December 11, 2015 Retail Webinar SAP FASHION MANAGEMENT (FMS) OVERVIEW
© /N SPRO INC. 2015. All rights reserved. 2
Agenda
What is FMS?3
Where does FMS fit?4
FMS Functionality & Benefits5
Recommended Next Steps6
Who is /N SPRO?2
About our hosts1
© /N SPRO INC. 2015. All rights reserved. 3
About our hosts
Wes Lowe Consulting Manager, Retail and WholesaleWes is a Retail & Wholesale Consulting Manager at /N SPRO. With 25 years
combined industry and consulting experience, he brings a mix of functional
and technical experience bridging the Business and IT worlds. Wes has 9
years experience with SAP IS-AFS and SAP IS- Retail.
Brian Cederborg VP, Retail and Wholesale Consulting
Brian has led retail transformation programs at organizations across North
America including BJ’s Wholesale Club, Loblaw Companies Ltd., and
Brookshire Grocery Company. Brian has developed an innovative approach
to leveraging technology to better drive retail business value.
© /N SPRO INC. 2015. All rights reserved. 4
About our hosts
Shailendra Gaikwad Senior Consultant, AFS and FMS
Shailendra is a Senior Consultant focusing on Retail & Wholesale industries for
/N SPRO. Shailendra has over 10 years experience within SAP IS-AFS and
SAP Fashion Management Solutions, and robust configuration and application
skills in Sales & Distribution, Logistics
Executions, and Materials Management.
Lee Alton Solution Architect, Retail and FMS
Lee has designed integrated solutions for organizations across North America
including Luxottica Retail, Big Lots Stores Inc., Nike Inc., and Ann Taylor Inc.
Lee has fulfilled roles as a Solution Architect, Cutover Manager, and Process
Lead on SAP Retail expansion projects and has participated in multiple full-
cycle SAP implementations, covering more than 10 years.
© /N SPRO INC. 2015. All rights reserved.
/N SPRO - Who we are
More than 300 Retail & SAP…professionals worldwide
With office locations WORLDWIDE..and an aggressive geographical expansion plan 17
YEARS
of SAP Implementationexperience…
OUR EMPLOYEES:
5%IN Q1 OF 2015
Turnoverof less than
30COUNTRIES
Completed over SAP implementations…
100
…in more than
…with more than
1OYEARS
experience specific to SAP Consumer Industries
solutions for…
…SAP Retail Partner of the Year for 2015
…service provider advising SAP (on behalf of leading retailers) on the future state direction for Allocation Planning, Assortment Planning and Merchandise Financial Planning
is one of the top product development and consulting service providers across all of SAP’s Consumer Industries software suite and the ‘GO-TO’ expert in the market
KEY PARTNER of the SAP Industry Business Unit, advising SAP and customers across the entire breadth of
the SAP Retail software suite
STORESFINANCE
MERCHANDISING SUPPLY CHAIN MARKETING
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Solution Expertise
IS-Retail ERP; S4/HANA
Fashion Management Solution (FMS)
HANA
Customer Activity Repository (CAR) & Consuming Applications
Business Warehouse (BW) & Business Objects (BOBJ)
Merchandise Planning for Retail
Customer Relationship Management (CRM)
hybris Marketing
Mobile Commerce
Forecasting & Replenishment (F&R)
Business Planning & Consolidation (BPC)
© /N SPRO INC. 2015. All rights reserved.
SAP Fashion Management (FMS) is a vertically integrated solution combining the functionality and processes from Apparel & Footwear (AFS) and IS Retail into a single ERP solution
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What is SAP Fashion Management?
Omni-ChannelBrand GrowthVerticalization
RETAILER
WHOLESALER
MANUFACTURER MANUFACTURER
RETAILER
WHOLESALER
Everyinstall of SAP Fashion
Management begins with… IS-Retail
install
© /N SPRO INC. 2015. All rights reserved.
Significant benefits and operational efficiencies can be achieved through SAP’s Fashion Management Solution
» Lower TCO from a single ERP platform for growing a more flexible and efficient vertically run business
» A consistent customer experience with a unified solution that supports all channels
» Common global inventory across all channels using a real-time supply and demand picture that drives better decisions
» Provides optimal cross-channel allocation methods from planning through execution
» One source of product master data across all parts of your enterprise
8
What is SAP Fashion Management?
© /N SPRO INC. 2015. All rights reserved.
