Fashion ERP Software: innovation for omnichannel retail

The customer's problem: designing a more streamlined, web-based ERP software solution suitable for SMEs

One of our clients is responsible for developing WEB solutions for companies operating in the digital fashion sector. Its flagship product is an ERP software, designed for optimize and unify the complex distribution chain that characterizes the fashion industry.

The system then provides advanced functionality for the management of:

• Database of resources such as items, price lists and size scales.
• Publication of articles in different marketplaces.
• Loading/unloading of items and warehouse stocks.
• Dislocated stores and cash desk software.
• Campaigns for sales and discounts.
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However, our customer faced an important limitation.

The ERP software behind its offering had been designed for companies with significant turnover volumes, as well as able to maintain the necessary server infrastructure to ensure proper management of the omnichannel distribution and sales chain at their premises and online.

As a result, the commercialized ERP software was not accessible to companies of small size and investment capacity. This excludes most of the companies that dot the global fashion sector and that fall into the category of SMEs.

SMEs often have neither the budget nor the internal IT resources to support the management and costs associated with a local server infrastructure, so they could not be part of our client's potential sales target. An important limitation, as we said, given that 99.8% of companies in the fashion sector at European level are made up of SMEs and microenterprises (see report).

It was born spontaneously need to “streamline” the ERP software provided, to broaden its target and ensure greater growth in the future. To do this, the company turned to our experts, with whom it had already collaborated in the past to update the functionality of the software in question.

What is ERP software?

For those who are not familiar with the term “ERP software”, here is a brief overview that will serve to better understand how we faced our customer's challenge.

'ERP' stands for 'Enterprise Resource Planning', indicating an integrated management system that allows automate and optimize processes related to the distribution and sales chain.

It is therefore a matter of managing in a coordinated manner:

• Accounting
• Human Resources
• Production
• Orders and warehouse
• Logistics activities and costs
• Omnichannel sales (online, store and mobile)
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An ERP software collects data from the different systems that a company decides to implement to monitor each step of the distribution chain, centralizing them in a single platform to offer an overall and updated view of activities in real time.

At the base of the operation of an ERP software we find a common database shared by all departments of an organization. The information generated by the various internal processes (such as those listed above) is stored in a centralized source, eliminating the possibility of data duplication.

This means that when a sales order is placed in the system:

• the warehouse can immediately check the availability of stocks;
• production can plan the work necessary to deliver the required products;
• Accounting can update financial records without resorting to separate processes.
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The main engine of an ERP software is composed of modules specialised for each business area, chosen and used according to their needs. The modules are interconnected through the common database, allowing a smooth data transmission.

In addition, ERP software uses mechanisms of automation.

For example, when a product is sold, an ERP can independently carry out activities such as:

• Update of stock in stock.
• Sending supply orders to suppliers.
• Record of accounting transactions that have taken place.

ERP software for the fashion industry: Why is it even more important?

In the fashion sector, ERP software makes it possible to manage with less effort the complexities of a market characterized by articulated supply and distribution chains, fast production cycles and volatile demand, based on seasonality. Companies operating in this sector must be able to count on perfect synchronization between production, distribution and sales.

Here, then, is that a customized ERP software, with specific functionality for the fashion industry, can represent the ideal solution to manage internal processes in a coordinated manner, from inventory management to production, to distribution and omnichannel sales.

The ability to monitor stocks, keep company departments updated and automate most activities means that problems such as delays or product runs out of stock can be avoided.

An ERP software for the fashion industry is also essential for managing seasonal cycles, since it allows plan production through a centralized platform updated in real time with data from active marketplaces. Thanks then to the integration of sales channels, including e-commerce, mobile apps and stores, an ERP guarantees a unified view of the operations with which Respond promptly to market trends.

Our solution: agile and web-based ERP software

We started from the know-how acquired during the previous collaboration and we started the development of a stand-alone web application able to satisfy customer requests, namely:

• The application must be online, but without using third-party services. All functionality, including authentication and management of image archives, must be managed internally within the application without resorting to external cloud services.
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• The application must be compatible with databases MSSQL and PostgreSQL.
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• The system must be multi-tenant: an application for multiple databases. This means that the user is associated with a tenant with their own connection string with which they can access a different database instance.
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To be able to implement a lighter ERP software, accessible via the web and without the need for expensive server infrastructures as well as the aid of cloud-based services, our experts have implemented the following strategy.

