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Implementation of fashion ERP systems in China: Case study
Transcript of Implementation of fashion ERP systems in China: Case study
Certain merits would be achieved.
Mainly In 4 areas:
1. Order to Cash (OTC)
2. Ware-house Management (WM)
3. Requisition to Check (RTC)
4. Finance and Controlling (FICO)
In this case-study:
Focus on OTC module.
Sales Order Input
Available to Promise Checking
Delivery, Billing and Paymeny
Prompt Information Available
Faster Processing Time and Fewer Human Errors
Adherence to Corporate Strategy
Capture of True Demand
Tsan Ming Choi, Pui Sze Chow, Shuk Ching Liu
Int. J. Production Economics
Forced to innovation
Reasons for LSCO's ERP system implementation
Net sales revenues: in 2002, $4.1 billion; in 1996, $7.14 billion.
Rival competition: Guess & Tommy Hilfiger
Keep pace with industry-wise practice: Nike, Adidas, Reebok.
Disparate information systems across regions
Business partner requirement
Problems of File Compatibility
Issue of Information Sharing
Issue of Stock Replenishment
Implementation of fashion ERP systems in China: Case study of a fashion brand , review and future challenges
1999 - 2001
LSCO's Annual Net Sales Revenues: 1996 to 2002
Critical Success Factors
– In information systems this means
“what a system must do to
accomplish what it was designed
Critical Success Factors
what ERP systems is?
Motivation & Contribution
Reasons for chosen
Hershey et al.
10 critical success factors in ERP implementation
China Specific Success Factors
a. Changing mind set and fine-tuning cultural norms (Organizational commitment to change)
Guanxi is critical for success of Chinese companies
Many ad hoc and non-systematic decision making mechanism
The industry norms are hugely manual based
b. Providing Good Incentive
in a change of information system
respect to the culture, value and norms of Chinese workers
smooth the transaction from the old platform to the new ERP system
operate the new ERP system appropriately.
Benefits of implementing ERP systems
Reported Challenges and Critical Success Factors of implementing ERP systems
Implementing ERP systems in China
Implementing fashion ERP systems
(Understanding of the strategy, including excellent implementation team and great management)
c. Confined scope of the project and roll-out
High cost and declining sales
Call-off the project
Review and redesign (revised to be focused on streamlining the order to cash management)
Restart implantation at staged basis
--Levi & Strauss Co
d. commitment from both top management and operational staffs.
(i) Management commitment
the company was devoted to improvement in her information technology for better business performance.
(ii) Staff Commitment
Share information and collect feedback from employee for the future development of the system.
(iii) Formation of in-house IT expertise
system problems and users enquirers can be handled in a prompt manner
Thank You !
Bowen Ding, Luying Xu, Jiayi Sun