• Tweet this Share on Facebook Share on LinkedIn Share on Google+ Email

Explore how other customers are generating value with SAP technology.

More customer stories ›

Customer Snapshot

Fashion that’s Positively Fun from Head to Toe!

630,000

paris of Havaianas sandals produced every day.

 

A vibrant fashion company in Brazil, Alpargatas has been a leader in unique footwear, clothing and accessories for more than 100 years.

 

Over the years Alpargatas has maintained amazing growth in sales and revenue by infusing their brands with the most advanced technology and design available. They are committed to always being environmentally and socially responsible as demonstrated through the Instituto Alpargatas, aimed to improve education in Brazil. Alpargatas also strives to make their business operations more efficient and sustainable, resulting in gains for the environment and for people.

 

Company

Alpargatas

Headquarters

São Paulo, Brazil

Customer Website

www.alpargatas.com.br

Revenue

US$1.28 billion

Number of Employees

17,600

Implementation Partners

For Alpargatas USA Inc. - Argentis Consulting LLC and Third Wave Business Systems LLC

Line of Business

Service, Supply Chain

Industry

Consumer Products, Retail

Featured Products

SAP Apparel and Footwear, SAP for Consumer Products, SAP for Retail, SAP Enterprise Resource Planning, SAP Business One

History

 

The purveyor of iconic brands through the ages, Alpargatas uses the leverage of popularity wisely by carrying out their heartfelt socially responsible missions—thus leaving a more beautiful footprint for over 100 years.

     

  • 1907Robert Fraserfounded the São Paulo Alpargatas Company S.A. and began production of the AlpargatasRoda and EnceradosLocomotiva brands.
  • 1910The AlpargatasRoda brand is a success in the coffee plantations.
  • 1922 The company exhibits a full range of its products at the Rio de Janeiro International Fair.It is successful until the economic crisis and the collapse of the New York Stock Exchange halts the production of AlpargatasRoda.
  • 1930Alpargatas resumes the production of AlpargatasRoda and launches its first leather footwear.
  • 1940 1940s - Alpargatas pioneers a social program to retain its talent by providing a supplies shop, Christmas bonuses and payment for Sundays and holidays not worked to helpAlpargatas keep up its pace of growth.
  • 1950With the launching of tennis shoes, Alpargatas initiates a new era in footwear in Brazil.
  • 1960Havaianas sandals captivate millions of fans.
  • 1970The campaign “Shoed Children, Healthy Children,” a new concept in social responsibility initiatives, is launched by Alpargatas
  • 1980 New factories are opened in Campina Grande and Santa Rita, in Paraíba State.
  • 1990The company re-launches Havaianas and an all-time record 100 million pairs are sold. The international Mizuno and Timberland brands are licensed.
  • 2003The Alpargatas Institute for Social Responsibility is created to help improve education in state and municipal schools.
  • 2007 Alpargatas subsidiaries open in the USA and Europe.
  • 2010Alpargatas redesigns its entire IT system and implements SAP ERP to gain more control of its operationsand promote growth.
  • 2011Alpargatas achieves consolidated net revenues of R$ 2.6 billion, up 15.4% on 2010.

Business Model

Global expansion to 80 countries and counting…

Alpargatas’ business model is aimed at creating and managing footwear and apparel brands worldwide. Their products are sold through retail brand stores around the world, online, through franchises and independent retailers. There has been a focus on expanding Havianas’ franchises and export markets which now reach more than 80 countries.

 

One of the newest global ventures is Alpargatas USA, who sells directly to independent retailers in the United States.

 

Success Strategy

Letting the brands flourish

Alpargatas is focused on being a global company in the footwear and apparel segments, with its own strong retail chain. Previously hard-to-find in many countries, their high energy appeal is driving growth as it draws consumers worldwide.

The Challenge

Disconnected data processes

Across the infrastructure of Alpargatas, IT systems and production processes were disconnected, not allowing enough control over variations in product data, product lifecycles and supply chain processes. The subsidiary Alpargatas USA, faced many of the same challenges, most specifically needing automation to manage complex product data and to create efficient operations.

Enter SAP

Redesigning retail IT systems

With comprehensive ERP solutions for the Retail Industry, SAP was the company needed to redesign and improve the production, export and sales processes at Alpargatas. The successful implementation of the SAP ERP Apparel and Footwear System focused on the integration and standardization of connections existing in the company’s systems.

 

Alpargatas USA also had a positive SAP implementation experience through partners Third Wave Business Systems and Argentis Consulting. SAP Business One was chosen because the specialized solution for the footwear and apparel provided the functionality they needed.


Prior to implementation, every aspect of the data conversion process was carefully mapped for precise migration of data from Alpargatas’ legacy system.

The SAP Experience

Flexible solutions for new subsidiaries

The Alpargatas USA operations were similar to a start-up company. Because of the positive experience with SAP in South American Alpargatas locations, the USA selected a solution from within the SAP ecosystem. SAP Business One worked well, giving AlpargatasUSA the flexibility to set up processes to suit the precise needs of an evolving business.

 

The SAP Apparel and Footwear System (AFS) helped simplify the process management lifecycle, allowing for more control and alignment in operational processes from purchase orders to merchandise delivery.

 

Running Better

Making it easier to meet massive daily quotas

SAP was selected because of the operational program offered with SAP ERP, and the specific Industry Solution, Apparel and Footwear System (AFS).

 

The adoption of ERP and SAP AFS was instrumental in managing the complexity of the production associated with the daily creation of about 630 thousand pairs of Havaianas sandals.

Benefits

Faster and more efficient

In Alpargatas USA, operations have become faster and more efficient. With the specialist product data management solution in place, employees at Alpargatas USA can quickly and easily set up products with multiple attributes in the software. That was a process that used to require time-consuming manual input.

 

Clarity and visibility

Clarity of processes involving the entire business cycle is something necessary for large companies. With the adoption of ERP and the Apparel and Footwear Solution from SAP, visibility is critical to determine wise decisions and actions. Alpargatas has a much more comprehensive view of its business context, especially with regard to the control of its operations, supply chain and production.

 

"Without doubt, the ERP and the SAP Apparel and Footwear System (AFS) assist us with control and help us to grow without sacrificing data reliability. "

- José Roberto Lettiere, CFO, Alpargatas

 

Lessons Learned

Being careful from the start

With up to 3,000 fashionable product variations at a time, the USA subsidiary must manage operations carefully.

 

“To run our operations efficiently, we need to analyze our stock quickly. It’s vital that we understand what products are available to offer customers and keep this information up-to-date and accurate.”

- Vito Dileo, Senior IT Manager, Alpargatas US

 

Today

Innovation and efficiency—home and abroad

“Today, we have more fluidity in our internal processes and operations are aligned from
purchase order to merchandise delivery, providing
faster and better service to our customers
further enhancing our brands.”

- José Roberto Lettiere, CFO, Alpargatas

 

“We’ve always been a very innovative company and we’re taking the same approach with our technology, pushing it to fit our exact needs. ”

- Vito Dileo, Senior IT Manager, Alpargatas USA

 

Journey Ahead

Future footprints

As Alpargatas continues to achieve incredible growth year over year, it is also looking to keep improving its innovative business through expanding its SAP footprint and adding more SAP solutions such as Supply Chain Management, Extended Warehouse Data Management Systems and Customer Relationship Management.

Related Links