Enterprise resource planning (ERP) technology has evolvedand transformed, covering more ground with a moresimplified format than systems past. If you lined up atraditional apparel industry package alongside a new enterprisesolution, it would be hard to tell they were from the samesoftware species.

From the underlying computing language they speak to theirfunctional breadth, everything has changed. Yet it is stillcommonplace to find ERP from a former era throughout thefashion industry.

For apparel executives ready to start exploring ERPalternatives, they will absolutely benefit from doing a freshassessment of the technology options, says Gaurav Pant,senior vice president and principal analyst, EKN. It could meandiscovering not just advanced functionality but also reducedimplementation effort, time and cost, especially if youre lookingat cloud deployment models.

Its a great time to assess what technology works best not just to replace what they have but also to solve criticalproblems and execute new strategies, whether that is how to godirect, how to manage different sources or how to handle globalcompliance, he says.

The All-in-One ApproachNext-generation ERP systems go far beyond the basic

plumbing such systems traditionally have encompassed.Whereas ERPs traditional footprint covered core financialtransactions and order management, todays enterprisesolutions include expanded functionality to control processesfrom product development to warehousing and fulfillment.

Solutions are becoming more and more robust, managingmore individual functions across the enterprise, says NickCastellina, research director, business planning and execution,Aberdeen Group. That makes it easier for organizations to findone single integrated package rather than multiple pointsolutions they may have sought in the past.

The fewer the IT tools, the less system integration required todo business. Apparel businesses that want to upgrade multiplesystems are often pleased to discover that a single ERP solutioncan cover functional ground from concept to consumer. Tominimize the need for interfaces between software packages,more of them are choosing to invest in ERP that providesintegrated functionality for product lifecycle management (PLM),supply chain management (SCM) and other mission-criticalprocesses that previously required point solutions.

Berry Jewelry, which specializes in products ranging fromscarves to bags and belts, opted to employ a comprehensivetechnology strategy when it replaced its general industrial ERP

application with a fashion-focused solution. The private-labeland brand wholesaler implemented the cloud-based SimparelEnterprise solution at its New York City headquarters and otherglobal offices. As a design-focused company, we needed muchmore business information than our Sage MAS 200accounting/ERP system could provide, says CEO Martha Berry.Most importantly, we wanted a system with PLM capabilitiesthat could start at the design phase and carry us all the waythrough to sales and shipment.

When diverse but interrelated functionality is covered byfewer solutions, users benefit from reduced software training,greater data visibility and a shared understanding of enterpriseinformation. A fundamental challenge for many apparelcompanies continues to be getting a single version of the truthwith respect to where you are as a business and at what stageyour products are in the supply chain, Pant says. A lot of themare focusing on data visibility, given advances in analytics.

Next-Gen Architecture MattersBusiness analytics is just one of the many areas where

technology has made huge strides in recent years. The veryfoundation of next-generation ERP the code itself haschanged dramatically. Fresh new packages feature an easilyconfigurable architecture, which makes implementationmuch faster.

The newer ERP platforms are built on a different technologyarchitecture, says Pant. You can get things moving quickly. Newer players also understand that were living in anomnichannel world, and their systems come equipped to handlethose business processes.

In a blog post about its 2015 technology outlook, AchievingExcellence in Retail Operations, EKN highlights the importanceof investing in technology to ensure a robust shipping andomnichannel fulfillment infrastructure.

Retailers should look to phasing out cross-channel ordermanagement systems older than five years and move to new-age integrated order management and fulfillment systems that

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THOUGHT LEADERSHIP REPORTEVOLVING ERP: EXPECT MORE FOR YOUR MONEY

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Cloud is a big differentiatorwhen it comes to deploymentof systems like ERP. Its thespeed. If youre a U.S.- basedcompany, you can get partners

in other geographies onto the cloudquickly.says Gaurav Pant, senior vicepresident and principal analyst, EKN.

