Sap fashion management intro

Fashion: Style With Speed
Digitally empowered consumers and a global market are rewriting the rules of fashion
Andreas Lueckler
SAP SE

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2 2© 2016 SAP SE or an SAP affiliate company. All rights reserved.
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SAP Fashion Management – Overview
What is SAP Fashion Management?
SAP Fashion Management is a multichannel, vertically integrated solution covering wholesale,
retail and manufacturing processes on one backend system based on SAP Merchandising for Retail
running on SAP HANA.
Business Suite Components from SAP AFS and SAP Retail
ECC
SAP ERP 6.0
SAP Merchandising for Retail
SAP Fashion Management
SAP HANA Platform
Key capabilities:
 Single set of master data
 Global inventory visibility
 Common sourcing, buying and manufacturing
 Capabilities for stock segmentation and stock pooling across
channels
 Multi-channel Material Requirements Planning (MRP Live)
 Production Control Workbench
 Order allocation run for optimized demand / supply match
 End-to-end processes with capabilities for style/colors/sizes
 Benefits from SAP HANA
Click here to start the SAP Fashion Management animated video

SAP Fashion Management Solution
Giorgio Armani Experience
Brands managed by SAP FMS

Giorgio Armani
 Some Figures
 GA Group Distribution Schema
NAIS – New Armani Information System
 The Reason Why SAP FMS
 Deployment Plan
 Functional Go-Live (NAIS.JP)
Appendix: SAP Fashion Management Overview
Agenda

Agenda
Giorgio Armani
 Some Figures
 Deployment Plan

ARMANI
COLLEZIONI
9% (17%)
ARMANI
JEANS
42% (35%)
ARMANI
JUNIOR
6% (4%)
EA7
13% (8%)
EMPORIO
ARMANI
27% (22%)
GIORGIO
ARMANI
3% (14%)
Per Brand
Sales Campaign 2015 – 23 Million Pieces* (% Value)
E-COMMERCE
2% (1%)
RETAIL
12% (19%)
TRAVEL
RETAIL
3% (3%)
WHOLESALE
83% (76%)
Per Channel
% pieces (% value)
Legend:
*) Total 23.054.731 pieces sold

GA – Core Business Processes (in a Nutshell)

GA SPA
GA
Subsidiaries
GA Retail
EU (12)
Branches
Manufacturing
• Italy
• France
• Germany
• Belgium
• Denmark
• Spain
• Portugal
• Switzerland
• UK
• Ireland
• Austria
• Netherlands
First Level
Distribution
• Hong Kong
• China
• Japan
• Australia
• US
• Canada
• Brazil
Second Level
Distribution
• Modena
• Vicenza
• Venezia
• Trento
• Torino
• Como
• Hong Kong
GA
Operations
Giorgio Armani Group Distribution Schema

Giorgio Armani
 Some Figures
 Deployment Plan
Agenda

Previous Systems Constellation
 Operational Systems supporting Business Flow
 ST400 GAOperations Production Operations
 ST3K GAO, GASPA, GAUS Wholesale Operations
 ST3K GA Retail Retail Operations
 Retek GAUS, GACA Retail Operations
 Linx GABR Wholesale & Retail Operations
 GALMS GAHK Wholesale Operations
 CS2000 GAHK, GAAU Retail Operations
 JBOS GAJap Wholesale & Retail Operations
 Island Pacific Presidio Intl Production/Wholesale/Retail Operations
 Com.Ware Presidio.com E-Commerce
 Financial Systems
 Oracle App (AFM) GAGroup
 Linx GABR
 Island Pacific Presidio Intl

 Heterogeneous Systems
 Complex Interfaces
 Data Replication
 Different Data Models & Data Dictionaries (Different Languages)
 Complex Normalization & Reporting
Integration Issues

• Value
• Co-
Innovation
• What• Why
Standard
vs
Custom
One single
Information
System
Sharing
data in real
time
Strong
partnership
with SAP
NAIS – New Armani Integrated Solution

