SAP Customer Success Story DIY Retailing

SAP for Retail has developed very effectively over the last few years, and I would have no hesitation in recommending it to retailers considering replacing their existing systems.
Darrol Radley, Supply Chain & Home Delivery Strategies Manager, Homebase

AT A GLANCE
Summary Homebase is one of the UKs leading home enhancement and DIY retailers, serving 1.5 million customers every week. The company is now building on its strong foundations in the DIY market by expanding into home furnishings with a growing emphasis on design and dcor. With 300 stores and an exciting expansion programme underway, more than ever the company needs the flexibility to effectively manage a huge product range and respond quickly and efficiently to changing tastes and fashions. Its a massive business challenge and one that SAP is helping Homebase to meet. Web Site www.homebase.co.uk Key Challenges Increasing the efficiency and flexibility of the business old systems inflexible and inadequate Coping with around 25,000 individual products (plus another 15,000 available for customer order) and the change generated through constant product development and market movement Solutions and Services Decentralised back office operations in store replaced by central replenishment SAP BW provides consistent data and exceptional control SAP Enterprise Portal enabled complex business rules to be built into the portal layout and simplify ordering processes Radio frequency network introduced in all stores

HOMEBASE SUCCESS STORY

How SAP is helping Homebase to build on its strong position in the DIY market.

Key Benefits SAP enables Homebase to configure new elements and develop new functionality much more swiftly as the business changes rapidly 10,500 employees use the SAP system on a daily basis and they have a simple system that is easy to use and enables them to serve the customer effectively SAP Business Warehouse (SAP BW) provides the consistent data and exceptional control that is so crucial to decision-making in a fast moving environment. Radio frequency handsets enable store managers to get their staff out of the offices onto the shop floor as they can manage the inventory in front of the customer and respond to queries, while still getting all the work done

An innovative and forward-looking retailer, Homebase is currently the second largest DIY brand in the UK. The company has a clear strategy for continued growth by building on its strong position and expanding into home furnishings to meet the rising demands of increasingly sophisticated customers. As the emphasis shifts subtly towards design and dcor, Homebase now stocks an own brand range as well as branded and designer-led labels. To support this new positioning the company publishes Ideas', an award-winning glossy customer magazine, and offers thousands of products for online buying with an inspirational Feature Zone packed with the latest ideas in home and garden dcor. Within our 300 stores across the UK and Republic of Ireland we carry around 25,000 individual products and another 15,000 that are available for customer order, says Darrol Radley, Supply Chain & Home Delivery Strategies Manager. One of the challenges that any retailer faces and that any system has to face is the ability to cope with a huge amount of articles and the turnover and change that is generated through constant product development and market movement.
Building on success

The successful relationship between Homebase and SAP began in 2000. One of the key objectives of our project was to introduce central replenishment and move away from the decentralised, back office operations in the stores, says Darrol. We needed to focus on becoming more efficient in managing our day-to-day processes so that we could become overall a more efficient organisation.

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The old system we had was not as flexible as it could be, adds John Turner, Category Manager - Curtain Fitments, Lighting & Textiles. SAP gives us the advantage of being able to configure new elements and therefore as the business is rapidly changing, allows us to develop new functionality much more swiftly. Homebase has a very large user base throughout the business, with around 10,500 employees using the SAP system on a daily basis. The major benefit, particularly for those in the stores, is that they have a simple system that is easy to use and enables them to serve the customer effectively. When we first started selling kitchens and bathrooms, for example, it was apparent that it was very challenging for the staff to get the correct information entered onto the system so that the customers would get their delivery when they expected it, says Darrol Radley. To address this we introduced the SAP Enterprise Portal, which enabled us to build a lot of the complex business rules into the portal layout and simplify the process. Because of the streamlined way we implemented the portal, its now as easy as placing an order on the Web. At the outset, there were three key deliverables for the project: to deliver it on time, in budget and to quality. Im proud to say that we managed to achieve all three of those, says Darrol, and with minimum business disruption.
Making informed decisions

More improvements in store

By implementing SAP as the core operating system for the business, Homebase has a modern platform upon which it can build and develop. The company can now react quickly to adapt the system or introduce new technologies. The introduction of a radio frequency network into all Homebase stores, for instance, has already delivered significant benefits. One of the big benefits from the store managers perspective was giving the stores radio frequency handsets so that they could get their staff out of the
SAP gives us the advantage of being able to configure new elements and therefore as the business is rapidly changing, allows us to develop new functionality much more swiftly.
John Turner, Category Manager - Curtain Fitments, Lighting & Textiles, Homebase

offices onto the shop floor, says Darrol Radley. This has enabled them to manage the inventory in front of the customer and respond to queries, while still getting all the work done. This has provided us with one of the biggest sources of benefits and has really streamlined the whole store operation. Homebase has developed a good relationship with SAP over the last few years, and the two organisations are currently working closely together to plan the future developments and roadmap. Weve also used SAP for specific areas of expertise, notably around BW and the layout workbench areas, where they have highquality consultants available to help us in these very difficult areas for retail, concludes Darrol. SAP for Retail has developed very effectively over the last few years, and I would have no hesitation in recommending it to retailers considering replacing their existing systems.
To find out more

SAP Business Warehouse (SAP BW) provides Homebase with the consistent data and exceptional control that is so crucial to decision-making in a fast moving environment. I think one of the crucial things about SAP is that were working from a comprehensive and uniform data source, says John Turner, and everyones working with the same information for their decisions. The trading team tend to use it for all the product management, all the product details, cost maintenance, retail maintenance and so on, and the merchandising team use it for all their purchase order management and extracting data from the BW system to support their activities. This view is echoed by Lionel Hooper, Merchandising Manager - Car Care/Hardware & Dec Fittings: I look after 3,500 units or Stock Keeping Units - SKUs with over 300 stores - so in reality, thats a million transactions a week that have to be controlled through the SAP system.

For further information about how SAP works with retail, please contact: www.sap.com/industries

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