|Due date:||Week 10|
|Word count / Time provided:||1500 words|
|Unit Learning Outcomes:||ULO-1, ULO-2, ULO-3, ULO-4, ULO-5|
|Course Learning Outcomes:||CLO-1, CLO-4, CLO-6, CLO-8, CLO-9|
|Graduate Attributes:||GA09, GA11, GA12|
Marking Information: The Proposal will be marked out of 100 and will be weighted 30% of the total unit mark.
Read the case study below and complete the exercise at the end.
Case study: How Tumi Cut Inventory and Increased Sales
A decade ago, Tumi, Inc.’s customer fill rates were below 80%, and the company had an excess of inventory - among other problems. But when the travel products maker decided to retire its legacy systems and standardize on SAP Business Suite, it experienced business expansion and better customer service. This profile details Tumi’s implementation success story and its transition to a more retail-focused company
At a Glance
Headquarters: South Plainfield, New Jersey
Industry: Maker of luxury luggage, handbags, and other travel accessories
Founded in 1975
First retail store opened in 1997
140 retail, department, and specialty stores in 65+ countries 100+ patents for product design and component parts
SAP solutions: SAP ERP
SAP NetWeaver BW
The agenda of any executive meeting usually addresses the same topic, whether directly or indirectly: how to expand the company’s customer base and keep existing customers satisfied and coming back. At luggage and travel products maker Tumi, Inc., when management meetings concentrated on the company’s bulging inventories and poor customer fill rates, everyone looked to the IT organization for answers. And when the discussion turned to accelerating the company’s European expansion, again the group looked to IT for a solution.
At that time, in 2001, IT didn’t have an easy answer. Tumi’s patchwork of homegrown, US- centric legacy systems provided little capability for improved inventory management, customer satisfaction, and global expansion. Disparate systems for important processes such as order-taking, warehousing, and financials weren’t connected and relied on periodic batch updates to provide a somewhat consolidated but infrequent view of operations.
In short, the company’s growth was being stifled at a critical time, and the IT organization did not have the appropriate technology in place to handle the business’s demands for a new direction.
“We knew our customer fill rates were below 80%, and we had a ton of capital sitting in inventory,” says Jim Walsh, Vice President of IT. “We heard this once a month at our management meetings, and we would tell the group we were working on solutions — but, in reality, those were just Band-Aids.”
Today, almost a decade later, those management meetings at Tumi operate very differently, and senior business leaders’ view of IT has shifted dramatically. According to Walsh, “The IT organization is much more of a business driver today than it was in the past.” Now, business process owners seek out the IT organization’s advice and support in designing and executing their business strategies.
“When we have steering committee meetings and discuss the three-year plan, no one asks if there will be an IT issue,” says Walsh, adding that there really aren’t “IT problems” anymore but rather “business problems,” which are collaboratively solved with IT being one of the organizations contributing to the solution.
What’s behind this shift isn’t simply an increase in the size of the IT organization. (Walsh’s core team remains steady at 12 people.) The difference has been Tumi’s decision to retire its legacy systems and standardize on a single integrated enterprise system, which started with a “big-bang” implementation of SAP Business Suite solutions to produce a large amount of change in a short amount of time.
Matching Technology to Business Needs
The first step in Tumi’s IT-driven business transformation was perhaps the most important — selecting the right enterprise system. After managing with its legacy systems for so long, one of Tumi’s top priorities in evaluating an enterprise system was scalability. The company wanted to be sure that no matter where its business initiatives took it, growth would not be constrained by IT systems. It also wanted the flexibility to deploy solutions that would directly affect its most pressing — and often changing — business challenges.
To address these needs, Tumi deployed SAP Business Suite, specifically for the following functionality:
both wholesale and retail customers
But technology alone would not solve all of Tumi’s challenges. Through its close partnership with SAP implementation specialist Answer think, Tumi identified SAP installation best practices and then redesigned some of its business processes to better leverage the new systems. “We agreed ahead of time that we would make nothing custom to Tumi,” says Walsh. “We wanted to implement proven solutions that other companies have used already very successfully.”
