LME: Rationalizing SKUs by 80% and reducing inventory by 50% with the
SAP for retail solution portfolio

For more than 30 years, the fashion-conscious of Bangkok have been selecting their “‘threads” from one of Thailand’s most eminent fashion retailers, LME Co. Ltd. With such an enthusiastic customer base, LME’s business has grown exponentially. To gear up from local player to world–class fashion company, LME had to transform its business, and that meant revitalizing its IT platform.

LME selected the SAP for Retail solution portfolio. The SAP® software gives fashion retail companies immediate access to accurate information to help them make informed decisions, and it scales to support businesses as they grow. With the SAP for Retail solution portfolio, LME reduced its inventory by 50% and rationalized its SKUs by 80% while driving the same or higher sales results thanks to better product mix and inventory visibility.

Enabling faster replenishment to match demand

Objectives

• Replace legacy system with software that can support informed decision making
• Eliminate business continuity risk incurred by legacy system that had limited local support
• Revitalize IT platform to achieve reliability and scalability and to cope with rapid business growth

Why SAP

Specialization of the SAP for Retail solution portfolio for the apparel retail industry segment

Resolution

• Partnered with Nexus System Resources Co. Ltd., which has strong experience in apparel retail, to achieve a successful implementation
•  Drove change management with solid sponsorship from top management to ensure a successful transformation and reduce resistance to change
among employees

Benefits

•    Provided real-time visibility of orders from buyers to distribution centers
•  Enabled faster replenishment that matched market demand for each store based on informed decisions from real-time sales information

Reduction in inventory

Inventory accuracy

Reduction in lead time for month-end closing

Stock-keeping unit rationalization

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