Aside from banks, the global retail industry has been hit hard as consumer spending decreased because of the effects of the global economic crisis. The world’s biggest consumer, the US, spent 9.4% less from last year, and companies are working hard to effectively address the low inventory-to-sales ratio, currently at 1.43. However, Asia is gaining ground in consumer spending, and Chinese consumers are taking the lead with increased retail spending of 15.9% in 1Q09. For the Philippines, leading economists from the University of Asia and the Pacific are predicting a steady increase in private consumer spending of 4% in 2009.

Global luggage retailer, Samsonite, recognized the Asian market early, and began strengthening its e-commerce and inventory platforms worldwide, but most strategically, in Asia. The world leader in luggage design and distribution partnered with Supply Chain Consulting to roll out SAP modules enhanced by the Supply Chain Software Factory, which includes inventory management, and logistics planning, with a final roll out in April 2009. The investment was a timely move that addressed inventory issues for Samsonite, and flew in the face of IDC predictions that the Asian IT industry will decrease by 7.3% against earlier forecasts. It was previously estimated that spending by companies in the Asia Pacific to reach US$23.4 billion, up 2.9% from 2008.

Jan Biezepol, Supply Chain Consulting managing director for Asia said, “Despite the new realities brought about by the economic downturn, companies in resilient industries such as retail should invest IT that maximize performance, especially in terms of inventory and supply chain management. These allow them to ride out the crisis and position them further for success through long-term reduction on business costs.”

Samsonite Asia’s partnership with Supply Chain Consulting includes the implementation of a SAP system, business process workflow system design, document procedure, and staff training for its Asian operations. The roll out proceeded smoothly beginning October 2009, immediately following the beginning of the crisis. Samsonite Project Atlas, as it is called, has resulted in significant cost reductions for Samsonite in Asia, taken from reductions in time-to-market and information sharing.

“It took a lot of the stress out of the decision for us at a crucial point in time. The solutions we acquired from Supply Chain Consulting enabled a disciplined approach to our scope of works and guaranteed a fast track implementation. Its framework meant we did not get carried away implementing functions that would provide minimal business return and substantially slow down the roll-out. I don’t think many people understand just how much hard work goes in to make a success like this happen so professionally,” Steve Clifford, CIO/ATLAS programme Manager of samsonite Asia stated.