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SAP Fashion Management 1.

6
Agenda - SAP Fashion Management 1.6

1. Introduction

2. Scope Overview & Core Concepts

3. Manufacturing in SAP Fashion Management

4. Transition & Target Market & Customer Status

5. Roadmap

6. Business Suite Integration

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Introduction
DID YOU KNOW
THAT .

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Fashion Business is being driven by four major forces

Manufacturing flexibility Asynchronous seasons, Customers know brands - Fashion Retailers move to
to deploy rapidly and themes not channels Wholesale and
globally More styles Customers need consistent Manufacturing to gain better
Customer globalization in Segment regional and interaction with their control, brand image and
new markets open up
localized seasons and preferred brands quality
new channels in new
trends look local think Smartphone adoption Fashion Manufacturers
markets simultaneously
Sustainable operations and global accelerates multiple /Wholesalers are moving into
manufacturing Fashion companies move consumer buying journeys retailing to increase revenue,
parts of their production Mass customization margin and brand image
closer to consumers to becomes mass
enhance responsiveness personalization

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Scope Overview & Core Concepts
Retail specific functionality
Scope Overview Retail, Wholesale, Manufacturing functionality
* beyond FMS 1.6/ FMS 2.0
# new concept

Article Segment- Customer Vendor Site Bill of Value Season,


Size Con-
Master Data Master ation Master Master Master Material Routing Added Collection,
Theme #
version
Services #

Listing,
Retail Retail In-Store
Merchandising Assortment
& Layout
Pricing
Promotions Markdowns MIM

Sales Sales ATP, Re- Allocation


Shipping Billing
POS
Order Scheduling Run Outbound
(O2C)

Size Retail Replenish-


Planning PIR
Distribution*
MRP
Allocation ment / VMI

Procurement Purchase Purchase Subcon-


ASN
Invoice
Requisition Order tracting Verification
(P2P)

Markers Valuation/ Order


Planned Production
Manufacturing Order Order
Production
Lots*
Product Information
System
Costing

Merchandise Goods Inventory Warehouse


Inventory Management Distribution Receipt Mgmt. Mgmt

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SAP Fashion Management - Overview

What is SAP Fashion Management?

SAP Fashion Management is a multichannel, vertically integrated solution covering wholesale, retail and
manufacturing processes on one backend system based on SAP Merchandising for Retail running on SAP HANA.

Key capabilities:
ECC
SAP Fashion Management
Single set of master data
SAP Merchandising for
Retail Global inventory visibility
Common sourcing, buying and manufacturing
SAP ERP 6.0
Capabilities for stock segmentation and stock pooling across
SAP HANA Platform channels
Multi-channel Material Requirements Planning (MRP Live)
Business Suite Components from SAP AFS and SAP Retail Production Control Workbench
Order allocation run for optimized demand / supply match
Click here to start the SAP Fashion End-to-end processes with capabilities for style/colors/sizes
Management animated video Benefits from SAP HANA

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Core concepts in SAP Fashion Management (1/3)

blue green red


Fashion product
Waist
Generic articles with up to three dimensions, can be structured (set, display, prepack, customer Inseam 31 32 33
assortment Non-Production BOM) 30 x x

Usage along all processes 31 x x x


32 x
Characteristic value conversion
Bill-of-materials and routing for fashion products

Season, collection, theme 2015 / summer /


Multiple seasons / collection / themes can be assigned to a product men casual /
Season master data can be used to determine the purchasing and sales period of the product sailing
Manufacturing, purchasing and sales documents carry season information
Season handling in production order

Value added services (VAS)


Additional services attached to a product prior to delivery, such as ironing, labeling, special
packaging
Typically, separate costs for such services will be charged
Automated determination by standard condition technique

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Core Concepts in FMS
Fashion product

Fashion product
Fashion products (generic articles) with up to three dimensions such as color, size, or drop can be
managed efficiently with FMS throughout the different processes.

1 Dimension: Shoes 2 Dimensions: Jacket 3 Dimensions: Jeans


Size 8 9 10 11 12 Size Blue Black
6 8 10 12 14
Color
Waist
28 30 32 34
Blue
Inseam

Red 28

29

30

31

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Core Concepts in FMS
Season, Collection, Theme

Season, Collection, Theme


All processes are controlled by season, collection and theme. Each fashion product can be assigned
to one or multiple seasons and the season master data determines the purchasing and sales period
of the product. Purchasing and sales documents will always carry the season information and also
inventory can be split by season if desired.

