SAP Implementation for a Global Lifestyle Brand

The customer wanted to replace the existing RLM apparel software system for order to cash and procurement process and wanted a solution that could handle changing, diverse customer demands worldwide. Moreover, they wanted to integrate all the peripheral systems used for AFS system and implement one true source of master data.

Customer Profile
Our customer is a global lifestyle brand that sells high-end bags, apparels, footwear, beauty products, watches and other accessories to customers across North America, Latin America, Asia, Europe and the Middle East. The company also sells wearables and fitbits and competes with well-known brands like Michael Kors, Coach and Kate Spade. It sells its products to customers through over 3,000 department stores worldwide. The company has about 150 stores in 50 countries and generates revenue of about $3.5 billion annually.
Business Challenge

As the company grew in stature over the years, the legacy ERP system was proved futile in maintaining the same level of integrity it had maintained before. The complexity of business processes and need for complex planning coevolved with it, adding to the woes. The legacy system could not keep pace with the increasing requirements, which necessitated the implementation of a new ERP system.

Client Testimonial
Applexus remained true to the name by being a high-performing business partner. Their solution has been very instrumental in providing efficient communication between our internal teams and incentivized us to serve our customers better.
Business Objectives
  • Provide easy purchase requisition and high levels of tracking capabilities by replacing existing RLM system for quote-to-cash and procurement process
  • Reduce cycle time and enhance value chain orchestration effectively by integrating product data management required in SAP AFS system
  • Implement a warehouse management system to provide real-time stock control and just-in-time inventory replenishment mechanism
  • Integrate JDA software for assortment optimization, better merchandise planning and supply chain management
Our Workaround

We designed an SAP environment to simplify sales processes when compared to existing RLM systems. The first phase in SAP implementation was design and architecture strategic planning for effective migration and integration with back-end order-to-cash process flow. This was followed by master data mapping from legacy systems. During this stage, care was taken to ensure data integrity with peripheral systems was not lost, keeping SAP as true source of master data.

We also designed real-time interfaces with warehouse management system and reconciled data between warehouse and SAP inventories. Before the productive start of the system, we performed integration tests and modular tests prepared by key users. Data migration was performed for master data and all customizations were fine-tuned before the go-live phase.

Implementation Highlights

To address the gaps in software used in retail processes and fulfil ancillary business requirements, we designed and developed RICEF objects. With rigorous code review and automated code inspections, we ensured impeccable code quality to our customer. We also offered continuous post go-live support to make the most out of SAP implementation and weed out issues faster.

Business Benefits
  • Reduced implementation time by 25%
  • Simplified procurement and supply chain workflow
  • Reduced lost sales and markdowns 
  • Straightened out complexity associated with traditional ERP systems
  • Business process compliance with SAP best practices

SAP Fashion Management Solution Implementation for an American Handbag and Apparel Designing Company

Transforming inventory management and procurement cycle, providing a compelling customer experience and unifying organizational siloed data.

Customer Profile
Our customer is a U.S.-based leading designer of women’s handbags, luggages and accessories. In addition to its core products, it also sells home decoration products, jewelry, jewelry cases, eyewear and stationery goods. They sell their products through both indirect and direct business channels---including 2700 gift and speciality stores and nearly 100 full-service retail stores. The company draws an annual revenue of more than $500 million annually.
Business Challenge

With the increasing proliferation of omnichannel retailing, the challenge to surmount customer demands efficiently and deftly. According to Aberdeen Group Inc., companies with the strongest omnichannel customer engagement strategies retain an average of 89% of their customers, compared with 33% for companies with weak omnichannel strategies. This calls for customer data integration, to understand how customers choose different channels and how it impacts their purchase decisions. Retailers also need to effectively attune their order fulfillment strategy to achieve economies of scale and capitalize on brand awareness.

Consolidating data from legacy systems and syncing them to provide a single version of the truth was quite cumbersome for our customer. To manage this situation, our client wanted a single platform that could harmonize siloed, multi-channel inventory data and sales data.

