SAP S/4HANA Cloud Powers Fast Retailing France’s Omnichannel Transformation

By consolidating its sales flows and inventory management within the SAP S/4HANA ERP, Fast Retailing France is boosting its operational efficiency in omnichannel retail. The project was delivered in collaboration with VISEO.

Since the early 2000s, Japanese group Fast Retailing has experienced rapid growth in the apparel retail market. Flagship brands such as Uniqlo and Theory have driven this expansion, along with French brands Comptoir des Cotonniers and Princesse tam.tam.

In early 2021, Fast Retailing Europe decided to replace its aging ERP system, which no longer supported its omnichannel distribution strategy. “We wanted to modernize our IT system with a solution capable of connecting finance, online sales, and physical stores,” explains Serge Lengagne, CIO Europe at Fast Retailing. “After a thorough scoping phase, SAP S/4HANA quickly emerged as the right solution to meet our needs.”

The selection of the implementation partner followed a traditional RFP process, which resulted in VISEO being chosen. Fast Retailing also opted from the outset for a cloud deployment. “We didn’t want to manage our own datacenter. RISE with SAP S/4HANA Cloud came at the perfect time—it enables us to operate SAP S/4HANA in the cloud with SAP, leveraging the infrastructure of a hyperscaler—in this case, Google.”

14 Intense Months of Project Delivery

Once the decision was made, Fast Retailing launched an ambitious program, engaging business teams and involving the replacement of its point-of-sale system, a revamp of e-commerce tools, and the implementation of SAP S/4HANA ERP, supported by VISEO and other partners. A new integration platform was also deployed to orchestrate communication between the various application components. The ERP scope was broad: procurement, replenishment, sales, distribution, inventory, allocation, finance, and controlling—covering all needs of a multi-brand apparel retailer operating intensively across omnichannel networks.

The project kicked off in September 2021, with the go-live target for the new system covering Comptoir des Cotonniers and Princesse tam.tam set for 1 November 2022—just 14 months later. “One of Fast Retailing’s keys to success is its efficiency-driven approach,” says Serge Lengagne. “For this project, we implemented tight governance and allocated all necessary resources. We also ensured continuous high-level engagement from all stakeholders—Fast Retailing teams, system integrators, and vendors alike—throughout the project.”

To avoid the “tunnel effect,” Fast Retailing divided the SAP S/4HANA deployment into two waves. The first, completed in April 2022, focused on master data. The second, in November 2022, addressed business processes across the full ERP scope, leveraging the stabilized master data—a critical success factor.

A More Agile and Secure System

The go-live of SAP S/4HANA was executed smoothly, with no major issues reported during the hypercare phase. “Precise governance, proactive leadership, and quick issue resolution allowed us to launch our SAP S/4HANA ERP on time, in full, and within budget,” summarizes Serge Lengagne. This was achieved despite challenges such as the global health crisis and the complexity of coordinating numerous internal and external teams.

Beyond the ERP, the project also involved deploying new e-commerce and integration solutions. “Altogether, this project marked a major milestone in our digital transformation strategy. We now have real-time visibility of our inventory, both in stores and warehouses, allowing us to serve our customers more efficiently.” All sales data, regardless of channel, is centralized in SAP Customer Activity Repository (CAR), enabling proactive stockout risk management.

Naturally, the new system is also connected to the group’s SAP financial ERP at its Tokyo headquarters, providing full visibility into the French operations. Finally, the SAP S/4HANA implementation provided an opportunity to review and modernize key processes. “We’re still far from having unlocked the full potential of SAP S/4HANA. Over the coming years, we plan to explore new features that will allow us to differentiate ourselves and drive growth. Our ERP will be a key enabler and accelerator of our future success,” concludes Serge Lengagne.