International clothing company O'Neill is consolidating onto a
single
enterprise resource planning (ERP) system across the business
to reduce the complexity of multiple systems and give it the
flexibility required to expand into new markets.
The company spent about £6m on a global project to standardise
on the fashion-industry specific enterprise management system from
Lawson software.
Anton Langeler, global IT director for O'Neill, told Computer
Weekly that without an integrated ERP system, the firm is unable to
introduce new business models and expand into new markets. "The
Lawson system will give us the flexibility and control we need to
introduce a wider variety of business models and support expansion
into Eastern Europe," he said.
The first phase of the two and a half year project will focus on
O'Neill's £357m European operations, which use five separate ERP
systems. Arjan Kaaks, chief operating officer at O'Neill Europe,
said the project is aimed at reducing the complexity of the current
infrastructure.
"Our objective is to work towards a common, global and
standardised platform that will help improve collaboration with our
subsidiaries, distribution and retail channels," he said.
O'Neill will use the Lawson system to support its supply chain
operations and synchronise demand and supply to respond faster to
changing market conditions.
About 95% of O'Neill's current operations are in wholesale, but
increased stock visibility and control will enable it to expand the
retail side of the business, he said.
Another business benefit of the ERP standardisation project will
be improved efficiency of business processes, said Langelar.
Reports on product stocks and locations that currently take
three days to compile, will be delivered within ten seconds once
the Lawson system has been rolled out across the whole
organisation.
This efficiency gain alone, said Langelar, will enable the
company to redeploy five to eight staff members.
O'Neill expects its ERP standardisation project to help increase
business by giving sales staff direct access to information about
its 220 product lines and four new collections introduced each
season.
The clothing firm also expects the Lawson system to improve data
integrity, management capabilities, and financial reporting.