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Customer Snapshot

Going Global with Fast, Hot and Trendy Fashion

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TALLY WEiJL is a leading international fashion company that designs, produces and sells trendy, sexy, and affordable fashion for young women. Wildly successful, they’ve opened new stores throughout Europe, at times more than a hundred per year. At that rate, they knew it was time to seek stronger, more scalable planning and management tools.

 

TALLY WEiJL generated external sales of €515 million in 2011, with an average annual growth rate of 30%.

Company

TALLY WEiJL

Headquarters

Basel, Switzerland

Customer Website

www.tally-weijl.com

Revenue

€515 million (2011)

Number of Employees

2,800

Implementation Partners

SAP Consulting

Line of Business

Supply Chain, Marketing, Information Technology

Industry

Consumer Products, Retail

Featured Products

SAP for Retail, SAP Merchandise and Assortment Planning, SAP Supply Chain Management

History

Daring to be themselves

Founded in Switzerland in 1984 by Tally Elfassi-Weijl and Beat Grüring, TALLY WEiJL is represented worldwide in 31 countries with over 760 stores and 2,800 employees.

 

 

  • 1984Company founded by Tally Elfassi-Weijl and Beat Grüring with 12 collections per year dubbed “just in time".
  • 1987First store opened in Fribourg, Switzerland.
  • 1991Developed their own store concept.
  • 1993Entered into the retail business.
  • 1995Launched Own Design Center and expanded collections.
  • 1997Introduced first stores in Germany.
  • 2000Opened first stores in Poland.
  • 2004Ran first image campaign with the “totally sexy” slogan.
  • 2013Enjoying ongoing worldwide success and expansion.

Business Model

Fast fashion makes for fast growth

Now with over 760 stores in 31 countries (and counting), TALLY WEiJL built its business by capitalizing on demand for trendy, attractive, reasonably priced women’s clothing – fast fashion. A glance at the smart, sexy creations on the company’s web site shows why their business is growing at an annual rate of 30%.

 

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Who’s our customer?

Success Strategy

Continuing exponential growth

Through franchising, TALLY WEiJL had avoided many of the complications of doing business internationally by leaving much of the country-specific planning and execution to its franchisees. TALLY WEiJL has built up its software arsenal systematically over the years, and realized they needed a strong backbone in place, before they could implement new retail-specific tools. Therefore their first step was to establish a solid enterprise resource planning (ERP) environment.

 

We wanted to continue our exponential growth, and to integrate the entire company around a single source of truth. To do that, we needed a highly scalable platform with strong functionality for retail planning and management.

The Challenge

Changes to retail model pose planning complexities

Several years ago TALLY WEiJL made the decision to use the SAP® ERP Financials solution for all aspects of finance and controlling, along with the SAP NetWeaver® Business Warehouse component for reporting. However, for merchandise planning and management it employed spreadsheets and an application from another vendor. This sufficed when the company was smaller, but the system began reaching its limits after several years of 30% revenue increases.

 

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Keeping up with our growth…

To compound the situation, TALLY WEiJL was moving from a franchise to an owned-and-operated retail business model and recognized that the change would significantly increase the complexity of its planning processes. “With a lot more stores and merchandise to plan and manage ourselves in many countries, we definitely needed stronger, more scalable planning and management tools.”

Enter SAP

Logical decision

With SAP software already in place for financials and reporting, it made sense to go with the SAP ERP application and achieve complete software integration.

 

 

“SAP ERP has the scalability to support a rapidly growing company and the richness of functionality
to contend with our complex corporate structure, especially in the area of billing, which is crucial
for us.”

The SAP Experience

All the right features

“It is a great fit for our international market with features like multicurrency support, and its open architecture made it straightforward to interface with our legacy merchandise management application during our transition period.”

While implementing SAP ERP, TALLY WEiJL moved ahead with its plans to replace the aging merchandise management system. It examined other possibilities, but the benefits of continuing with an all-SAP solution again proved overwhelming. The company added the SAP Supply Chain Management application, SAP for Retail solutions, and the SAP Merchandise and Assortment Planning application to buttress the rest of its SAP software.

 

 

“These applications integrate tightly with SAP ERP and require the same skill set to support and use.We’ve been able to focus completely on SAP software as we build up expertise in IT.”

Running Better

So far, efficiency is soaring

TALLY WEiJL has finished deploying the new software’s planning functionality for merchandise and stores, and is in production mode on a pilot basis.

 

“Based on results so far, we are going to see a big payoff from automating our planning processes. There was a lot of manual manipulation effort and duplication in our previous methodology, steps that are fully automated with our SAP software. Our efficiency is soaring. We also have new powers to maximize our profits by taking advantage of the differences among the markets we serve. For example, typical women’s clothing sizes vary country to country, a fact we have the tools to take advantage of as we plan product deployments.”

Benefits

The core substance

There is another key benefit that accrues to every TALLY WEiJL employee who uses business software: “We have a single version of the truth."

 

TALLY WEiJL constantly had data disparities due to their patchwork legacy environment. That is one of the big reasons they stayed exclusive with SAP solutions, thus ensuring a conflict-free process.

 

 

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Some of the benefits

“Most importantly, we have the strong platform for growth that we were seeking.”

Lessons Learned

Fast visibility is a powerful tool

TALLY WEiJL is interested in SAP HANA technological improvements because it will enable them to bring all their data together. Fashion is about speed, and they recognize that they need to put themselves in a position where they can make decisions more quickly than their competitors.

 

 

They can more readily do so today with more consistently accurate and visible data, but more functionality would mean even greater data visibility.

Today

Growing with SAP, one season at a time

TALLY WEiJL has many plans to take further advantage of its SAP software to move into additional markets and open additional channels. The company intends to build custom solutions with its SAP software and embed them for fashion allocation, store clustering, and stock balancing as it builds out assortment and in-season planning processes.

 

By making SAP software their backbone, Tally Weijl now has a solid foundation for growth of all kinds.

Journey Ahead

e-tailing future imminent

One of the most promising future plans is launching direct to consumer internet sales, which may become a reality within the next year. TALLY WEiJL believes that their investment in SAP software will help make the Internet channel a reality.

 

Online selling is just one example of the kind of business move that TALLY WEiJL is now equipped for, thanks to their solid foundation with SAP solutions. Succeeding in fashion requires speed, and at the end of the day being able to make decisions quicker than their competitors. So, another logical next step has Tally Weijl exploring how SAP HANA might help them.

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