SAP AFS and SAP For Retail Integration

Driving Growth Through
SAP AFS and SAP Retail

Integration
SAP AFS Customer Status January 2006

SAP AFS & SAP Retail Business Evolution
Technical Integration
Case Study: Oakley A World Brand
Further AFS & Retail Customer Examples
SAP AFS Customers Status January 2006
Adidas
(Germany)
Asics
(Japan)
Brioni
(Italy)
Cole Haan
(United States)
Alpargatas Group
(Brazil)
Atateks
(Turkeu)
Ambro Holdings
(New Zealand)
And 1
(United States)
Bauer Nike
Hockey (Canada)
Bejing Li-Ning
(China)
Bruno Magli
(United States)
Burberry
(United Kingdom)
Courtaulds Clothing
(Sri Lanka)
Crystal Group
(Hong Kong)
SAP AG 2006, Driving Growth Through SAP AFS & SAP Retail Integration
Calida
(China)
CSP Intl
(Italy)
Artisana
(Italy)
Benetton
Arvind Mills
(India)
(Italy)
Calzados G iovania
(Mexico)
Cutter and Buck

(United States)
Boyner Holdings
(Turkey)
Camper
(Spain)
DPortenis
(Mexico)
DeRigo
(Italy)
Fashion Box
(Italy)
Dolfuss, Mieg & Cie

(France)
Ecco
(Denmark)
Embry Group
(China)
Esquire
(Korea)
Eurodress
(Germany)
Fila
(Italy)
Fornari
(Italy)
Foschini
(South Africa)
Fossil
(United States)
G & A Jewelry
(United Kingdom)
G & K Services
(United States)
Global Brands
(United Statees)
Head Tyrolia
(Austria)
Hugo Boss
(Germany)
Hwa Seung Vina

(Vietnam)
Imagemark
(United States)
Industrias
Piagui
(Mexico)
Induyco
(Spain)
Jones Apparel
Group
(United States)
Kenneth Cole
(United States)
Koos of Course
(United States)
Justin Brands
(United States)
Kwintet
(Denmark)
Limited Brands
(United States)
Lucia
(Germany)
Madura Garments
(India)
Marcolin
(Italy)
Marzotto
(Italy)
MAS Holdings
(Sri Lanka)
Mascot
(Denmark)
Mast Industries
(United States)
Muratacho
(Japan)
Napapijri
(Italy)
Natural Textiles
(India)
Nike
(United States)
Oakley
(United States)
OP Profashion
(Czech Republic)
Peerless Clothing
(Canada)
Pentland (United
Kingdom)
Playcorp
(Australia)
Marui
(Japan)
Levi Strauss
(United States)
Prada
(Italy)
Preca Brummel
(Italy)
Pantaloons
(India)
QVC
(United States)
Reebok
(United States)
Riddell Bell
(United States)
Rusty
(Australia)
Saez Merino
(Spain)
Schiesser
(Germany)
Scott Sports
(China)
Shanghai Three Guns

(China)
Swiss Army
(United States)
Tainan Enterprise
(Taiwan)
Vera Bradley
(United States)
VF Corporation
(United States)
Tommy Hilfiger
(Netherlands)
Warnaco
(United States)
Salamander
(Germany)
Samsonite
(United States)
Sports Supply
Group
(United States)
Stonefashion
(Netherlands)
Superior Uniform
(United States)
Uhlsport
(Germany)
Uhlsport
(Germany)
Under Armour
(United States)
Wolverine
(United States)

SAP for Apparel & Footwear (AFS)

SAP AFS covers the entire wholesale process from conception
of new collections and styles to collaborative planning and
forecasting, sales and distribution, product allocation,
procurement and manufacturing of finished goods and
components as well as subcontracting.
96+ customers worldwide use AFS ERP Processes end to end
SAP for Retail
SAP for Retail covers the entire retail process from merchandize
assortment planning, forecasting, replenishment, promotional
execution and management of a companys own Retail Stores.
Apparel & Footwear: Business Trends

