Sap fashion-management

s a p ® f a s h i o n m a n a g e m e n t
D e v e l o p e d w i t h f a s h i o n b r a n d s
f o r f a s h i o n b r a n d s

t a b l e o f c o n t e n t s
4
Execu t i v e Summary
6
Ou r Understanding
14
Th e SAP Solution
19
Why SAP?
23
Next Steps
© 2 0 14 SAP SE o r a n SAP a f f i l i at e company | 3

e x ecu tiv e summary
e x e c u tiv e s u m m a r y
Our understanding
The fashion world is constantly changing, which means you must
continually invest to stay competitive. And what is one of the highest
priority areas for investment? Tools that help shorten the time from concept
to customer, boost collaboration across the supply chain, and offer end-to-end
visibility, flexibility, speed, and verticalization. SAP solutions can help
you achieve these objectives while reducing overall IT costs and promoting
future growth. With our investment in the SAP® Fashion Management
application, we have made a commitment to help fashion companies:
• Become brands that stand out from the crowd
• Drive efficiencies in their global operations
• Be recognized market leaders
The SAP® solution
We believe that SAP can play a key role in helping you execute your strategic
growth priorities, such as global e-commerce, multichannel opportunities,
and store expansion while delivering engaging customer experiences.
Through our robust, vertically integrated solution we can help you drive
significant bottom-line improvements and improve your competitive
position.
The SAP Fashion Management application helps you:
• Achieve rapid wholesale and retail global expansion with support
for multiple languages, multiple currencies, multiple tax regimes, and
multiple import and export requirements
• Globally command and control a single stock holding across all
channels using a real-time supply and demand picture that drives
better decisions
• Deliver a consistent customer experience with a unified solution that
supports all channels
• Improve inventory efficiency with a single global inventory holding
for retail, wholesale, and e-commerce channels
• Increase operational efficiency with common processes that share
a single set of master and transaction data across all channels
Why SAP?
At SAP we can draw on the following to help you achieve your strategic
vision:
• Our experience of working with a network of 12,200 retailers, fashion
brands, and wholesalers
• Wholesale and retail software developed for the core business of fashion
companies, including product development, retail processes, and
shopper interaction across all points of contact
• A global team of SAP experts that specialize in wholesale and
retail fashion
• A proven value-engineering methodology, including benchmarking with
peers or competitors and the development of a business case to support
business process and improvements in your key performance indicators
(KPIs)
SAP can help you transform your business by using a proven value
framework that delivers immediate business value, as well as ongoing IT
simplification that reduces total cost of ownership.
4 | © 2 0 14 SAP S E or an SAP affil iat e company

e x ec u t i v e summary
Let’s talk
In this document we outline the challenges facing the fashion industry
and how our solutions help you address them. Take a few minutes to read
through and, when you’ve finished, let’s talk about how we can help your
company with its specific priorities.
To get in touch
Find an SAP office near you here
To get more information
Visit our retail web site
Or follow us at
Leading fashion companies are utilizing SAP technology and software to
increase market opportunity, achieve profit goals, and grow market share.
Up to 15%
Reduct i o n i n i n v e n tory
50%
Reduct i o n i n o rders cancelled du e to
nonava i l a b i l i t y
Source: SAP Performance Benchmarking

t h e c u r r e n t m a r k e t r e a l i t y
Globalization
• Manufacturing flexibility to deploy
rapidly and globally
• Opening up of new channels in
new markets simultaneously to
address customer globalization
• Sustainable operations and
manufacturing
Faster fashion
• Asynchronous seasons
and themes
• More styles
• Segmented regional and
localized seasons and trends –
“look local think global”
Customer experience
• Knowledge of brands,
not channels
• Need for consistent interaction
with preferred brands
• Buying journey with many
touch points
Vertically integrated channels
• Move by fashion retailers to
wholesale and manufacturing to
control brand image and quality
• Move by fashion manufacturers
and wholesalers to retail to
increase revenue, margin,
and brand image
Fashion is being driven by four critical forces:
Ou r U n d e r sta n d i n g
6 | © 2 0 14 SAP SE o r a n SAP a f f i l i at e company

