Apparel & Footwear Roadmap Update · ©SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August...

Apparel & Footwear Roadmap Update

© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 2

ConsumerApparel/FootwearCompany

Mill/Trim Vendor

Full PackageManufacturer

Catalog

Retailer

Distribution

Government(i.e. Customs)

Apparel & Footwear Industry Ecosystem

Sub-Contractors

Internet

CGD1

CGD1 Change Pictures where appropriateCeleste Donahoe; 26/5/2004


CO-PAFI/COBW

MM-MDPP-MD

SOPFlexible Planning

SD RetailSourcingMM/WMSupplier ManagementSubcontracting

ProductionProduction PlaningSubcontractingShop Floor Control

SAP AFS for Manufacturers

ProductDevelopment

Enterprise Management

BudgetNew

Styles

Pre-seasonForecasting

In SeasonSupply Chain Execution

Post Season

SalesManagers

SalesReps

SalesOrders

LogisticsActivity

Close OutInventory

Collab.Planning

Inventory

ProductionOrders

PlannedOrders

MRPPlanning

PurchaseReqs

PurchaseOrders

FactoryActivity

LogisticsActivity

FactoryActivity

ConsensusForecast

CO-PA = Costing / Profitability AnalysisFI/CO = FinancialsBW = Business Warehouse

MM = Materials ManagementMD = Master DataPP = Production PlanningSOP = Sales & Ops Planning

SD = Sales & Distribution

SourcingWM = Warehouse ManagementAFS Supplier Workplace

SAP AFS Background

AllocationRun

Delivery Invoice


SAP AFS Customers – Status Q4 / 2005

D’Portenis(Mexico)

Cutter and Buck (United States)

CSP Int’l (Italy)

Crystal Group (Hong Kong)

Courtaulds Clothing (Sri Lanka)

Cole Haan(United States)

Camper (Spain)

Calzados G iovania(Mexico)

Calida(China)

Burberry (United Kingdom)

Bruno Magli(United States)

Brioni(Italy)

Boyner Holdings (Turkey)

Benetton (Italy)

Bejing Li-Ning(China)

(Canada Bauer Nike Hockey )

Atateks(Turkeu)

Asics (Japan)

Arvind Mills (India)

Artisana(Italy)

And 1(United States)

Ambro Holdings (New Zealand)

Alpargatas Group (Brazil)

Adidas (Germany)


Kwintet(Denmark)

Koos of Course(United States)

Justin Brands (United States)

Jones Apparel Group (United

States)

Induyco (Spain)IndustriasPiagui

(Mexico)

Imagemark(United States)

Hwa Seung Vina(Vietnam)

Hugo Boss (Germany)

Head Tyrolia(Austria)

Global Brands (United Statees)

G & K Services (United States)

G & A Jewelry (United Kingdom)

Fossil (United States)

Foschini (South Africa)

Fornari (Italy)Fila (Italy)Fashion Box (Italy)

Eurodress(Germany)

Esquire (Korea)

Embry Group (China)

Ecco (Denmark)Dolfuss, Mieg & Cie(France)

DeRigo(Italy)



Reebok (United States)

QVC (United States)

Preca Brummel(Italy)

Prada(Italy)

Playcorp(Australia)

Pentland(United Kingdom)

Peerless Clothing(Canada))

Pantaloons (India)

OP Profashion(Czech Republic)

Oakley (United States)

Nike (United States)

Natural Textiles (India)

Napapijri(Italy)

Muratacho(Japan)

Mast Industries (United States)

Mascot (Denmark)

MAS Holdings (Sri Lanka)

Marzotto(Italy)

Marui (Japan)

Marcolin(Italy)

Madura Garments (India)

Lucia (Germany)

Limited Brands (United States)

Levi Strauss (United States)



MexicoUnited StatesUnited StatesUnited StatesWolverine (United States)

Warnaco(United States)

Charlygroup mexico

MarchonEyewear

KSwissBurton Snowboards

VF Corporation(United States)

Under Armour(United States)

Uhlsport(Germany)

Triumph (Germany)

Tommy Hilfiger (Netherlands)

Tainan Enterprise (Taiwan

Swiss Army (United States)

Superior Uniform (United States)

Stonefashion(Netherlands)

Sports Supply Group (United States)

Shanghai Three Guns (China)

Scott Sports (China)

Schiesser(Germany)

Samsonite (United States)

Salamander (Germany)

Saez Merino (Spain)Rusty (Australia)

Riddell Bell (United States)