Client Testimonial
Applexus remained true to the name by being a high-performing business partner. Their solution has been very instrumental in providing efficient communication between our internal teams and incentivized us to serve our customers better.
Business Objectives
  • Streamline multi-channel operations and synchronize order strategies between distribution center and regional distribution center
  • Improveliquidity of the organization by freeing up capital spent on overstocking of goods
  • Bird’s eye view of processes and data on an all-in-one platform to ensure efficient operation and field service management
  • Cross-channel integration to deliver best-in-class online experience comparable to a brick-and-mortar retail experience
  • Easy margin management and prospecting with personalized marketing, targeted offers loyalty programmes and so on
  • Get business up to speed on customer insights through social listening and customer journey analysis
Our Workaround

We helped them integrate and configure outbound interfaces from SAP FMS to POS system using BODS and inbound interfaces from Micros POS to SAP FMS system using SAP CAR and BODS. This ensured a smooth flow of master data and transaction data between SAP and POS, which resulted in data synchronization between the systems. We were also involved in the technical design and development of custom development objects in SAP system identified by gap analysis. Data integration, achieved by SAP FMS 1.0 with Micros POS integration, enabled end-to-end transparency in processes and customer data encapsulation.

Business Benefits

With application orchestration, the customer was able to witness enhanced transparency into supply chain operations. A consistent omni-channel experience enabled growth, productivity and reach across multiple regions and compelling business outcomes.

By implementing production serialization, it was possible to track and trace products, ensuring product integrity. The customer could also better service levels and enhance predictability of time to value. There was a significant reduction in cost through improved cycle times and retail efficiencies. The consolidation of master data produced a single version of the truth for data consistency, improved agility and global operations. With faster, real-time business data analytics, it was possible to respond to the dynamic needs of their customers.

Development of Supply Network Collaboration Solution for World’s Largest Athletic Footwear, Apparel and Equipment Company

We designed and developed a unique collaboration solution along with SAP Custom Development team for our client. It enabled seamless collaboration between their trading partners and helped them cater to changing customer demands.

Customer Profile
Our client is a Fortune 100 company that designs, develops, markets and sells athletic footwear, sportswear, gear, equipment and accessory products for men, women and children. The company has about 930 retail stores worldwide operating in more than 160 countries. It distributes goods to independent distributors, subsidiaries and licensees and has nearly 22,000 retail outlets across the world.
Business Challenge

With expanding global supply chains, increasing procurement-supply chain divide and inaccessible organizational silos, transparency into procurement processes are greatly obscured for retailers. That said, businesses are continuously striving for innovation in supply chain operations and transformation within procurement systems. Our client needed a solution that would create the right strategic sourcing environment to enhance networking, achieve considerable cost reduction and improve bottom line.

Client Testimonial
Applexus remained true to the name by being a high-performing business partner. Their solution has been very instrumental in providing efficient communication between our internal teams and incentivized us to serve our customers better.
Business Objectives
  • Improve purchase collaboration between stakeholders and suppliers and automate purchasing procedures in source-to-pay processes
  • Facilitate plain-sailing and speedy purchase order activities
  • Deepen customer relationships by catering to their dynamic demands
  • Seamless sharing of purchase requisition between factories for faster product despatch
  • Enable real-time inventory tracking and send updates to ensure customer satisfaction
Our Workaround

We helped our client deploy a supply network collaboration system to enhance communication between buyers and sellers in procure-to-pay and order-to-cash lifecycles. To fine tune business with customer demands, we also worked together with our client to customize or enhance a standard SAP module, which, in turn, raked in greater returns for them. Our support service and frequent upgrades to the software has helped in providing business continuity to the client.

Implementation Highlights

We used an eclectic mix of SAP products like SAP NetWeaver, SAP AFS, SAP XI/PI and so on to cater to the clients’ varied sourcing needs. The solution involved a massive custom solution development, investing a long 20,000 hours of development.

This was also one of the first and largest custom solutions built over SAP NetWeaver Technology. Being a predecessor of SAP Supply Network Collaboration Solution (SNC), it can help in serving customer demands efficiently and an order of magnitude faster.

Business Benefits

The central collaboration platform has enabled improved communication and collaboration between the internal stakeholders and streamlined procurement system. It has provided transparency and agility into buying and selling processes, more than ever before. The powerful tracking and management tool has also minimized IT burden drastically as well as facilitated easier budget checking and contract compliance with vendors, buyers and regulations. The client could also witness a considerable boost in return on investment.