“SAP Business One has provided us with an infrastructure robust enough to solve many complex challenges, automate tasks, and integrate with various platforms. The system has also increased collaboration through transparent, efficient, and intuitive workflow management. We can’t imagine our operations without SAP and Softengine.”
– Jae Shin, Operations Manager, Luxxel Clothing
- Name: Luxxel Clothing
- Location: Los Angeles, CA
- Industry: Fashion Apparel
- Products/Services: Women’s Clothing
- Website: https://luxxel.clothing
- ERP Solutions: SAP Business One; Fashion One
About the Company
Luxxel Clothing is a women’s fast fashion brand based out of Los Angeles, California. Their bold and daring clothing style speaks to the younger generation of fashion-conscious women. What sets them apart from others in their industry is that Luxxel’s customers are women with an edgy style with their high-fashion description. They’re trendy and know that fashion is more about expressing your creativity through what you wear.
Luxxel’s popular items have about a 1-month lifespan and move quickly through the product lifecycle to make way for the next trend. With such a fast-paced, ever-changing environment, Luxxel sought out Softengine to help them deploy SAP Business One.
Learn More About FashionOne: https://softengine.com/products/softengine/fashion-one/
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A major challenge Luxxel faced in their business was a rapid, one-month product lifecycle due to fast-fashion trends and a fast-moving world.
Their supply chain management needed improvement to track sales and inventory to ensure items are in-stock and ready to be shipped as soon as sales are made. Their previous system relied on manually tracking sales to determine the amount of inventory in stock, which was often miscalculated and led to broken promises due to running out of stock mid-sale. Customers lose faith in a brand that is unable to balance supply and demand consistently. Not having the right software for keeping track of inventory hampered their progress.
Trying to keep up with the availability and balancing of high customer traffic was difficult with a low order volume. Luxxel also experienced traceability issues throughout the supply chain due to the fast movement.
Orders were printed in the office and then manually sent to the warehouse, so it was difficult to keep track of how much stock was available. The warehouse would have to wait for the orders to print before fulfillment could begin. There was not a lot of communication between the two departments and without a system for checking inventory at a moment’s notice, errors were a possibility.
Softengine’s approach from the very beginning was helpful and presented a solution to Luxxel’s biggest problems, which allowed them to build trust. After thoroughly discussing their issues and possible change opportunities, Softengine introduced SAP Business One for Fashion and Apparel. This software solution is a game-changer for a small business struggling to improve its supply chain management.
SAP Business One is retail industry software designed for small and medium-sized businesses. With SAP Business One, you can better manage production, assembly, sales, and bills of materials (BOMs). The retail software tracks your BOM numbers, descriptions, warehouses, record per-item quantities, prices, and more in a few simple steps. When you add a new bill of materials to a purchase or sales order, the cost and quantity are automatically recorded. It also records product availability, location of the warehouse, and a production due date. SAP Business One can manage your production scheduling to keep everything on track and eliminate out-of-stock surprises. Furthermore, these updates are in real-time, so you do not have to wait for a paper order to be sent to the warehouse, reducing delays in production and order fulfillment.
The fashion industry’s very nature is constantly changing, and the types of products customers buy changes as well. Consumers want more options, more variety, more customization, faster payment methods, and express delivery options. Everything about business is continuously changing, and it can be difficult, if not impossible, to keep up at times.
SAP Business One was the perfect fit as an enterprise-level solution for a small business. Luxxel considered a few other solutions in the market, but they were much less robust, inflexible, and still didn’t address all their challenges. SAP offered the best opportunity for creating effective change and improving the company’s supply and demand issues.
After installing and launching SAP Business One, Luxxel saw drastic improvement almost immediately. Communication with customers has become quick and accurate, increasing customer satisfaction. Improving relations and the customer experience was just one benefit of the management software. There was also a marked improvement in these areas:
- Productivity has increased 10-fold. Roles are more clearly defined, and there are fewer distractions than before. Workflow has become more efficient, and the company has a better structure. Transparency has also improved.
- Integration and collaboration between departments increased This has streamlined packing and shipping processes to get product delivered to customers on time.
- All stakeholders involved now have full visibility and traceability throughout the supply chain. Open communication between departments has improved the efficiency of production, sales, and inventory management.
Luxxel wanted to improve productivity, decrease costs, enhance communication with its customers, and automate warehouse processes to get real-time updates on stock availability and alerts when supplies are running low. Increased efficiency will enhance revenues and make customers much happier. And it goes without saying, happy customers are what keeps a business running!
Since implementing SAP Business One, efficiency has improved dramatically. Departments can work together as partners, and everyone is kept in-the-loop. Day to day operations have been streamlined, and everything runs smoothly.
Luxxel has experienced a 75% improvement in sales order management, a 25% increase in sales processing, and an increase in order capacity. They have continuously seen overall enhancements since the first day of implementing SAP Business One retail industry software. These improvements would not have been possible without Softengine.