Apparel and Footwear Recent Key Wins

Limited Brands

Samsonite

Underarmour

Burberry

ASICS

Prada

Piagui

Alpargatas (BR)

Giovanna

Imagemark

DPortenis


Additional win data as March 2006

Americas

4thqtr 2005 1st qtr 2006

Victorinix Swiss Army Brands Inc Emyco Mexico

Bell Riddle Charly group Mexico

Sports Supply, Marchon Eyewear

Burton Snowboards

Jones Apparel

Koos Jeanswear

KSwiss

Vera Bradley


SAP is the De-facto Fashion Industry Standard

Apparel & Footwear – Industry Standard Processes

Order to Cash, Global Sourcing, and/orFinancials

1997 2001 2003 20051999

227Manufacturingand/orWarehouse Mgmt

CRMand/orRetail

SCM/VMIReplenishment/Netweaver/ ESA

l

l

2006


AFS Evolution 1

AFS – Retail InterfaceBusiness Warehouse for AFSMass Document Change IDOC enhancementsIM Distributed system stock transferArchiving enhancementsSD/MM Distribution Profiles (size curve via SIS history)Basis Grid History & reportingSD Customer Master additional dataSD Mass Customer changeSD VAS EnhancementsSD prepacksSD AssortmentsSD Multi-Store Order IISD Quantity Contracts and call offsAllocation Run (ARun)- Order Scheduling

ARun - Management ToolAllocation Fill UpAllocation PreviewARun ReorganisationAFS Vendor FunctionsTransfer posting (1 & 2 step)SubcontractingSource AllocationInvoice Verification WMPlanning horizonsMRP ListInventory ValuationCostingProfitability Analysis

2000ControlledSalesControlledSales

AFS 2.5B

Roll OutRoll OutLaunchLaunch

CRM Interaction CenterParallel ARun Category enhancementsEAN/UPC RecyclingNRF Code SupportMM Order confirmationsMM Shipping notificationsMM ATP for SubcontractingAFS MRP cockpitAFS Stock/Requirements list enhancementsPP – Phantom assembliesBOM enhancements including engineering change managementPP – Missing PartsAssembly scrap and bundle qtySD – UoM for sizesSD – BOM correlationSD – Multiple user contract release and call offAFS Online StoreQuantity distribution profileDelivery Program (seasons)ARun customizing check toolDelivery Check toolDynamic OTD dateParallel ARun for faster performanceARun preview (to future receipts) enhancementsRelease rule in sales orderARun for sales order storage location and batchManagement Tool selectionOver-delivery MTP/PTOReallocation strategy enhancement

2001 2002

AFS 3.0B

AFS 1.0B

1998EarlyAdoptersEarlyAdopters

First Customer Shipment AFS Release 1.0BMaterial GridSales GridPurchasing GridCategoryMRP PlanningPurchasingMaterial MgtFERT GeneratorSales & DistributionATPSize PricingValue Added ServicesAllocation RunMutil Store Order IProduction

2004

ISAR/3 Edition

APO DP

Reseller Portal

AFS 5.0 ERPDevelopment

AFS 5.0

ERP2004

SCM 5.0Development

CRM 5.0Development


AFS 5.0 Footprint Scope

Mass DocumentChange (SD)

Select orders

Specify changes

Add new items and SKUs

Update order

MMIntegration with Future Receipts

Subcontracting Enhancements

Use of standard transactions

ATP Reschedule (SD)

Select materials

Specify sort

Keep old confirmations

Performance Improvements

Update orders

PPIntegration with Future Receipts

Allocation RunSelect orders and

Stock

Filter and Prioritize orders

Allocate

Allocation to Future Receipts

Early WarningReport

Hot Product Allocation

Auto Substitutions

Release Check

Auto Rejections

Performance Improvements

Post Orders

ARun OptimizerCustomer Sales Reps

Select orders

Manage Orders

Run Release Rule

Manual rejections

Re Do Allocation

Private Stock

Flagged Orders

Substitute materials, SKUs, Plants

Branch to VA02/03

VAS support

Post changes

SDEnter material

ATP check

MSO II + standardorder support forATP relevant VAS

Auto ATP Substitutions (material, SKU, plant)

Multiplant Support for MSO II

Allocation Groups

Pricing/Credit

VAS Determination

Order Scheduling

Order Save

Material Size Grids and Stock Categories now Defined in ClassificationSKU Level Integration with SCM:DP, SNP, RR