Purchase Sales
Order Order

2014 / summer / men casual / sailing Order window Order window Sales window
Delivery window Delivery window Store delivery window

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Core Concepts in FMS
Requirement and stock segmentation

Demand (requirement) and supply (stock) segmentation


Segmentation in FMS offers the possibility to categorize demand as well as supply based on logical
and/or physical aspects of a product. Quality and country of origin are typical physical aspects which
require segmentation. Logical aspects could be the sales channel or even specific customers for
which the product quantity is intended.

Physical
Quality Quality 1 Quality 2

Country of Origin

Mexico China India

Logical
Customer Customer A Customer B Customer C

Channel Retail Wholesale Web

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Core Concepts in FMS
Value Added Services

Value Added Services


Value added services represent additional services to a fashion product on the way from production to
sales. Typically a vendor will charge a separate cost for a service such as labeling or ticketing.

Sales Order
Delivery
Billing
Purchase Order
Stock Transport Order
Special Orders
Vendor Invoices
Etc.
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Core concepts in SAP Fashion Management (2/3)

Country of origin
Segmentation
Categorize demand and supply elements by logical
and/or physical aspects of a product
For example: Quality, dye lot, country of origin Country A Country B Country C
physical segmentation
For example: Sales channel (e.g. Retail, Quality
Wholesale, Web shop) logical segmentation
Segmentation information is carried along the E2E
process chain, such as:
Quality A Quality B
Material Requirements Planning (MRP)
Available to Promise (ATP) Sales channel
Order allocation
Inventory visibility
Production order
Pricing at segmentation level (wholesale)
Retail E-commerce Wholesale

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Core concepts in SAP Fashion Management (3/3)

Material Requirements Planning (MRP)


Ensure material availability in requested quantity and time
Match demand and supply on distribution center/plant level
Create proposals for procurement or manufacturing
Create one joined document across all channels by using grouping
functionality Stock on hand
Consider segmentation

Order Allocation
Assign stock elements to customer or store orders and fix these
assignments
Future receipts
Ensure optimized stock usage and improved customer service
Consider stock on hand and future receipts from procurement and
manufacturing
Consider segmentation

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SAP Fiori Apps within SAP Fashion Management

SAP Smart Business for the role of SAP Fiori apps for the role of
Allocation Manager Buy-Planner

Three analytical apps (Order Allocation): Two transactional apps:

Top articles by status Plan procurement


Open orders: Total orders by status Purchase requistion processing
Open orders: Total orders overview

Required SAP products: Required SAP products:

SAP Fashion Management 1.0, SP03 SAP Fashion Management 1.0, SP04
SAP SMART BUSINESS FOR FM 1.0 SAP FIORI FOR SAP FM 1.0

Online help Fiori Apps Library Online help

Release Information Note: 2143110

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Manufacturing in SAP Fashion Management
Manufacturing high level scope at a glance
Master Data:

Fashion BOM and routing


Enablement of segmentation in manufacturing master data (article, BOM, Routing)
as well as documents (planned and production orders)

Production Execution:

Master planned orders and master production orders with multiple variants
Production control workbench - one central transaction to handle individual or
master planned orders and master production orders

New Processes for SAP Fashion Management 1.6:

Subcontracting as external operations in production orders


Fixed batch assignment of components to production orders
Season handling in production orders
Consideration of production orders as future stock during Order Allocation Run
Exclusion of make-to-order (MTO) during Order Allocation Run possible

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Why do we need to harmonize? Some examples

Demand Planning Sourcing and Inventory Distribution

Retail Store
Retail
Planning/
Retail

Order Retail GR Allocation STO


purchasing list items DC to store
list PO
Retail would Store
MRP would not 3 allocate based
1 create new PO on GR quantity
for wholesale but no inventory
demand may be left for
stores
ARUN has no 2
Wholesale

visibility of retail
Forecas- demand and would Sales ARun Customer
Customer MRP
ting allocate supply to order
demand
wholesale sales
order only
Advanced ordering, customer-specific products
Customer

Analysis/Reporting
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How would a harmonized fashion process look like?

Master Data

Demand and Supply Planning Procurement and Inventory Sales and Distribution

X X
Seasonal
Procurement

OAPC

Assortment PIR Retail Retail Store STO B2C Sales


Planning Allocation Replenishment Order

Stock, Arun
Inventory ATP, ARun Outbound
MRP PO ASN Stock Reservation ARun
Management Re-Scheduling Delivery
Segments Table

Demand B2B Sales


Planning PIR
Order

Sales
Contract

B2B Sales
Order

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Production relevant master data in fashion

