2. SAP S/4HANA for Fashion and
Vertical Business
Overall Business Process Flow
Procurement Overview &
Processes
Production Planning Execution
Overview & Process
Q & A and Next Steps
AGENDA
11. High Level Day-to-Day Business Process Flow
• Introduction to FIORI
• SAP Analytics Cloud
• Invoice Processing Analysis
• Supply Demand Overview
12. AFS Vs S4 HANA
AFS S4
Grids Configuration Class
Material Group Merchandising Hierarchy
Material Generic Article
Each grid value = SKU Variant article = SKU
13. Master Data
• Single functionality of BP is being used in SAP FMS system for
customers & vendors.
• When plant is created customer and vendor is created simultaneously
• Single material code for retail as well as manufacturing
• Fashion Attributes ( Fabric, Style and Colour)
• Seasons Management
• BOM / Routing can be created at generic level items and can be
detailed at component level.
14. Business Partner Category and its repository.
Person Group
Organization
Partners functions
Shipping Info
Address and contact Info Company Info
Billing info
Export Info
Credit info
Sales Info
Business Role
15. Season Master Data
Seasons from an important aspect in the product life cycle for the fashion industry.
The production of fashion wear is determined according to the season for which it is
produced or sold. Because of the seasonal nature of the fashion Lifecyle it is
important to be able to analyse the seasonal demand of product.
18. Segmentation:
• With today’s complex market requirements, organizations need to manage several dimensions of
product, demand and supply data
• Segmentation makes it possible to identify and classify variations or differences of the same SKU
• One or several of those classifications combined into a structure define a segment
• A segment can generally be considered a demand or supply element depending on where and
how it is used
• Segmentation can represent a physical or a logical seggregation
• If a product variation does require physical distinction and possibly different valuation and
warehouse processes the expression physical segmentation is used
• If physical separation is not required the segmentation approach is called logical
segmentation
Segmentation Overview
19. Segmentation Overview
• Typical examples for logical and physical segments:
• Logical segmentation could possibly be used to capture Preference
versus Non-Preference status
LOGICAL
Channel
Country of
Origin
PHYSICAL Quality
Retail
Italy
Q1
20. Segmentation Setup :
Ability to Define
characteristics
for
segmentation
Ability to Assign
Segmentation
Strategy to
Material Master
Ability to
definite
Segmentation
Strategies
Segmentation Overview
21. Segmentation
Logical distribution of Demand
Assigned to
• Sales orders
• Planned independent requirements
• Stock Transfer Orders
Logical distribution of existing and planned stock
Assigned to
• Physical Stock
• Purchase Requisitions
• Purchase Orders / Stock Transfer Orders
Stock Segment
Requirement Segment
• A segment is considered a requirement segment if used in demand
elements and/or documents
• The same segment represents a stock segment if used in supply documents
or for stock
22. Segmentation Set Up
• If segmentation is used to segregate by channel, a typical structure for a finished goods
article would look like this:
• For raw materials a segment structure would in most cases contain quality and possibly
country of origin:
RTL A DE
Channel Country of Origin
Quality
Quality Country of Origin
A IT
23. Material Master – Segmentation
• Segmentation makes it possible to identify and classify variations or differences
of the same SKU
• The article needs to be made relevant for that further classification in the article
master
• Once it is set as relevant segmentation specific data can be maintained for or
assigned to the article
– Maintenance of weights and volumes for specific segments
– At reference site level: Segmentation strategy, Consumption priority, Stock
protection indicator, Discrete batch number
– Sales and Procurement relevant data at segmentation level
• Note: Once an article is made relevant for segmentation and is transacted on, it
generally cannot be reversed
24. • The business can specify various rules based on which allocation to be carried out
– These rules will impact how the supply is assigned and distributed to the orders/STO
Sales order/
STO
Order Allocation Delivery Invoice
Free
Stocks
Future
Receipts
Allocation
Business Rules
Allocation
Results
Supply Assignment concepts
28. Procurement Management
• Segmentation procurement i.e. grouping based on attributes
• Helps in pricing or maintaining quantities .
• Procurement can be done at generic level item as well.
• Value Added Services can be done at PO level.
• Multi Level Subcontracting
36. Purchase Order Overview
• Confirmations
• Pricing
• Value Added Services in Purchase Order
• Season data in Purchase Order
• Purchase Order Approval
37. Flexible Purchase Commitments / Contracts
• Enables Delayed Finished Goods
Commitments to suppliers and
Destination Postponement up
until leaving production facility
39. MRP
• Functionality to enter the quantity to be manufactured variant wise in a single screen.