Copyright Edgell Communications, Inc. and Apparel 2015

QHow is the practical definition of ERP today different than it was 10years ago?There has been a tremendous

evolution in apparel industry ERP. Next-generation ERP technology now includesenterprise-wide, end-to-end functionality.Whereas legacy systems focusedprimarily on core financial and ordermanagement functions, todays enterprisesoftware natively integrates ERP, productlifecycle management (PLM), supplychain management (SCM), manufacturingresource planning (MRP), electronic datainterchange (EDI), warehousemanagement (WMS) and mobilewholesale solutions (MWS). Users canmanage almost every process, fromconcept to consumer, on a singleplatform. This includes e-commerce ordermanagement and fulfillment, which iscritical for omnichannel success.

In addition to keeping internal teams onthe same page, next-generation ERPsolutions enable much stronger supplychain collaboration. Advancedcommunication tools and vendor portalsgive trading partners visibility into real-time information, whether they aresharing product development, production,shipping or other data. Likewise, newerERP technology offers morecomprehensive, flexible reporting. Thereis no need to spend hours generatingreports, manipulating data manually inspreadsheets.

Another important ERP advancement iscloud delivery. Customers can choose aweb-based, hosted software deliverymodel, which makes robust ERPtechnology more accessible andaffordable and easier to implement andmaintain for more apparel manufacturers.

QHow can an apparel businessdetermine whether an ERP/enterprise solution features thelatest in computing technology?

Its important to look under the hood toevaluate the systems underlying codeand software architecture. Many ERPsystems still run code written in the1980s. Back then, there were a lot oflimitations on what software code coulddo. Once something was written into thecode, it could take days or weeks to makechanges. Each change requiredconsiderable customization, driving up ITexpenses. Its a burden legacy ERP userscarry to this day, and they are not alone.

By comparison, the latest ERP solutionslike Simparel feature a modulararchitecture. This lends itself to simpleconfiguration. When users want to makea change, its much easier and faster tomake adjustments to meet new businessrequirements. Because the technologyfoundation is so flexible, next-generationERP also can scale with the customer toaccommodate more users, acquisitionsand new business models. It also offersbuilt-in capability to support omnichannelcommerce.

QWhat trends do you see in ERPsystem investment over the next 12 to 18 months?Apparel businesses are rethinking the

best-of-breed approach in favor of all-in-one enterprise software. They cannotafford the visibility and functional gaps ofdisparate systems. We also see growingdemand for MRP functionality. Many ERPsoftware vendors stopped developingMRP as full-package global sourcingbecame the industry norm. However,reshoring and near-shoring trends areprompting apparel businesses to take amore hands-on approach tomanufacturing. Even if they are notcutting and sewing in-house, they wantthe control enabled by MRP.

Rapid changes in the industry will compelcompanies to invest in new systems. Forsmall- and medium-sized businesses, thismight mean moving beyond startersoftware packages and spreadsheets. For larger companies, the driver is often a desire to reduce IT and businessprocess complexity. Either way, whenthey invest in next-generation ERP, theycan keep pace with market changes andoutrun their competitors.

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Q & AEXECUTIVE INSIGHT

Simparel, Inc. is the leader in next-generation business software for fashion and consumer goods brands, manufacturers and retailers. Simparelsolutions empowers apparel, footwear, accessories, home and other soft goods companies to reach their full potential by accelerating andimproving 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), MobileWholesaling Solution (MWS) and other productivity tools into a single, fashion-focused business system.

JOHN ROBINSONSenior Vice President

Sales and Marketing, Simparel

provide end-to-end order-fulfillment and distributed ordermanagement capabilities within stores, e-commerce, callcenters and stores/online distribution centers, says the postby Sahir Anand, EKN vice president, research, and principalanalyst.

Attempting to retool legacy systems to support omnichanneldemand is a daunting prospect and short-term bandage at best.Older ERP software often requires time-consuming manualcoding to accommodate changes. Even then, revisions to oneline of code can wreak havoc on other code deep within thesoftwares dated architecture.

