Cutting Stockouts by 32% for a North American Apparel Leader

We partnered with a North American apparel retailer facing frequent stockouts, slow Excel-based planning cycles (1–3 days), and fragmented inventory visibility across 120+ stores and ecommerce. Instead of replacing their existing systems, we implemented a side-by-side planning and decisioning layer on SAP BTP, enabling near real-time inventory visibility and faster allocation decisions. The result was a 32% reduction in stockouts and 90% faster planning cycles, achieved without disrupting core transactional systems.

About the Client

A large North American apparel retailer operating in a highly seasonal, trend-driven environment.

Industry:

Apparel & Fashion Retail

Business Model:

Omnichannel (Retail + Ecommerce)

Scale:

  • 60K–90K SKUs with high seasonal churn
  • 120+ stores + ecommerce
  • 200K–350K monthly orders (seasonally spiking)

Geography:

US & Canada

Geography:

US & Canada

Existing Stack:

  • SAP ECC (ERP)
  • Salesforce Commerce Cloud (ecommerce)
  • Excel-based planning
  • Disconnected store and warehouse inventory systems

The Challenge

In seasonal retail, decision latency directly translates to lost revenue. The client’s existing planning approach was not designed for short demand cycles or rapid shifts in buying behavior.

Business Impact

  • Lost sales due to delayed replenishment
  • Excess inventory in low-performing regions
  • Increased markdowns on seasonal stock
  • Reduced customer satisfaction due to stockouts

Demand Volatility

Short product lifecycles and external signals (weather, trends, promotions) caused frequent deviations from historical forecasts. Existing planning relied heavily on lagging indicators.

Planning Latency

Merchandising teams operated on Excel-based workflows with planning cycles taking 1–3 days. By the time decisions were executed, demand conditions had already changed.

Fragmented Inventory View

Inventory data across stores, warehouses, and ecommerce systems was not synchronized. Reallocation decisions were based on partial visibility.

Static Allocation Logic

Stock distribution was driven by historical averages and predefined rules, with limited ability to respond dynamically to intra-season demand changes.

The Solution

Replacing SAP ECC was neither practical nor necessary. It continued to function reliably as the transactional backbone for finance, order management, and inventory accounting. The real constraint was the lag in decision-making and the lack of unified visibility across planning workflows.Β 

To address this, we implemented a side-by-side intelligence layer on SAP BTP that sits above the existing landscape, augmenting it with near real-time insights and faster decisioning capabilities without disrupting core operations.

This approach enabled a clear decoupling between transaction processing and planning. While SAP ECC continued to manage execution and record-keeping, SAP BTP was leveraged to aggregate data from multiple systems, process demand signals, and generate allocation recommendations.Β 

At the core of this solution is a demand–supply control tower that continuously ingests data from POS, ecommerce, and warehouse systems, processes it with seconds-to-minutes latency, and surfaces prioritized actions to planners. This ensures that decisions are based on the most current demand and inventory signals, significantly reducing response time while maintaining stability in the underlying transactional systems.

Core Capabilities Delivered

1

Near Real-Time Inventory Visibility

Inventory and sales data from POS, ecommerce, and warehouse systems are ingested using a hybrid model:

  • Event-driven APIs for high-frequency transactions (sales, transfers)
  • Scheduled batch sync for master and historical data

This enables a seconds-to-minutes latency view of inventory across all channels.

2

Demand Signal Processing (Short-Term Demand Sensing)

Instead of relying solely on historical forecasts, the system incorporates:

  • Recent sales velocity (intra-day / daily trends)
  • Store-level performance signals
  • Regional demand variations

This is implemented using statistical smoothing and rule-based adjustments, with scope for ML-based forecasting in future phases.

3

Dynamic Allocation Engine

A constraint-aware engine that recommends stock movements using:

  • Inputs: inventory positions, sales velocity, demand variability, lead times
  • Logic: rule-based heuristics with scoring and configurable thresholds
  • Output: inter-store transfers, replenishment plans, SKU-level allocation updates

Planners retain control through approvals and overrides.

4

Unified Planning Interface

A centralized SAP Analytics Cloud dashboard that provides:

  • Cross-channel inventory visibility
  • Scenario simulation (what-if analysis)
  • System-driven allocation recommendations

Planners can evaluate demand, validate recommendations, and execute allocation decisions within a single workflow.

5

Side-by-Side SAP ECC Extension

The solution follows SAP’s recommended side-by-side extension model, ensuring:

  • No modification of ECC core
  • Independent scalability of planning workloads
  • Safe integration through SAP Integration Suite and Cloud ConnectorΒ 

Architecture Overview

LayerComponentTechnical Role
SourceSAP ECC, SFCC, POSSystems of Record & Transactional Engines.
IntegrationSAP Integration SuiteEvent Mesh for real-time sales signals; Cloud Connector for secure ECC access.
PersistenceSAP HANA CloudHigh-speed data federation and real-time inventory aggregation.
LogicSAP BTP (CAP/Node.js)The “Brain” – executes the Dynamic Allocation Engine and constraint checks.
ConsumptionSAP Analytics CloudThe “Face” – provides the What-If simulation and executive visibility.

Implementation Approach

We followed a phased, low-risk implementation model:

Phase 1: Discovery & Alignment

  • Business process mapping
  • KPI definition (stockout rate, planning cycle time)
  • System readiness assessment

Phase 2: Integration Setup

  • SAP BTP environment setup
  • API and batch interface development
  • Secure connectivity via SAP Cloud Connector

Phase 3: Core Development

  • HANA Cloud data models
  • Allocation engine development
  • Dashboard and planner interface creation
  • Iterative validation with business teams

Phase 4: Testing & Change Management

  • Integration and performance testing
  • User acceptance testing with seasonal data
  • Parallel runs with Excel-based workflows

Phase 5: Go-Live & Stabilization

  • Pilot rollout (region-specific)
  • Monitoring and tuning during peak season
  • Transition to steady-state operations

Technology We Deploy

DSW’s platform enhancements required a strong, flexible technology stack to support product discovery, sizing workflows, personalization, and integrations with third-party retail systems. Below is the technology ecosystem used:

To enhance product discovery and deliver a sleek, responsive fashion experience

React

HTML5

CSS3

Angular

To power search, sizing, promotions, and secure ordering workflows

Python

Django

Flask

Spring Boot

Java

To maintain accurate product, inventory, and customer data

PostgreSQL

MySQL

Oracle DB

Connects fashion analytics, personalization tools, and customer rewards in real time

Analytics Integration

Loyalty Systems

custom Python scripts

To ensure performance and fast rollouts during high-volume retail periods

Docker

Kubernetes

To streamline releases and support continuous improvement

Git

Jenkins

GitHub Actions

The Results

Speed & Efficiency

Planning cycle time reduced by ~90%
Manual effort reduced by ~85%

Operational Improvements

Improved inventory visibility across channels Better stock balancing across regions Faster response to demand fluctuations

Business Outcomes

Stockouts reduced by 32% (measured over peak seasonal period) Reduction in markdown losses on seasonal inventory

Client Testimonial

Build a Resilient, Stockout-Free Retail Operation

Transform inventory challenges into real-time, data-driven decisions with our advanced AI, analytics, and intelligent planning capabilitiesβ€”empowering faster allocations, unified visibility across stores and ecommerce, and scalable optimization without disrupting your existing systems.


    * Your project is secure under a signed NDA.​

    Thanks!

    We’ve sent the framework to your email. Please check inbox.

    Thanks For Reaching Out!

    We’re mobilizing the right person to connect with you. While we prep, come hang out on our social pages!