May2016

SAPANYWHEREMOVESBEYONDECOMMERCETOPROVIDECOMPLETEFRONTOFFICE

MARKETING,SALESANDSERVICEFORSMBS

AtfirstglanceSAPAnywheremightappeartobejustanotherneweCommercesolutionforonlineretailers.Butifyoudigalittledeeperyoufindmuchmore.Purposebuiltforthesmalltomediumsizebusiness(SMB)withadigitalpresence,itisacompletefrontofficesolution.Itisamulti-channelcommerceandmarketingplatformdesignedtobemobilefirst,low-touchandeasilyextensible.ItsupportsSMBsintheireffortsto:

Ø DesignandmanagemarketingprogramsandleadsØ ManageinsidesalesandcustomerserviceØ Havevisibilityintowhat’sbeingsold,throughwhichchannelØ Processonlineandin-storeordersinoneplaceØ Trackandmanageinventory

Yes,SAPAnywheretargetsretailers,butalsorecognizestheevolutioninthewayproductsareboughtandsoldtoday.Notonlydoretailerssellthroughmultiplechannels(online,instoreandanythinginbetween),butalsomoreandmoremanufacturersanddistributorshaveatleastonesaleschannelwheretheyeliminatethemiddlemanandselldirectlytotheconsumer.Thisplacesnewdemandsonthebusinessatthepointofsale,demandstypicallynoteasilyaddressedbybackofficesolutionssuchasenterpriseresourceplanning(ERP).

SAPhastakenamodularapproachtosatisfyingtheseneeds.RatherthanbuildingmorecomplexityintotheERPsolutionitself,forcingupgradesorreplacement,itlooselycouplesthefrontofficetoexistingbackofficesolutions.IfyouareanSAPBusinessOneorSAPBusinessByDesigncustomer,theintegrationisoutofthebox.ButtheplatformapproachofSAPAnywherealsoallowsittobeeasilyconnectedtoanybackoffice–virtuallyanywhere.

SUPPORTINGANYMODEL,ANYWHEREWhenitcomestomanagingthesaleofgoods,retailandmanufacturing/distributionaretypicallyworldsapart.Inretail,atthepointofsaleyoudealwithcash,checkordebit/creditcard;thecustomerwalksawaywithgoodsinhandandinventoryisdepleted.Inmanufacturingyouprocessyourcustomer’spurchaseorder,createasalesorderandsubsequentlyshipandinvoice,relievinginventoryandcreatingaccountsreceivable.Lateryoureceivecash

SAPAnywhere,purposebuiltforthesmalltomediumsizebusiness(SMB)withadigitalpresence,isacompletefrontofficesolution.

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andapplythecashreceiptagainstaccountsreceivableeitheronanopenitemoracashbalancebasis.

Receivingcashinatraditionalpointofsalesysteminaretailenvironment,eitherinstoreoronlineiseasy.Managinganopenaccountismoredifficult.ForamanufacturerordistributorusinganEnterpriseResourcePlanning(ERP)system,managingaccountsandaccountsreceivableisstandardpractice.Processingacashsaleismoredifficult.

Inaretailstore,thecashinthedrawerisreconciledagainstthesalesrecordedattheendoftheday.Inamanufacturingordistributionenvironmentshipments,invoicesandcashreceiptsarereconciledattheendofthemonth.Yetinallcases,everythingmustbepostedtothegeneralledgerinordertocreateabalancesheetandprofitandlossstatement.

Sowhathappenswhenamanufacturerordistributorsellsdirectlytoaconsumer?Ithappensmoreandmoretodayinshowroomsandfactoryoutlets,aswellasonline.Ineliminatingthetraditionalretailer,doesthemanufacturerneedtoinvestinaretailpointofsale(POS)solution,aneCommercesolution,aswellasabackofficeERPsolution…andtheninterfaceorintegratethemallinthehopetheywillonedayallworkseamlessly?

SAPAnywheresupportsallthesedifferentenvironmentsatthepointofsalewithoutcausingyoutojumpthroughhoops,automaticallysendingthenecessarytransactionsbacktoERP,whetheryoupostanorder,tobefollowedbyshipment,invoiceandpaymentorwhetheritallhappensatonce.AndwithSAPAnywhere,it’snotjustaboutbeingabletotakecashforaproductinhand.Manufacturersordistributorsmighthaveavirtualshowroomfromwhichyoucanplaceamoretraditionalbusiness-to-business(B2B)order.Themanufacturerordistributormighthavethegoodsinstocktobeshippedandinvoiced,oritmighttakeanorder,sourcetheproductandhaveitshippeddirectlytothecustomer.SAPAnywheresupportsanyandallofthesedifferentbusinessmodels.

Andthesebusinessmodels,andevenprices,mayvarybychannel.Areyousellingdirect,throughdistributorsorthroughonlinecommercecompanieslikeAmazonorAlibaba?Todayaretheyallforcedtousethesamecatalogandpricing?Orareyouforcedtocreate(maintain)separatecatalogsforeach?Canyoutieachanneltoaspecificwarehouseorfulfillallordersfromacentraldistributionpointoranythinginbetween?Ifusingacentralwarehouse,canyoureserveinventoryforaspecificchannel?AlloftheseoptionsaresupportedbySAPAnywhere.PerhapsSAPshouldcallitSAPAnywhereAnyhow.