Why
Armani has to shift from custom built application to standard
application because:
• it is much more expensive to build and deploy a custom
application suite than to buy and implement packaged
software;
• in addition to the higher cost, these large scale internal
development projects typically take much longer to deliver
value to the business;
• it is very difficult to update and extend the custom application
to respond to market trends, customer expectations,
management requests, and changes in technology; while this
is standard practice for giant application vendors it is very
difficult and expensive for an individual company.
Why
• Value
• Co-
Innovation
• What• Why
Standard
vs
Custom
One single
Information
System
Sharing
data in real
time
Strong
partnership
with SAP

What
One single Information System for all the Group in order to have
the opportunity to use only one «language» to build and share
data and business flows.
Value
Sharing data in real time in an integrated solution without delay or
interfaces among different modules.
Easy integration for people coming from one subsidiary to
another because we are using the same tools/solutions/approach
to manage the business.
Co-Innovation Project with SAP
Strong partnership with SAP to design and implement high added
value specific solutions for Fashion.
What – Value – Co-Innovation
• Value
• Co-
Innovation
• What• Why
Standard
vs
Custom
One single
Information
System
Sharing
data in real
time
Strong
partnership
with SAP

 2011 May - Sharing plan with the Giorgio Armani Board
 2011 June - Giorgio Armani team started the Top Design Phase
 2011 September - Consideration to choose “SAP IS-Retail” / “SAP AFS”
 2011 November - Giorgio Armani team started the BBP
 2012 January - SAP proposed the attendance to FMS
 2012 February - Giorgio Armani joined FMS Consortium
First Steps

 A clear vision
 A strong commitment with the Managing Director
 The courage to break with the past
Ready to go using ……

 A single Information System to support all Business Processes
 SAP FMS as Core Component
 Primary realization criteria: «Take It Standard»
 Single Instance Environment
Scope & Main Characteristics

 «Starting from the End»
 Second Level Distribution: GA Subsidiaries
 First Level Distribution: GA Retail & GA SPA
 Manufacturing: GA Operations
 Full Functional: Logistics, Wholesale, Retail and FI Processes
 By Season: New Season - New System
Deployment Strategy – Basic Choices

GA
Operations
GA SPA
GA
Subsidiaries
GA
Retail EU
Branches
Manufacturing
First Level
Distribution
Second Level
Distribution
GAHK / GACNGAUS / GACA GAJP / GAAU
Q1/2013Q1/2014Q1/2015
GA SPA
Upgrade to FMS
GA Operations
Q3/2014 (October)
time
Q1/2016Q2/2017Q2/2018Q2/2019
GA Retail
Q1/2017
Deployment Plan

Q1/2015 Q1/2016
GA Corp
GA Canada
GA Japan
GA Australia
Q1/2014Q1/2013
GA Retail
(12 LE)
time
GA Hong Kong
GA China
SAP Retail
October ‘14
OracleHANA
SAP Retail
HANA
SAP FMS
HANA
SAP FMS 1.0 SP4
March ‘14
NAIS.HK NAIS.JP NAIS.US NAIS.IT
. . . . .
. . . . .
Deployment Plan – SAP HANA & SAP FMS Update

Apr 2014 Dec 2014
RETAIL
• POS Change [AU only]
• FW13/SS14 Migration
• FW14 Receiving
LOGISTICS
• DC Receiving FW14
• FW13/SS14 Migration
• FW14 Distribution
Feb 2014Dec 2013
WHOLESALE
• FW14 Distribution
• FW14 Returns
Management
FI
• AR
• AP
• AA
• GL
Oct 2014Aug 2014Jun 2014
RETAIL
• Stock Taking
• FW13/SS14 EOS
LOGISTICS
• Outlet Stock Migration
• FW13/SS14 EOS
• Stock Taking
OUTLET
• POS Change [AU only]
• Stock Migration
OTHERS
• Family Sales
• Showroom Samples
Management
• Press Samples
Management
• …
Functional Go-Live (e.g. NAIS.JP)

GA China &
Presidio
GA
Australia
GA Hong KongGA Corp &
Presidio
GA Canada &
Presidio
GA Retail &
12 EU Branches
GA Japan &
Presidio
• 1.500 SAP Users
• 2,5 Million Financial Movements
• 17,3 Million Logistic Movements
2013
2014
2015
2016
NAIS – State of the Art

