From Chaos to Control: Digitizing an E-commerce Supply Chain

A Karachi-based e-commerce company specializing in women's jeans and shirts sought to elevate its digital operations. To achieve this, the company decided to implement SAP Business ByDesign and engaged our services to lead the project.

Step 1: Assessing the Existing Digital Landscape The company's current digital infrastructure was fragmented, relying on multiple platforms for various operations. Key systems included:

• Xero: Finance, accounting, and payroll

• WooCommerce: CRM

• Malcove: Order management and warehouse

• Neto: Marketplace order management

• Inventory Planner: Inventory planning

• Manual Processes: Supplier relationship management and stock allocation/transfer

This lack of a centralized system hindered efficient operations and visibility.

Step 2: Key Benefits of Implementing SAP ByDesign

• Centralized Visibility: Gain comprehensive insights into procurement, finance, operations, stock status, costs, pricing, and inventory, streamlining processes and saving time.

• Enhanced Customer Experience: Improve information visibility to enable same-day or next-day delivery, meeting customer demands.

• Data-Driven Decision Making: Transform data into strategic assets to support informed decision-making.

• Optimized Inventory Management: Enhance inventory management and forecasting accuracy.

• Accurate Costing: Implement FIFO costing and calculate precise landed costs.

• Efficient Returns Management: Streamline return management and track package movements.

Step 3: Proposed Implementation Roadmap The implementation was divided into two phases:

• Phase 1 (7 months): Implement the core solution, focusing on procurement, finance, operations, and integration with Malcove.

• Phase 2: Integrate SAP Business ByDesign with the shipping system to automate courier selection and integrate with external marketplaces.

Step 4: Assigning Roles and Responsibilities In collaboration with the company's top management, we defined clear roles and responsibilities for process owners, including:

• Data readiness

• Solution testing

• Training and adoption

This step was crucial to ensuring accountability and timely project completion.

Step 5: Solution Design and Acceptance We developed detailed solution designs, mapping current (As-Is) and future (To-Be) processes, which were reviewed and approved by the steering committee.

Step 6: Configuration We provided essential data, including product, vendor, and service master data, and configured the system to streamline operations.

Step 7: Testing Thorough testing was conducted on all modules, including CRM, Finance, and Procurement, to ensure quality and functionality.

Step 8: Train the Trainers We established comprehensive training programs to equip key users with the necessary SAP skills. Additionally, we created training manuals to facilitate onboarding of new users efficiently.

Step 9: Go-Live Following successful data migration, the system was launched, and users commenced operations.

Key Implementation Challenges While SAP Business ByDesign offers standard options, tailoring it to specific business needs can present challenges. In this case, the company required additional fields for project codes in purchase orders and customized stock allocation policies to prioritize allocations based on profitability.

Moreover, specific reporting requirements, such as stock movements across channels and daily stock history, necessitated custom reports.

Another complexity arose from managing furniture kits, which consist of multiple components with individual costs. Accurate inventory valuation required assigning separate costs to each box.

Despite these challenges, the successful implementation of SAP Business ByDesign has significantly benefited the company, enabling it to scale its operations and meet growing customer demands.