How Technology Drives Business Expansion
With a foundation of new, scalable solutions in place, business expansion at Tumi is happening more rapidly than previously expected. Since its SAP implementation go-live, Tumi has opened two new US distribution centres, increased distribution to overseas markets, and become a much more retail-focused company. “We were predominantly a wholesaler when we implemented our SAP solutions, but we’re now becoming a retailer as well,” Walsh says. “It was the natural migration of our business, but it would have been impossible with our legacy systems. Now we’re distributing to our own stores and have offices and sales teams in many more countries.”
Tumi has seen some dramatic business results since implementing SAP Business Suite solutions, most notably:
30% reduction in inventory levels
38% reduction in warehouse space
44% reduction in days sales outstanding 25% increase in sales
The new IT strategy and SAP implementation not only drove the operational aspects of the retail expansion — the improved inventory management processes actually helped free up working capital to allow Tumi to pursue its retail channel. Walsh says, “We brought our inventory levels down by 30% while increasing sales by 25%.”
As Walsh explains it, in the past, Tumi forecasted using spreadsheets. And because the manual process took so long, it was done infrequently, providing longer-term forecasts at best, which required higher inventory levels. However, the visibility provided by the SAP Business Suite solutions allows Tumi now to develop more accurate and timely forecasts and then base its manufacturing and supply chain decisions on real demand instead of longer- term forecasts.
“When actual demand starts coming in, we can see how close we are to the forecast and plan our inventory based on that,” Walsh says. “We are talking with our manufacturing suppliers about inventory, telling them to push out certain purchase orders and bring others in, which we weren’t doing before because we had nothing to base our recommendations on. This is where we get our efficiencies — in exchanging information, in being able to alert everyone in our supply chain of potential delays, issues, and shortages, and in being able to react quickly.” The “actual demand” data comes from Tumi’s retailers being connected to its SAP CRM application, which provides instant data on product pricing and availability throughout its various sales channels. And on a broader scale, Tumi is using SAP CRM to analyze consumer buying trends to better respond to consumers’ changing needs and put products where they are needed most.
The result is a dramatic 30% reduction in the inventory it carries and a corresponding 38% reduction in warehouse space, which equates to a significant increase in the working capital available for new projects, such as launching a retail sales channel.
Providing Customers with Better Service
Today, Tumi operates roughly 90 retail stores worldwide, with many additional partner-run locations in operation. Going forward, Tumi plans to continue its transition from wholesaler to direct-to-consumer retailer, both online and in its stores. But retail requires a more hands- on customer service model than wholesale, which is another area where Tumi’s SAP CRM application is driving the business forward.
“When a retail customer calls to find out where an order is, we used to have to put the customer on hold while we called the warehouse. Our customers expect more than that,” Walsh says. “Now with SAP CRM, we can provide better service to those consumers. If they sent a bag in for repair, we can tell them exactly where it is, no matter who picked up the phone. It’s all in the same system now.”
These various customer-facing enhancements, such as improved inventory levels, fill rates, and customer service — made possible by Tumi’s new SAP solutions — are setting the stage for happier, more satisfied consumers, which leads to repeat business and more sales opportunities.
Implementation of SAP programs are taken by more and more companies and increasing its demand day by day. The involvement of mechanics can easily be identified if company given fair chance to do the act. The society has good impact by adopting programme. Whole global use this phishing technique which is very common in cybercrime detect. Phishing is a technique where the someone purpose is to takeout important and crucial information such as passwords, security lock number, username, or financial details and person related information like date of birth, address and name.
To make things more clear, a case study of Tumi has done. Tumi is a travel accessory manufacture firm. Tumi has a disadvantage in regards of incomplete stock and less demanding consumers. The storage by the company are more than the demand. However, Tumi was also struggling with good IT system which could be a addition advantage in storage management and assessing proper demand and supply of customers. After implementing SAP program Tumi slowly and steadily identifies the issue and started using program of SAP like SAP CRM and SAP EWM. These tools helped the company in giving proper statics.
ERP means Enterprise resource planning is an executive program that helps business in associating with the arrangement of applications used in business and computerize number of back office figure out with the administration, HR in new technique. ERP programming takes care of all the features like development, accumulation, arranging and posting the ad in database, application and UI (Malhotra & Temponi, 2010).. ERP is seen with the scope of good amount of business application, by seeing large utilisation by bigger industry and often need to divide groups to redo and cut down the information and to handling the updates and sent across.
