Store Profitability at a Glance


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Maximizing store profitability for Retail

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Store Profitability at a Glance

  1. 1. Store Profitability At a Glance Retail July 2010
  2. 2. The Challenges Facing Today’s Retail CFOs CFO Pain Points: Poor visibility into performance at the store level and across the enterprise Ongoing cost of operations, with volatile raw material and shipping costs, and work to mitigate where possible Multiple systems (through acquisition) and accounting standards (international) must be quickly consolidated and reconciled Compliance with ever-changing financial and trade regulations Enable future growth, evaluate different opportunities and making key investment decisions How can we help the CFO better manage profitability in this difficult retail environment? © SAP 2010 / Page 2
  3. 3. Opportunities for Optimization Are you able to calculate fully burdened profitability by store? What is your current process for determining where to make investments of additional staffing? What’s the process for determining the cost of individual store activities? © SAP 2010 / Page 3
  4. 4. Solution Overview Store Profitability Solution Components: Crystal Xcelsius Profitability and Cost Management Business Planning and Consolidation Value / Benefits: Monitor and analyze store-level key performance indicators Break down cost drivers and perform What If modeling Real-time visibility into updated company-wide forecasts © SAP 2010 / Page 4
  5. 5. Store Profitability – Pain Points Visibility is difficult. Allocated costs are not apparent for superior performance Improve store- level performance No visibility to Store impact Inability to do what –if Modeling Perform What-If Analysis Fractured process Evaluate Costing results in costs not Opportunities being updated to Store Plans Cost of Key Activities – No visibility into Total Service Cost Approve & True cost to serve each Update Store customer Plans © SAP 2010 / Page 5
  6. 6. Store Profitability– Solution Enablers Find new opportunities to improve store performance Improve store- level Role-based performance dashboards Track key metrics by exception alerting Interactive what-if modeling speeds Perform What-If decision making Analysis Evaluate Update store plans Costing Opportunity Automatically tie back into the overall Quickly change variables and company forecast see resulting cost implications ERP in real time Break down the cost drivers See resulting cost Approve & implications in real time. True Update Store Service Cost Plans Model your business based upon manageable activities © SAP 2010 / Page 6
  7. 7. Store Profitability Solution Benefits Flexible dashboards that can deliver information via Visibility Web or Microsoft Office Scalable enterprise-class solution Alignment Reliable on-demand what-if analysis and Incisive decision scenario modeling making Real time Updates to full P&L forecasts by store in real time © SAP 2010 / Page 7
  8. 8. Information Delivery Without Boundaries Communicate financial and operational information via web or live inside Presentations or Outlook Monitor and analyze store- level key performance indicators Real-time visibility into performance © SAP 2008 / Page 8
  9. 9. Enhance Operational Efficiency Break down cost drivers Model your business based upon manageable activities Interactive what-if modeling © SAP 2010 / Page 9
  10. 10. Real time updates to Forecasts Update store- level plans with automated business process flows Real-time visibility into updated company-wide forecasts Flexibility to update drivers and models on the fly © SAP 2010 / Page 10
  11. 11. Store Profitability Solution Find new ways to understand opportunities Visibility into true store profitability cost allocation Proactively address cost drivers Impact store profitability © SAP 2010 / Page 11
  12. 12. Contacts Pedro San Martín Capgemini Iberoamérica Tel. +34 6767 65 947 Miguel A. García H. Capgemini México Tel. +52 55 8503 2430 www.innovació