THANK YOU !
SAP.COM/FASHION

Customer facing Fashion digital content Hub:
http://discover.sap.com/fashioncollection
Fashion E-book:
http://sap-downloads.com/speed-with-style/
The Fashion Collection:
http://www.sap.com/fashion
SAP Retail:
http://go.sap.com/solution/industry/retail.html
Further Information
Andreas Lueckler
Director Field Enablement
IBU Retail
SAP SE
Dietmar-Hopp-Allee 16
69190 Walldorf
GERMANY
andreas.lueckler@sap.com

Giorgio Armani
 Some Figures
 Deployment Plan
Agenda

SAP Fashion Management – Overview
What is SAP Fashion Management?
SAP Fashion Management is a multichannel, vertically integrated solution covering wholesale,
retail and manufacturing processes on one backend system based on SAP Merchandising for Retail
running on SAP HANA.
Business Suite Components from SAP AFS and SAP Retail
ECC
SAP ERP 6.0
SAP Merchandising for Retail
SAP HANA Platform
Key capabilities:
 Single set of master data
 Global inventory visibility
 Common sourcing, buying and manufacturing
 Capabilities for stock segmentation and stock pooling across
channels
 Multi-channel Material Requirements Planning (MRP Live)
 Production Control Workbench
 Order allocation run for optimized demand / supply match
 End-to-end processes with capabilities for style/colors/sizes
 Benefits from SAP HANA
Click here to start the SAP Fashion Management animated video

Fashion Product
 Generic articles with up to three dimensions, can be structured (set, display,
prepack, customer assortment  Non-Production BOM)
 Usage along all processes
 Characteristic value conversion
 Bill-of-materials and routing for fashion products
Season, Collection, Theme
 Multiple seasons / collection / themes can be assigned to a product
 Season master data can be used to determine the purchasing and sales
period of the product
 Manufacturing, purchasing and sales documents carry season information
 Season handling in production order
Value Added Services (VAS)
 Additional services attached to a product prior to delivery, such as ironing,
labeling, special packaging
 Typically, separate costs for such services will be charged
 Automated determination by standard condition technique
2016 / summer /
men casual /
sailing
x
x
x x
x x
31 32 33
30
31
32
Inseam
Waist
blue green red
Core Concepts in SAP Fashion Management (1/3)

Segmentation
 Categorize demand and supply elements by
logical and/or physical aspects of a product
• For example: Quality, dye lot, country of
origin  physical segmentation
• For example: Sales channel (e.g. Retail,
Wholesale, Web shop)  logical
segmentation
 Segmentation information is carried along the E2E
process chain, such as:
 Material Requirements Planning (MRP)
 Available to Promise (ATP)
 Order allocation
 Inventory visibility
 Production order
 Pricing at segmentation level (wholesale)
Retail E-commerce Wholesale
Quality B
Country A Country B
Country of Origin
Quality
Quality A
Sales Channel
Country C

Material Requirements Planning (MRP)
 Ensure material availability in requested quantity
and time
 Match demand and supply on distribution
center/plant level
 Create proposals for procurement or manufacturing
 Create one joined document across all channels by
using grouping functionality
 Consider segmentation
Order Allocation
 Assign stock elements to customer or store orders
and fix these assignments
 Ensure optimized stock usage and improved
customer service
 Consider stock on hand and future receipts from
procurement and manufacturing
 Consider segmentation
Stock on hand
Future receipts

Manufacturing – high level scope
Master Data:
 Fashion BOM and routing
 Enablement of segmentation in manufacturing master data (article, BOM, Routing)
as well as documents (planned and production orders)
Production Execution:
 Master planned orders and master production orders with multiple variants
 Production control workbench - one central transaction to handle individual or
master planned orders and master production orders
New Processes for SAP Fashion Management 1.6:
 Subcontracting as external operations in production orders
 Fixed batch assignment of components to production orders
 Season handling in production orders
 Consideration of production orders as future stock during Order Allocation Run
 Exclusion of make-to-order (MTO) during Order Allocation Run possible

Manufacturing Process Flow
PIR SO
MRP
Pur
Req*
Pur.
Ord
Demand Elements Stock Elements
STO
External
Systems
Demand
Planning (APO)
Manual
Creation
Stock
Purchase
Requisition
Purchase
Order
Planned
Order
Production
Order
Production
Order
Release
Material
Staging
Production
Execution
Production
Confirma-
tion
Plan
Ord*
In-house
production
External
procurement
Prod
Ord
* Firmed documents!

