Affinity Logic implements merchandise planning at Clicks

Affinity Logic, retail services and solutions arm of the UCS Group, has completed the implementation of a merchandise planning solution at Clicks, encompassing both the FMCG and Lifestyle ranges stocked and sold by Clicks in a deal worth in excess of R2 million.

According to Sonja Sonnekus, Affinity Logic`s programme executive for Clicks, in addition to assisting Clicks to develop an overall business process for merchandise planning, and re-configuring and implementing Clicks` existing Arthur merchandise planning tool to support the new merchandise planning processes, the deal also included helping Clicks to build a merchandise planning competence internally by ensuring knowledge transfer to key users and technical resources.

She explains: "Although Clicks had a Merchandising Division, it was not working the way they wanted it to work. They were using the JDA Arthur Planning tool to support basic business processes and to perform elementary planning. They also had an urgent need for a short-term tactical solution to better equip the Homeware/Lifestyle buyers before they left for their overseas buying trip in April 2003. As a result, we implemented this interim solution simultaneously."

The implementation process consisted of four phases: planning and mobilisation, the blueprint and the simultaneous deployment of the interim solution, the building phase and go live.

During planning and mobilisation, Affinity Logic engaged all the key stakeholders to complete its assessment of all the existing business processes that would have an impact on merchandising, including buying, category management, strategy, replenishment, promotions and pharmacy.

"Although these business processes were not part of the implementation scope, we had to understand the change impact on the business," says Sonnekus.

"The main challenge at Clicks was the fact that the company had no formal, documented processes around merchandising; there were various processes used across different areas of the business because the company culture itself was not process-driven. One of the key reasons for the implementation, therefore, was to implement an uniform, formalised process across the business.

"The benefit was that Affinity Logic effectively had a clean slate to work with and was able to create a best-practice set of processes for Clicks. The change management aspect of the implementation involved inculcating a culture around adopting the new processes, and was managed by Clicks," she continues.

John Hart, head of Merchandise Services, adds: "Changing the planning process impacted on the existing ways of working in related areas. We realised that all the related processes that feed and support the planning process had to become robust, accurate and disciplined, if we wanted the planning process to be successful. We will embark on a new programme to align the processes."

The overall process design created by Affinity Logic for Clicks included merchandise planning, store planning, assortment planning and reprojection.

Other issues that came to light during the course of the planning and implementation were the fact that Clicks "as with most retailers, we experienced challenges with data elements", according to Sonnekus. "Clicks` management has recognised the importance of high-quality data and has established various sub-projects to deal with data issues," she says.

"Clicks also had limited skills around programme management and change management, and lacked the necessary development and system configuration skills to tackle the implementation. This was a key reason that Clicks chose Affinity Logic to complete the project; since we had all those skills we were able to build a skills transfer process into the implementation to assist Clicks to build its internal competencies in these areas," Sonnekus elaborates.

The blueprint and interim implementation phase involved the actual design of the new merchandise planning process for interim only. The change management communication strategy and the skills-transfer training programme outline were also finalised during this phase of the implementation.

The actual implementation, or building phase included the physical reconfiguration of the Arthur tool, various simulations to ensure the functionality and robustness of the reconfigured system and the defined business processes, data mapping and migration of legacy data and data in external sources into the Arthur Planning tool, and the transfer of technical skills and knowledge from Affinity Logic`s team to Clicks internal resources.

At the final go live phase, Affinity Logic handed over to the internal resources to perform the post-implementation support and maintenance activities, although the company was on hand to provide support for a period of time after the go live.

Hart comments: "Once we started interacting with Affinity Logic on this project, we realised the need to manage this initiative within the context of a broader programme. That in itself has been of enormous value to the organisation. We have also embarked on a programme to improve in-store disciplines around data integrity and stock data, which will positively impact on the quality of the planning process over time."

Hart continues: "On the technology front, we have begun driving a major integration initiative to improve the data flows between the different divisions in the business and have also planning a programme to redesign our application architecture with the JDA Merchandise Management System programme which is also expected to have a positive impact on the bottom line of the business."

Sonnekus maintains: "The implementation has created a new way of working within Clicks that is more integrated. Previously, planning was quite an isolated process, but senior management remained visibly committed to driving the new planning process and also brought in new people to staff up new roles in the business, which all contributed to its overall success."

Hart concludes: "It was clear to us from very early on in the selection of the solution providing partner that Affinity Logic was the most suitable. They had the right skills and people to help us to establish our own internal competencies. We are very pleased with the results."