SAP Fashion Management

SAP Fashion ManagementAFS ASUG Fall Meeting 27-29 OctoberPeter AkbarSenior Director and CSO AFS / FMSOctober 28th 2014

Legal DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosedwithout the permission of SAP. This presentation is not subject to your license agreement or anyother service or subscription agreement with SAP. SAP has no obligation to pursue any course ofbusiness outlined in this document or any related presentation, or to develop or release anyfunctionality mentioned therein. This document, or any related presentation and SAP's strategy andpossible future developments, products and/or platforms directions and functionality are all subjectto change and may be changed by SAP at any time for any reason without notice. The informationon this document is not a commitment, promise or legal obligation to deliver any material, code orfunctionality. This document is provided without a warranty of any kind, either express or implied,including but not limited to, the implied warranties of merchantability, fitness for a particularpurpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in thisdocument, and shall have no liability for damages of any kind including without limitation direct,special, indirect, or consequential damages that may result from the use of this document. Thislimitation shall not apply in cases of intent or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actualresults to differ materially from expectations. Readers are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of their dates, and they should not be reliedupon in making purchasing decisions. 2014 SAP SE or an SAP affiliate company. All rights reserved.Public2

Fashion is moving fastFashion is being driven by four critical forces:Globalization Manufacturing – flexibility todeploy rapidly and globally Customer globalization innew markets – open up newchannels in new marketssimultaneously Sustainable operations andmanufacturingFaster Fashion More products and stylesmore often Concurrent seasons Regional segmentation –‘make local think global’CustomerExperienceVertically IntegratedChannels Customers know brands notchannels Customers need consistentinteraction with theirpreferred brands Smartphone adoptiondrives buying with mulitpletouch points Manufacturers andWholesalers developretailing to increase revenue,margin and brand image Retailers move toWholesale andManufacturing to controlbrand image, quality andmarginCo-Innovation with Leading SAP Customers 2014 SAP SE. All rights reserved.3

Historical World Class Solutions for FashionIndependent Master Data, Processes and Inventory with Batch InterfacingSAP Apparel and Footwear (AFS)for Wholesale/ManufacturingMasterData ingOrganisat.MasterData(Retail)Structure(WS, Manuf)WholesalePricing Conventional Database Only 2014 SAP SE. All rights reserved.SAP Retail – for Merchandising, StoreDistribution and ManagementAssortment g .Finance-toReportReplenishmentStore BackOffice Mgt.Allocation(Stores)OmnichannelMngtHANA in-memory orConventional Database4

Significant Vertical Business OpportunitiesBy harmonizing Master Data, Processes and Inventory across ChannelsSAP Apparel and Footwear (AFS)for Wholesale/ManufacturingMasterData ingOrganisat.MasterData(Retail)Structure(WS, Manuf)WholesalePricing &SeasonsInventoryMgt.SAP Retail – for Merchandising, StoreDistribution and to-PayAllocation(Orders)OmnichannelMngtAssortment g .Finance-toReportBuying/ReplenishmentStore BackOffice Mgt.Allocation(Stores)OmnichannelMngtSAP Fashion ManagementSingle Vertical Solution on HANATechnical basis SAP Retail 2014 SAP SE. All rights reserved.5

SAP Fashion Management on HANALeading Fashion Wholesale and Manufacturing* Processes/SegmentsSAP FMS*FMS Manufacturing in FMS 2.0 2014 SAP SE or an SAP affiliate company. All rights reserved.Public6

SAP Retail (ERP) on HANA – Fashion ScopeLeading Fashion Retail Processes 2014 SAP SE or an SAP affiliate company. All rights reserved.Public7

