PLM makes creation of hundreds of styles per season manageable at GUESS / p.5
Runsvengruppen enters strategic partnership with TechniaTranscat / p.6
PLM MAGAZINE 2 0 1 6
A MAGAZINE PUBLISHED BY TECHNIATRANSCAT - #1 KNOWLEDGE COMPANY IN PLM
R E TA I L EDITI ON
Jula:
“We want to drive faster“
- PLM as a Tool for Expansion /p.3
PLM for Retail:
Getting control over your quality control /p. 5 Retail success story:
Haglöfs on fast track for profitable growth /p. 4 PLM retail expert Anna Liljedahl:
PLM for consumer and retail challenges and opportunities /p. 8
Challenges in the retail industry
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4 5 Success Story:
Jula: “We want to drive faster“ /p. 3 Success Story:
Haglöfs on fast track to profitable growth /p. 4 Success Story:
GUESS manages hundreds of styles every season /p. 4 PLM for Retail:
Getting control over your quality control /p. 5
etail companies are striving to keep the modern and sophisticated consumer happy and loyal. The industry climate is complex where the consumer is acting in multiple channels and needs to be continuously stimulated. Specifically, retail businesses have to ensure that the needs of returning consumers (e.g. Loyalty Card holders) are fully met. This situation is forcing retail companies to rapidly adjust and be innovative in shop planning, diversifying assortments and analysis while making sure that the brand identity is kept. At the same time, the leading retail companies are expanding in number of stores, new geographical areas and assortment content. This introduces challenges with communication and follow-up within the existing work force and with the increasing number of suppliers, who are essential as they may own the relevant product information. Additionally, sustainability requirements and increasingly stringent government regulations results in complex business processes and traceability procedures to be implemented. In light of those challenges, it is obvious that retails are searching for ways to make better business decisions and maximize consumer satisfaction.
News:
Runsvengruppen /p. 6 PLM for Retail:
The right tools for the right retail process /p. 7 PLM retail expert Anna Liljedahl:
PLM for the consumer and retail industries /p. 8 About TechniaTranscat TechniaTranscat – The #1 knowledge company in PLM. We facilitate the future in innovation. We guide you to become the future winner by combining your own strengths with our expertise in Product Lifecycle Management (PLM). Our solutions are used worldwide in industries such as life sciences, automotive, travel, retail, oil & gas, telecom, fashion and food & beverage. We serve over 800 clients worldwide, including 20 that are listed on the Fortune 500. TechniaTranscat is a part of the Addnode Group (listed on the NASDAQ OMX Nordic List). For more information, please visit www.techniatranscat.com Publisher: Jaana Ahlberg, TechniaTranscat AB (jaana.ahlberg@techniatranscat.com) Photos: TechniaTranscat AB, JULA, Haglöfs, Guess Production: Felicia Grundel, TechniaTranscat AB (felicia.grundel@techniatranscat.com)
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In this special edition of PLM magazine we focus on PLM for the retail industry and how we can address all of these challenges. You can find a mix of retail PLM success stories and industry specific use cases. We hope you will enjoy it. And if any questions, please don’t hesitate to contact me. With warm regards,
Jonas Gejer CEO TechniaTranscat jg@techniatranscat.com +46 733 77 24 14
Retail Success Story
Jula: “We want to drive faster” - PLM as a Tool for Expansion J
ula, a multi-billion kronor Swedish do-it-yourself retailer, was so bogged down in complicated documentation procedures that they were hindering company growth. The company has almost 14,000 products, and thousands of specific product details for different countries. It was becoming exceedingly difficult to keep track of everything. Speaking at TechniaTranscat’s (previously Technia) PLM Innovation
Forum, Magnus Sigurd, Jula’s Business Development Director said, “We had to do something. We defined our needs, and eventually saw that PLM and Technia [TechniaTranscat] could help us.” They started working together near the end of 2014.
How were you coping before you started the transition to PLM?
pany. It is one thing when you have 30 people in the office. You can always ask somebody for a document. It is a totally different story when there are more than 200 and the number of products keeps increasing.” “We have been working with Excel documents. We have 10-15 for each product. They need to be updated and accessible. In the end, we were overwhelmed by Excel work.” The volume of documentation has risen in recent years as Jula has opened new stores, started in new countries, and increased product range, while the demands for sustainable production and traceability have added more demands on documentation.
What does PLM do? “PLM provides us with one source of information and a structure that forms the base for processes and automation. We want this work to be straightforward and simple. Time to market is very important us. We want to be able to drive faster.” About one year after signing with TechniaTranscat, Jula is scheduled to have replaced most Excel documentation with PLM.
Have you calculated a ROI on your PLM investment? “We’ve thought about that, but it’s hard to measure the improvements only in terms of money. We get structure, processes, scalability, and less frustration. We knew we had to do this to handle future growth. Judging from what I’ve seen so far and from my gut feeling, this is a very positive development.”