MERCHANDISING
Article Master
9
FMS Similarities to Retail Solution
9
Tickets and Additionals
(VAS)
Seasons & Collections
Quota Scales
Bill of Materials (Prepack,
Set)
Site Master
Vendor Master
Customer Master
Article Master
Retail Promotions
Retail Markdowns
In-Store MIM
Retail Pricing
Listing, Assortment
& Layout
OAPC Retail Allocation
Replenishment / VMI
Seasonal Procurement
Purchase Order ASN Invoice
Verification
Goods Receipt
Inventory Mgmt
Warehouse Mgmt
Shipping Billing POS Outbound
ATP, Re-Scheduling
Sales Order
Merchandise Distribution
PLANNING
PROCUREMENT
INVENTORY
SALES
MASTER DATA
ERP functionality with Retail Fashion enhancements
Retail specific functionality Generic functionality Generic Article
FashionManagement
by SAP begins with…
IS-Retailinstallation
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FMS Similarities to Apparel & Footwear Solution (AFS)
SALES(O2C)
Article Master
10
10
BillingSales
Information System
ShippingAllocation Run
SOP(Forecast) PIR Size
Distribution
Purchase Requisition
Purchase Order ASN Invoice
Verification
Production Order
Marketing Production
Lots
Valuation/ Product Costing
Good Receipt
Inventory Mgmt
Warehouse Mgmt
Planned Order
PLANNING
PROCUREMENT(P2P)
MANUFACTURING
INVENTORY MGMT
MASTER DATA
ERP functionality with Wholesale Fashion enhancements
Wholesale Fashion specific functionality
Grids, Size Conversion and Categories
RoutingValue Added
Services
Seasons & Collections
Bill of Materials
Vendor Master
Customer MasterCategoriesMaterial
MasterPrepacks &
Assortments
Size Conversion
& Distribution
Wholesale Pricing
ATP, Re-SchedulingSales Order
MRP
Order Information
System
FashionManagement
activates AFS business functions after…
IS-Retailinstallation
© /N SPRO INC. 2015. All rights reserved.
System Landscape – SAP Solutions for Retail and Wholesale Businesses
REAL-TIME CUSTOMER & BUSINESS INSIGHTSAP CAR, hybris Marketing Data Management, SAP BI
MARKETING & MERCHANSE PLANNINGSAP CAR, hybris Marketing
SOURCING, BUYING & PRIVATE LABELAriba, gicom, Vistex
SUPPLY CHAINSAP F&RSAP EWM/TM/EM
MASTER DATASAP MDG, hybris Product Content Management, SAP DAM by OpenText
OMNI COMMERCE CUSTOMER EXPERIENCEhybris Commerce Suite, SAP CRM, SAP POS by GK
CORE MERCHANDISING & FINANCE & HRSAP IS-Retail / FMS on HANA, SAP SFIN, SAP IBP Finance, SAP CFM, SuccessFactors
POWERED BY SAP HANA
© /N SPRO INC. 2015. All rights reserved. 12
Fashion Year
THEME
Selection of outfits that designers put together for up coming season, it reflects trends, colors, cut & proportionsCOLLECTIONS
In fashion timing of product design, production and merchandising is critical. SEASONS
BUSINES AREA
ASSIGNMENT SEASON ACTIVATION
VALIDITY PERIOD
DOCUMENT UPDATE
SALESLOGISTICSPURCHASE
ARTICLE ARTICLEPLANT
WORK-BENCH
WORK-BENCH
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ALLOCATION RUN (ARUN)
Long replenishment lead timeShort selling seasonsUnpredictable demandsInaccurate forecast/careful buying – Stock outs
Key Drivers
Optimization of stock allocationOn-time deliveryMinimize charge backs Improved customer satisfactionMaximize order fill rate
Benefits
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SEGMENTATION
Sensitivity to priceProduct qualityValue they place on styleSales channel (wholesale, retail & web commerce)
CUSTOMER GROUPING
Ability to allocate stock to customer orders by customer segmentsRestrict allocation of premium/high demand product by customer group/sales channel.Helps company to achieve bottom line results.
STRATEGY
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SPECIAL SERVICES (VALUE ADDED SERVICES)
Ticketing
Labeling
Special packing
Special Services
Fashion products requires unique care & FMS addresses all those special requirements.
Value Added Service either determined or added manually on customer order.
Value Added Service determined or added manually on purchase order.
Possible to charge Value Added Service to customer.
It is possible to handle Value Added itemsseparately for ATP and ARun.
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Standard Migration Paths to the FMS Platform
AFS CUSTOMER RETAIL CUSTOMER
AFS & RETAIL CUSTOMER
SAP
FMS
HANA
SAP AFS
SAP
FMS
HANA
SAP Retail
SAP
FMS
HANA
SAPAFS
SAP Retail
Migration for AFS
MigrationUpgrade / transition
Based on the current landscape, there are three distinct customer scenarios.
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Customers with active FMS projects
FMS Consortium Members
» Giorgio Armani
» Luxottica
» Adidas
» Tommy Hilfiger
Active FMS Installations
» Under Armour
» ALDO
» Burberry
© /N SPRO INC. 2015. All rights reserved. 21
FMS Value Proposition with /N SPRO
Decreased Stock-Outs & Inventory LevelsReduce ChargebacksIncrease Order Fill Rates & On-Time DeliveryImproved Time-to-MarketMaximize Inventory Accuracy
Business Benefits
Reduce Budget Spent on Data MaintenanceReduce IT Integration CostMaximize Data QualityMaximize System & Support EfficiencyDecrease Interface Maintenance
Total Cost of Ownership Reduction
Proven record of success supplying SAP services/N SPRO’s Dual IT ® Methodology/N SPRO’s Fast Forward ® Pre-Configured SolutionFocused on New Solutions with SAPSupport North American Member of FMS Consortium
Implementation Accelerators
© /N SPRO INC. 2015. All rights reserved.
Additional research:
» http://n-spro.com/solutions/retail/fms/
» http://help.sap.com/saphelp_fms10/
» SAP Retail Forum Resource Center
On-site demonstration
Proof of Concept
Talk with active customers
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Recommended Next Steps
THANK YOU!
Brian Cederborg [email protected] Lowe [email protected] Alton [email protected] Gaikwad [email protected]