How Lufema Unified Multi-Entity, Multi-Channel Fashion Operations with Uphance
Company Overview
Lufema is a leading Australian wholesale apparel distributor with over 45 years of industry experience. This family-owned company exclusively distributes 16 international fashion brands and serves more than 600 boutique retail accounts across Australia and New Zealand.
Lufema operates multiple business entities, managing both a distribution arm and a local manufacturing operation in Sydney. This multi-entity structure, combined with multi-channel sales (wholesale B2B and potential e-commerce), created operational complexity.
As the business expanded, Lufema recognized the need for a modern apparel ERP solution to unify its fashion inventory management and streamline all aspects of its operations. This Uphance case study explores how Lufema implemented Uphance to modernize its multi-entity, multi-channel fashion operations.
Business Challenges
Before adopting Uphance, Lufema faced several operational challenges:
- Siloed Systems & Data: Inventory, orders, and production information were managed in disconnected systems (spreadsheets and basic software). There was no single source of truth for critical data, making it difficult to get a consolidated view of the business. This lack of a unified fashion inventory management system led to duplicate work and occasional data inconsistencies.
- Multi-Warehouse Visibility Issues: Lufema stored products across multiple warehouses, but without an integrated platform it was hard to track stock levels in real time at each location. The team struggled to manage transfers and balance inventory between warehouses, increasing the risk of stockouts in one location while surplus remained in another.
- Complex Multi-Entity Operations: Running both a distribution business and a manufacturing unit meant processes were fragmented. For example, locally produced apparel inventory had to be manually added to the distribution stock. The absence of a unified system for production and distribution caused delays – finished goods were not immediately visible as available stock for orders.
- No Omnichannel Integration: The company’s sales channels were not unified. Wholesale orders from boutique retailers were handled via emails and phone, while any direct online sales (if they occurred) were separate. This made true omnichannel fulfillment impossible – Lufema couldn’t easily aggregate orders across channels or ensure that online sales reflected current warehouse stock.
- Manual Processes & Errors: Without a dedicated wholesale fashion software platform, many tasks were manual – from writing sales orders to updating inventory and invoicing. This manual workload was time-consuming and prone to human error. It also limited Lufema’s ability to scale operations, as adding more brands or customers would have required significantly more administrative effort. Reporting was another pain point, since compiling sales and inventory data for analysis had to be done by hand.
These challenges highlighted the need for a unified retail operations platform that could support Lufema’s growth and operational complexity.
Why Lufema Chose Uphance
Lufema evaluated solutions and ultimately chose Uphance as the platform to modernize its operations. Key reasons for selecting Uphance included:
- Fashion-Focused Apparel ERP: Uphance is an apparel-specific ERP platform designed for the fashion industry. Its features cater to style/SKU variants, seasonal collections, and production tracking – aligning perfectly with Lufema’s needs as a fashion distributor and manufacturer. This specialized approach gave it an edge over generic ERP systems.
- Unified Platform (All-in-One Solution): Uphance offered a single, integrated system to manage all core operations – inventory, order management, production, purchasing, and warehouse management – in one place. This meant Lufema could replace multiple disjointed tools with one retail operations platform, eliminating data silos.
- Multi-Warehouse & Multi-Entity Support: The Uphance ERP easily handles multi-warehouse scenarios, allowing Lufema to track stock across different locations in real time. The system can also support multi-entity operations (such as separate warehouse or product segments for distribution vs. manufacturing) under a unified account. This was crucial for Lufema to coordinate its Sydney production facility with its distribution warehouses.
- Omnichannel Capabilities: Uphance enables true omnichannel operations. It centralizes all sales channels by connecting wholesale, retail, and e-commerce in one system. For Lufema, this meant that orders coming from boutique retailers, sales reps, or an online store could all be managed together. The platform’s e-commerce integration (e.g. with Shopify or WooCommerce) ensures online orders reflect in inventory counts immediately, preventing overselling.
- Dedicated B2B Wholesale Portal: A standout feature was Uphance’s built-in B2B ordering portal for wholesale clients. Lufema saw value in giving its boutique retail customers a 24/7 self-service platform to browse products, check inventory, and place orders. This wholesale fashion software capability would modernize the buying experience for Lufema’s clients and reduce manual order entry by Lufema’s team.
- Ease of Use and Scalability: As a modern cloud-based solution, Uphance has an intuitive interface and could be accessed by Lufema’s team from anywhere. The learning curve for staff and sales agents was manageable, and the Uphance team provided solid support and training. Moreover, the platform is scalable – it can accommodate Lufema’s growth (more brands, warehouses, or channels) without needing a system overhaul. This future-proofing gave Lufema confidence that Uphance could grow with their business.
- Integration with Existing Tools: Uphance could integrate with Lufema’s other software, such as accounting systems (Xero/QuickBooks) and logistics or marketing tools. This interoperability meant Lufema could maintain a seamless flow of data from the ERP to finance and other departments, further streamlining operations.
By choosing Uphance, Lufema opted for a comprehensive apparel ERP and wholesale distribution platform that was tailor-made for its industry and operational model.
Implementation Process
Implementing Uphance at Lufema was a collaborative effort. The rollout was planned methodically to minimize disruption and ensure all multi-channel, multi-entity needs were met. The process unfolded in several key steps:
- Discovery & Planning: Lufema’s leadership and the Uphance implementation team began with an in-depth assessment of existing workflows. They documented how orders were processed, how inventory was managed across warehouses, and how production data was handled. Together, they defined clear goals for the new system – for example, real-time inventory visibility and unified order management. A phased implementation plan was developed, prioritizing critical functions like inventory and order processing first.
