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Optimizing Inventory Management with RPA & SAP Integration: A Fashion Retailer Success Story

Client Overview

A renowned leader in the fashion retail industry,  is synonymous with luxury and lifestyle, offering high-quality apparel, accessories, and home furnishings.

Industry: Fashion Retail

Size & Scope

As a multinational corporation with operations in over 80 countries,  serves a global market. Its diverse channels include retail stores, wholesale partners, and a thriving e-commerce presence.

The scale of operations involves a complex network of suppliers, distribution centers, and retail locations that require seamless data synchronization and efficiency.

Process Overview

Price List Comparison Automation

Automated the process of comparing multiple OSA (Order Status Analysis) Before in Transaction Code (TCode) “ZOTC_OSA_LRDRPT” and After in Transaction Code (TCode) “ZOTC_OSA_LRDRPT”  and to check the status from the jobs in Transaction Code SM37” reports extracted from SAP. The automation performs structured Excel manipulations to generate a consolidated report highlighting price changes and discrepancies in the latest dataset and then inform business for the same through email.

The bot extracts reports from SAP and compares price changes between two datasets (Before and After).
  • It generates a consolidated report in Excel, highlighting discrepancies and changes.
  • The bot then sends an email notification to the relevant teams with the updated information.
Due to variations in prices for certain brands, the team issues an AMF (Article Maintenance Form) to modify the prices in SAP. This automation aims to:
  • Reduce manual effort in updating AMF in SAP and analyzing price changes.
  • Consolidate weekly Price Change files automatically for distribution to regional stakeholders.
  • Decrease processing time per item by 80% and improve overall activity monitoring through robotic logs.

The bot accesses shared drives, processes AMF files, modifies price changes in SAP, compares old and new prices in OSA (Order Status Analysis) reports, and updates relevant statuses. The automation also updates season-wise weekly AMF reports in the “Price Change” tab.

This process operates daily, Monday to Friday, at 10 PM CET, and is designed to minimize human intervention while ensuring accuracy and efficiency in price list comparison and reporting

Article Material Cancelation (AMF) Automation

Developed an automation to manage article material cancellations based on business requirements. The process automates the weekly extraction of OSA Reports from SAP, tracks relevant materials, and updates their status in an Excel file for streamlined reporting and decision-making.

Quantitative Outcomes:

Time Savings

  • 100+ hours saved monthly through automated inventory updates and report generation.
  • Processing time per item reduced by 80%.

Cost Savings

  • 20% reduction in operational costs due to reduced manual effort
  • 3 FTEs (Full-Time Equivalents) saved, allowing resources to focus on higher-value tasks.

Improved Accuracy

  • Error rates in data entry reduced by over 40%, ensuring reliable inventory information.

Efficiency Gains

  • Weekly Price Change files consolidated and distributed automatically, saving 5+ hours per week.
  • Debit note processing time reduced by 50%, handling 8-10 debit notes daily with minimal errors.

Time Savings

  • 100+ hours saved monthly through automated inventory updates and report generation.
  • Processing time per item reduced by 80%.

Cost Savings

  • 20% reduction in operational costs due to reduced manual effort
  • 3 FTEs (Full-Time Equivalents) saved, allowing resources to focus on higher-value tasks.

Improved Accuracy

  • Error rates in data entry reduced by over 40%, ensuring reliable inventory information.

Efficiency Gains

  • Weekly Price Change files consolidated and distributed automatically, saving 5+ hours per week.
  • Debit note processing time reduced by 50%, handling 8-10 debit notes daily with minimal errors.

How Did Automation Help?

We developed an RPA bot to:

Automatically extract reports from SAP.

Track and update material statuses in Excel.

Streamline reporting and decision-making for the team.

Pre-Automation Challenges

With an extensive inventory spanning hundreds of product categories,  faced increasing pressure to optimize operations. Key pain points included:

Data Inconsistency

Managing and updating inventory data across multiple systems required manual intervention, which frequently led to discrepancies

Resource Constraints

Repetitive manual tasks for data input and validation occupied significant time, pulling resources away from strategic roles.

Operational Delays

Manual processes slowed decision-making, impacting stock availability, pricing adjustments, and supply chain agility, all of which are critical in the fast-paced retail environment.

Results

  • Improved efficiency in managing article cancellations
  • Reduced manual effort and errors
The issues presented an opportunity to leverage Intelligent Process Automation, streamlining operations and reducing manual workloads.

Debit Note UK

The Debit Note UK process is designed to automate the handling of debit notes raised by customers in case of disputes related to invoices. This could be due to overcharges, incorrect quantities, damaged or missing goods, etc. The automation involves:
  • Saving debit notes received via email.
  • Raising disputes in SAP using Tcode FBL5n
  • Matching debit note numbers and total amounts with SAP records.
  • Creating and updating dispute cases with the relevant reason codes and attaching supporting documents
The automation aims to:
  • Reduce manual effort involved in processing debit notes.
  • Eliminate human errors in handling disputes
This process runs daily at 12 noon GMT and handles around 8-10 debit notes per day, ensuring accuracy and efficiency in managing disputes and updating relevant statuses in SAP and sent the summary report over mail to business.

