Cabela’s – The SAP Retail and POS Implementation …fm.sap.com/data/UPLOAD/files/Cabelas-the SAP...

Cabela’s – The SAP Retail and POS Implementation Journey & Beyond Annette Gagnon, Manager, Process Improvement & SAP Strategy – Cabela’s Jeff Reichardt, Associate Partner, SAP Practice – IBM October 20, 2011

Confidential

© 2011 SAP AG. All rights reserved. 2 Confidential

Agenda

Welcome and Objectives

Cabela’s Overview

Program Overview Scope Approach

Lessons Learned

Benefits Realized

Next Steps for Cabela’s

Questions and Answers


Welcome and Presentation Objectives

Describe how Cabela’s turned a “rocky” SAP implementation into a success

Share Cabela’s point of view regarding “do’s and don’t’s” for program execution

Provide insight into a program governance model that facilitates effective program execution

Provide an overview of the journey thus far at Cabela’s

Provide an overview of Cabela’s – Canada next steps for leveraging SAP


Agenda


Cabela’s Overview


Lessons Learned

Benefits Realized




Cabela’s Overview (1/2)

Founded in 1961 as a small merchant that offered fishing flies through advertisements in national outdoor magazines

Headquartered in Sidney, Nebraska Leading specialty retailer, and the world’s

largest direct marketer of hunting, fishing, camping and related outdoor merchandise

300,000 SKUs includes hunting, fishing, marine and camping merchandise, casual and outdoor apparel and footwear, optics, vehicle accessories, gifts and home furnishings with an outdoor theme

Multi-channel retail model – catalog, Internet and destination retail stores (34 in US and Canada, with 5 announced new locations)


Cabela’s Overview (2/2)

Circulated over 136 million catalogs annually with over 107 separate titles

Large-format (150,000 + square feet) destination retail stores are major tourist attractions. For example, our Kansas City, KS and Owatonna, MN stores rank among the top tourist attractions in their respective states

Cabela’s CLUB Visa credit card through which we offer a related customer loyalty rewards program

2010 Revenue of $2.66B, Stock Symbol of CAB


Agenda


Cabela’s Overview


Lessons Learned

Benefits Realized




Program Background and Scope

Cabela’s acquired S.I.R. Warehouse Sports Store, a Winnipeg, Canada based multi-channel retailer in August 2007. In late 2008, Cabela’s decided to replace it’s Canadian systems with SAP in

order to position itself for growth in both Canada and the US. Cabela’s began the Canadian implementation in January 2009 and went live in

October 2009 (after two delayed go-lives). Scope was SAP ECC with IS-Retail (WM, SD, FI, CO, PP, and MM) SAP POS,

SAP PI and SAP BI Implementation approach was based on a pre-configured solution offered and

delivered by a boutique SAP integrator


Initial Implementation Results

POS registers were not up and running as Cabela’s opened the door to the customers (within 5 minutes they were) on go-live day. Credit card testing only started on the Friday (we went live on the Monday). Inventory was not uploaded properly (huge discrepancy in dollars). Only 1/3 of

all the prices of our inventory made it to POS, requiring many searches for the price etc. A lot of functionality including sales reporting and other crucial pieces to the

business simply was not ready or stable at go-live. The list can go on and on, but Cabela’s survived.


The 16 Month Journey to Stability

Re-implemented POS inbound and outbound Re-implemented BW Changed the Cost/Profit Centre structure Implemented new ABAP reports Enabled credit card encryption on the web and then enabled decrypting it in SAP Set up a second site (for a while we were operating in 2 different locations using

different storage locations instead of sites) in January 2011. This go-live went without a flaw. In August of 2011 we opened the first of our expansion stores in Edmonton. The

opening was a great success and everything went smoothly.


Agenda


Cabela’s Overview


Lessons Learned

Benefits Realized




Lessons Learned

Test everything from start to finish - from ordering, paying for and receiving goods, to selling and taking payment for items sold and verifying the transaction hits the GL and relevant reports.

Don’t be afraid to play around in the system or try things. Make use of each and every consultant that comes onsite. Make sure you get a detailed functional and technical specifications. Try not to customize. Interview consultants prior to hiring them. “SAP standard” does exist

o some consultants may mistake their limited knowledge / understanding / experience / wisdom as “SAP standard”, but the more knowledgeable ones are able to tell you what business scenarios and methods are supported by SAP solutions and which ones are not.

Have a good understanding of the benefits and implications before taking / disregarding the advice given by consultants.


Agenda


Cabela’s Overview


Lessons Learned

Benefits Realized




Benefits Realized

Better inventory management and tracking via the ability to show stock in transit

Increased ability to make better business decisions via more reporting and easier custom report development

More reliable financial numbers

Increased end-user efficiency through the ability to open multiple screens

Increased operational efficiency through the use of an RF Gun

Automation of freight quotes and credit card authorization and settlement


Agenda


Cabela’s Overview


Lessons Learned

Benefits Realized





Continuing to build internal technical and functional skills

Enhancing and growing the super-user program

Preparing for the opening of a new store in Saskatoon in Spring 2012

Thank You!

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