Verticalization
Factory
Factory
Verticalization
Store
Store
Fashion/Apparel
CPG Company
Apparel and Footwear Companies

with Wholesale & Retail Channels
Design, develop, manufacture/

source and sell goods to B2B
wholesale customer(Retailers)
Design, develop, source and

sell goods to B2B wholesale
customers and to consumers
through own retail channels
Vertical Fashion
Retailer
Design, develop, source and

sell goods to consumers through own retail channels (B2C)
French Connection
French Connection
SAPs Fashion Solution Landscape 2006
Orders / VMI
Collaborative
Forecasting
AFS 5.0
ECC 5.0
Products
Supply
Planning
Store Planning
Consolidated
Financials
Human Resources
Corporate Services
Integration
via
Business
Intelligence
SAP Netweaver
Customer Orders
Retail
ECC 5.0
Local Purchase Orders
IS-AFS Landscape
MDM
PLM
IS-Retail Landscape
SRM SCEM
CRM
POS/DM
Store
B2B / B2C Triversity Management
Business Intelligence(BW)
SAP Netweaver
Forecast &
Own Stores
Production /
Purchasing
Merchandising
SCM
SEM BPS & Assortment Replenishment MDM
SNP
Planning (MAP)
(F&R)
Store Operations
Customers
Stores
VMI
Vendors /
Factories
GTS
SCM SCM
RR
DP
GTS

System Landscape
Stores
POS Main Server
Back Office
POS Interface
In Store
POS
In Store
POS
In Store
POS
In Store
In Store POS
POS
In Store
POS
SAP
Retail
In Store
POS
In Store
POS
Orders
Financials
Master
Data
Sales
In Store
POS
BW
SAP
AFS
Dual Environment
SAP AFS & SAP Retail Two separate instances

SAP Apparel & Footwear (AFS) and SAP for Retail can not
coexist on the same instance of SAP.
The two-systems approach often fits very well to the multi
channel wholesale and retail company.
SAP provides a standard out-of-the-box AFS to RETAIL
interface for master data.
Communicating between two SAP systems is facilitated

through Netweaver: RFC, ALE and standard EDI.
How It Works with SAP ERP
The two systems handle data differently and have different databases.
However, these differences are not visible to the end user. Due to the
virtually constant data flow between the two systems, their databases
appear identical. The data exchange occurs via Netweaver (IDOCs).
AFS & Retail Shared Master Data Flow
PLM
Standard ALE communication is used for the distribution of the AFS

material master to the SAP Retail article master.
AFS SKU and Article Master linked by UPC

Master Grid POLO
AFS Material Master
Material:
Polo-33
Master Grid:
POLO
Plant:
0001
UPC #123456
XL L
BLU X
X
BLK X
X
GRN
...
X
X
Article Masters
Standard AFSRetail Interface
AFS Material is created first
Auto Copy to Retail
AFS Size and Retail Article share same UPC
Transaction communication is via IDOC

and UPC. E.g. Retail PO #850 becomes SO in AFS
BLK XL
...
Generic Article
POLO-33
Basic Data Distribution
SAP Retail merchandise categories and related data copied to AFS.

Distribution of the basic data from the AFS material master to the basic data of the
Retail article master (with variants if the material is assigned to a grid). Each variant in
SAP Retail has its own article master.
Translation of the AFS sales price into the SAP Retail purchase price using ALE
(transmitting the info record and the conditions).
Purchasing & Sales order flow
Triggering workflow for the listing procedure when creating a new article.
Sending purchase order from SAP Retail to AFS sales order via EDI.
Sending shipping notification from AFS to SAP Retail via EDI.
Sending invoice from AFS to SAP Retail via EDI and executing invoice verification in
the Retail system.
AFS & Retail Shipping Notification
After sending the delivery document to the Retail system, the user can
create the corresponding invoice document.
AFS & Retail Shipping Notification
Once a sales order has been created and allocated in the AFS system, the delivery
document can be created.
The delivery documents in the AFS represents the shipping notification in the Retail
system.
AFS-Retail Summary Process Flow

SAP AFS
ORDERS
Generate sales order
SAP for Retail

Create purchase order
Post goods receipt
Vendors
A/P
FI document: Finished goods
Perform ARUN
MBGMCR
Customers
A/R
Create delivery/Goods issue
Generates goods receipt
FI document: Finished goods