Answer: ERP has been explained beautiful on the above lines.
There are advantages of Enterprise Resource Planning are as follows:
Seethamraju, (2015). sheds tells how industry manpower planning has help in the carrying out efficiently the packaging of dry food in packing industry. The point of discussion is paper implementation can be carried out in other type of industry very well.
As usual most of the application without system can be perfect. Where there can be suitable measure to the industry resource matrix which include limited disadvantage. Some are mention below:
Answer: the companies like travel bags manufacturer would highly have advantage by using ERP system. The main purpose of travel Bag Company to use of the ERP system is as follows:
The significance of putting the system in industry have briefly elaborated in the paper here (Deshmukh & Kumar, 2016).
Answer: Most of the best brands have given Enterprises resource planning are as follows:
|Name of the brands||Features||Is suitable with our company|
|ExpandERP||System can be put into the account of sales and manufacturing business||Yes|
|MMI Xpert - ERP Software||Software are useful for those aiming company looking for profitable business||No|
|Astral Manufacturing ERP||Software is great help for automation and exporting manufacturing industry||Yes|
|CAMS-Exact ERP||System solve the problem for warehouse and inventory management||Yes|
|MarketPowerPRO||This ERP solution commonly carried out in real estate industry||No|
|Oracle ERP||Manages and handle the products and action of obtaining it.||No|
|Sage intacctERP||Helps in achieving milestones of the business||Yes|
|Ramco ERP||Software takes care end to end activity||No|
|MMI Xpert - ERP Software||Software carries out the financial and planning process of production industry||Yes|
|ShareDocs Enterpriser||Document management||No|
Answer: from the above study about ERPs system, SAP could be complicated to above mentioned industry as it precisely suit to the industry who do travel product manufacturing likes ours. By Sage intacctERP system adds more value due to following reasons:
A cost benefit analysis between Sage intacctERP and SAP ERP
|Analysis||Sage intacctERP||SAP ERP|
|List of Features||Order to audit, audit to trail, method of case, tax managing, workflow management, crucial cost reports, easy payment method, avoid frauds, ready to accept globally, plan for demand, deprecation management, cost management system, incorporate the process of work flow.||The process of paying, planning of the output, taking cash, service on request, and cost involved.|
|Prominent Clients||Nike,Voltari,Cento,Zend||McLaren Group, Great Panther Silver Limited, Trigon LLC and Umasons|
|Available Devices||Windows, Mac, IPhone/IPad, Android, Web Based||Windows, Mac, Linux, Web based IPhone|
|Company Size||Small, Large, Medium, Freelancer||Small, Large, Medium|
|Available Support||Email, Phone, Training, Tickets||Email, Phone, Tickets|
Other types of phishing method involves :-
The paper here provides a comprehensive detailing of phishing attacks, (Alsharnouby, Alaca & Chiasson, 2015).
There are few methods one may adopt to safe their ERP system to protect from Phishing attack by the hackers. Some example as follows
An anti-phishing method has two type of security to open the id given as per paper here Xavier, et.al., (2017).
If the phishing attack occurs in SAP solution of Tumi, then the chances are high of linking the data by unauthorised users and without fail the process of information in the system.
In the summary the working of responsible assets are deeply judged. The featured of interest and obstacles in providing right direction. Different programming has been examined. A study has taken place to understand why ERP system is apt for larger organisation. The nasty nature and phishing attacker provides help to find exact clues. More ways have been provided by the enterprises in ERP to keep away from such attacks.
Imagine you are a manager of a company which is also running a business like TUMI with similar capital and infrastructure. It has many departments such as sale, marketing, finance, HRM etc. By reading the above article, you are motivated to upgrade your system to ERP. You are required to make a business proposal to convince your CEO about installing ERP system in your company. You must address the followings in your proposal through considerable amount of literature review.
1. What is Enterprise Resource Planning (ERP)? Its benefits and limitations. 2. Why do you believe your company should be upgraded with ERP? 3. List the top 10 brands which offer ERP solution to SMEs. 4. Do a comparative analysis among of them. 5. Which brand do you think is feasible to your company, other than SAP, and why? Justify your arguments with a detailed cost benefit analysis