M&B FOOTWEAR

MANAGING FAST GROWTH WITH AN INDUSTRY-SPECIFIC SOLUTION

QUICK FACTS
Industry Consumer products apparel and footwear companies Revenue Rs 1 billion (US$20.6 million) Employees 800 Headquarters Noida, India Web Site www.mbfootwear.com SAP Solutions and Services Production and distribution management with the SAP Apparel and Footwear application Implementation Partner SEAL Infotech Pvt. Ltd. Key Challenges Centralize information from disparate sources Provide senior management with greater visibility into operations Improve efficiency to control costs Increase agility in a competitive market Enable companys future growth strategy Implementation Best Practices Configured system to address both current and future business needs Secured strong executive sponsorship Conducted regular steering committee reviews Involved key business owners in project Financial and Strategic Benets Improved sales and production planning Ability to analyze profitability by different levels and dimensions More accurate tracking of production costs Ability to control expenditures by brand and distribution channel Improved matching of demand and production Ability to create balance sheets for different tax zones Why SAP Was Selected Single technology platform to centralize all business operations Scalability to support current business needs and future growth

Low Total Cost of Ownership Eliminated disparate legacy systems Completed project at total cost of Rs 1.6 Cr (about US$329,000)

Indias M&B Footwear Pvt. Ltd. manufactures and markets premium shoe brands through a countrywide network of retail outlets, shop-inshops, and multibrand outlets (MBOs). Operating in a highly competitive market, this fast-growing company needed greater visibility and control across a wide and vertically integrated enterprise. By implementing the SAP Apparel and Footwear application, M&B is lowering production costs, improving inventory control, and optimizing its retail operations.

Operational Benets Better inventory control with automatic replenishment to distribution channels Improved distribution eciency with automated processes for logistics planning and material movement More timely procurements with scheduled materials requirements planning reports 50% inventory reduction over 3 years 25% increase in employee productivity over 2 years

SAP Business Transformation Study Consumer Products

By consolidating all our organizational data on a single platform and gaining greater transparency across the company, M&B Footwear is cutting costs, increasing stock turns, and improving profitability.
Shishir Kumar, General Manager for IT, M&B Footwear Pvt. Ltd.

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Setting the Trend in Footwear

In little more than a decade, M&B Footwear Pvt. Ltd. has established an impressive footprint for itself in both the manufacturing and retail sectors of Indias expanding shoe industry. M&B employees at two state-of-the-art manufacturing plants help meet the nations growing demand by turning out more than 5,000 pairs of shoes a day. And the company has a comprehensive sales network across the country, comprising the companys own retail chain, shop-in-shops, and multibrand outlets (MBOs), where it markets several international shoe labels as well as its own innovative signature brands. M&B is one of Indias fastest-growing shoe companies; however, it still faces tremendous competition in the countrys crowded footwear space. Success depends on having the right product, in the right season, in the right place, says Bhai Ajinder Singh, Director at M&B Footwear.

Choosing the Right Fit

By initiating a project with the code name CONQUEST, M&B started looking for a more robust IT backbone with which to manage its countrywide operations. Because of its vertically integrated business model, the company focused on solutions that could fulfill a full range of manufacturing, distribution, and retailing requirements. M&B found its answer in the SAP Apparel and Footwear application. Project CONQUEST was highlighted by strong executive sponsorship and close collaboration between M&Bs business process experts and the companys implementation partner SEAL Infotech Pvt. Ltd. SAP Consulting also provided help as and when required to map certain business processes in SAP Apparel and Footwear.

carrying inventory while ensuring optimal supply in the distribution channels. In fact, with greater visibility into inventory, M&B estimates a 50% reduction in inventory levels over the next three years. M&Bs top management also has a more comprehensive view of the companys retail operations from the branded shops to its presence in large department store chains. For example, annual sales and production plans are now based on both leadership objectives and input from the sales outlets. M&B can also more easily analyze profitability by various categories, such as product, region, distribution channel, or customer. As a result, company leaders can control expenditures by brand or sales channel using accurate data to drive their decisions.

Taking Giant Steps in the Future Sewing Up the Benefits

Not content to stand still, M&B has ambitious plans for future expansion. The company, for instance, expects to ramp up shoe production by 60% and increase its retail base by 29% in the coming year. M&B leadership believes the early adoption of an industryspecific solution will help the company achieve its aggressive growth targets. The SAP software enables us to grow in a disciplined manner, says Shishir Kumar, general manager for IT at M&B, supported by better visibility and datadriven decision making.

Today, M&B has consolidated its operaIn the highly volatile fashion world, com- tions on a single platform and gained panies need to adjust their business greater visibility across the organization. strategies quickly. But recently, M&B As a result, the company is improving executives realized that their disparate both its manufacturing and retail operalegacy systems couldnt deliver the tions. In manufacturing, for example, regutimely information or business visibility lar reports for materials resource planning that the dynamic company needed to ensure timely procurement of raw materioptimize its resources. As a result, M&B als. In addition, improved expense trackdecided to consolidate its operations on ing enables M&B to optimize overall a single platform and gain improved agil- production costs. ity and efficiency across the Meanwhile, new automated replenishment organization. processes help M&B decrease the cost of

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