THOUGHT LEADERSHIP REPORT

EVOLVING ERP: EXPECT MORE FOR YOUR MONEY

nterprise resource planning (ERP) technology has evolved
and transformed, covering more ground with a more
simplified format than systems past. If you lined up a
traditional apparel industry package alongside a new enterprise
solution, it would be hard to tell they were from the same
software species.
From the underlying computing language they speak to their
functional breadth, everything has changed. Yet it is still
commonplace to find ERP from a former era throughout the
fashion industry.
For apparel executives ready to start exploring ERP
alternatives, they will absolutely benefit from doing a fresh
assessment of the technology options, says Gaurav Pant,
senior vice president and principal analyst, EKN. It could mean
discovering not just advanced functionality but also reduced
implementation effort, time and cost, especially if youre looking
at cloud deployment models.
Its a great time to assess what technology works best
not just to replace what they have but also to solve critical
problems and execute new strategies, whether that is how to go
direct, how to manage different sources or how to handle global
compliance, he says.

The All-in-One Approach

Next-generation ERP systems go far beyond the basic
plumbing such systems traditionally have encompassed.
Whereas ERPs traditional footprint covered core financial
transactions and order management, todays enterprise
solutions include expanded functionality to control processes
from product development to warehousing and fulfillment.
Solutions are becoming more and more robust, managing
more individual functions across the enterprise, says Nick
Castellina, research director, business planning and execution,
Aberdeen Group. That makes it easier for organizations to find
one single integrated package rather than multiple point
solutions they may have sought in the past.
The fewer the IT tools, the less system integration required to
do business. Apparel businesses that want to upgrade multiple
systems are often pleased to discover that a single ERP solution
can cover functional ground from concept to consumer. To
minimize the need for interfaces between software packages,
more of them are choosing to invest in ERP that provides
integrated functionality for product lifecycle management (PLM),
supply chain management (SCM) and other mission-critical
processes that previously required point solutions.
Berry Jewelry, which specializes in products ranging from
scarves to bags and belts, opted to employ a comprehensive
technology strategy when it replaced its general industrial ERP
4

application with a fashion-focused solution. The private-label

and brand wholesaler implemented the cloud-based Simparel
Enterprise solution at its New York City headquarters and other
global offices. As a design-focused company, we needed much
more business information than our Sage MAS 200
accounting/ERP system could provide, says CEO Martha Berry.
Most importantly, we wanted a system with PLM capabilities
that could start at the design phase and carry us all the way
through to sales and shipment.
When diverse but interrelated functionality is covered by
fewer solutions, users benefit from reduced software training,
greater data visibility and a shared understanding of enterprise
information. A fundamental challenge for many apparel
companies continues to be getting a single version of the truth
with respect to where you are as a business and at what stage
your products are in the supply chain, Pant says. A lot of them
are focusing on data visibility, given advances in analytics.

Cloud is a big differentiator

when it comes to deployment
of systems like ERP. Its the
speed. If youre a U.S.- based
company, you can get partners
in other geographies onto the cloud
quickly.says Gaurav Pant, senior vice
president and principal analyst, EKN.
Next-Gen Architecture Matters
Business analytics is just one of the many areas where
technology has made huge strides in recent years. The very
foundation of next-generation ERP the code itself has
changed dramatically. Fresh new packages feature an easily
configurable architecture, which makes implementation
much faster.
The newer ERP platforms are built on a different technology
architecture, says Pant. You can get things moving quickly.
Newer players also understand that were living in an
omnichannel world, and their systems come equipped to handle
those business processes.
In a blog post about its 2015 technology outlook, Achieving
Excellence in Retail Operations, EKN highlights the importance
of investing in technology to ensure a robust shipping and
omnichannel fulfillment infrastructure.
Retailers should look to phasing out cross-channel order
management systems older than five years and move to newage integrated order management and fulfillment systems that
Copyright Edgell Communications, Inc. and Apparel 2015

Q&A

EXECUTIVE INSIGHT
How is the practical definition of
ERP today different than it was 10
years ago?
There has been a tremendous
evolution in apparel industry ERP. Nextgeneration ERP technology now includes
enterprise-wide, end-to-end functionality.
Whereas legacy systems focused
primarily on core financial and order
management functions, todays enterprise
software natively integrates ERP, product
lifecycle management (PLM), supply
chain management (SCM), manufacturing
resource planning (MRP), electronic data
interchange (EDI), warehouse
management (WMS) and mobile
wholesale solutions (MWS). Users can
manage almost every process, from
concept to consumer, on a single
platform. This includes e-commerce order
management and fulfillment, which is
critical for omnichannel success.

