INVENTORY THAT’S “JUST ENOUGH”

Like all retailers, Liverpool engages in a daily balancing act with the inventory in its stores. Too little inventory can lead to low revenues and disappointed customers. Too much inventory results in high carrying costs and eventual price reductions.

Now, SAP is helping the company maintain just enough inventory to please customers – and shareholders. To become even more responsive to customer demand, Liverpool has begun sharing its inventory information with key suppliers. For example, Liz Claiborne, the U.S.-based fashion design company, now has access to Liverpool’s sales and inventory information through a link to SAP Business Information Warehouse. “By providing this information to our vendors,” Jorge Salgado says, “we can help them anticipate demand and analyze the inventory levels of each product. It makes both of us more efficient.”

REAL ESTATE MANAGEMENT

SAP solutions have also helped Liverpool manage its growing portfolio of retail-related properties. “Real estate is very important to our company,” he adds, “so we use SAP Real Estate Management to handle property maintenance, project management, and other processes.”

Beyond these administrative tasks, Jorge Salgado says, “SAP’s solution for real estate management also lets us analyze income from rents by square meter of floor space, so we can identify areas where we need to improve traffic. In addition, we can identify places where the rents we charge are not consistent with the value of the space. It’s just one of the many examples of how SAP has allowed us to change our business in an innovative way.” SOLD ON SAP Having seen the advantag s, Liverpool is sold on SAP for the long run. “In the last five years,” Jorge Salgado says, “our selling space has grown by about 40%, while our operations and transactions per minute have also increased significantly. And we plan to continue that level of growth in the years ahead. But first,” he continues, “we needed systems that would support our expansion while ensuring improvements in customer service. Had we not decided to go to SAP, I think we would have real problems today.”

“SAP products are excellent,” Jorge Salgado says, “and they have become very important to our future strategic plans.”

Having seen the advantages, Liverpool is sold on SAP for the long run. “In the last five years,” Jorge Salgado says, “our selling space has grown by about 40%, while our operations and transactions per minute have also increased significantly. And we plan to continue that level of growth in the years ahead. But first,” he continues, “we needed systems that would support our expansion while ensuring improvements in customer service. Had we not decided to go to SAP, I think we would have real problems today.” “SAP products are excellent,” Jorge Salgado says, “and they have become very important to our future strategic plans.”