Merger Mania Could Benefit Apparel Business
The consolidating software market could be a good thing for the apparel industry.
Most of the activity has been coming from big IT firms such as Oracle and SAP, but the recently completed merger between St. Paul, Minn.–based Lawson Software and Stockholm, Sweden–based Intentia International AB lowers the activity down to the mid-market.
Intentia’s clients include American Eagle, Ashworth and Gucci. The company’s enterprise resource planning software helps apparel firms manage supply chains with automated order processing, inventory and production tracking.
Lawson, meanwhile, has been focusing on public agencies, retail, education and human capital management.
With little overlap, Lawson Chief Executive Officer Harry Debes sees opportunities to expand Intentia’s dominant European business into the United States and vice versa for Lawson’s human resources- based product line.
What does it all mean for apparel companies?
Product synergies usually take a while to develop, but cost synergies will come sooner.
“Lawson is now poised to become the dominant vendor in the mid-market,” said Martin Schultz, of New York–based Hochfeld Independent Research Group. Schultz said the merger-acquisition climate could help Lawson gain more key technology personnel, which is hard to come by.
“You’re seeing private-equity companies making acquisitions,” he said. “Some of them are more focused on [cutting] costs and that will allow companies like Lawson to pick up key executives.”
Lawson is already moving forward with agendas launched by Intentia, one of which will develop a third generation of Intentia’s Movex fashion ERP software. The aim is to bring more industry- specific functionality and simplified “interoperability” with other systems and to alleviate supply-chain “fog,” said Henrik Billgren, Lawson’s president of research and development.
Movex3 will use a service-oriented architecture, which, unlike traditional systems, does not have to manage or assemble multiple Web services. Rather, it uses an “active document adapter,” which makes it easier for Movex3 applications to communicate with other systems because it operates at the business logic level instead of at the code level like most systems, Billgren said.
Intentia is also working with Palo Alto, Calif.–based Frog Design to help improve the ERP-user experience.
“We are declaring war on the traditional ERP user experience,” Billgren said. “People should want to go into the system.”
Intentia is working on developing easier workflow navigation, customization of forms and a smart input assistant to help users make faster decisions.
“The market needs a strong, viable vendor that can offer simplicity over the complexity of the two large ERP vendors,” Lawson’s Debes said. “The market wants choice, and we expect to establish ourselves as the preferred ERP provider for companies that want to streamline business processes and run their operations more effectively. Just as importantly, we intend to be a company that is simple to do business with, and we intend to deliver on our promises.”
Aria Updates Digital Sales System
New York–based Aria Systems has released a new version of its digital-order form, which allows users to conduct sales from a remote or off-site location.
The system provides immediate access to order-entry functions, product catalogs, customer profiles and inventories.
The aim is to shorten business sales cycles and streamline sales overall, said Aria President Omar Ramadan.
“It’s easy to learn, easy to use and easy to deploy,” Ramadan said. For more information, visit www.thedigitalform.com.
Alva Augments Fit and Sizing Database
AlvaProducts, a New York–based dress-form maker, has broadened its catalog of sizing data by inking a licensing deal with Horsham, Pa.–based Intellifit Corp., which will give it access to more than 120,000 body scans.
The information will be used for Alva’s global consulting division, which provides size and fit products and services to apparel manufacturers and retailers.
Intellifit manufactures 3D body scanners and other body measuring technology, which can measure body forms accurately to within millimeters. The company recently toured the United States with Levi Strauss & Co., while the denim giant was conducting body-scanning sessions and personal shopping experiences for customers at several of its company-owned stores, including the Third Street Promenade in Santa Monica, Calif.
With the new data, Alva will augment its own resource pool and help the industry grasp how better to understand fit as it applies to consumers and apparel.
“Incorporating Intellifit’s extensive database into our current collection of body scans will enhance our ability to pull from a comprehensive database of measurements and offer clients high-level, high-impact consulting services that ultimately improve their bottom line,” said AlvaProducts Chief Executive Officer Janice Wang.
“Intellifit and AlvaProducts will help to change the industry perception about fit, allowing brands and retailers to make shopping a more pleasurable experience for consumers,” said Albert Charpentier, chief technology officer for Intellifit.
More Retailers Using Internet for Inventory Management
More retailers are using Web-based order-management technology to manage their stores, according to a recent survey conducted by Denver-based CenterStone Technologies.
The survey showed that 93 percent of specialty retailers now use some type of online order-management software. The survey also revealed that more store owners and managers are using the Internet off-site to manage business.
Respondents said online resources have eased the crush because managing orders during store hours can become a burden since the focus should be on sales.
Several of the respondents said they even use such systems at home. The survey also said the majority of retailers spend more money with vendors that have online capabilities, while 78 percent said they have a need to conduct immediate orders.
For more information, visit www.centerstonetech.com.