Mamiye Brothers Inc. encountered this problem beforereplacing its 15-year-old ERP system. A designer, manufacturerand marketer of childrens, tween and teen fashion brands,Mamiye was running software hard coded with a narrow view ofthe apparel supply chain. It was not designed to manage bothfront- and back-end functions such as PLM and vendorintegration. In an attempt to accommodate business changesand growth, the ERP software underwent numerouscustomizations. It was a bolt-on strategy, says Mamiye CIODavid Cropper. We managed to milk the original system for 15years, but it became too costly and difficult to manage.

Knowing it needed much greater flexibility, Mamiye Brothersimplemented the all-in-one Simparel Enterprise solution. Sinceimplementing the system, Mamiye has successfully branchedout into complementary verticals, adding juniors and missylines and increasing market share. Now we have a technologyplatform that allows us to move into the future rather than beconstrained by the past, Cropper says.

Highly configurable code also equates to less customization.With the newest solutions, a modular architecture meanschanges are made much more quickly and automatically appliedacross the software. In addition, leading apparel ERP systemsare built to accommodate modern apparel business processes right out of the box in many cases. There are few if anyfunctional or visibility gaps. Its not unreasonable for softwarebuyers to expect a tight fit between the technology and the waytheir businesses work right from the start, with plenty of roomfor growth and evolution. In fact, buyers should beware ofcomplexities associated with some ERP vendors promises tomeet functional needs through customization.

Bonobos, the fast-growing and innovative mens wearcompany, is a prime example of an apparel business thatneeded to leverage scalable ERP with minimal customization.The company implemented the Simparel Enterprise solution inJune 2012 after realizing that off-the-shelf spreadsheet andaccounting software couldnt keep pace with its strong growth.

Since then, Simparels solution has scaled with the companysexpansion, and Bonobos has been able to manage itsenterprise technology with limited internal IT resources.

The Cloud Opens OpportunitiesFor apparel businesses in a growth mode or simply looking

to minimize their overhead, hosted ERP can be an attractiveoption. Next-generation ERP can be delivered through a cloudcomputing model, alleviating the apparel firms need forextensive in-house IT assets to maintain servers and software.

Despite all of the attention cloud computing has beenreceiving, it still can be confusing. Aberdeen Group offers aclear definition of cloud deployment in its September 2014report Improve Your Midmarket Business Operations withCloud Applications, which was written by Castellina. Accordingto the report, Software vendors are now offering deploymentsolutions delivered in the cloud (over the Internet, maintainedand managed by the vendor itself) that may have traditionallybeen delivered solely on-premise (licensed for use andmanaged by the licensee on their own internal technologyenvironment).

Of 127 midmarket organizations Aberdeen surveyed for thereport, 61 percent said they chose a cloud solution because oflower total cost of ownership. Forty-six percent selected cloudtechnology for the ability to scale the solution as theirorganization grows, 41 percent for lower up-front costs and 39percent for ease of use.

Cloud delivery also makes it more feasible for remoteapparel factories or business units to access corporate ERPsolutions. Organizations want to get those plants or newbusiness units up and running as quickly as possible,Castellina says. With cloud technology, that is becoming a loteasier to do.

Cloud is a big differentiator when it comes to deployment ofsystems like ERP, says Pant. Its the speed. If youre a U.S.-based company, you can get partners in other geographies ontothe cloud quickly.

Mamiye Brothers opted for a cloud implementation when itrolled out the Simparel enterprise solution. The cloud-basedSimparel model empowered Mamiye to control implementationexpenses and ongoing software management costs. Thecompany achieved its goal to reduce the on-premise datacenterfootprint and associated overhead. When you look at thebenefits of cloud-based ERP the scalability, disaster recoveryoptions and reduced costs it makes sense, says Cropper.More importantly, it allows us to focus on whats important:running our business. n

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THOUGHT LEADERSHIP REPORTEVOLVING ERP: EXPECT MORE FOR YOUR MONEY