Characteristic
Profile/
Segmentation Seasons Pricing
Merchandize
category

Article master Value


(Generic Article, Business
Variants, single partner added
article) services

Basic data in Generic


Generic
the area of Article BOMs
Article
Routings
production
planning and Bill of
materials
Routing

control
Bill of Material for Generic Article and its Variants
Routing for Generic Article and its Variants
Segmentation in Bill of Material and Routing
Help Portal
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Fashion Bill of Material (BOM)

Bill of Material (BOM)


List of components that make up a product Variant Fashion Fashion
Common
List contains description, object number of BOMs specifics maintenance BOM
each component, quantity and unit of
measure

Jeans (S) Jeans (M) Jeans (L)

Stretch
Denim Denim
Denim
1.2 m 1.5 m
1.1 m

Zipper 1 Buttons 5 Button 5

TA: CS01 Help Portal

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Fashion Routing

Routing:
Description of which operations have to be carried
out and in which order to produce a material
Contains details about work centers and Standard
Enhanced
user
Fashion
routing routing
required production resources and tools interface

Fashion routing includes:


Enablement of segmentation on header level of article master
Material assignment using generic article
Component assignment using Fashion BOM details

Routing A
Quality
Cutting Sewing
Group counter 1 inspection
Stock segment MLABEL
Time

Routing B Quality
Cutting Embroidery Sewing
inspection
Group counter 2
Stock segment PLABEL
Help Portal
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Production Control Workbench (PCW)

Production Control Workbench manages the entire production cycle


from one single processing window
Functions: Master planned order
Manual creation using variant matrix
Production Control
Component Overview
Workbench (PCW)
Schedule
Master planned order Master production order
Availability Check
Conversion to master production order
Planned Production
Order Order
Functions: Master production order
Planned Production
Order Manual creation using variant matrix
Order
Component Overview
Planned Production Availability Check
Order Order
Release of Production Overview
Confirmation
Goods Issue
Planned orders are converted into pro- Goods Receipt
Planned orders are created
in MRP or manually in PCW duction orders or are created in PCW Technically complete
Master planned order = Master production order = Close
TA: FSH_PCW group of planned orders group of production orders Help Portal
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Fixed Batch Assignment in Production Order

Avoid color deviations Reserved

Ensures that same roll of fabric or rolls


with identical color and shading are
used for individual pieces of the fashion
article
Prevents other orders stealing from
each-other
batch number 0815

Production
Order

Batch
Assignment
batch number 0816

Help Portal
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Subcontracting Process Overview

Subcontracting process:
Purchasing Inventory Mgmt Invoice Verif
1. Components are sent to a subcontracting vendor

Own company
2. Subcontractor adds value by performing a PurchOrder
Invoice
Storage location
production operation SC order item
Service
operation
3. If production operation complete, end products Comp
delivered to original plant Comp Provision of
GR of
produced
component Invoice
4. Subcontractor sends invoice material
check

Usage of semi-finished or raw material


From own stock or third-party-provision

Subcontractor
Offers visibility of components provided to Settles
Waits for Adds value by
subcontractor provision of performing an service
Standard subcontracting enhanced by fashion component operation performed

specific info, e.g. segmentation


Subcontracting included in Order Allocation
Help Portal

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Transition & Target Market & Customer Status
Implementation Paths to SAP Fashion Management

* Optional data migration from SAP AFS


to SAP Fashion Management with Data Transfer
and Migration Tool

From SAP Apparel and Footwear + SAP


+ SAP Fashion Vertical platform on
Solution (SAP AFS) SAP AFS + SAP HANA Merchandising for
Management SAP HANA
Retail

+ SAP
+ SAP Fashion Vertical platform on
From SAP Merchandising for Retail Merchandising for + SAP HANA
Management SAP HANA
Retail

Net new + SAP


SAP Fashion Management with + SAP Fashion Vertical platform on
+ SAP HANA Merchandising for
Retail operations Retail
Management SAP HANA

Net new
+ SAP Wholesale platform
SAP Fashion Management without + SAP Fashion
+ SAP HANA Merchandising for
Retail operations Management on SAP HANA
Retail**

** SAP Merchandising for Retail as technical platform only no licensing required

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SAP Fashion Management Target Market

Geography Industries Product Segments Businesses


Global - with Retail Fashion Net new customers whose business spans
restrictions Consumer Products Apparel and Footwear more than one level of the supply chain and/
depending on (Fashion) Non Food drugstores, DIY, or multiple channels, also including
languages electronics etc. manufacturing
available
Existing customers with both AFS and
Retail installations wishing to integrate their
businesses more closely

Existing SAP AFS customers wishing to


expand their business into other levels of the
supply chain or to work across multiple
channels

Existing SAP Merchandising for Retail


customers with multi-channel business
and/or wholesale business wishing to expand
their business upstream