Fashion executives’ challenges that SAP Fashion Management resolves:
Faster fashion
How can my business deliver
shorter seasons across
omnichannels with more styles?
Seasonal merchandising
How can I improve customer
service and fill rates while reducing
excess stock?
Increased revenue and margin
How can I make the best use of
my inventory across channels and
reduce markdowns?
Unified planning and sourcing
How can I unify siloed, multichannel
plans and sourcing?
Adaptable global business
How can we move quickly and
efficiently into new channels and
markets?
Simplification
How can I have a single, central
software instance with a common
view across all business segments?
How can I lower my total cost of
ownership?
Common face to all channels
How can my brand be consistent
across channels and geographies?

C h a l l e n g e s i n t h e F a s h i o n I n d u s t r y
Brand and merchandise
management
Inability to develop assortments
and pricing targeted to the needs of
the customer across asynchronous
seasons, regional trends, and
demand for global ranges that
respect local and regional trends
Sourcing and procurement
Difficulty managing a large and fluid
vendor network
Supply chain
Inability to respond to customer
demands for flexibility and
responsiveness
Customer experience
Fickle customers that have
temporary loyalty to the brand,
not the channel, and demand
consistent standards regardless
of touch point to the brand
Human resources
Supply
chain
Information technology
Technology and platform
Omnichannel
customer
experience
›
›
›
› ›
›
›
›
›
›
D i stribution Centers
Wholesale
o r External
Customers
Third- party
logist i cs
prov iders
E- commerce
Brand and
merchandise
management
Sourcing,
procurement, and
manufacturing
Finance
Su p p l i e r s stor e s

O u r U n d e r s t a n d i n g o f y o u r P r i o r i t i e s
SAP helps fashion companies with
multiple sales channels to act as one,
with common processes based on a
global real-time foundation that improves
efficiency and delights customers.
Strateg i c Pr i o r i t i es
Globalization
• Develop profitable new channels,
markets, and brands
• Work closely with business partners,
suppliers, and manufacturers to
develop new products
• Adapt supply and sourcing to
flexible global-trading strategies and
business models
Faster fashion
• Make more styles available more
often
• Develop focused target segments
and assortments by analyzing
customer behavior and building
customer profiles
• Build localized and relevant
assortments
Customer experience
• Unify the customer experience
through all phases and touch points
• Increase visibility of trading across
channels and customers
• Integrate wholesale and retail
sourcing, supply chain, and delivery
processes
• Improve service levels while lowering
channel inventory investment
• Optimize brand distribution and
image
›

“Today ’s employees and consumers are networked and o n the mov e . Great p roducts
alone are no longer enough to earn t h e i r loyalty. Businesses hav e to prov ide
a next-generation experience, ta i lored completely to t h e i ndi v idua l . SAP i s driven by
a relentless pass i o n to help our customers innovat e to win. We de l i v e r t h e i ndustry
solutions and the real-time platform for enterprises to ru n l ike n ever before.”
Bill McDermott, CEO, SAP SE
1 0 | © 2 0 14 SAP SE o r a n SAP a f f i l i at e company

O p p o r t u n i t i e s f o r y o u r c o m p a n y
The SAP Fashion Management application impacts many KPIs across key operational processes. Below is a selection of the metrics that we can
benchmark and use to identify opportunities for improvement to drive value.
• Stock-outs
• Revenue from substitutes or
alternatives
• Reduction in chargebacks
• Number of sales transactions where
up-sell and cross-sell are offered
• Stock-outs
• Sales and gross margin optimization
• Markdown or discount management
(reduction of markdowns)
• Reduction in revenue loss with quick
time to market
• Reduction in finished goods
inventory
• Reduction in chargebacks
• Number of sales transactions where
up-sell and cross-sell are offered
• Revenue from substitutes or
alternatives
• Warehouse operations efficiency
• Warehouse technology cost
• On-time shipment of orders
• Order-receipt-to-ship cycle time
• Orders expedited
• Inventory accuracy
• Improvement in on-time delivery of
shipments to customers or stores
• Business and operations reporting
productivity
• Invoice processing efficiency
• IT cost to support planning and
consolidation
• Time to create new finance report
Brand and
merchandise
management
Sourcing,
procurement, and
manufacturing
Human resources
Supply
chain
Information technology
Technology and platform
• Procurement productivity
• Improvement in annual savings
on direct and indirect materials
• Improvement in annual services
savings
• Increase in spend under contract
• Reduction in work-in-progress
inventory
Finance
Omnichannel
customer
experience
• Purchase order error rate
• Improvement in on-time delivery
of POS to suppliers
• New-contract creation cycle time
• Reduction in work-in-progress
inventory
• Reduction in cost to support
supplier contract management
• IT budget spent on data
cleansing
• IT integration cost
• IT data-quality repair cost
• IT efficiency
© 2 0 14 SAP SE o r a n SAP a f f i l i at e company | 1 1

