Minding the Shop Floor

by Monica Mehta, August 2011

In 2009, Skechers was the first Oracle customer to implement Oracle’s PeopleSoft Real Estate Management, a solution that integrates with Oracle’s PeopleSoft Enterprise financial management and supply chain management applications to ensure that leases are managed according to terms. The software captures cost and space utilization data to support management and enforces compliance with companywide financial processes and controls.

Skechers rolled out the solution for its 291 stores in the U.S. and abroad. The company worked closely with the Oracle product team to provide development insight.

Previously Skechers management relied on a standalone client/server-–based application that was not scalable. As a result, rent payments to landlords had to be manually drawn. Payments were difficult to track and were often either missed or sent twice. Reporting for the retail construction department was laborious and took weeks.

After implementing PeopleSoft’s Real Estate Management tool, Skechers executives were able to see data that had been integrated with other financial applications in the company.

“It was extremely crucial to work with the Oracle product team during the implementation of the real estate module because there was no reference or standard process to follow,” says Mainak Sarkar, director of financial systems at Skechers. “We were the first customer, and we had to establish the base.”

Sarkar says Skechers can now process rents for more than 250 stores in less than an hour, and can regularly generate store reports that include data from multiple sources such as general ledger, real estate, accounts payable, and asset management applications. Previously, such a report could be generated only once a year.

Skechers now saves approximately US$200,000 per year in unnecessary costs that were due to either double payments or missed payments that resulted in late fees. Sarkar is also in the process of building the first Oracle Business Intelligence Enterprise Edition lease administration dashboard. This will enable executives to see how a store is doing in terms of monthly or yearly sales, costs due to labor and maintenance, price per square foot, revenue per square foot, rental cost history, and profits and expenses in relation to other stores.

“We’ll be creating a 360-degree view that will allow us to develop a true picture of how our stores are doing,” says Sarkar.

For More Information

Stepping IT Up
Oracle’s PeopleSoft Enterprise Applications
Oracle Business Intelligence Enterprise Edition

Monica Mehta is a frequent contributor to Profit.

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