Expense Management Optimization for a Fashion Retailer

The LeverX team helped the client enhance financial transparency, mitigate risks, and improve expense control.

Customer

A major retailer and manufacturer of clothing for the whole family. The company is actively expanding in the retail market, continuously opening new stores, and enhancing its product range. As of 2024, the client’s retail network includes over 120 stores.

Project Background

The client encountered challenges with their ERP system, as its functionality did not align with the company leadership's expectations. Due to limited expertise in the software, the client could not address these issues independently.

Moreover, the company lacked a comprehensive tool for analyzing revenue and expenses across key business parameters. Delays in financial reporting hindered timely market responsiveness, making it challenging to adjust expense management strategies and make informed, data-driven decisions.

Project Goals

To address these challenges, the client turned to the LeverX team. Our objectives were to:

1. Conduct a detailed assessment of the existing SAP ERP system, identify problem areas, and provide recommendations for improvement.
2. Implement the CO-PA (Profitability Analysis) module to collect and analyze revenue and expense data.
3. Enhance financial transparency through flexible management reporting.
4. Configure analytics to enable the leadership to promptly assess the impact of various factors on financial performance.

Project Scope

Stage 1: Analysis

The first step was a comprehensive assessment of the existing SAP ERP system. During the evaluation, LeverX specialists:

• Analyzed the company’s existing business processes.
• Identified key gaps between system functionality and the company's actual needs.
• Provided recommendations for platform optimization and modernization.

Stage 2: CO-PA implementation

The next step was implementing the CO-PA component, part of the SAP ERP Controlling module, which enables real-time analysis of a company's revenue and expenses. The project team configured automated data collection and processing, covering sales volumes, revenue, and commercial expenses across multiple dimensions, such as countries, product SKUs, categories, and other key parameters.

One of the key challenges was developing a flexible reporting system. LeverX experts designed user-friendly analytical forms that allowed the company’s leadership to track financial performance in real time and quickly adapt reports to evolving business needs.

The ability to customize key metrics — including adding, removing, and grouping indicators — enabled deeper analysis across multiple dimensions, providing a clearer understanding of how specific factors impact overall financial results.

Additionally, we integrated the CO-PA module with external systems, enhancing sales process efficiency and optimizing data analysis related to revenue and distribution.

Results

The project enabled the company to identify functional gaps in the system that did not align with leadership’s expectations. Additionally, it provided actionable recommendations for enhancing internal processes and improving overall system efficiency.

The implemented solution enabled the company to:

• Gain real-time, detailed analytics on revenue and expenses, significantly improving financial transparency.
• Enhance financial control and reduce risks in strategic planning.
• Manage reporting more effectively, adapting it to evolving business needs and market demands.

Now, the company's leadership can make well-informed decisions based on accurate data, providing a solid foundation for further business growth.