FIDCC1
FI document: Trade goods
Sales: Creates goods issue

FIDCC1
Real
Estate
APO
GTS
FSCM

Oakley Worldwide I
Oakley Retail
O Store - 32 locations
Oakley Vault - 10 locations
Average store size is 2,700 square feet
Oakley a powerful global consumer

brand with a leading sunglass
position
Distribution diversification through
new strategic retail partnerships
Continued expansion of Oakleys

retail store concepts
Oakley Retail Worldwide

Subsidiary owned Japan, Australia, UK,
Germany
Franchise Chile, Spain
Oakley Iacon
Sunglass specialty stores acquired by Oakley in
2001
86 mall-based stores/kiosks
Different retail concepts under the names
Sunglass Designs, Sporting Eyes, Ochialli Da
Sole, Oakley Icon, and Sunglass Club
SAP Retail Implementation Scope

SAP Retail
Retail Master Data Management
POS Integration RetailPro (Island Pacific)
Sales Audit
Purchasing
Store Inventory Management
Replenishment
Return-to-vendor Process
Physical Inventory and Cycle Counting
Retail Reporting
SAP Footprint @ Oakley

Oakley deploys SAP for Apparel Footwear
myERP ECC AFS5.0:
FI, CO, SD, ARun, MM, WM, LE, PP, PM
BW 3.5 + AFS Content
SEM 4.0
CRM 4.0
SCM 4.0 Demand Planning
Oakley deploys SAP for Retail:
myERP Retail
Oakley Worldwide II
Before SAP for Retail
Regular sales order flow for
capturing sales
Extensive use of manual
processing
Use of custom enhancements
and interfaces
Limited capability in
replenishment
Inventory inconsistencies
No systematic planning
capabilities
Extensive lead times between
actual transaction and back office
replication
With SAP for Retail

Automated POS integration for
sales, goods movements, and
financial transactions
Automated replenishment
Retail-specific transaction-level
reporting capabilities
Improved inventory tracking and
visibility
Shortened store opening cycles
Improved master data maintenance
and consistency
Business shift from data entry to
exception management
Have a scalable solution that can
support future growth
SAPs Fashion Solution Landscape 2006
Orders / VMI
Supply
Planning
Store Planning
Production /
Purchasing
Vendors /
Factories
Collaborative
Forecasting
AFS 5.0
ECC 5.0
Products
Consolidated
Financials
Human Resources
x
Corporate Services
Integration
via
Business
Intelligence
SAP Netweaver
Customer Orders
Retail
ECC 5.0
PLM
IS-Retail Landscape
SRM SCEM
CRM
POS/DM
Store
B2B / B2C Triversity Management
x
Business Intelligence(BW)
SAP Netweaver
Local Purchase Orders
IS-AFS Landscape
MDM
Forecast &
Own Stores
VMI
Merchandising
SCM
SEM BPS & Assortment Replenishment MDM
SNP
Planning (MAP)
(F&R)
Store Operations
Customers
Stores
GTS
SCM SCM
RR
DP
GTS

ecco (Denmark)
ECCO is a Danish footwear company that grew from simple beginnings in rural
Denmark to become one of the most intriguing competitors in the fiercelycompetitive footwear industry. Although still privately-owned, ECCO has grown
exponentially: Today, 9,000 employees around the world produce more than 12
million pairs of shoes every year.
5 production facilities (in Denmark, Slovakia, Indonesia, Thailand, and Portugal)
3,000 retail shops worldwide.
SAP customer since 1999
with:
AFS SD, ARUN, MM, WM, FI, CO
Global Roll Out: 18 sales subsidiaries
live, China ongoing
Future SAP Retail Potential:

