Ski gear supplier ups the ante with SAP solution

Published on the 04/12/2014 | Written by UXC Oxygen

Ski gear supplier
icon_case study

AT A GLANCE

  • XTM Australia

INDUSTRY

  • Sports apparel

BUSINESS OBJECTIVE

  •  Improve inventory management
  • Simplify and speed up reporting procedures. Gain accurate picture of landed costs

SOLUTION

  • SAP Business One solution implemented by SAP Gold partner UXC Oxygen
  • Deploy landed cost calculation functionality for more accurate sales margin setting

BUSINESS BENEFITS

  • Significant time savings in financial and management report preparation, freeing up staff to do higher value tasks
  • Better stock visibility thanks to colour/style/ size matching
  • Improved information access makes for more timely and informed decision making

FOR MORE INFORMATION

UXC OXYGEN
W: www.uxcoxygen.com
Australia
E: info@uxcoxygen.com
T: 1800 002 354
New Zealand
E: info@uxcoxygen.com
T: 0800 008 606

Adventure clothing maker XTM’s support systems were bursting at the seams and so it transformed itself with a system makeover…

Australian-based ski apparel company XTM creates world class snow gear at competitive prices, supported by an enthusiastic and passionate customer service team. XTM has grown rapidly without losing sight of its original aims and has developed a range of top-end accessories and garments using the best available materials such as Australian merino wool.

Quality products and innovative designs have led to XTM being chosen as official supplier to the Australian Ski Team.

As a result of sustained growth, the business needed a fully integrated management system that could cope with its company growth and offer improved processing across its reporting, sales and stock control activities. It had simply outgrown its legacy MYOB accounting software.

General Manager for XTM, Paul Manders, says the company was struggling to complete required tasks. “We didn’t have enough general ledger flexibility and while MYOB is great for a small business we were running up against the limits of its functionality.”

Frustrating time-outs and labour intensive data manipulation were also impacting on productivity, said Manders.

“To undertake the analysis we needed to do on our reports we had to export the data into Excel. That was a time-consuming process, particularly when we wanted to report across multiple financial years.”

With around 2500 different product configurations (SKUs), XTM has a complex inventory to manage. The lack of ‘parent child’ inventory coding structure was another cause of frustration.

“It was hard to know exactly what we had in the warehouse using the old system,” says Manders. “We had to tally up each individual SKU to work out what our total stock holdings were – and that took time.”

After assessing a number of different solutions, Manders says the company elected to implement SAP because it offered colour/style/ size matrix coding and promised simplified reporting.

“I knew SAP was a reputable company. It also has a large user community, which we could tap into to gain insights into how other companies were using the software to improve their business.”

XTM implemented the SAP Business One product, working with SAP partner UXC Oxygen to configure the solution.

Manders says the software has vastly improved its reporting activity – saving his team a total of around four weeks each year in report preparation time.

“We can now do most of our inventory analysis and financial reporting within SAP. When we do have to export data into Excel it is a much more streamlined process. The next step for us is to get better visibility of actual versus budgeted activity – something we will be establishing very shortly.”

He says using SAP the landed cost of goods can be accurately assessed and reflected in the price of each garment.

“Without a way to predict the total landed costs of materials and goods you open yourself up to risk. The costs of insurance, shipping fees, custom expenses and other variables quickly add up and need to be precisely calculated so you can set the right sales margins. With SAP, we have a calculation model that allows us to smooth out peaks and troughs and ensure there are no surprises affecting the bottom line.”

“SAP has improved our reporting capability and is saving us a significant amount of preparation time.”
Paul Manders, General Manager, XTM

The management at XTM is also serious about accounting for its environmental impact. The company put itself through a full external audit by the Carbon Reduction Institute, and purchased carbon offsets to neutralise its impact. But management won’t be settling at that and is determined to continue to reduce the company’s carbon footprint by managing energy usage, purchasing carbon offsets whenever they fly, and continuing to look for new environmentally friendly products to add to the range.

Helped, no doubt, by the flexibility of its systems.

FURTHER READING


About This Vendor


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