Solution

Technologies Employed: To address these challenges, we deployed a custom solution integrating SAP, UiPath (RPA), Excel, and UiPath Orchestrator.

Assessment and Strategy Development

  • We began by assessing ’s existing workflows. This included identifying bottlenecks in their inventory management and analysing how data was shared between SAP, Excel, and other systems.

Technology Stack

  • UiPath RPA was chosen for its ease of integration with both SAP and Excel, enabling the automation of routine tasks.
  • UiPath Orchestrator provided centralized control and management of all RPA bots, allowing ’s team to monitor and adjust workflows as necessary.

Customization and Workflow Design

  • Automated Data Reconciliation: RPA bots were configured to periodically extract and validate data from SAP, Excel, and other sources, eliminating inconsistencies.
  • Error-checking Mechanisms We implemented checks to ensure data integrity before updates. If inconsistencies were detected, alerts were sent to the relevant teams, reducing manual oversight requirements

Collaboration with Client’s Team

  • To ensure a smooth transition, our team worked closely with ’s operations and IT teams, defining key performance indicators (KPIs) and building workflows that aligned with the company’s operational needs.

Implementation

The project was executed in a series of structured phases over a six-month period, involving planning, development, testing, and deployment.

Planning

  • Developed a roadmap with defined timelines and set KPIs to measure progress.
  • Identified areas that would benefit most from automation, including inventory reconciliation and order fulfilment

Development

  • Our team built and tested customized RPA workflows to handle data extraction, data synchronization between SAP and Excel, and error-checking.
  • Additionally, we designed a user interface within UiPath Orchestrator, giving ’s team visibility over each automation bot’s status and performance.

Testing

  • Conducted both unit and system tests to verify data accuracy, speed, and resilience of the automation workflows.
  • Simulated real-world scenarios to test bot performance under varying loads and conditions.

Deployment

  • Deployed the solution in phases, initially focusing on a pilot store and scaling up to the entire network as issues were addressed.
  • Incorporated client feedback to fine-tune workflows and resolve minor inconsistencies encountered in early deployments.

Training and Support

  • Provided comprehensive training for ’s IT and operations teams, enabling them to monitor and troubleshoot the RPA system independently.
  • Set up a support team to provide assistance during and after deployment, ensuring a smooth transition to automated processes.

Results

Quantitative Outcomes

  • Reduction in Processing Time:
    Inventory updates that previously took several hours were automated, leading to a 30% reduction in processing time.
  • Operational Cost Savings:
    By reducing the need for manual data entry,  achieved a 20% savings in operational costs
  • Data Accuracy Improvement:
    Error rates in data entry reduced by over 40%, ensuring more reliable inventory information

Qualitative Benefits

  • Enhanced Decision-Making
    With real-time insights available, managers could make data-driven decisions faster, optimizing stock availability and supply chain management
  • Scalability
    The solution is designed to scale alongside ’s operations, with the flexibility to adjust workflows as business needs evolve.

Quantitative Outcomes

  • Reduction in Processing Time
    Inventory updates that previously took several hours were automated, leading to a 30% reduction in processing time.
  • Operational Cost Savings
    By reducing the need for manual data entry, achieved a 20% savings in operational costs
  • Data Accuracy Improvement
    Error rates in data entry reduced by over 40%, ensuring more reliable inventory information.

Qualitative Benefits

  • Enhanced Decision-Making
    With real-time insights available, managers could make data-driven decisions faster, optimizing stock availability and supply chain management
  • Scalability
    The solution is designed to scale alongside ’s operations, with the flexibility to adjust workflows as business needs evolve.

Client
Testimonial

Implementing RPA in our operations has made a substantial difference. We’ve seen a marked improvement in our inventory management efficiency, and the reduction in manual tasks allows our team to focus on higher-value activities.

This solution has not only saved us time and costs but has also given us real-time, accurate data for better decision-making
- Operations Manager

Key Takeaways

Automation as a Cost-Effective Solution

Automating repetitive tasks leads to considerable savings in both time and operational expenses.

Increased Accuracy in Data Management

Automating data transfer and reconciliation processes reduces the risk of human error, ensuring consistent data across systems.

Scalability for Growth

RPA offers flexibility and scalability, allowing retailers to adapt to evolving demands and expanding operations.

Improved Customer Experience

With faster and more reliable inventory updates,  can fulfil customer orders more efficiently, enhancing satisfaction

Want to optimize your inventory management and streamline operations?

Contact us today to learn how we can implement a customized automation solution to meet your business needs!

[email protected]
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Auxiliobits is a global Software Consulting and Artificial Intelligence advisory company. Auxiliobits drives digital transformation by reinventing enterprise operations through hyper-automation and AI enabled applications.

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