3000 Stores incl. Shop in Stores in 46
Countries
Fossil (USA) I
Fossil is a design, development, marketing, and distribution company that

specializes in consumer products predicated on fashion and value. The
company's principal offerings include an extensive line of fashion watches sold
under the company's proprietary FOSSIL, RELIC, and ZODIAC brands, as well
as licensed brands for some of the most prestigious companies in the world. The
company's products are sold in department stores and specialty retail stores in
over 90 countries around the world.
This centralized infrastructure gives us the
flexibility we need to handle the differing
SAP AFS customer since 2002: Sales,
operating models within each country and then
Purchasing, Inventory Management, Warehouse
also within the wholesale and retail divisions.
Management, Finance and Controlling, Data
Warehouse, Planning (APO DP)
Truly global with multi-language, multi-currency,
SAP Retail implementation ongoing
and multi-company functionality
140 stores worldwide
One version of the truth is critical to a retailer
and wholesaler
The centralized approach allows us to maintain
quality in control, while operating with a leaner
staff
Fossil (USA) II
It is impossible to ignore the internal integration between AFS

and SAP Retail. And also, SAP really cannot be beat when you're
trying to operate a global business. Everyone else tries to really
have a truly global solution, but nobody really comes close to
SAP in that area. Those became our two deciding factors.
Michelle Piotrowskii, Project Manager, Fossil
Hugo Boss
The HUGO BOSS group is represented in the fashion market by its brands BOSS, HUGO
and BALDESSARINI. The collections behind these brands and their lines are designed to
appeal to different target groups, and each of the brand worlds offers the largest possible
fashion diversity at a consistently high quality standard. The BOSS core brand comprises
the lines BOSS Black, BOSS Selection, BOSS Orange and BOSS Green and their
corresponding accessory collections.
Reasons:
Switch from decentralized systems to one
centralized system built on Standards and
Best Practices
24x7 availability on a global scale
Financial integration of both systems
(AFS/Retail) Germany
AFS 3.0B: SD, ARun, MM, WM, PLM, FI, CO

Retail: Live in Germany in VIP store and HQ
Outlet in Metzingen
Q&A
Thank You !

SAP AFS and SAP For Retail Integration

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Driving Growth Through

SAP AFS and SAP Retail

SAP AFS Customer Status January 2006

SAP AFS Customers Status January 2006

Cutter and Buck

SAP AFS Customers Status January 2006

Dolfuss, Mieg & Cie

Hwa Seung Vina

SAP AFS Customers Status January 2006

SAP AFS Customers Status January 2006

Shanghai Three Guns

SAP AFS Customer Status January 2006

SAP for Apparel & Footwear (AFS)

96+ customers worldwide use AFS ERP Processes end to end

SAP for Retail

Apparel & Footwear: Business Trends

Apparel and Footwear Companies

Design, develop, manufacture/

Design, develop, source and

Design, develop, source and

SAPs Fashion Solution Landscape 2006

Local Purchase Orders

SAP AFS Customer Status January 2006

POS Main Server

SAP AFS & SAP Retail Two separate instances

Communicating between two SAP systems is facilitated

How It Works with SAP ERP

AFS & Retail Shared Master Data Flow

Standard ALE communication is used for the distribution of the AFS

AFS SKU and Article Master linked by UPC

Transaction communication is via IDOC

Basic Data Distribution

SAP Retail merchandise categories and related data copied to AFS.

Purchasing & Sales order flow

AFS & Retail Shipping Notification

AFS & Retail Shipping Notification

AFS-Retail Summary Process Flow

Generate sales order

SAP for Retail

Post goods receipt

Create delivery/Goods issue

Generates goods receipt

FI document: Finished goods

FI document: Trade goods

Sales: Creates goods issue

FI document: Trade goods

SAP AFS Customer Status January 2006

Oakley a powerful global consumer

Continued expansion of Oakleys

Oakley Retail Worldwide

SAP Retail Implementation Scope

SAP Footprint @ Oakley

Oakley deploys SAP for Retail:

With SAP for Retail

SAPs Fashion Solution Landscape 2006

Local Purchase Orders

SAP AFS Customer Status January 2006

Future SAP Retail Potential:

Fossil is a design, development, marketing, and distribution company that

It is impossible to ignore the internal integration between AFS

Michelle Piotrowskii, Project Manager, Fossil

AFS 3.0B: SD, ARun, MM, WM, PLM, FI, CO

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