SKU Level Integration with CRM: eCommerce, Mobile Sales, Call Center


AFS Releases

mySAP Business Suite

1998 2000 2001 2002 2003 2004 2005 2006 2007 2008…

AFS 1.0

R/3 3.1I

AFS 2.5

R/3 4.5B

AFS 3.0

R/3 4.6C

MDMe MDM Matrix Product

BWCRM IC

e-Commerce R/3ISA 3.1 R/3 Edition

E-commerce R/3ISA 4.0 R/3 Edition

APO DP

SCM Supply Network Planning (SNP)

CRM Field Sales / Mobile SalesCRM E-commerce (Internet Sales)

SCM Store Replenishment (RR)

Available

SCEM

PLMcProjectscFolders

Planned Development for style/size (note planned dates and/or content may change)

Reseller Portal

DMS

SCM Seasonal Demand Planning (DP)

Roadmap mySAP for Apparel and Footwear

AFS 3.0R/3 4.6c

AFS release number in bold, R/3 basis in normal typeAFS 5.0 is on ramp-up Dec 04. General Availability July 25 2005

AFSReleaseBasis tbdNetweaver

AFS 5.0ERP 2004/ ECC 5.0Netweaver

CRM Order Management (Call Center)


Apparel & Footwear Appendix

AFS – SAP Retail

AFS Planning Solutions


Apparel & Footwear: Who WAS Doing What in 2001?

Vertical FashionRetailer

Apparel and Footwear Cowith Wholesale & Retail Channels

StoreStoreFactoryFactory

Design, develop, source and sell goods to consumersthrough own retail channels (B2C)

Design, develop, source and sell goods to B2B wholesale customers and to consumersthrough own retail channels

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

Fashion/ApparelCPG Company

OretonFrench Connection

VERTICAL SILOS VERTICAL SILOS


Apparel & Footwear: 2005 Everyone is doing Everything!

Vertical FashionRetailer

Apparel and Footwear Cowith Wholesale & Retail Channels

Verticalization Verticalization

StoreStoreFactoryFactory

Design, develop, source and sell goods to consumersthrough own retail channels (B2C)

Design, develop, source and sell goods to B2B wholesale customers and to consumersthrough own retail channels

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

Fashion/ApparelCPG Company

Oreton

French Connection

French Connection


Business Intelligence

Merchandising & Assortment

Planning (MAP)

SAP’s Fashion Solution Landscape

Vend

ors

/ Fa

ctor

ies

Ow

n Stores

AFS 5.0ECC 5.0

RetailECC 5.0

Prod

uctio

n /

Ord

ers

/ VM

IPu

rcha

sing

Local Purchase Orders

Forecast &Replenishment

(F&R)Store Planning

Store Operations

ConsolidatedFinancials

Human ResourcesCorporate Services

Integration viaSAP Netweaver

PLM

Customer OrdersProducts

CRM B2B / B2C

Cus

tom

ers

Stor

es

SCM RR

SCM DP

SCM SNP

Business Intelligence(BW)

MDMe

IS-AFS Landscape IS-Retail Landscape

VMI Collaborative SupplyForecasting Planning

GTSPOS Data Management

Store Management

SAP Netweaver


AFS to Retail – Master Data Integration


AFS to Retail – Process Flow


Supply Chain Planning for Apparel and Footwear

Seasonal Demand PlanningSupply Network Planning

(SNP)Responsive Replenishment

(VMI)Supply Chain Event

Management

APO DP

AFS PIR MRP

Purch.Req

Purchase Order

APO DP SNP AFS

MRPPurch.

ReqPurchase

Order

Strategic Tactical Operational

0 – 3 Years 0 – 12 Months

Style/Group Style/Color/Size

DP Collaboration

Responsive Replenishment

(VMI)DeliverySales

Order

0 – 1 Year 0 – 16 Weeks Weekly – Daily – Sub-Daily

DEMANDPLANNING

SUPPLYNETWORKPLANNING

VMI/CPFR

SCEM Supply Chain Event Management

Demand Planning(DP)

Planning PlanningPlanning

Horizon Level H

orizon


Apparel & Footwear Processes and Solutions

StrategicPlanning

Sourcing &Procurement

Supply ChainExecution

Sales &Marketing

BW

• Strategic Planning• Marketing Planning• Assortment/Range Planning (MAP)*

• Demand Planning (DP)• Supply Planning (SNP)• Vendor Managed Inventory (RR) SCM

PLM

• New Product Development*• New Product Introduction

AFS ERP• Production Planning / MRP

AFS ERP

• Vendor Relationship Mgmt• Operational Purchasing

• Global Sourcing (SNP)