SAP Fashion Management with SAP RetailHarmonized Fashion Wholesale, Retail and Manufacturing* ProcessesMaster Data ndorMasterSiteMasterMerchandisingBill ofMaterialsRoutingListing,Assortment& aningHATP, ReSchedulingHPIRValueAddedServicesSeasons & SizeCollections, Conversion &Sales otions eDistributionMRPRetailAllocationReplenishent 2P)SeasonalProcurementSymbolsFMS Features (from eVerificationASNValuation/MarkersProduction ProductCostingLotsOrderInformationSystemRetail FeaturesStandard ERP FeaturesHHarmonized Data & ProcessesStyle/Colour/sizes/Segments (SKUs) 2014 SAP SE. All rights reserved.HInventory Management WarehouseMgmt* FMS Manufacturing in FMS 2.08

FMS Value PropositionFor Fashion Wholesalers, Retailers and ManufacturersTCO ReductionFMS Game Changers Stock-Outs Sales & Gross MarginOptimization Markdown/DiscountManagement Reduce Chargebacks Quote request to delivery cycletime* Warehouse operations IT budget spent on datacleansingefficiencyOrder receipt to ship cycle time* Reduce errors in lines IT integration costshipped IT data quality fixing cost Reduce raw materials and WiP,finished goods inventory Warehouse technology IT efficiencycost per DC Time-to-Market for newTransparency Business and operationsreporting productivity Invoice processing efficiency IT cost to support planning &consolidation Time to create new financereport*productsNumber of sales where Up On-Time delivery of POs to/Cross-Sell are offeredsuppliers*Inventory levels (DII) Procurement productivityInventory carrying cost Improve direct/indirect materialWrite-Offs for obsoleteand services savingsinventory Increase spend under contractDemand planning efficiency Reduce cost to support supplierCustomer Retentioncontract managementRevenue from Purchase order error rate*Substitutes/Alternatives New contract creation cycleOn-Time deliverytime*performance* Orders expedited*Order fill rate* Inventory accuracy*Number of lost orders* Orders shipped on time*Backordered items cancelled bycustomers* 2014 SAP SE. All rights reserved.Note for pure FMS Fashion wholesalers and/ormanufacturers SAP Retail is an optional purchase* Strategic qualitative KPI9

SAP FMS and SAP Business SuiteAll Current AFS and Fashion Retail Business Suite Apps to be Supported by FMSSAP FMSSAP RETAILOptimized FMS, Retail and standard ECCERP processes using HANASAP ECC ERPSAP HANAP4RF&RCRMHybrisSCM DPSCM SNPSCM SNCAribaEWMGTSMDM/MDGBI/BWCARBOBJBusiness Suite Components from AFS and Retail*FMS Fashion Management Solution* Existing Business Suite IntegrationSAP Retail Merchandising is needed for vertical FMS and Retail ProcessesFor Fashion wholesalers and/or manufacturers, SAP Retail Merch is an upsell purchase option 2014 SAP SE. All rights reserved.10

SAP Fashion Management RoadmapFor Fashion Wholesalers, Retailers and ManufacturersSAP FMS 1.0Fashion Wholesale Master DataSegmentationOrder 2 Cash (incl Arun, ATP)Fiori App for AllocationManager Procure 2 Pay Inventory and SegmentationRetail Harmonization 1Business Suite Integration 1Ramp Up Start Date: May 16th 2014Ramp Up End Date*: Nov. 2014SAP FMS 1.0Feature Pack(FP)1.5Enhanced WholesaleFunctionality MRP N:M, Segmentationenabled MRP MD04 for Fashio Fiori Buy PlannerApplication WM enablement ATP N:M Parallel ARUN and ARUNpreview Support for CITES Usability improvements formaster dataSAP FMS 2.0SAP FMS 2.0Feature Pack 2.5ManufacturingTopics to be confirmed: Manufacturing Apparel,Footwear, AccessoriesRetail Harmonization 3 Manufacturing planning Make-to-Measure SubcontractingWholesale Distribution ProfileVendor ConsignmentBW ExtractorsMaster, Sales &Purchasing Grids Multi Store Orders Material LedgerBusiness SuiteIntegration 3Additional Wholesaleand ManufacturingFunctionalityRetail Harmonization 2BusinessSuite Integ. 2FMS 1.0 Migration ToolsFMS 1.5 Migration ToolsFMS 2.0 Migration ToolsFMS2.5Migration Tools TBC* Subject to meeting Ramp Up exit criteria** Depending on Core Business Suite TimelinesMay 201412/2014Jan 2015 *Q3 2015**2016**Migration tools (SAP DTMT) for AFS to FMS data/transaction migration 2014 SAP SE. All rights reserved.11