• Live MRP ( in lieu of classic MRP) run to get below benefits :
• More up-to-date supply and demand information on which to base decisions.
• Faster reaction to demand changes reduces the risk of stock-outs and means that requirements for
maintaining high level of safety stock is reduced.
• Match demand and supply more efficiently than was previously possible.
• The planning of a selected material in a selected location (such as a distribution center) and its supplying
locations (such as a production plant).
• The planning of the distribution of a selected material across several locations.
• The planning of a selected material in a selected location and its supplying locations and the components in
the production location or locations, multilevel across the complete supply chain.
• The planning of all the materials for which one MRP controller is responsible.
• Using the settings and control parameters in the initial screen of the MRP Live planning run, you can
determine how the planning run is to be carried out.
43. Production Planning
• BOM
– Can be created for generic article
– Components in the BOM are dependent on the segment value of the header
product.
– Quantity Distribution Profile can be maintained
– Routing
• Can be created for generic articles
• All Costing components ( Labor rate etc) can be mentioned in Routing itself.
49. Production Execution
• New functionality of Production Control Workbench to process planned orders and
production orders
• Master Planned Orders
• All planned orders for variants are grouped together for reporting and processing purposes.
• Displays the list of components required for production in the order.
• In order processing and control, the scheduling function calculates the production dates and capacity
requirements for all operations within an order or a collective order.
• Indicates whether the components, production resources/tool or capacities required for a planned order
are available.
• Converts a master planned order to the master production order.
• Displays the characteristic values based on the conversion details.
51. Production Execution
• Master Production Orders
– Displays the list components required for production in the order.
– Indicates whether the components, production resources/tool or capacities required for a
planned order are available.
– Releases the production order before it can be processed.
– Displays the status of the master order.
– A confirmation documents the processing status of orders, operations, sub-operations and
individual capacities. It is an instrument for controlling orders.
– Performs a goods issue for components involved in the master production order.
– When you create a production order and after each subsequent change to the order, the
system calculates the planned order costs that are expected to be incurred during
production. The planned costs are assigned to cost elements.
53. Production Costing
Section Work Center Work Centre Description
Relaxing Section RELAXX01 Relaxing
Layering / Marking Section LAYEXX01 Layering
Cutting section CUTTXX01 Cutting
Stitching section STITXX01 Stitching
Emb section EMBRXX01 Embroidery
Printing Section PRINXX001 Printing
Finishing section FINIXX01 Finishing
Packing Section PACKXX01 Packing
• Operations are carried out at a Work Center. In the SAP System work centers are business objects that can represent the following real work
centers, for example: Machines, machine groups Together with bills of material and routings, work centers belong to the most important master
data in the SAP. Work centers are used in task list operations and work orders.
Structure, Key Data & Proposals
A WorkCentre is created for a plant and is identified by a key (unique code). The WorkCentre determines which data can be maintained in the
WorkCentre.
The following Work Centre category ( example) can propose for garment manufacturing.
57. Warehouse Management
• Both Extended Warehouse Management and Warehouse Management
functionality is available in single system with below benefits :
– Faster Inventory Processes: SAP Warehouse Management employs barcode scanners that can drastically improve inventory
management processes. As your inventory processes speed up, employees will have additional time to focus on more important
tasks.
– Accurate Goods Tracking: This software solution monitors all goods as they move in, out or within the warehouse. Up-to-date stock
amounts help prevent errors that could lead to insufficient product and shortens pick and pack time with an accurate location of
products that need to be shipped out.
– Warehouse Automation: SAP warehouse management automates a number of time-intensive processes that could fall victim to
human error. As accuracy increases throughout the warehouse, costs are cut and extra time can be made available for higher-level
decision making and guidance.
– Better Organization: Defined storage bins for products keep a warehouse from becoming disorganized and prone to errors. Moving
pallets containing a variety of stock becomes much easier when everything has a preset location.
– Customize to Fit Your Operation: SAP Warehouse Management allows users to customize its functions in order to better suit their
individual requirements. Complex operations can make use of the entire array of functions while smaller warehouses can pick and
choose what they need to operate successfully.
– Reduce Warehousing Costs: SAP helps you get the most out of your warehousing space, time and the employees. Set up your
inventory to make the most out of employee pathing and only hang on to the inventory you need.
– Increase Visibility & Balance : Always know where stock is located, how labour is assigned and how automation tools are
performing. Discover problem areas and fix them before they turn into costly problems down the road.
– Improve Compliance: Multinational enterprises can leverage this platform to help ensure compliance with all vital regulatory and
international trade requirements.
63. Request a Demo Free Trial
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