CASEINPOINT:M.R.K.T.MADRABBITKICKINGTIGER(M.R.K.T.)istheperfectexampleofacompanyfacedwiththechallengeofdoingbusinessinavarietyofdifferentways.

Sowhathappenswhenamanufacturerordistributorsellsdirectlytoaconsumer?Doesthemanufacturerneedtoinvestinaretailpointofsale(POS)solution,aneCommercesolution,aswellasabackofficeERPsolution…andtheninterfaceorintegratethemallinthehopetheywillonedayallworkseamlessly?

Differentbusinessmodels,differentpricesperchannel,centralordistributedwarehouse?AlloftheseoptionsaresupportedbySAPAnywhere.PerhapsSAPshouldcallitSAPAnywhereAnyhow.

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Thecompanydesignsandmanufacturesbagsandaccessories,includingbackpacks,briefcases,messengerbags,travelbags,totes,shoulderbags,sleevesandaccessories.Thefounder,TomPen,enteredthefashionaccessorymarketsomewhatbychance.AHarvard-trainedarchitect,henotedthemachineheusedtomakeworkingmodelsofhisarchitecturaldesignswasunder-utilized.Sohedecidedtomakesomesmallerproductsusingsomeuniquefabrics.Theywereahitandwithinsixmonths,whatstartedoutasanextracurricularactivitybecameabusiness.Oneofhisarchitecturaldesigncustomerswasclosingdownasmallstore,whichhetookover.M.R.K.T.haditsfirstretailoutlet.Todayithas40mono-brandstores,butalsosellsthroughlargerretailerslikeNordstrom’s,Lord&TaylorandUrbanOutfitters,aswellasitsownonlinestoreandotheronlinechannels.

Initsearlystages,M.R.K.T.produceditsfirstproductsinasmallworkshopinShanghai,China,buttodayitusesanetworkofsuppliersaroundtheworldforbothmaterialsandproduction.Asacontractmanufacturer,itmustmanageaglobalsupplychain.Thecompanyalsosellsthroughwholesaledistributors,aswellasdirect.Soitfacesallthosedifferentcombinationsofcashsales,accountsreceivable,aswellasthechallengesofglobaltrade.

Intheverybeginning,itwaseasyenoughtomanageallthesedifferentchannelsanduniquerequirementswithaspreadsheet.ButsoonM.R.K.T.wasfeelingthestrainofmanagingeCommerce,aswellasthewholesalebusiness.Andsoonithadinventoryeverywhere.

Solutionsstartedtoproliferate.Theteamimplementedawarehousemanagementsystem(WMS)tomanageinventorylevelsandlocations.TheystartedusingShopifytopowertheonlinestore.Whilethoseorderscameinonline,thosefromdistributorsandretailerscameinthroughEDI.Therewasnosinglepointofentry,andsoontheylearnedtheyreallydidn’twanttomanageavarietyofdifferentsolutions.

Asafastgrowingcompanyinaconsumermarket,M.R.K.T.hadtolookfirstatitsexternallyfacingfunctions.M.R.K.T.neededabetter“frontoffice.”That’swhereSAPAnywherecamein.AlthoughtheteamisstillworkingwithSAPonchannelmanagementtools,thegoalistoconvergeallitssaleschannelsthroughSAPAnywhere.AninterfacepushesorderstotheWMS,wheretheyarepicked,packedandshipped,andthenpushedbacktoSAPAnywherewheretheyareautomaticallyinvoiced.Inthisway,ShaunNath,OwnerandCEOsays,“SAPAnywherealmostfunctionsasanERP,butnotquite.Butitisnice,easytouseandfriendly–almostlikeERPbutpresentedinlaymen’sterms.Wesimplycan’taffordtohavetotrainourstaffonold,clunkytechnology.We’removingtoofast.”

M.R.K.T.isindeedmovingquickly.Ithasdoubledinsaleseachyearforthepastthreeyears.Itsellsin20countriestodayandplanstobein50withinthreeyears.Andyet,itstillmanagessomeofitsbackofficefunctionsmanually

M.R.K.T. MAD RABBIT

KICKING TIGER “M.R.K.T.isaLosAngeles-basedaccessorieslabelestablishedin2010byHarvard-trainedarchitect,TomPen.Ourdesignsareinspiredbymodernarchitecturalconceptsofcleanandpureform.Structure,functionandmaterialinnovationareourguidesaswepushtheboundariesofdesignineverybagwecreate.”

M.R.K.T.producesandsellsinnovativelydesignedbags,includingbackpacks,briefcases,messengerbags,travelbags,totes,shoulderbags,sleevesandaccessories.

“SAPAnywhereisnice,easytouseandfriendly–almostlikeERPbutpresentedinlaymen’sterms.Wesimplycan’taffordtohavetotrainourstaffonold,clunkytechnology.We’removingtoofast.”