Supported Languages: DE, EN, FR, IT, ES, PT, JA, RU, ZH (simplified Chinese), TR

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Customer Status CW01, 2016

Key Messages:

Very high interest for SAP Fashion Management in the market


Many customers want to adopt the solution: already sold to 29 customers
First customer in China: 361
3 live customer already:
Giorgio Armani (co-innovation customer) live on FMS 1.0 since Nov 2014, want to use FMS 2.0 with production later in
2016
Kering Eyewear (FMS on HEC)
Luxottica US (co-innovation customer) live with Oakley FMS-Retail for their retail business using parts of FMS in preparation
for full wholesale in 2016
Planned Go-lives 2016:
Pianoforte - Jan 2016
PVH (Calvin Klein & Tommy later in 2016) May 2016
Asics, May 2016
Burberry, May 2016
Brooks Bros, May 2016
Calzedonia, Aug 2016
Armani go live Manufacturing in Aug 2016

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FMS Customers Since May 2014 (CW01, 2016)

+ Consulting
Companies

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Roadmap
SAP Fashion Management - History

SAP FMS 1.0 SAP FMS 1.5 SAP FMS 1.6

Fashion Wholesale Enhanced Wholesale Enhanced Wholesale


Master Data Functionality Functionality
Inventory and Fiori Buy Planner
Coverage strategies for
Segmentation Application
MRP
MRP and MD04 for Subcontracting
WM enablement
Fashion Application variants
Coverage strategies for
Order 2 Cash (incl. ARun, (sales/purchasing grids)
ATP
ATP) Material Ledger
Parallel ARUN and ARUN
Fiori App for Allocation preview Manufacturing
Manager
Support for CITES Master data, BOM
Procure 2 Pay
Usability improvements for Manufacturing planning
Retail Integration master data Make-to-Order
Retail Harmonization 1 Subcontracting
Business Suite Integration 1 Retail Harmonization 2
Ramp Up Start Date: May 16th 2014 Business Suite Integration 2
GA: Dec 11th 2014

SAP Fashion
Management
FMS Migration Tools FMS Migration Tools
integrated in
SAP FMS = SAP Fashion Management Solution SAP ECC 6.0 EhP8
FMS 1.x is an add-on to SAP ECC 6.0 EhP7
FMS 2.x is integrated in SAP ECC 6.0 EhP8

May 2014 Jan 2015 Oct 2015 Q1 2016

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Insight to Action ARUN Analytics Cockpit FMS 2.0*

Insight to Action (ITA) is a detailed reporting tool

Main tasks are:


Monitor and analyze allocation results
Check for exceptions
Perform appropriate actions

Possible functions:
Assess allocation situation (existing allocation and unallocated requirements)
Report exceptions:
Deviation in delivery dates and/ or
Deviation in quantities of orders
Customer exceptions
Email person responsible for exception
Adjust allocation results (allocate, deallocate, release, block, delivery creation, etc.)
Drill-down for Demand and Supply in output report
Configure drill down levels as per business requirements

* Insight to action is available with FMS 2.0. It can partially be implemented already with FMS 1.6.

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Distribution Curves FMS 2.2

40 pc
Purpose and Usage:
Distribute quantities at generic article
25 pc level to individual variants
Used in sales orders, purchase
140 pc 75 pc orders, stock transport orders, PIR

Maintenance:
Maintained in master data with regular updates
Quantity ratio can be maintained for characteristic profiles or for individual characteristics
Stored on AH level, merchandise category or generic article level

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Vendor Consignment FMS 2.2

Goods are ordered from external


vendors as vendor consignment
goods. They are carried in vendor
consignment stock on your site,
but remain property of external
vendor and do not belong to your
valuated stock.

Enhancement of standard
concept by segmentation
Vendor consignment
considered during order
allocation

Help Portal
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Multi Ship-to Orders FMS 2.2

Delivery
Multi Ship-to Order:
Special order type in
Ship-to A which the sold-to-party
orders for any number of
Sales Order
ship-to customers

Invoice Ship-to B
Head office
Manufacturer

Ship-to C
Delivery

Delivery

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Business Suite Integration
SAP Fashion Management
Business Suite integration general guidance

In general, SAP Fashion Management (release 1 and 2) will support the existing level of
integration as was available with Retail or AFS (at point of development start) with other
Business Suite Solutions (CRM, SCM, BW and others).
Existing interfaces will be reused to avoid release dependency for other suite components. FMS
should not require an upgrade of other suite components in order to use them in the same way
than today.
Integration with additional (new) solutions (e.g. CAR, hybris) is available or part of a future
roadmap. Also part of this roadmap is the enablement of the Business Suite with fashion-
specific capabilities (such as fashion article, season, segmentation) where it is required to
support an integrated process.
Exceptions and some restrictions exist