About Jula Jula, a family company founded in 1979, has become one of Sweden’s fastest growing companies. Turnover doubled between 2009 and 2014 to 5.4 billion kronor, and stores have been opened in Norway and Poland.
“We are a fast-growing family com-
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Success Stories Press Release
Haglöfs on fast track for profitable growth W
ith a track record of an average growth rate of 18% since late 80´s, Haglöfs faced a tough task to be able to deliver on their targets, in rough economical circumstances. But once again they delivered a growth rate of close to 20% with a profit of 11% - a great achievement in these tough times. Haglöfs invested in a Product Lifecycle Management (PLM) system in 2006, as one part of their strategic plan to enable their future expansion. The selected partner on this journey
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uess, the famous manufacturer of trendy and upscale apparel and accessories, creates hundreds of styles per season. Keeping track of it all just wouldn’t work without TechniaTranscat and the PLM software ENOVIA, says CIO Michael Relich. “In 2004, we were a North American based company but then we bought a licensee in Italy and established a sourcing office in Hong Kong. Our eight-digit North American style
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was TechniaTranscat, one of the leading PLM solution providers in Europe and the Americas. The solution is based on the ENOVIA Apparel Accelerator and complemented by TechniaTranscat’s tools for improved efficiency, called TechniaTranscat Value Components (TVC). Read the full article at www.techniatranscat.com/ haglofs
PLM makes creation of hundreds of styles per season manageable at GUESS number was not compatible with the Italian 11-digit style number along with fabric, color and size codes. So a PLM system was an answer to this,” says Relich. “ENOVIA has been an enormous success. We can configure it to how the users want it and it is flexible. Apparel
designers want to be creative. Without TechniaTranscat and TVC we would not be as successful. TechniaTranscat makes me sleep better at night,” he says. Read the full article at www.techniatranscat.com/guess
PLM for Retail
Getting control over your quality control
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very company must be able to vouch for the quality of the products they sell. But for large retail chains, staying up to date with changing regulations and standards for a broad range of products is a complex and time-consuming task. And tracking sold products when a problem does arise can be hugely difficult. It’s not enough to just have the right software – you must have the know-how and expertise needed to make sure that nothing slips through the cracks. With the right help, you can become more efficient without adding more staff.
Quality assurance poses unique problems for retail chains Quality assurance doesn’t end after a sale, it must continue throughout a product’s lifecycle. But the retail sector faces unique challenges in this area and often struggles to maintain clear oversight of the entire supply chain. Many stores today have such a broad product range – from shower cabins to stuffed animals – that it’s difficult for managers
to keep track of the quality regulations and standards across all different industries. And stores specialising in low-cost items often find many of their products at trade shows, where it can be difficult to verify information about the supplier or how the product is made. That means they end up with some products whose origins and contents can be difficult to track, especially if they have to manually rely on an email chain or Excel spreadsheets rather than specialised software. This can lead to massive problems if a product is found to be faulty, or contains a material that may be banned. Authorities have tightened many regulations lately, and are conducting an increasing number of random quality controls instore. If a product is recalled, the retail chain must be able to go straight back to the supplier and find out where it came from and whether there are other items that must be removed from the shelves as well. Failure to comply with all the rules can lead to fines or even prison sentences.
Knowledge must be part of the solution How do you stay in control of your own controls? TechniaTranscat offers a complete solution that helps companies manage the entire process in a systematic way while making sure everyone knows who has ownership of each step along the way. And with our software comes our expertise and guidance. At TechniaTranscat, we serve as business and management consultants instead of just IT consultants. We know the industry and how your competitors work. With our expertise, we help create the most efficient way of handling each process, mapping out who should be doing what and speeding up the decision-making process. That means new products can get to market quicker, which helps increase your range of products without increasing your staff.
Quality is a competitive edge In today’s market, where consumers have more choices than ever before, quality is a major selling point. Modern customers are conscious of the environment and want products that are guaranteed to meet their own standards. Being able to make that guarantee gives stores a major competitive edge. With TechniaTranscat and the PLM software ENOVIA, you can lay the right foundation for making sure those standards are met. 5
News: Runsvengruppen
TechniaTranscat signs new PLM partnership with market leading low price retailer ÖoB Runsvengruppen, owner of ÖoB, one of the leading Swedish companies in the low-price market segment, has chosen TechniaTranscat, a subsidiary of Addnode Group, as their strategic partner for a Product Lifecycle Management (PLM) implementation. The PLM solution will enable Runsvengruppen to further improve their corporate efficiency to facilitate expansion and an enhanced range of products.
