Customer Snapshot: Overview
Fashion Forward: 1.1+ million Facebook fans
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.
€515 million (2011)
Number of Employees
Line of Business
Marketing, Platform and Technology, Supply Chain
SAP Business Warehouse, SAP Consulting, SAP ERP, SAP for Retail, SAP Merchandise and Assortment Planning, SAP Supply Chain Management (SAP SCM)
TALLY WEiJL generated external sales of €515 million in 2011, with an average annual growth rate of 30%.
Customer Snapshot: History
Customer Snapshot: Business Model
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%.
Who's our customer?
Customer Snapshot: Success Strategy
Continuing Exponential Growth
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."
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.
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.”
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.
Enter SAP: The SAP Experience
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.
“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.”
Better Business: Benefits
Most importantly, we have the strong platform for growth that we were seeking.
Better Business: Lessons Learned
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.
Better Business: Run Simple
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.
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.