In addition to keeping internal teams on

the same page, next-generation ERP
solutions enable much stronger supply
chain collaboration. Advanced
communication tools and vendor portals
give trading partners visibility into realtime information, whether they are
sharing product development, production,
shipping or other data. Likewise, newer
ERP technology offers more
comprehensive, flexible reporting. There
is no need to spend hours generating
reports, manipulating data manually in
spreadsheets.

JOHN ROBINSON

Another important ERP advancement is

cloud delivery. Customers can choose a
web-based, hosted software delivery
model, which makes robust ERP
technology more accessible and
affordable and easier to implement and
maintain for more apparel manufacturers.
How can an apparel business
determine whether an ERP/
enterprise solution features the
latest in computing technology?
Its important to look under the hood to
evaluate the systems underlying code
and software architecture. Many ERP
systems still run code written in the
1980s. Back then, there were a lot of
limitations on what software code could
do. Once something was written into the
code, it could take days or weeks to make
changes. Each change required
considerable customization, driving up IT
expenses. Its a burden legacy ERP users
carry to this day, and they are not alone.

By comparison, the latest ERP solutions

like Simparel feature a modular
architecture. This lends itself to simple
configuration. When users want to make
a change, its much easier and faster to
make adjustments to meet new business
requirements. Because the technology
foundation is so flexible, next-generation
ERP also can scale with the customer to
accommodate more users, acquisitions
and new business models. It also offers
built-in capability to support omnichannel
commerce.

Senior Vice President

Sales and Marketing, Simparel

What trends do you see in ERP

system investment over the next
12 to 18 months?
Apparel businesses are rethinking the
best-of-breed approach in favor of all-inone enterprise software. They cannot
afford the visibility and functional gaps of
disparate systems. We also see growing
demand for MRP functionality. Many ERP
software vendors stopped developing
MRP as full-package global sourcing
became the industry norm. However,
reshoring and near-shoring trends are
prompting apparel businesses to take a
more hands-on approach to
manufacturing. Even if they are not
cutting and sewing in-house, they want
the control enabled by MRP.

Rapid changes in the industry will compel

companies to invest in new systems. For
small- and medium-sized businesses, this
might mean moving beyond starter
software packages and spreadsheets.
For larger companies, the driver is often
a desire to reduce IT and business
process complexity. Either way, when
they invest in next-generation ERP, they
can keep pace with market changes and
outrun their competitors.

Simparel, Inc. is the leader in next-generation business software for fashion and consumer goods brands, manufacturers and retailers. Simparel
solutions empowers apparel, footwear, accessories, home and other soft goods companies to reach their full potential by accelerating and
improving performance across the entire business and global supply chain. The Simparel Enterprise Solution provides global process visibility,
control and collaboration by combining traditionally independent Product Lifecycle Management (PLM), Sourcing & Supply Chain Management
(SCM), Materials Requirements and Manufacturing Planning (MRP), Electronic Data Interchange (EDI), Warehouse Management (WMS), Mobile
Wholesaling Solution (MWS) and other productivity tools into a single, fashion-focused business system.