M o v i n g t h e n e e d l e
Implementation of the SAP Fashion Management application can help you “move the needle” for these KPIs. For example, improving the business
processes that touch the KPIs below is critical for your company to achieve corporate and shareholder value objectives as well as continue to deliver
world-class experiences for its customers. Our industry value engineering team would be pleased to work with you to identify core metrics and potential
improvements.
STRATEGIC PRIORITY KPI IMPACTED AREA
Globalization
Transportation spend
(% of revenue)
Product data formally managed
(in %)
Faster fashion
Time to market for new products
(in months)
Brand and merchandise management
New products launched annually
per US$100 million of revenue
Customer experience
Orders backordered
(in % make for stock)
Customer experience
Orders cancelled
(% of orders backordered)
Expedited transportation spend
(% of revenue)
Supply chain
Inventory cover
(weeks of supply)

H o w SAP C a n H e l p Y o u A c h i e v e Y o u r V i s i o n
We believe that SAP can play an important role in helping you transform your business, stay competitive, and deliver on your business imperatives.
SAP has identified four
areas where value can be
created for you.
T h e SAP S o lu t i o n
Brand and merchandise management
Supply chain
Customer experience
›
1
2
3
4

B r a n d a n d M e r c h a n d i s e M a n a g e m e n t
You have the opportunity to win over demanding customers to your brand, improve customer loyalty, and increase sales and brand value. By enlarging the
footprint of the brand with more styles available more often and shorter selling seasons, you can manage a targeted global and local range of products.
Solu t ion Ca pa b i l i t i e s b ene f i ts
• Predict, understand, and adapt to customer behavior
with powerful analytics
• Plan and deliver assortments based on current customer
preferences and trends
• Win new customers with compelling promotions and
marketing campaigns
• Drive top-line growth and improve customer satisfaction
with strategic pricing
• Manage multiple seasons
• Offer customized products to customers with value-added
services
Brands that leverage detailed customer information to develop
personalized marketing and merchandising strategies can have
greater success in maintaining loyal customers.
• Provide one source of product master data across all parts
of your enterprise
• Manage and analyze season, collection, and theme across the
entire value chain
• Develop deep insights about your customers’ buying
preferences and manage their shopping experiences across
e-commerce, stores, and social channels in real time
• Create integrated marketing, promotions, and loyalty
programs based on a common view of the customer
• Strategically plan assortments by customer, product,
and location to provide relevant and localized merchandise
›

S o u r c i n g a n d P r o c u r e m e n t
Develop stronger relationships with your sourcing and manufacturing partners and gain efficiency opportunities with effective cross-channel sourcing.
• Find new suppliers and speed onboarding by creating rich
profiles with transactional information
• Enrich supplier relationships over time with improved
performance and risk management
• Develop strategic sourcing and contracting and identify more
opportunities to save
• Plan product creation – from design and component sourcing
to production and quality management
• Effectively collaborate with vendors across ordering, invoicing,
and payment processing
• Reduce costs with special handling and services delivered
at the source
• Benefit from advantages in improved lot sizes and cost savings
in transportation
Keeping pace with demanding customers in a dynamic – even
volatile – marketplace while managing increased complexity at a
reasonable cost is exceptionally challenging. Successful fashion
companies collaborate with a global business network of vendors,
manufacturers, and logistics service providers to deliver greater,
differentiating value to customers in a profitable way.
• Identify and onboard suitable vendors, manage the entire
vendor lifecycle, and continuously analyze vendor performance
• Understand total spend, define your sourcing strategy,
and efficiently manage the operational buying process
• Create differentiation by delivering brand and product
innovation and development, as well as production planning
and execution
• Source and buy for all channels, combining purchase demand
across channels in one purchase order, optionally using
segmentation
• Use sourcing variants such as third-party order, purchase
to order, and make to order, with value-added services at the
source
›