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SAP Customer Activity Repository Building Blocks
*) optional co-deployments SAP SAP SAP SAP Merchandising
SAP
(SAP and Partners) Partner Promotion Assortment Allocation for Retail
Merchandise
**) future scope Applications Management Planning for Management
Planning
for Retail Retail for Retail** SAP Fashion
Management
SAP Merchandising
for Retail SAP Customer Activity Repository (CAR)
Master Data SAP Sales
SAP HANA Live - Analytics Insights for
SAP HANA (in-memory computing) Retail
Sales Documents
Store SAP hybris
POS Data Unified Clustering
Inventory Inventory Marketing*
Transfer & Demand Visibility
Audit Forecast
Product
Point of Sale Attributes SAP Business
Sales Multichannel Demand On Shelf
Transactions
Warehouse*
sales Data Availability
transactions Algorithms Distribution
Foundation
SAP CRM Curve Analysis**
Other
Customer Data applications*

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Hybris Integration with SAP Fashion Management

Hybris
Hybris PCM:
Support integration of fashion article (style level) to Q1, 2016
represent a style in product catalog
Hybris PCM:
Q1, 2016
Integration of rich product attributes shall be provided
Hybris Commerce:
Integrate hybris with CAR for real-time availability
Q2/2016
information during browsing as well as inventory checks
during check-out
Hybris Commerce:
Fashion specific integration support is planned for future
releases (e.g. sales contract, use of distribution profiles tbd
in hybris, future inventory at grid level, cart reservation,
pre- vs. re-order scenario)

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Thank you
adidas Group: Staying Ahead of Consumer
Demand with SAP Fashion Management
Company Objectives
adidas Group Drive growth in the e-commerce market
Unify e-commerce, wholesale, and retail business units with simpler, standardized IT
Visibility
Complete visibility from the factory
Headquarters Stay ahead of consumer demand to the shop floor and
Herzogenaurach, Germany Become a true omnichannel business e-commerce channels
Industry Why SAP
Consumer products SAP Fashion Management application, meeting industry-specific and unique business
needs
Insight
Products and Services SAP solutions as the backbone of the groups global supply chain system Point-of-sale data analysis that
Sporting footwear, apparel, and Real-time data access, reporting, and analysis with SAP for Retail solutions and SAP
provides a better understanding of
Business Warehouse powered by SAP HANA
consumers, helping replenish
equipment shelves with the best-selling
products and increase cross- and
Employees Future plans up-sell opportunities
>50,000 Accelerate the delivery of customized merchandise
Move from near-real-time to true real-time and vertical business processes
Revenue
14.5 billion
Improve forecasting to better anticipate what consumers will want tomorrow, in a week,
and a month down the road
Speed
Move toward cloud deployment models to save time and money on new implementations Significantly faster nightly
replenishment and allocation runs
Web Site
www.adidas-group.com
www.adidas.com

"With SAP Fashion Management and SAP HANA, we will be able to


greatly improve our consumers experience. The solutions will help us
become a truly omnichannel organization and provide us with insights to
better anticipate consumer demand both today and in the future.
Kai Bienmueller, IT Director for Wholesale ERP Solutions, adidas Group 32807 (14/10) This content is approved by
the customer and may not be altered
under any circumstances.

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Under Armour: Finding a Simple Solution
to a Complex Problem with SAP HANA
Company Objectives
Under Armour Inc.
Deliver products to retailers faster and improve fill rates
Stay on top of supply and demand that changes by the hour
Increase
Headquarters Overall business control
Maximize customer satisfaction without apparel sitting unprofitably on shelves
Baltimore, Maryland
Help athletes perform better, connect to their communities, and achieve fitness
Industry
goals
Anticipate
Retail apparel and footwear Why SAP Changes in supply and
Cutting-edge in-memory computing technology only available with the SAP demand and take immediate
Products and Services HANA platform action
Performance apparel,
footwear, and accessories Resolution
Allocations that can be run anytime, rather than overnight or over the weekend Deliver
Employees Optimization for revenue and fill rate The right product to the right
33,000 Ability to run different scenarios for different initiatives place, right away
Real-time business operations, enabling a Run Simple approach
Revenue
US$2.3 billion Future capabilities Improve
Visibility into each customers fitness footprint and workout habits using Customer satisfaction
Web Site information from wearable technology, product preferences, buying history,
www.underarmour.com and likes and dislikes
Personalized advice and information to help push athletes to the next level
Predictive analytics to identify customer needs at any moment now and in
the future

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