Copyright Edgell Communications, Inc. and Apparel 2015

THOUGHT LEADERSHIP REPORT

EVOLVING ERP: EXPECT MORE FOR YOUR MONEY

provide end-to-end order-fulfillment and distributed order
management capabilities within stores, e-commerce, call
centers and stores/online distribution centers, says the post
by Sahir Anand, EKN vice president, research, and principal
analyst.
Attempting to retool legacy systems to support omnichannel
demand is a daunting prospect and short-term bandage at best.
Older ERP software often requires time-consuming manual
coding to accommodate changes. Even then, revisions to one
line of code can wreak havoc on other code deep within the
softwares dated architecture.
Mamiye Brothers Inc. encountered this problem before
replacing its 15-year-old ERP system. A designer, manufacturer
and marketer of childrens, tween and teen fashion brands,
Mamiye was running software hard coded with a narrow view of
the apparel supply chain. It was not designed to manage both
front- and back-end functions such as PLM and vendor
integration. In an attempt to accommodate business changes
and growth, the ERP software underwent numerous
customizations. It was a bolt-on strategy, says Mamiye CIO
David Cropper. We managed to milk the original system for 15
years, but it became too costly and difficult to manage.
Knowing it needed much greater flexibility, Mamiye Brothers
implemented the all-in-one Simparel Enterprise solution. Since
implementing the system, Mamiye has successfully branched
out into complementary verticals, adding juniors and missy
lines and increasing market share. Now we have a technology
platform that allows us to move into the future rather than be
constrained by the past, Cropper says.
Highly configurable code also equates to less customization.
With the newest solutions, a modular architecture means
changes are made much more quickly and automatically applied
across the software. In addition, leading apparel ERP systems
are built to accommodate modern apparel business processes
right out of the box in many cases. There are few if any
functional or visibility gaps. Its not unreasonable for software
buyers to expect a tight fit between the technology and the way
their businesses work right from the start, with plenty of room
for growth and evolution. In fact, buyers should beware of
complexities associated with some ERP vendors promises to
meet functional needs through customization.
Bonobos, the fast-growing and innovative mens wear
company, is a prime example of an apparel business that
needed to leverage scalable ERP with minimal customization.
The company implemented the Simparel Enterprise solution in
June 2012 after realizing that off-the-shelf spreadsheet and
accounting software couldnt keep pace with its strong growth.

Copyright Edgell Communications, Inc. and Apparel 2015

Since then, Simparels solution has scaled with the companys

expansion, and Bonobos has been able to manage its
enterprise technology with limited internal IT resources.

The Cloud Opens Opportunities

For apparel businesses in a growth mode or simply looking
to minimize their overhead, hosted ERP can be an attractive
option. Next-generation ERP can be delivered through a cloud
computing model, alleviating the apparel firms need for
extensive in-house IT assets to maintain servers and software.
Despite all of the attention cloud computing has been
receiving, it still can be confusing. Aberdeen Group offers a
clear definition of cloud deployment in its September 2014
report Improve Your Midmarket Business Operations with
Cloud Applications, which was written by Castellina. According
to the report, Software vendors are now offering deployment
solutions delivered in the cloud (over the Internet, maintained
and managed by the vendor itself) that may have traditionally
been delivered solely on-premise (licensed for use and
managed by the licensee on their own internal technology
environment).
Of 127 midmarket organizations Aberdeen surveyed for the
report, 61 percent said they chose a cloud solution because of
lower total cost of ownership. Forty-six percent selected cloud
technology for the ability to scale the solution as their
organization grows, 41 percent for lower up-front costs and 39
percent for ease of use.
Cloud delivery also makes it more feasible for remote
apparel factories or business units to access corporate ERP
solutions. Organizations want to get those plants or new
business units up and running as quickly as possible,
Castellina says. With cloud technology, that is becoming a lot
easier to do.
Cloud is a big differentiator when it comes to deployment of
systems like ERP, says Pant. Its the speed. If youre a U.S.based company, you can get partners in other geographies onto
the cloud quickly.
Mamiye Brothers opted for a cloud implementation when it
rolled out the Simparel enterprise solution. The cloud-based
Simparel model empowered Mamiye to control implementation
expenses and ongoing software management costs. The
company achieved its goal to reduce the on-premise datacenter
footprint and associated overhead. When you look at the
benefits of cloud-based ERP the scalability, disaster recovery
options and reduced costs it makes sense, says Cropper.
More importantly, it allows us to focus on whats important:
running our business. n