Fossil Selects SAP and IBM to Integrate Its Global Retail Operations

Fossil will leverage SAP and IBM to integrate its global retail operations, provide a growth platform, transform its supply chain and standardize information on an enterprise level. The alliance provides Fossil a combination of SAP’s industry-leading retail solutions with IBM’s extensive knowledge and experience in the retail business. The collaboration exhibited by IBM and SAP was key to Fossil’s selection of the SAP/IBM alliance in a competitive bid.
Fossil will employ SAP for Retail solutions for merchandise management and point-of-sale data management to enhance Fossil’s supply chain visibility into available products and delivery dates and standardize information across all sales channels. IBM will provide extensive retail industry experience and best practices knowledge in implementing SAP’s retail solutions to streamline business processes with its retail experts from IBM Global Services and IBM Business Consulting Services. SAP for Retail is based on the SAP NetWeaver platform and will benefit Fossil by integrating, centralizing and streamlining merchandise processes across the enterprise while providing the foundation for future business growth.
“This implementation will give Fossil a platform for future growth and will allow us to enhance our store operations and customer service,” said Ed Jurica, CIO, Fossil. “The combination of SAP and IBM was a compelling value proposition for Fossil, as all three companies were able to synchronize solutions, services and infrastructure around the needs of Fossil’s retail business. Roles are well defined: SAP provides the application solutions, IBM supports the implementation for our business processes and our infrastructure requirements and we at Fossil take a proactive approach to define our business strategy and requirements.”

Retail alliance delivers benefit

The SAP/IBM implementation is designed to improve Fossil’s retail business by replacing existing merchandising systems and moving the business onto a standard platform to enable one view of retail and wholesale operations. The retail transformation builds upon the already successful effort in Fossil’s wholesale business in implementing SAP Apparel and Footwear (SAP AFS) globally. In 2004, IBM provided the services and support for the SAP AFS implementation in Europe. “Fossil’s decision to team with IBM and SAP is further validation of the benefits our retail alliance delivers,” said Steven D. Ladwig, general manager, IBM Global Retail Industry. “IBM and SAP will enable Fossil to strategically transform its businesses and grow to meet rapidly changing demands on its retail business. End-to-end retail offerings from SAP’s retail business solution set and IBM’s retail store capabilities will help retailers like Fossil maximize business efficiency in the near term while providing a platform for growth in the future.”
“SAP for Retail addresses Fossil’s need for long-term growth while creating immediate supply chain optimization benefits, including complete visibility across its businesses to enable enhanced planning and forecasting, all of which will support Fossil’s objective for increasing customer service and enhancing its store operations,” said Jim McMurray, senior vice president, Retail, SAP. In 2004, SAP and IBM launched a strategic alliance to align both companies’ portfolios to help retailers meet the challenges of the marketplace by building highly competitive IT Infrastructures from the headquarters down to the store and across all channels. The foundation for the current and future SAP/IBM offerings to clients is Strategic Business Consulting, mySAP Business Suite, the IBM Store Integration Framework, both companies’ technologies and a flexible delivery model.

Source: SAP AG