Reporter

One of the key elements of Reporter’s complex development strategy was the reorganization of business and logistics processes, as well as the management structure of the sales network. In 2005, after the arrival of a new investor and a change in management structure, it was decided to introduce a new model to manage the sales network. This change, however, showed up the inefficiency of the legacy IT tools, so Reporter had to look for a replacement. The choice was IFSApplications. 

Legacy System Could not Handle Change

The new IT system had to meet the specific long-term conditions and expectations of the company management. Since the decision was business-critical, the president of the board of management, Marek Grolik and the company’s chief IT engineer, Adam Wiechoczek, jointly decided to outsource the selection process. 

Adam Wiechoczek explains, “We chose a consulting company because we wanted to minimize risk and the possibility of error. We defined the conditions that should be met by the system, from preparing the bid through to implementation and completion. The consulting company is still helping us assess the effectiveness of the processes”.

In 2006 all business and logistic processes were analyzed. During the following months, the consulting company helped to analyze and map the processes at Reporter, which formed the basis for preparing a detailed request for proposal (RFP), including, among other things, a list of up to 1,300 specific issues to be addressed. Prospective ERP vendors were sent the RFP and asked whether they could provide such an extensive solution and, if they could, whether the functionality required was part of their standard offering or whether modifications would be necessary. 

Selection of the supplier

“Based on the replies to the RFP, we awarded points for the formal, general and detailed parts,” recalls Adam Wiechoczek. “A group of six companies was selected to present their solutions. After the presentations, we were down to a shortlist of two. We asked them to organize reference visits and technical meetings with consultants. The meetings were particularly tough as our queries were extremely specific—after all, ‘the devil’s in the detail’!” 

After reference visits, Reporter was still undecided, but finally opted for IFS on the basis of the technical meetings with IFS consultants.  

“I was impressed by the meticulous preparations of the IFS consultants at the Krakow Office,”Adam Wiechoczek said.

Implementation of IFS Applications

With negotiations completed in July 2006, a project was initiated with the goal of commencing implementation before the end of September. Processes were mapped, parameters set, and the system configuration was determined. Go live was planned for January 10, 2007.

The solutions implemented in Reporter and which were specific to for the fashion industry consisted of components for financials, payroll (including strategic personnel issues such as careers, competence development, etc), distribution, retail (adapted to the fashion industry), fashion collection planning; handling fashion showrooms, and integration with POS retail systems

Moreover, the solution covered several non-standard business-critical elements. First of all, IFS Applications handles the high storage warehouse integrated with the bonded warehouse. To meet Reporter’s requirements, IFS implemented its warehouse management system (WMS), using barcode technology and RFID radio chips. Barcodes are used in stores due to the wide assortment and costs, whereas RFID is used in the high storage warehouses.

After just two months, and despite some minor—expected—disruptions, the forecasted efficiency was reached. Designers implemented a universal interface to the network of stores in order to integrate IFS Applications with third-party retail systems at Reporter stores and POS systems at the franchise stores.

Future development of the system

At present, a website portal is being implemented, which is a good foundation for a real internet store. Moreover, a data warehouse is just being constructed, which will be used for the customer relationship management (CRM) application, IFS Business Performance and strategic planning.

“We are currently working on a web portal to handle orders from the network of shops, to be integrated with the Huzar bonded warehouse system,”concludes Adam Wiechoczek. “We are also launching projects related to collection planning and activation of balanced scorecards, which will enable us to provide management with key performance indicators (KPIs), and CRM. Those three components will ensure real added value and competitive advantage in the domestic and Central & Eastern European markets”.

About Reporter

Reporter, founded in the 1990s, is based in Chorzów, Polandand is a leading fashion brand in Eastern Europe. Currently, Reporter has 30 stores of its own and about 190 franchise stores in Poland. Since 2003 Reporter clothing has been exported to Belarus, Slovakia, Ukraine, Lithuania, Latvia, Czech Republic, Croatiaand Russia. To date, there are 2 Reporter-owned stores and 47 franchises outside Poland.

Benefits:

• Improved storage processes with advanced IT solutions, including RF and RFID
• More effective handling of high storage warehouses with a bonded warehouse
• Access to detailed analytical information about product turnover by using reference reports and data warehouses 
• Access to business information for franchise clients and end users via the Business Performance solution, with Corporate Portals and web portlets.
• Better customer service through consistent handling of customer orders, pricelists, discounts and settlements with contractors
• Enhanced management capabilities in business critical areas such as
• Collection planning
• Manufacturing and product index construction 
• Contract procurement management 
• Purchasing and financial procedures
• Logistics 
• Integration with third-party retail and point of sale systems

Software:

IFSApplications™ 

I Phase:

• IFS Financials™
• IFS Distribution™
• IFS Human Resources™ 
• IFS Payroll™
• IFS Retail™
• IFS Warehouse Management ™ 
• IFS Showroom 

II Phase:

• IFS Human Resources™
• CRM
• IFS Manufacturing™, including Demand Planning
• IFS Business Performance™, including Corporate Portal and Balanced Scorecard