SAP’s Fashion VisionSingle Fashion Platform for Multi-ChannelsFashion Strategy: A Global Vertical Fashion platform supporting multiplebrands and channels from a Single Inventory with deep Consumer Intimacyfrom converting Big Data into Exceptional Business Insights and ResultsAnalyticsMobilityRetailPromotionsRetail edDemand ForecastPatternRecognitionDemand ghtCustomer Activity Repository (CAR) powered by SAP HANASAP Business Suite powered by SAP HANAGlobal Trade Services(CITES/ProtectedSpecies Mgt)SuccesfactorsCRM/eCommerce/HybrisMobile (tbd)Ariba /CollaborationDemand PlanningBOBJ/BI-BWSAP Fashion Management on SAP RetailSupply NetworkPlanningSupplier NetworkCollaborationExtended y ChainSupply Chain Management powered by SAP HANA 2014 SAP SE. All rights reserved.12

Fashion Article for Style/Color/SizeReturning Fashion to a standard architecture with SAP Fashion ManagementAFS Sales Order HeaderItem Material / StyleSchedule Line Size, delivery detailsRetail Sales Order HeaderItem Generic Article StyleSub-Item Variant (material) SizeSchedule Line delivery details 2014 SAP SE. All rights reserved.13

SAP Data Transport & Migration Tool (DTMT)Rich content and services to accelerate AFS-FMS implementationsFEATURES: Solution to allow Apparel & Footwear Customersto migrate to Fashion Management Solution Based on proven and very successful R/2 – R/3methodology Data is directly read from and written intodatabase tables Designed to handle large amounts of data Different migration approaches are supported(stepwise, big bang, ) Define migration strategy according to businesspriorities Customizable & ExtensibleSHIPMENT: Add-on delivery RTC Planned September 2014 Program DTMT1.0 Execution integrated into FMS 2014 SAP SE or an SAP affiliate company. All rights reserved.FRAMEWORK New ETL Tool supportingdata migrations betweenAPAB based SAP systems Split in Design time & Runtime Open to customers & partnersEXPORT CONTENT Provided by SAP Adaptable and extensibleby customers Powerful data extractioncapabilities allow stepwisemigrations Performance optimizedIMPORT CONTENT Includes all mappings betweenstandard AFS and FMS Provided by SAP Consistent value mappingfunctionality integrated Adaptable and extensible bycustomers Performance optimizedENABLEMENT Training Material Guides Partner and Customer trainingofferings will supplement thesolutionPublic14

Standard Paths to the FMS PlatformStart with or without SAP Retail, Optional AFS Data Migration1. From Existing AFS1SAP AFS 6.0Legacy DBOptional DataMigration fromAFS to FMS2. New FMS with Retail2Stand Up newFMS 1.0 on Retailwith HANASAP FMS 1.0SAP Retail 6.7SAP HANAVerticalPlatformon HANA3. New FMS no Retail3(SAP Retail can be used later)Stand Up newFMS 1.0 with HANA(Retail not used)SAP FMS 1.0SAP Retail 6.7SAP HANAWholesalePlatformon HANA4. From Existing Retail4SAP RetailInstall FMS 1.0 onSAP FMS 1.0SAP Retail 6.7SAP HANAVerticalPlatformon HANASAP HANARetail with HANAImplement HANAOn existing RetailSAP RetailLegacy DB 2014 SAP SE. All rights reserved.15

SAP Fashion Management UpdateTHANK YOU! 2014 SAP SE. All rights reserved.16