Shinsegae International: Giving inventory processes a makeover with a cloud-based infrastructure
Explore Produits Prestiges’s journey with SAP
Produits Prestiges S.A., a subsidiary of Shinsegae International Co. Ltd., is a provider of luxury skincare and cosmetics products worldwide. With a presence in celebrity and B2B beauty circles, it wanted to cement its reputation as a high-end cosmetics brand by creating a smooth digital foundation with SAP S/4HANA Cloud to house its inventory data.
| Industry | Region |
| Consumer products | Montreux, Switzerland |
transfer of data onto a central ERP solution.
reduction in financial statement consolidation prep time.
reduction in financial closing times.
Digital Innovation Team Manager, Shinsegae International Co. Ltd.
Operating in siloed, on-premise environments
As a subsidiary of South Korean skincare giant Shinsegae International, Produits Prestiges has a multifaceted reputation spanning multiple countries. With Produits Prestiges raking in a whopping ₩10 billion, or US$7.5 million, the Produits Prestiges and Shinsegae International names have become synonymous with luxurious skincare and cosmetics in global beauty circles. Since its acquisition in 2020, the cosmetic brand’s siloed inventory processes have become a smudge on its manicured branding, spurring it to closely examine ways of propelling its operations into the modern age.
With its price, master, and sales-related data housed on Microsoft Excel spreadsheets across disparate computers and interfaces, Produits Prestiges supply chain professionals often faced miscommunication issues that prevented the company from accurately completing customer orders. Despite having an in-house ERP system, this low inventory visibility across the global franchise quickly became the crux of the company’s inability to grow in its industry. Produits Prestiges understood it needed to replace its increasingly obsolete data management methods with a more digitalized, modern approach to supply chain infrastructure in order to transition from the B2B spa market to the retail industry.
Digital Innovation Team Manager, Shinsegae International Co. Ltd.
Creating a digital foundation for data processes
Produits Prestiges and Shinsegae International’s commitment to smooth customer experiences and quality product performance put management on a search for cloud-based solutions that would enable it to deliver on its customer and employee promises. Produits Prestiges, familiar with the quality of the SAP solutions portfolio, knew implementing SAP S/4HANA Cloud, public edition would give it a competitive edge in the beauty industry.
After a smooth transition from localized Excel spreadsheets, SAP S/4HANA Cloud, a fully cloud-based ERP offering, has increased the subsidiary’s data accessibility, reliability, and accuracy. The company was impressed by the solution’s ability to make data accessible on any Produits Prestiges interface, as relevant sales personnel have the sales and inventory data they need directly at their fingertips. With this centralized point of entry, parent company Shinsegae International can aggregate and analyze data to better discern if the subsidiary is meeting its goals.
Transformed transparency and smoother supply chain management
Since transitioning its data to SAP S/4HANA Cloud, Produits Prestiges has noted a significant reduction in financial closing times and a potent increase in its data analysis capabilities. Its sales team saw a 96% reduction in financial consolidation prep time, shaving an entire day off the process and enabling reports to be made in two days instead of the usual three. With centralized data readily available across the global enterprise, sales and supply chain personnel now have a clearer view of inventory status, allowing them to complete orders at a faster and more accurate rate. Additionally, thanks to clearer data visibility, the finance department can perform financial closing in real time, a remarkable improvement over the one to two days it previously took.
With 100% of its data maintained within the global system and approval requests processed directly within the new ERP solution, executives and managers can make faster and smarter decisions regarding sales, finances, and supply chain management. Both Produits Prestiges and its parent company can uphold customer promises now that they are equipped with a modernized ERP system that allows them to run more fluidly in each of their geographically diverse locations. The company also has the advanced logistics and financial processes it needs to begin planning its expansion into the public retail market.
Expanding digitalization and standardization across the enterprise
Given the success of SAP S/4HANA Cloud, Produits Prestiges seeks to expand its SAP solution portfolio to encompass a broader range of business functions. It is currently analyzing the benefits of SAP SuccessFactors solutions, as the cosmetics brand is keen on transforming its local and overseas HR processes. Additionally, it wants to further improve the fluidity of its inventory management with a variety of warehouse management solutions from SAP. Finally, it is also looking into implementing multibank connectivity solutions that would fuel its treasury management systems. With the help of SAP solutions, both Produits Prestiges and Shinsegae International plan to expand their spheres of influence into a broader sector of the global beauty industry in both public and business domains.