Study Case

Purses and Bags

Company’s Profile
Prüne has been manufacturing leather accessories for 30 years primarily for export to the USA and Europe. In March of 1999, it opened its first store in Paseo Alcorta.
This proved to be a successful venture because the brand was filling a niche in the market with the value proposition of creating a new fashion style, new designs and quality.
Prüne had competitive advantages because it was a prestigious brand and had organizational capabilities developed over 30 plus years of presence in the market. It had the know-how for design, was familiar with the suppliers, and knew how to strike a balance between quality and price to offer a product which would be attractive to the public.
Case Analysis
This growth presented several challenges: to enhance competitive advantages, improve the company’s management and direction, and minimize the delivery time to market through industrial integration.
After 2003, the Argentine market experienced sustained growth. During the transformation process Prüne turned from a small into a medium size business, representing a normal growth curve as in most companies. The business became more complex due to the characteristics and the amount of information needed to make decisions.
Prüne's value chain is based on the product and on the logistics of the merchandisers (people who distribute the products, handle the stock and supply the points of sale during each season), distribution centers, franchisees and wholesalers. Such value is based on a system of information about the processes, the quality of the human resources and an administrative department which evaluates results on a permanent basis.
However, the company had multiple independent systems which resulted in a duplication of data entering tasks and inconsistent results. Therefore, the systems were hindering the processes rather than speeding them up and this prevented the company from growing.
Solution / Implementation
They searched for a tool to help cover the needs of integrating the information of each area within the company. The lack of an integrated system made it difficult to implement centralized policies to determine scale costs and meet the requirements at the points of sale.

The implementation process made it necessary to define the requirements of the sales employees. Prüne developed a comparative matrix of such requirements to establish a starting point and speed up the transition.
The requirements were:
- A totally integrated system which would meet the requirements of the vertical integration of the chain, and the need of having accurate information available online in real time.
- Fulfill the requirements of all areas of the company.
- Offer information architecture and scalability according to the company’s needs in the future.
- A strategic partner, understand the business, and offer a value proposition because the whole company is based on these solutions.
- Meet negotiation and hiring requirements: the software has to be adaptable to unforeseen circumstances. It would be helpful to establish a certain Service Level Agreement to have a framework which could give peace of mind to both companies.
In March of 2005, Prüne acquired NeuralSoft licenses for all ASP applications and services (Office and Exchange) for 75 work stations at the beginning, and 109 at present, achieving a vertical integration of value of all processes: administration, sales, purchases, finance, accounting, human resources, product control, management reports, and production.
In the second semester, they implemented the system which started to operate in October of 2005. The process included user training and involved all company areas.
Since March of 2006, they incorporated the ASP service to focus on their core business, entrusting NeuralSoft with the updating and optimization of their ERP, Windows Platform, security, and servers.
Currently, the company has more than 50 stores in the country, and an important presence in Mexico and Peru. They have included new products, manufacturing purses, belts, shoes, accessories and coats, among other items, with a workforce of over 500 employees.
Benefits
In retail businesses, where the focus is placed on the product, having information about trends, stock, and points of sale is highly important. Seasonal operations require that the results of the sales as well as the stock inventory are current. “Our company has improved its operations since we implemented ERP” stated Sergio Corizzo. "Availability of the company's resources is also important."

NeuralSoft's software provided vertical integration, resolving problematic situations at the points of sale: the stores had other requirements than the production or distribution areas. The ERP will provide a platform for further growth.
We have consolidated the information and processes in the value chain creating a solid foundation from which we can move forward and think about new projects for the future." Sergio Corizzo, Information Technology Systems Manager.
Why NeuralSoft?
NeuralSoft meets the requirements of the whole value chain and also has the potential to adapt to the firm’s future growth. Finally, excellent understanding between both company’s executives, this idea of strategic partnership, gives us the confidence that NeuralSoft will be with us in critical times.