is the amount of
estimated savings cooperation
SAP areas were analyzed
& improvements proposed
months it took to
complete the full audit
reduction of manual
effort in retail processes
Palmers Textil AG is a famous Austrian fashion/clothing brand founded in 1914. Back in 2017, the company was still using the outdated version of its ERP developed by SAP. This software was never optimized or upgraded. Our task was to complete a comprehensive assessment of core systems, find issues, and propose ways to optimize SAP management.
In 2000, Palmers decided to go digital, launched the first online shop. For internal enterprise management, the company installed SAP ERP. This system had been working as it is for almost 15 years until the new leadership team came. It included Matvei Hutman, Tino Wieser, Luca Wieser, and Marc Wieser – ex-CEO of Nike and Benetton. At the moment, Palmers was unprofitable, so the new board wanted to fix things.
In this case, IT optimization was the first optimization step. Thus, Palmers hired our retail business consultants to analyze the internal SAP ERP system and the related processes. We talked to stakeholders, checked how they work with SAP, and noted how to improve work. During this assessment, we found specific issues in retail, procurement, finance, controlling, master data management, integration.
Palmers wanted to get a modern, user-friendly online shop with new features. The main task was to migrate the entire e-commerce section. We moved it from the old SAP Hybris version to a new Magento 2, open-source platform written on PHP. Further, we connected this online shop to a new FIEGE Order Management System with FTP and XML tech. Finally, both solutions were integrated with a Klarna payment tool and back-office SAP software.
Time: 4 months
Platform: On-premises – SAP ERP
Team: 10 members
Industry: Apparel & Fashion / Retail
This section provides analytics and suggestions related to the sales of Palmers’ products. It includes planning, forecasting, automation, data processing, and general sales tips. We defined key issues with integrations, analytics, and paper-based processes.
This section reveals issues and potential improvements related to purchasing, payments, budgeting, and documenting of procurement processes. We focused on improvements of system control, approvals, and reporting.
This section focuses on significant aspects of financial operations: daily processes, procurement, fixed assets, reporting. The most pressing issues centered around insufficient usage of SAP standard tools, manual work, and international payments.
This section refers to control and approval processes in daily operations and reporting. These issues are different from reports in other parts. Mainly, they refer to the limited use of SAP in the company.
This section contains issues and proposals related to master data – core information shared across the company’s departments. Master data management was unoptimized, there was no central department for these processes.
This term stands for a high-level programming language used in SAP. Our ideas and recommendations relate to ABAP development and maintenance because major issues were associated with scalability, execution, and transparency.
The final audit section reviews the existing software and hardware problems, suggests harmonization steps for basic SAP systems. We focused on problems with outdated modules and interactions with providers.
After the complete review of all SAP systems and processes, we ended up with a set of proposals plus potential benefits. We predicted the total approximate savings of €1.5 million in the case of 3x business growth. Partially, these suggestions resulted in the next Palmers cases. For example, we replaced Hybris with Magento for e-commerce.
A full assessment of internal processes
We revealed how Palmers works with SAP, which areas require optimization, and how to complete it.
Estimated savings in cash and time
Our consultants proved that it’s possible to cut spending, reduce manual effort, and improve revenue.
Palmers Textil AG is an international clothing brand that originated in Austria. Ludwig Palmers started it as a laundry back in 1914. In 2000, the company opened its first online shop. Since 2015, Palmers is owned by P Tex Holding GmbH. Today, the brand sells underwear, clothes, and accessories in more than 300 stores in 17 countries.
Apparel & Fashion / Retail
Years on market: