized ERP
5. After construction
SAMSUNG-TESCO

Samsung-TESCO
Korean no.2 Retail chain.
 Joint venture of Samsung C&T and TESCO
Founded on 99.5.1.
 Sales about $7 billon (2008)

Sales 47%
Profit 175%
SAMSUNG-TESCO
Won 3 Customer satisfaction surveys
NCSI(National Customer Satisfaction Index) -2002, 2004
KCSI(Korea Customer Satisfaction Index) -2005
KS-SQI(Korean Standard-Service Quality Index) -3 times
Most admired company
1st
Samsung Electronics
14 th
Homeplus
2nd
POSCO
15 th
Mirae asset
3 th
Yuhan kimberly
16 th
Shinhan bank
5 th
LG Electronics
17 th
Doosan heavy industries and
construction co.
7 th
Hyundai motor
18 th
Kookmin bank
8 th
SK Telecom
19 th
KT
10 th
Samsung C&T
20 th
Samsung life
11 th
NHN
21 th
KTF
SAMSUNG-TESCO

Samsung-TESCO
55 Hyper
Markets(Standard&Compact)
 42 Express
 12300 employees

CONTENTS
1. Samsung Tesco
2. Background
3. ERP construction
4. Retail chain specialized ERP
5. After construction
BACKGROUND
M&A of Major Retail companies
Global competitors invasion
Retail Market is getting filled.
It is getting harder to survive in this Red-Ocean.
It is needed to increase own market share not only for sales, but
survival.
BACKGROUND OF ERP
Strategies for Competitive advantage
Effective
Resource
management
Customer
management
Analysis
& prediction
of
global trends
Supply
system’s
efficiency
improvement.
BACKGROUND


Because of it’s rapid growth, pre-existing
management system couldn’t supports it’s
huge number of transactions.
Needs of flexible task process and IT
Environment to achieve position of market
dominance of Korea.

Competitors already started to analysis the
customers information and use market segmentation
strategy with that information.
CONTENTS
1. Samsung Tesco
2. Background
3. ERP construction
4. Retail chain specialized ERP
5. After construction
RANGE OF ERP CONSTRUCTION
Electronic
payment
In tactic
EIP
I
/
F
Demand
Forecasting
DW
Exhibition
I
/
F
I
/
F
ReSA
New ERP System
RDF
Report
I
/
F
Accounting
RMS
Ordering
Purchase
loan
Selling
Stock
Master ( Product, supplier, product classification system, organization, cost, coupons, subsidies, etc)
I
/
F
Web-EDI
-E-Tax
-information
New ERP System
Pre-existing System
Interface
I
/
F
I
/
F
Distribution
Accounting
RDM
I
/
F
POS
Oracle
Balance
Management
Credit card
Gift
certificate
• RMS : Retek Merchandising System
• RDF : Retek Demand Forecasting
• ReSA : Retek Sales Audit
• RDM : Retek Distribution Management
HISTORY OF ERP CONSTRUCTION
Process Changes (Change Management)
Group
CRP
7 Oct. ‘02
Korean
CRP
17 Feb 03.
User
`
Training
11 April
Aug. 2000
Dec. 2000
Aug. 2001
Jan. 2002
Jan-Aug.
Mar-May
Apr-May
OctJang.2003 – Feb.2003
Feb.-Apr
May0Aug.
Sep.-Nov.
Dec.-Feb. 2004
1st
`
Implementation
1 Jan ‘04
2nd
3rd
Implementation
1 Jul
Raised the need for the New MD system
Announced a global pilot project
Documented the requirements for the new system
Organized Samsung Tesco BPI T/F(Business Process
Innovation Taskforce Team)
Made the ‘As-Is Business Scenario’
Quick-wins project: code management, inventory
accuracy improvement stores, MIS reports
Selected Package vendor & intergrator : Retek and IBM
Strated Group CRP
Group CRO
Designed Group Manual Process
Unit test & Interface test
Integration test, UAT, Report test, End User Training
Cut Over & Go-Live
CONTENTS
1. Samsung Tesco
2. Background
3. ERP construction
4. Retail chain specialized ERP
5. After construction
RETAIL CHAIN SPECIALIZED ERP – FEATURE 1
Store /Product / Partner
Store1
Store2
Flexible organization classification
System
Store3
Company
Country
6 Classification
Partner2
Partner
Free Grouping
Category
Easy integration
Product
Efficient product management
Top Item
Region
Powerful
system
Partner1
master
management
Shirt
s
Sub Item
Efficient master input
Enter Basic information
Simplify the approval procedure
Supplier
Item code Resister
Easy change of
Classification
Branch
Logistics
Buyers
Code team
RETAIL CHAIN SPECIALIZED ERP – FEATURE 2
Simple Discount
800 Won
500Multiple
Won quantity,
20%
Discount
Related Promotion, Mix & Match
-Various promotion Feature -
Multi Unit Discount
Purchase of two
Can make a variety of events
Purchase of five
5% Discount
Take
advantage of the opportunity to 14% Discount
improve sales
Mix & Match
1 + 1 Event
2 + 1 Event
RETAIL CHAIN SPECIALIZED ERP – FEATURE 3
CONTENTS
1. Samsung Tesco
2. Background
3. ERP construction
4. Retail chain specialized ERP
5. After construction
AFTER CONSTRUCTION - EARLY STABILIZATION
Unsolved issue graph
Using help desk
Help
desk
Issue
11
12
1
2
Go-live
Period
12
1
2
Go-live
• Continuous effort for resolving issues
• Help desk had done their job great
• Stabilization in early time
3
Period
FOR SUCCESSFUL CONSTRUCTION
Construction ERP is huge project
How we done great ?
Management
Issue &
schedule
Integration of issues that occurs from each steps
Checkup the schedule through dashboards and meetings
Systematic
& repeating
test
Function test, interface test, modification test, report test,
parallel test
Before the test, manager must confirm the list of non-tested
In each test, define scenario and schedule
Safety data
translation
Search and modifying a error of data and program
Adjustment cut over schedule
Making single communication channel in each managers
Managing
education
method
1st education  2nd education  3rd education for end-user  4th
final education  additional education after the system
Making good quality education manual
AFTER CONSTRUCTION – SALES PROMOTION
Increasing competition power through sales promotion
“Increase”
-Revenue
-Customer Loyalty
-Customer Frequency
-Competitiveness
AFTER CONSTRUCTION – MEDIA
•e- catalog system
•Product management system is effective
•Enter information directly to the
inventory management system
BEYOND E-MART
MIS 강의 듣고
A+ 받자
수
업
학생