Case study: Apparel and Footwear Company use SAP ERP Solution

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The strategic investment on business line, SAP solution is the leading supplier of Enterprise Solutions in the world. There’re 7 of 10 the bigest enterprises in the world applying SAP solution for AFS industry.

We’d like to introduce to Companyabout some best practice with SAP Solution.

1.Madura Garments:

India’s leading apparel company has annual sales over US$11 billion and a yearly growth rate of over 30%.

  • Industry: Textile and Garment

o   Solution: SAP R/3 + AFS ERP, SAP APO và SAP BW

o   Agent and showroom: 120 showroom & 3,500 agents

o   Implementation Partner: SAP’s consultants

o   Number of End-Users: around 200

Key challenges: integrating information from another department to effective data and increasing number of purchase order

Benefit of SAP ERP to customer

2. ColeHan Streamline Business, Reduce Costs

Cole Haan strives to operate efficiently and maximize return on capital – and that is why the company turned to software from the SAP for Consumer Products set of solutions, including the mySAP™ ERP Financials solution and the SAP® Apparel and Footwear application. With SAP software, Cole Haan now has an integrated system that supports its business development and a solid platform to grow its business for years to come. Cole Haan, headquartered in Yarmouth, Maine, is one of North America’s premier designers and marketers of quality footwear, accessories, and outerwear. At this wholly owned subsidiary of Nike Inc., some 1,100 employees work hard to keep the Cole Haan brand synonymous with quality, comfort, innovation, and style.

case study and benefit to customer when implement saperp

Strategic Goals

  • Integrate financials with other critical business Systems

o   Streamline business processes

o   Build enterprise-wide visibility

  • Key challenges

o   Effort required to keep nonintegrated systems synchronized preventing technology ROI and process improvement

o   Slow financial close reducing visibility and timeliness of data

o   Difficulty in determining how products were performing in the marketplace

  • Value realization

o   Reduced time to close by 40%

o   Improved days sales outstanding by 5%

o   Cut resources devoted to credit and collections by 10%

o   Streamlined business processes

o   Improved ability to meet Sarbanes-Oxley requirements

o   Increased proactive IT business support

o   Created a platform for growth

  • SAP Solutions

o   mySAP ERP Financials

o   SAP AFS (Apparel and Footwear Solution)

3 .General Pants Company:

General Pants Company implemented a qualified mySAP All-in-One partner solution to improve its overall financial and operational efficiency, serve its customers better, and expand its business.

A transparent accounting and financial system, along with efficient analytics, was identified as the fundamental step necessary for making key decisions and setting goals for future growth. This solution also lays the foundation for implementing new logistics and merchandising solutions in the future.

General Pants, a leading apparel retailer in Australia, influences the latest and cutting edge in the fashion industry. The company has a wide presence, with 69 stores and a workforce of around 1,500 employees.

  • Strategic Goals

o   Improve the efficiency of the company’s financial process and analytics

o   Improve operational effectiveness and visibility

o   Reduce data redundancy and increase data accuracy across departments

o   Build a foundation to support future growth and Expansion

o   Improve compliance with corporate governance

  • Key challenges

o   Inadequate financial systems and poor data quality hindered financial analysis and decision making.

o   Inefficient manual reporting processes provided little visibility into the accounts and inventory across store locations.

o   Nonintegrated applications resulted in redundant data entry, errors, and planning delays.

o   Lack of standardized processes and procedures obstructed progress to initiate compliance with corporate governance.

  • Value realization

o   15.8% ROI over 3 years

o   30% internal rate of return over 3 years

o   15% increase in incremental revenues

o   25% reduction in employee effort and time costs

o   9-day improvement in reporting turnaround time

o   Increased effectiveness of financial and accounting Processes

o   Reduced reconciliation of errors and reversal of journal entries

o   Improved systematic entry of all financial data

o   Improved inventory visibility and control

o   Improved corporate image and customer satisfaction

  • Solution:  SAP – All In One

4. MASCOT INTERNATIONAL :

Mascot International A/S (Mascot), a midsize Danish work wear company, designs, manufactures, and distributes a product range of more than 1,200 work wear articles; with sales operations in A Western Europe and Scandinavia as well as production site in Eastern Europe and the Far East. Mascot is a privately held company, with a staff of 170 in its main office in Silk Borg.

  • Solution:  SAP R/3; SAP AFS; mySAP CRM; SAP Internet Sales packaged solution
  • Strategy:

o   Deliver high-quality, innovative products at the lowest cost

o   Streamline CRM-related business processes

o   Provide management visibility into the organization

o   Use CRM to support strategic globalization and cost-saving objectives

  • Implementation Highlight

o   By utilizing SAP’s packaged solutions and best practices, Mascot was able to implement mySAP CRM in five weeks, resulting in lower implementation costs and immediate turnaround on its investment.

o   Increased year-to-year sales growth in revenues by 7.5%; thanks to better and more-accurate information available in real time, enabling up-selling and cross-selling.

o   Reallocating 2% of employees to more-strategic roles.

o   Annual growth rate of 20% – 25% without additional personnel.

o   Reduction in total cost of ownership (people and hardware) of 28.3%

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