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unsvengruppen, which operates over 100 ÖoB department stores throughout Sweden, has chosen a PLM solution based on the 3DEXPERIENCE Platform from Dassault Systèmes and TechniaTranscat as their strategic partner for the complete delivery of all software, consulting and support services. Key drivers for Runsvengruppen to
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implement a PLM solution are the need to support further growth and to create conditions for enhanced assortment planning. The PLM solution will establish an infrastructure to globally manage and secure the development and quality of all products, assortments and suppliers. “We selected TechniaTranscat as our PLM-partner based on their strong skills
in PLM for retailers and local presence”, says Peter Adell, IT Manager at Runsvengruppen. ”This partnership with Runsvengruppen validates TechniaTranscat, with the Dassault Systemes 3DEXPERIENCE platform, as the market leading supplier of PLM to retailers”, says Jonas Gejer, CEO at TechniaTranscat.
PLM for Retail
The Right Tools for the Right Retail Process F
or retail chains, the process of introducing a new product in stores can be overwhelming without the right tools. Finding an exciting product to sell is the easy part; navigating every step that’s necessary between ordering an item and getting it on the shelves is a lot more complicated. That’s why it’s so important to have software that can help guide staff members along the way, making sure that everything is done in the right order. The right tools can help eliminate missed deadlines, duplicated efforts, and a lot of frustration.
How to keep track of who is doing what? Adding a new item to your product line can be a big endeavour. After finding the right product, retail chains must also check its quality, get background on the supplier, calculate the right order size and create a marketing campaign. It’s a complicated process, and the only way to avoid mistakes is to make sure everyone knows exactly who should be doing what, and in what order. Each staff member must be able to take ownership of their own part of the process. But when a
company has its head office in Europe, a production center in Asia and a separate marketing division somewhere else, it can be extremely difficult to keep track of what has already been done and which step needs the most urgent attention. Especially when staff are still looking at a long to-do list in a simple spreadsheet and checking things off manually as they go along.
Getting everyone on the same page With the right PLM software, the whole process can be organised in a way that makes it more efficient, faster, and with less room for errors. The key is to have a tool that clearly highlights deadlines and important dates for each different product, with visual diagrams that show exactly what needs to be done at any given time. And by using a webbased system, everyone can get immediate updates that show what other people have done, and which steps still need to be taken. Staff members can still have their own to-do lists but can also see how work is progressing on the overall product line. And if someone accidentally
skips a step, the system will tell them to back and complete it first.
PLM software makes the whole process simpler By using the ENOVIA software solutions from TechniaTranscat, retail companies can regain control of the entire process. From ordering a new product to getting it into the hands of the customer, everything is easier when everyone is on the same page. Make sure your staff can switch from being reactive and constantly putting out fires to being proactive and eliminating problems before they arise. The right tools are available, it’s only a matter of using them.
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PLM for the retail industry
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xperiences from retail companies show that one key prerequisite in order to meet business challenges
in the retail industry is to ensure that the innovation process is controlled, measurable and is as efficient as possible. The innovation process is referring to single products, assortments, and campaigns, all from idea to realization.
Unfortunately, the everyday reality at retail companies is quite the opposite. Product related information is not managed effectively, but instead as “information islands” between different departments followed by unstructured and cumbersome communication both internally and externally with suppliers; additionally, no evident assortment planning may be used; priorities and process ownership are not always clear; aggregated information is hard to analyse and compose (e.g. list of products including a dangerous substance); difficulty to prioritize tests and follow-up quality parameters; difficulty in identifying consumer patterns and follow-up claims. One major result of this situation is that the expansion effort is becoming over-expensive
• Create the prerequisites for an effective
assortment planning and in some cases is not possible. One solution approach to address the business barriers is to establish an information platform for the innovation process that will act as an infrastructure for expansion and quality. A suitable approach for that kind of platform is called Product Lifecycle Management (PLM). PLM was originally developed by the aerospace and automotive industries and is currently being adopted by an increasing number of retail companies. PLM stands for simplification by digitalization - a platform where all product-related information is found, managed and followed-up in one place that is globally available for all (HQ departments, sourcing offices, chosen suppliers etc.). In PLM the innovation process is managed from idea to realization, while minimizing internal inefficiencies and replacing existing Excel, mail and file folders.
What can a PLM solution do for retail businesses? • Establish an infrastructure for growth • Improve innovation by increasing val-
ue-adding work
“CONTACT ME FOR MORE INFORMATION ABOUT PLM FOR CONSUMER AND RETAIL” Anna Liljedahl, Business Development Executive Consumer/Retail TechniaTranscat
@
anna.liljedahl@techniatranscat.com
+46 (0)733 77 24 71
• Increase product appeal and consumer
experience by utilizing store virtualization and configuration • Enable product-centric decision-making
based on consumer input and behavior combined with sales statistics • Strengthen branding by enforcing the
usage of brand definition, logos, messaging and other standards utilization of templates and workflows • Positively impact decisions related to
calendars, cost and quality by performing virtual product qualification early in the development process • Integrate regulatory compliance and
sustainability into the product innovation process to reduce the chances of last minute changes and product recall • Complement the transactional process
(order placement, warehouse management etc.) and the marketing process.