- Data Migration and System Setup: Next, Lufema migrated its data into Uphance. Product catalogs for all 16 brands (with all variants/SKUs) were imported, along with initial stock levels. Customer and retailer data were brought into the CRM module. The team configured multiple warehouses in Uphance to mirror Lufema’s physical warehouse locations and their separate business entities. This included setting up one warehouse for the Sydney manufacturing inventory and others for distribution stock, ensuring the multi-warehouse system in Uphance matched Lufema’s real-world operations.
- Configuration of Modules: Uphance’s various modules were then tailored to Lufema’s processes. The inventory management module was configured with Lufema’s product categories, seasons, and size runs, enabling robust fashion inventory tracking. The order management module was set up to handle wholesale orders in bulk, as well as smaller orders (if any) from an online channel. Lufema also configured the production management features to track its licensed manufacturing output. Additionally, integrations were enabled – for example, connecting Uphance to Lufema’s accounting software for seamless invoicing, and preparing the e-commerce integration (Shopify) in case Lufema launched an online storefront.
- Team Training & Testing: With the system configured, comprehensive training sessions were conducted. Uphance trainers worked with each department: sales representatives learned to enter and monitor orders in the system (and use the mobile sales app if needed), warehouse staff practiced picking and packing using Uphance’s warehouse management features, and the production team learned how to log finished goods. Parallel to training, the team ran tests to ensure the system worked as expected. They processed sample orders across different channels (e.g., entering a wholesale order and simulating an online order) to verify that inventory levels updated correctly and notifications flowed to the warehouse for fulfillment. Any issues discovered in testing were adjusted before full launch.
- Go-Live & B2B Portal Launch: Lufema executed a go-live plan during a relatively slow business period to mitigate risk. On the go-live date, all new orders and inventory transactions were entered in Uphance, and legacy systems were retired. Simultaneously, Lufema rolled out the Uphance B2B portal to its retailer clients. Retail customers received login credentials and training materials on how to place orders online. The portal was branded with Lufema’s identity, offering a professional e-commerce-like experience for wholesale clients. During the first weeks of go-live, the Uphance support team closely assisted Lufema, quickly resolving any hiccups and answering user questions to ensure a smooth transition.
- Post-Implementation Optimization: After implementation, Lufema and Uphance continued to collaborate on fine-tuning the system. They set up custom reports for sales and inventory forecasting. Minor workflow adjustments were made as users provided feedback (for instance, adjusting how backorders are handled or refining the process for transferring stock between warehouses). Over time, Lufema fully embedded Uphance into its daily operations. Monthly meetings with an Uphance account manager helped Lufema discover new features and ensure they were leveraging the platform to its fullest potential. The successful implementation meant Lufema’s operations were now unified and running on a modern, efficient backbone.
Operational Improvements with Uphance
Since implementing the Uphance platform, Lufema has achieved significant results and business impact. Some of the notable outcomes include:
- Higher Inventory Accuracy & Optimization: Inventory counts are now about 99% accurate, up from an estimated 90-95% before. With precise control over stock, Lufema has virtually eliminated errors like selling out-of-stock items. They’ve also been able to optimize inventory levels – carrying about 20% less excess stock than before – freeing up cash flow while still meeting customer demand. The multi-warehouse visibility ensures that every unit of stock is accounted for and can be put to use.
- Scalability and Growth: The unified system has positioned Lufema for scalable growth. In the year following Uphance adoption, Lufema successfully onboarded 3 new brands and over 100 additional retailer accounts without adding extra headcount in operations. The existing team can handle the increased volume, thanks to process automation. This demonstrates how Uphance’s scalability allows Lufema to grow its wholesale and retail channels confidently, without being bottlenecked by operational constraints.
- Data-Driven Decision Making: Lufema’s management now operates with a data-driven mindset. Using Uphance’s reports, they analyze sales trends and stock levels weekly. This has led to better decisions, such as fine-tuning the product mix for each season and improving purchasing forecasts. The ability to identify fast- vs slow-moving items in real time has helped Lufema increase sell-through rates for the brands it distributes – ensuring the right products are in stock at the right time.
Executive Insights
Lufema’s leadership reflects on the transformation and success of the Uphance implementation:
Uphance has given us real-time control over our inventory and orders. We can fulfill wholesale and online orders from multiple warehouses without missing a beat. It’s transformed our fashion inventory management by unifying everything in one place and has eliminated so many manual errors in our process.
Felix Ramirez, Director, Lufema
Implementing Uphance was a game-changer for our growth. Our team can focus on strategic expansion, knowing our multi-channel operations can scale smoothly on the back end.
Marcus Ramirez, Director, Lufema
Conclusion
Lufema’s journey with Uphance showcases how a fashion business can unify and modernize complex operations with the right technology. By deploying a specialized apparel ERP solution like Uphance, Lufema brought together its multi-entity, multi-channel operations into one cohesive system. The case study highlights the power of an integrated retail operations platform in delivering efficiency, accuracy, and scalability for apparel distributors and brands.
In conclusion, Lufema is now better equipped to innovate and grow in the competitive fashion marketplace. The company’s experience is a compelling example for other wholesale and retail brands seeking to streamline inventory management and improve omnichannel fulfillment. With Uphance as a trusted partner, Lufema has achieved a future-ready operation – one that can easily adapt to new business opportunities, confidently manage its broad apparel portfolio, and continue providing excellent service to its retail customers.
For fashion brands and distributors evaluating fashion inventory management or wholesale software solutions, the Lufema case demonstrates that investing in a modern, unified system like Uphance can yield remarkable improvements and set the stage for sustained success.