S u p p l y C h a i n
Reap the benefits of improved planning, optimized inventory, and accurate order allocation.
• Improve use of inventory
-- Gain greater forecast accuracy and optimize inventory for higher
customer satisfaction
-- Deliver products on time and as promised – how, when,
and where customers want them
• Optimize inventory allocation
-- Reduce lost sales due to stock-outs
-- Improve order fill rate
-- Enhance customer satisfaction
-- Increase service levels and reduce chargebacks and deductions
caused by suboptimal allocation and fulfillment
• Improve service levels and easily comply with vendor restrictions
• Harmonize supply plans across the network
-- Optimize sourcing
-- Maximize efficiency in sourcing
-- Improve price, quality, and transparency
-- Reduce transportation cost
With improved visibility into channel demand, a customer-driven
supply chain can synchronize supply with your extended business
network. Simultaneously, it must integrate and automate logistics
and fulfillment across stores, customers, distribution centers, and
warehouses – meeting demand where it actually occurs.
• Immediate inventory visibility across all channels (wholesale,
retail, franchisee, and digital)
• Integrated systems that provide optimal cross-channel
allocation methods from planning through execution, helping to
ensure superior customer service and higher profitability
• Segmentation and common inventory to optimize inventory
allocation to demand changes
• Full traceability of historical demand to improve future
planning
›
25.8% reduct i o n i n r evenue loss du e to stock-outs where forecasts i n corporat e demand
history and automat i c adjustments for bad data and past p romotions
Source: SAP Performance Benchmarking

C u s t o m e r E x p e r i e n c e
Brand owners have the opportunity to serve and sell to customers by using different channels such as wholesale, retail, and digital as well as various
customer-facing technologies.
• Improve margin and revenue figures
• Focus and deliver on excellent customer service
• Hit customer retention targets
• Increase customer satisfaction levels
• Improve product availability with better demand fulfillment
• Operate effectively with one view of the customer across
all interaction channels
• Design for channel expansion, from wholesale to retail sales
or vice versa
• Minimize seasonal excess stock and avoid price markdowns
Customers expect a consistent sales experience, regardless of
how they engage with a brand. To serve the various sales channels,
brand owners must understand their customers’ needs, anticipate
their demands, and offer consistent, omnichannel interactions.
• Manage your wholesale customer and key accounts
• Assign inventory to the right customer demand by providing
product availability information and rules-based order allocation
and inventory segmentation
• Effectively develop price strategies based on seasonality, size,
color, customer, price groups, and other characteristics
• Use seasonal processing to maximize control and fine-tune
seasonal delivery periods
• Improve customer service with value-added services such as
ticketing, labeling, and special handling
• Manage your own retail channels, from stores, e-commerce,
and B2C to franchisee
›

Wh y SAP ?
W h y SAP ?
SAP’s vision is to help the world run better and improve people’s lives. Our mission is to help every customer become a best-run business – this is what we
bring to you.
We are the market leader in enterprise application software, with
more than 183,000 customers across 120 countries. Our solutions
and services are today’s business enablers, and we continuously
work with customers to help them address the needs of tomorrow.
The SAP Fashion Management application provides:
• A vertically integrated solution to deliver adaptable global
business, faster fashion, and a unified customer experience
• Support for end-to-end, real-time processes based on a single
global inventory foundation that improves efficiency and delights
customers
• A comprehensive fashion solution based on the SAP ERP
application
SAP has:
• Deep industry experience coupled with strong and engaged
customers
• Excellent customer references with tangible business benefits