ShaunNath,OwnerandCEO,M.R.K.T.

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withthehelpofspreadsheets,includingthepurchaseofdirectmaterials.SoitwilleventuallyneedtofillthosegapswithafullERP.WillthatERPbeoneofSAP’sown?PerhapsSAPBusinessOneorSAPBusinessByDesign?ThejuryisstilloutonthatandShaunhaslookedatsomenichesolutionsdesignedspecificallyforthefashionandaccessoriesindustry,butalsoadmitsthatthe“outofthebox”integrationwithanSAPERPisveryappealing.

AndsoistheSoftwareasaService(SaaS)model.Withitsanticipatedgrowth,scalabilitywillbeakeyconsideration,alongwithsomeoftheotherkeyfacetsofSAPAnywhere.

FLEXIBILITYINPAYMENTSAPAnywherecanalsoacceptavarietyofpaymentmethodscommoninacombinationofonlineandphysicalretailoutletsincludinginstore,showroom,warehouseorsimply“inperson”transactions(thinkaboutaservicetechniciansellingasparepart).Thesepaymentmethodsincludecash,debitcardandstripe(paymentsinfrastructure).

Inaphysicalsetting,theapplicationitselfsupportsbarcodescanningdirectlyfromthemobiledeviceonwhichthesaleiscaptured,withoutanyaddedhardware.OryoucanaddanexternalscannerconnectedviaBluetooth.Inadditiontothescanneryoumightalsoconnectaprinterandmakeuseofcashdrawerfunctionsthatallowtheuseofanypersonalcomputerwitha“locked”cashdrawer,allwhilekeepingtrackoftotalsalesforanydaybrokenoutbypaymentmethod.

CUSTOMERLEADGENERATIONCompletingasaleisgreat,butnotnecessarilyuniquetoSAP.However,thereismoretothefrontofficefunctionthanjustselling.Thefrontofficeisalsotaskedwithcreatingdemandandacquiringnewcustomers.Thesemarketingfunctionsaretypicallysupportedbyseparateapplications,ifatall.ManySMBstodayseedigitalmarketingasanaffordablealternativetomoretraditionalsoftwaretomanagemarketingcampaigns.Buttheythenstruggletotiethesedigitalcampaignsbacktothetransactionsforclosedloopmarketing.

ThenextareaofinvestmentindevelopingSAPAnywhereisintherealmofdigitalmarketing.LookforinstantintegrationwithConstantContactandMailChimp,bothofwhichcantrackclicksandothercampaignstatistics.Nextonthedocketaresearch(thinkGoogleads)andintegrationwithsocialmediatointegratecampaignsintoFacebook,Pinterest,Twitter,InstagramandLinkedIn.

WHEREANDWHEN?SAPAnywhereisn’tavailableeverywhere…yet.ItlaunchedinBeijinginOctober,inpartnershipwithChinaTelecom,followedbytheUnitedKingdom

Completingasaleisgreat,butthereismoretothefrontofficefunctionthanjustselling.Thefrontofficeisalsotaskedwithcreatingdemandandacquiringnewcustomers.

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inMarch.Nextonthedocket:thelaunchinNorthAmericaatSapphireNow2016inMay.Butitwillneedtocontinuetoexpandgeographicallyifitwantstoachieveitsgoalof100,000customerswithinfiveyears.Alongwiththatcustomercountgoalcomesanannualrevenuegoalof$200million.Becausethissolutioniscompletelycloud-based,allsaleswillbebysubscription.

Ifyoudothemath,thismeansaverageannualrevenuepercustomerofjust$2,000,makingitquiteaffordableandappealingtotheSMBmarket.

INSUMMARY…SAPseemstohaveveryaggressiveplansforSAPAnywhere,targetinggrowingSMBsinterestedinhavingmorecustomers.Andtoday,whoisn’t?TheInternetlevelstheplayingfieldforexpansionandgrowth.Butgrowingyourcustomerbasetodayalsorequiresadigitalpresence-onethatisverycarefullyorchestratedfromleadgenerationtocustomeracquisitiontocustomerretention.Don’tsettleforjustonepieceofthepuzzle.MakesureyoustartdownapaththatcantakeyouAnywhereyouwanttogo.PerhapsSAPAnywherecanhelp.

Abouttheauthor:CindyJutrasisawidelyrecognizedexpertinanalyzingtheimpactofenterpriseapplicationsonbusinessperformance.Utilizingover40yearsofcorporateexperienceandspecificexpertiseinmanufacturing,supplychain,customerserviceandbusinessperformancemanagement,Cindyhasspentthepast10+yearsbenchmarkingtheperformanceofsoftwaresolutionsinthecontextofthebusinessbenefitsoftechnology.In2011CindyfoundedMintJutrasLLC(www.mintjutras.com),specializinginanalyzingandcommunicatingthebusinessvalueenterpriseapplicationsbringtotheenterprise.

TheInternetlevelstheplayingfieldforexpansionandgrowth.