1. Web-based development of ERP software

The entire application will be online, but without depending on third-party cloud services. The challenge is, therefore, to create a self-sufficient architecture to manage processes such as authentication, image archiving and other resources, without the aid of external services.

That's why we decided to use:

• .NET 8.0: our reference framework for creating web applications (and not only). It is an open-source software development platform developed by Microsoft that allows the creation of multiple types of applications that need to be scalable and performing.
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• ASP.NET Core: it is a high-performance, cross-platform open source framework for creating modern cloud-enabled apps connected to the Internet. With it, you can create web apps and services, IoT apps, and mobile backends. With this solid base and with the bookcase ASP.NET Core Identity it was possible for us to develop the entire application and a customized module for managing the authentication of system users (without, therefore, using third-party authentication providers).

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2. Multi-database support for Microsoft SQL and PostgreSQL

To make the application compatible with the databases requested by the customer, we have chosen:

• Entity Framework Core: it is an object relational mapper (O/RM) that has allowed us to eliminate most of the data access code and simplify it through the use of .NET objects. In addition, it supports both SQL Server (MSSQL) and PostgreSQL database providers. Thanks to this flexibility, it was possible to configure the application to be compatible with both technologies, adapting only the connection strings and specific database configurations.

3. Ability of ERP software to be multi-tenant

The term “multi-tenant” indicates a software architecture in which a single application serves multiple customers (tenants), while keeping their information separate and secure. Each tenant has its own data and configurations, but shares the same software and infrastructure resources, such as the application base code and the server.

To make the commissioned ERP software so, we opted for:

• Entity Framework Core and ASP.NET Core, through which we have developed a customized multi-tenant approach. As mentioned, the mechanism to be implemented consists of associating each user, or tenant, with a personalized connection string that points to a separate database. This is dynamically managed through middleware in ASP.NET Core, which intercepts the request and selects the appropriate connection based on the user's tenant. Each tenant will have its own connection string that points to a different database instance (MSSQL or PostgreSQL), ensuring that the data is isolated and accessible only by that tenant.
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• ASP.NET Core Identity: allows the application to manage authentication on multiple tenants, where each user is linked to a certain database based on their ID. This ensures that a user can only access data related to their database, thus preventing sensitive company information from being exposed.
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Finally, it should be emphasized that the application will be developed in .NET 8.0, with ASP.NET Core for the backend and React for the frontend.

React is a JavaScript library developed by Facebook that allows you to create fluid and dynamic user interfaces. Thanks to it, a single-page-application has been developed (i.e. an application that is downloaded to user browsers) that communicates with the backend through RESTFUL APIs, which provide data from the various databases, recognizing the user currently logged in to the system.

The results obtained

The ERP software commissioned by the customer and described so far is under development; therefore, there is no concrete data available on the use and impact of our solution.

Once the new customized ERP software has been completed and put into production, this section will be updated with the results and feedback shared by the customer. To assess whether the solution is suitable for meeting the initial request, we will consider aspects such as the adoption rate and the system's ability to effectively manage multi-tenant environments.

Specifically, we expect to achieve the following results:

1. Adoption by SMEs: it is expected that the new ERP software will be well received by small and medium-sized businesses in the fashion sector, thanks to greater accessibility, the absence of complex cloud infrastructures and the reduced costs compared to traditional software. The degree of adoption will be measured within the first few months of the launch.
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2. Reduction of operating costs: companies that will adopt the new ERP software should record a significant reduction in operating costs, since the system is not based on a more efficient and streamlined architecture. SMEs are expected to experience a decrease in IT spending and an improvement in resource management.
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3. Better user experience: with an intuitive and modern interface, developed in React, an improvement in the user experience is expected, accompanied by a reduced learning curve to adopt the new solution.
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4. Sustainable growth: being multi-tenant and compatible with MSSQL and PostgreSQL, the ERP software developed together with our customer will be able to offer greater scalability. Companies that decide to adopt this solution will in fact be able to expand their operations without having to change the basic infrastructure, which will allow long-term growth with minimal investment.