SCM

• Foreign Trade Mgmt*• Global Trade Services*

GTS

• Inventory Management• Manufacturing• Order Fulfillment• Allocation (ARun)• Warehouse Mgmt• Transportation AFS ERP

• Catalog, e-Commerce & Call Center

CRM

• Sales Order Management• Brand Mgmt• Sales Force Mgmt• Account Mgmt

AFS ERP

• Supply Chain Event Mgmt

SCM

* Not fully tested or Testing in Process

Time-to-Market

Supply ChainPlanning

• SAP Retail Integration• AFS to Retail Master Data• Retail to AFS Ordering• AFS Leading Financials

AFS ERP

Net

wea

ver /

ESA


WW

POS• Store Inv

• Sales• PO Nbrs

•Promo•PO Ack’ment

Demand PlanningMid-long

Term

StoreForecast

SalesOrders

Sales History

Sales

InventoryStock

Future Receipts

OrderGeneration

ForecastCollaboration

BW APO-DP

APO-DPCollaboration

XI

RR AFSRR

CustomerCustomer

16weeks

Forecast / Promotion

Collaboration

Send POS / Store Inventory

Sales

PO Ack’ment

XI

AFS Store Replenishment – Example


Order Entry Delivery Creation

ARun Optimizer

Allocation Run (Arun)

Select / Filter

Prioritize/Sort

Reservations to Stock

Reservations to Future Receipts

Release

Create Orders Allocate Stock ARun Management Deliver

ARun Stock Management

Management Tool

Run Release Rule

Manual rejection functionality

Respread alloc.qty within an alloc.group

Customer Service Area

Private Stock

Flagged Orders

Branch to VA02/03

Substitute Materials

Substitute Sizes

VAS support

Move stock to own buffer – Customer Service Rep (CSR)

Move stock between CRS‘s

Order Management Allocation Run Allocation against future receipts ARun Optimizer Delivery Invoice

Allocation Run - ARun


Order Entry Allocate Stock Tracking Changes Stock Decision Order Entry Future

Receipt / Order Change

ARun Optimizer

Allocation Run (Arun)

Goods Receipt

Changes to order reflected in reservations

See reservations

See late orders

Drill Down

Delete reservations

Changes Reflected in reservations

Reservations passed from PO to SN and back

Safety window

Deallocate orders in reverse priority sequence

Logging deallocations

Reservations to Future receipts(FR)

2 Release checks

Future MRP Status

Season / Cancel date checks against FR‘s

Not for all orders

Keep stock reserved

OR

Free up stock for next Arun

Sorting Rule

Order Management Allocation Run Allocation against future receipts ARun Optimizer Delivery Invoice


With the additional functionality provided by the SAP AFS Industry Solution, the following issues in a typical Apparel and Footwear company can addressed:

Optimizing service levels

Streamlining operations for efficiency

Excess/redundant inventory or Stock shortages/out of stock

Poor on time delivery

Inefficient logistics and distribution process

Lack of demand visibility

Allocating inventory to key customers

Chargeback’s

Benefits in using the SAP Apparel and Footwear Industry Solution


Benefits in using the SAP Apparel and Footwear Industry Solution

With the additional functionality provided by the SAP AFS Industry Solution, the following issues in a typical Apparel and Footwear company can addressed:

Inability to commit delivery at order time (ATP)

Lack of visibility to consolidated spend across the enterprise

Delivering real business value

Handle large volumes of data

Grid with style/ color/size

At SKU level manage

inventorymaterials managementpurchasingforecastingproduction orders


© SAP AG 2005, Page 1

IS AFS 5.0 (based on ERP 2004)

InvoiceVerification

MaterialGrids Categories Material

MasterCustomer

Master Pricing

ValueAdded

Services

AFSMasterData

Sales andDistribution

Sales AllocationRun Delivery Billing BIW

Bill ofMaterials

VendorMaster Seasons

ProcurementPurchase

RequisitionPurchase

Order

Production

InventoryManagement

WMMRP

SOPPIR

BOMRouting

PlannedOrder Production

MarkersProduction

Lots

Valuation/ProductCosting

WarehouseManagement

R/3 Standard functionality with AFS enhancements AFS specific functionality

CombinedOrders

Grids and Categories

ATP

Confirm-ation

Multi-StoreOrders

The following Slide also gives a good overview of the additional AFS functionality versus Standard SAP.

Apparel & Footwear Roadmap Update · ©SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August...

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