ERP for the fashion industry: What fashion and textile retailers should look out for when choosing a system

For online shops specialising in fashion, clothing and textiles, the choice of ERP software is particularly important. From procurement to returns, the business processes present challenges that are rarely found in such concentration in any other e-commerce sector.

 

A general-purpose system rarely supports these processes without costly customisation. An industry-specific solution such as collana diva now However, it comes with these features right from the start. This article sets out the requirements that fashion companies should place on their ERP system and how a specialised cloud-based ERP system meets them.

Four challenges are shaping the fashion e-commerce sector

High return rate. Fashion and accessories have the highest return rates in online retail. According to the latest EHI survey, the rate stands at between 36 and 50 per cent at almost one in four fashion retailers, although some retailers exceed this. Every return goes through goods receipt, inspection, restocking and credit note processing. Without end-to-end processes, this eats into margins and staff time.

Complex inventory management. Collections change several times a year. Each item is available in a range of sizes, colours and styles. Without real-time data, excess stock builds up at the end of the season or stock shortages occur during the sales. Both cost money: excess stock ties up capital, whilst stock shortages cost turnover.

Sensitive customer data. The ERP system brings together data from sales, CRM and financial accounting. You must protect this data from unauthorised access. Role-based access control, encryption and reliable cloud operations are therefore key selection criteria.

Peaks in orders. Black Friday, sales periods and new collection launches generate spikes in orders. Systems that aren’t designed to cope with this become sluggish or crash. This hits the shop at precisely the time when turnover would be at its highest.

Sector-specific or generalist: a comparison

Fashion companies benefit from a solution designed specifically for their sector. The comparison highlights the differences.

Criterion

collana diva now

Cross-sector ERPs

Industry Focus

Designed for e-commerce businesses

General approach without sector-specific processes

E-commerce modules

Integrated with, amongst others, Labelport and collana pay (multi-PSP hub)

Rare

Returns management

Integrated processes for high return rates

Standard processes that frequently require adjustments

Product range

Versatile

Often only through customisation

Implementation time

8 to 12 weeks (depending on the project)

Depending on the provider, terms of 3 to 36 months are not uncommon

Basic ERP

Microsoft Dynamics 365 Business Central

Often developed in-house

Provision

Cloud-native

Depends on the provider; often on-premises

Multi-client capability

Yes

Depends on the provider

Microsoft 365 integration

Fully integrated

About apps and interfaces

Business Intelligence

About Microsoft Power BI, directly from Business Central

About apps and interfaces

Our comparisons with the following show how collana diva now fares against individual competitors: Xentral, weclapp, Odoo and SAP Business One.

As unique as your collection

Calculating overheads using a calculator and a laptop

No two fashion companies are alike. Do you sell exclusively online, do you also run a high-street shop, or are you expanding internationally? collana diva now grows alongside your business model.

What this means for you is:

  • You use exactly the features your business needs. Optional modules complement the standard package.
  • The system is multi-client capable and is suitable for multi-brand and multi-shop models.
  • The workflows adapt to your processes, from purchasing to returns handling.

 

Cloud-based deployment is also available. You can scale up at any time as your product range, sales channels or order volumes grow, without having to run your own servers.

Peaks and returns under control

Promotional days and new collection launches generate peaks in orders and, at the same time, more returns. collana diva now is designed to handle this:

  • You can view stock levels, orders and returns in real time.
  • The system manages stock levels automatically, even during peak periods.
  • Automated workflows speed up order processing.
  • The cloud architecture ensures that performance remains stable even when order volumes are high.
  • If you have any questions, our support team will be happy to assist you at short notice.

Three steps to go-live

The path to productive ERP software follows a tried-and-tested process:

  1. Consultancy. We’ll discuss your requirements, give you a live demonstration and work with you to assess how collana diva now fits in with your business model.
  2. Implementation. The kick-off is followed by onboarding. We migrate your data and set up user profiles, documents, modules and interfaces. Depending on the project, implementation takes between 8 and 12 weeks.
  3. Go-live. We’ll support you from the outset until all your processes are running smoothly.

Key features for fashion companies

collana diva now covers the core processes in fashion e-commerce:

  • Personalised customer campaigns based on CRM data
  • Automated order processing and order management processes
  • Multi-channel management with online shop integration
  • Cross-channel marketing with targeted pricing strategies
  • Integrated returns management for high return rates

 

The fashion retailer Atelier Goldner Schnitt demonstrates how this works in practice: the company manages its omnichannel processes using collana diva, the solution for upmarket medium-sized businesses from the same product family. Explore Case Study

Frequently asked questions about collana diva now

Which companies is collana diva now suitable for?

collana diva now is suitable for start-ups as well as small and medium-sized enterprises in the e-commerce sector. This includes fashion, clothing and textile retailers who sell via an online shop.

Can PLM software be integrated?

Yes, external systems such as PLM solutions can be integrated via the open interfaces in Microsoft Dynamics 365 Business Central. We’ll discuss which integration is best suited to your setup during the consultation.

Is ‘Collana Diva Now’ suitable for companies operating abroad?

Yes, the system is multi-client and supports multiple languages. You can manage international shops, multiple brands and different currencies all within a single environment.

How does collana diva now help with high return volumes?

Returns management is integrated into the inventory management system. Returns go through defined processes, from registration and inspection through to restocking and credit note issuance. You can view the status of each return in real time.

How much does the Collana Diva Now cost?

The costs depend on the number of users, modules and clients. We can work out a pricing model tailored to your specific situation during a no-obligation consultation. 

How does collana diva now differ from Xentral?

The main differences lie in the Microsoft-based platform, the integrated payment hub ‘collana pay’, the integrated ‘LabelPort’, the personalised support and the growth pathway on ‘collana diva’.

Efficient workflows, complete transparency and less manual effort: collana diva now provides the processes that fashion companies need to grow. Quick to set up, flexibly scalable and available in the cloud at any time.

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