
LANCEL, part of the luxury brands Richemont
Group,
is the international fashion house behind the
design, production and retail of upmarket leather
bags and accessories. Other prominent international
fashion brands belonging to Richemont include
Mont Blanc, Dunhill, Chloë, Hackett and Cartier.
LANCEL has around a hundred stores throughout
the world, including most countries in Europe
and many parts of Asia, Africa and United States.
Supply
Chain overhaul & search for best in
class retail software
In time for the opening of a major flagship store
in Paris in November of last year, the group decided
to arm its outlets and head office staff with new retail
technology. It chose VCSTIMELESS to implement
its integrated suite of Colombus
Enterprise software,
in just 140 days, starting with an upgrade of its
head office supply chain and retail
systems and
then sixty Lancel retail outlets with new point
of sale (EPoS) solutions. The project, named KIS “Keep
it Simple”, which entailed a complete overhaul
of Lancel’s existing ERP solution and a total
of 4,000 man days, succeeded thanks to the vigour
and dedication of a 30-strong team who ensured
the project would be on-time and on-budget.
Objectives
for the new system were to:
- manage the movement
of goods throughout the supply chain (from
warehouse to store)
- automatic stock replenishment
- analyse sales
to identify best-sellers
- suggest ideal stock
quantities and mix for each store, country,
or season
- easy access to a database
of information to help support customer relations
and
high levels of service in-store
(CRM)
Meticulous
project management “design by
time” and strong support from Lancel’s
CEO ; two of the key factors for
success!
LANCEL chose VCSTIMELESS because
of its proven track record, particularly
in
fashion retail,
as well as the international focus
of its Colombus technology (multi-lingual,
multi-currency,
multi-channel). After the contract
was
signed with VCSTIMELESS
on 17th February 2004 and setting
goals,
work
began
almost immediately - the project
kicked-off on 1st March 2004! A detailed
project
plan was immediately
drawn up setting out specific deadlines
per project stage, “design by time”.
There was no room for compromise
when it came to timing!
For VCSTIMELESS and the IT department at Richemont,
the success of this project in just 140 days is
put down to an impressive co-ordination of tasks
and the full support of each phase of the project
from senior management. The first stage of the
project entailed assigning responsibilities and
tasks to specific people, including enlisting any
support from partners or hardware suppliers. Then,
every three weeks, progress was assessed to ensure
that deadlines would be met and budgets not exceeded.
At these steering committees, representation from
every department, including logistics, buying,
marketing, sales, IT & finance, ensured that
individual requirements were always being met,
and not just being forced onto them. Integration
with other software, such as existing warehouse
and financial systems, required 53 interfaces to
be incorporated, taking around three months to
complete (between June and August 2004).
Initial
training started during the first three weeks of
September. Using 20 on-site trainers and
50 linked computers, this process quickly familiarised
around 300 of Lancel’s retail staff with
the new solution, as well as 100 head office staff.
At the beginning of October two pilot stores in
Paris were tested using the new software, and rolled
out to the remaining stores by the month end. Within
two weeks, the system went live and was fully up
and running in time for the new store opening as
planned, on 18th October. Thanks to the meticulous
planning structures and methodology applied, the
project was completed on time at each stage. The
VCSTIMELESS project, worth around 1 million euros,
also came in under-budget.
Benefits include complete
visibility and control over the supply chain…
LANCEL now has complete visibility of its supply
chain and is able to see how sales are performing
throughout the group. At head office, users can
monitor and control the necessary stock levels
required to optimise sales, manage product
allocations and assortments, and update buyers on promotional
or price strategies to increase each store’s
profitability. A selection of analytical tools
and graphs show when and how to react, if either
sales are dipping or stocks are running-out, and
users have commented on this system being extremely
easy-to-use and quick to react.. Management obtain
figures in real time and can trust them to be accurate.

In
the Lancel stores, the new
EPoS technology has
been well received. Staff no longer have to
worry about running out of stock or doing daily
orders, and instead can get on with the business
of serving customers – a very important aspect
in luxury goods retail.
Other benefits include:
- Improved management of the
flow of goods from warehouse to store
- Overall
stock reduction
- Simplified inventory management
- Less out-of-stocks
- Improved communication
- Better suited merchandise
to fit local needs
- Easier management as processes
are standardised
- New technology based on modern
standards (RFID compliant etc)
Yves Aroud, IT
Project Director at Richemont, concludes: “We
have, throughout the entire project,
managed to appreciate the expertise and direction
of VCSTIMELESS.
It diligently mastered all the
necessary steps required to implement new systems
and deal with
process change in a large organisation,
as well as listening to all the various parties’ needs
and requirements. This approach,
coupled with scrupulous attention to timescales
and budget,
allowed us
to deploy the new enterprise
suite in record time, finally rolling out
to sixty stores and
head office
in less than two weeks. The
success of the project is not just down to
the investment
made in powerful,
new technology, but also
largely due to great
teamwork and the synergy
between all parties involved.” |