STORES Magazine - September 2008 - (Page 44)

NUTS AND BOLTS / ERP Massaging the Enterprise ERP system works the kinks out of operations for Red Door Spas BY M.V. GREENE ed Door Spas is taking the guesswork out of guest work. Visitors to its day spas and salons are consumers who seek a relaxing day of pampering and personal revitalization. To meet the service expectations of its clientele — and operate the fast-growing business efficiently — parent company Red Door Spa Holdings relies on enterprise resource planning solutions. R Red Door Spa Holdings operates more than 50 wholly-owned freestanding and resort-based day spas and salons and employs about 4,000 people, mostly technicians who provide services to guests. PLATFORM-SUPPORTED CIO Paul Kaczmarek says the company is agFUNCTIONS gressively expanding its retail footprint, growing at a rate of about 20 percent annually since 2004. Demand management The company also is pressing forward with ambiMerchandise management tions for international expansion in 2009. and planning Technology is the driver for Red Door’s growth, Store operations Kaczmarek says. The company joined with WallFinance dorf, Germany-based SAP for enterprise resource Human resources planning development, swapping out its antiquated and characteristically manual processes that lacked economies of scale over the past two years. Enterprise resource planning (ERP) seeks to integrate all corporate divisions and functions onto a single computing platform that still gives departments the flexibility to serve their unique needs. SAP for Retail powers business process management applications through modules on its serviceoriented NetWeaver platform. Under its former system, expansion meant adding corporate technology staff, leaving Red Door in the untenable position of having its growth 44 STORES / SEPTEMBER 2008 blunted by escalating personnel costs. “For us to open up a day spa is a significant investment,” Kaczmarek says. “We see technology as a driver for our growth: Internally, we call it our ‘chassis.’ We have this support chassis that we are building so that, as we grow, we don’t have to add corporate support. We think we’ve built an infrastructure now so that using technology we can grow the business without having to grow the support structure.” SAP for Retail is designed to allow retailers to be nimble in exploiting business processes throughout their enterprise while creating customer experiences that motivate shoppers to buy — and return. The platform supports functions that include demand management, merchandise management and planning, store operations, finance and human resources. AMR Research notes that fast growth in the $30 billion-plus worldwide market for ERP applications is being fueled largely by mid-market companies positioning themselves to compete in the global market or source products globally. Global business issues demand that companies configure new computing systems as older processes lack compatibility with global demands, and ERP providers are riding this wave to the WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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