Wh y SAP ?
O u r P l a c e i n t h e F a s h i o n I n d u s t r y
10 of t h e top 10
most admired apparel and footwear retailers
in the world run SAP solutions
1 8 of t h e top 20
apparel and footwear retailers in the world run
SAP solutions
1 2 , 200
retail customers worldwide
Vertically integrated channels on a single platform
Deep industry-specific functionality
Built on industry best practices
Clear industry road map
Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database as of March 2014

Wh y SAP ?
I n t e g r a t e d S o l u t i o n f o r F a s h i o n
The SAP Fashion Management application provides a comprehensive
solution for fashion companies that:
• Breaks down the barriers and inefficiencies across sales channels
with a single, real-time solution
• Increases the speed of range introduction and improves targeting
to channels and sales locations to maximize sales potential
• Helps you gain up-to-the-minute visibility across all partners to
expedite deliveries to match customer need
With 15 years of product innovation, SAP offers a complete fashion suite
that helps you run Right NOW, based on a single foundation that helps
remove organizational silos, enabling you to establish best-business
processes and create an information-driven culture.
We believe our strategy and solutions will help fashion companies drive
action and measurable results. To anchor our global leadership position,
we will continue to invest and innovate in this strategic focus for SAP.
Brand and merchandise
management
• Social, marketing, and
merchandising insight
• Product design and development
• Omnichannel marketing
• Optimized merchandise and
assortment planning
• Pricing and promotion
Sourcing, procurement, and
manufacturing
• Sourcing, supplier management,
and insight
• Procurement
• Branded manufacturing
• Sustainable operations
Supply chain
• Supply chain insight
• Demand planning
• Supply planning
• Omnichannel inventory and
order response
• Optimized logistics and
fulfillment
Ominchannel customer
experience
• Customer insight
• Customer interaction and
personalization
• Digital commerce
• Order management and
orchestration
• Store excellence
Valu e Map fo r Fashion
Corporate functions > Human resources | Procurement | Information technology
Technology > Big Data | Analytics | Enterprise mobility | Cloud solutions

Wh y SAP ?
T h e V a l u e o f P a r t n e r i n g w i t h SAP
SAP brings a strategic partnership with an unparalleled amount of
experience and track record to the fashion industry to assist with the
business and it transformation journey. Whether you needs solutions in
applications, cloud, mobile, analytics, or database and technology areas,
SAP can partner and deliver.
Tightly integrated complete solutions
SAP offers a comprehensive portfolio for fashion companies, enabling
a total customer experience from offer to monetization of any transaction –
integrated, yet modular by design.
Key breakthrough innovations
The SAP portfolio is based on the industry’s most innovative technology
– including the SAP HANA® platform and mobile, analytics, and cloud
solutions – to deliver business process optimization and efficiency at the
lowest possible cost.
Proven time to value in large-scale implementations
Leading fashion companies throughout the world continue to rely on
SAP to enable them to offer a comprehensive customer experience.
Delivering value to your company
Many of the world’s leading fashion companies, across every segment,
are reaping the benefits and running better with SAP software and services.

N e x t St e p s
N e x t S t e p s
Achieving your vision will require significant focus and executive
commitment along with a business partnership with SAP to drive
a successful outcome.
Recommended next steps for your transformation journey:
• Thought leadership workshop with business and IT executives
to identify key value areas
• Connection with other fashion companies to exchange best practices
and experiences
• An industry value engineering approach to identify commercial
business and specific use cases

www.sap.com/contactsap
© 2014 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without
the express permission of SAP SE or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other
countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for
additional trademark information and notices. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes
only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall
not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE
or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business
outlined in this document or any related presentation, or to develop or release any functionality
mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated
companies’ strategy and possible future developments, products, and/or platform directions and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies
at any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking
statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making
purchasing decisions.

Sap fashion-management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Sap fashion-management

Similar to Sap fashion-management (20)

More from suryanarayana tata

More from suryanarayana tata (16)

Recently uploaded

Recently uploaded (20)

Sap fashion-management