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