Production Control Workbench (PCW)
 Planned orders are created in
MRP or manually in PCW
 Master planned order = group
of planned orders
Master planned order Master production order
Planned
Order
Planned
Order
Planned
Order
Production
Order
Production
Order
Production
Order
Production Control
Workbench (PCW)
Production Control Workbench manages the entire production cycle
from one single processing window
 Planned orders are converted into pro-
duction orders or are created in PCW
 Master production order =
group of production orders
Functions: Master planned order
 Manual creation using variant matrix
 Component Overview
 Schedule
 Availability Check
 Conversion to master production order
Functions: Master production order
 Manual creation using variant matrix
 Component Overview
 Availability Check
 Release of Production Overview
 Confirmation
 Goods Issue
 Goods Receipt
 Technically complete
 Close
MRP

• SAP FMS = SAP Fashion Management Solution
FMS 1.0
EhP7 SP04
FMS 1.5
EhP7 SP07
FMS 1.6
EhP7 SP10
FMS 2.0
EhP8 SP01
FMS 2.2
EhP8 SP02
FMS 2.4
EhP8 SP04
FMS 2.X
Fashion Wholesale
• Master Data
• Inventory and
Segmentation
• MRP and MD04 for Fashion
• Order 2 Cash (ARun, ATP)
• Fiori App for Allocation Mgr
• Procure 2 Pay
Retail Harmonization and
Business Suite Integration
Enhanced Wholesale
Functionality
•Coverage strategies for
MRP
•WM enablement
•Coverage strategies for ATP
•Parallel ARUN and ARUN
preview
•Support for CITES
•Usability improvements for
master data
Enhanced Wholesale
Functionality
•Fiori Buy Planner Application
•Subcontracting
•Application variants (sales and
purchasing grids)
•Material Ledger
Manufacturing
•Master data, BOM
•Manufacturing planning
•Make-to-Order
•Subcontracting
Enhanced Wholesale and
Manufacturing
•Insight to Action ARUN
Analytics Cockpit
•Customer / Vendor Master
IDOCs
•Mass processing and
usability in Production Control
Workbench
•Long term planning
Enhanced Wholesale
Functionality
•Distribution Curves
•Vendor Consignment
•Multi Ship-to Orders
•Rejection Logic
Manufacturing Functionality
•Combined Production Orders
•Feasibility Analysis
•PP WM integration
Enhanced Wholesale and
Manufacturing
•Markers and Bundles
•Made to Measure
•PO Generation Rules
•Enhanced Feasibility Analysis
•UI Improvements & round-offs
Content in
Planning
FMS 1.5 Migration Tools FMS 1. 6 Migration Tools FMS 2.0 Migration Tools FMS 2.2 Migration Tools FMS 2.3 Migration Tools
FMS 1.0
May 2014
FMS 1.5
Jan 2015
FMS 2.0
Jan 2016
FMS 2.4
Q4/2016
FMS 1.6
Oct 2015
FMS 2.2
May 2016
Today
SAP Fashion Management Roadmap
A Strategic Platform from Release 1.0 Onwards

Today Future DirectionPlanned Innovations
Product road map overview – key themes and capabilities
FMS 2.4 EhP 08 SP04 Nov 2016
Master Data
• FERT Generator for MTM
Planning
• Cut Off Date round off
Logistics and ARUN
• Transportation Chain Round off
• Rejection Logic
• ARUN ITA enhancements
• Usability
• DC Indicator in MM documents
Manufacturing
• Markers and Bundles
• Combined Orders Round off
• Feasibility Analysis Round off
Master Data
• BOM enhancements for Variants
Planning
• PIR round off
• Stock Protection round off
Logistics and ARUN
• Distribution Curves enhancements
• STO enhancements
• ARUN Enhancements
• Usability
Manufacturing
• Markers and Bundles round off
• Combined Orders – New Req
• Feasibility Analysis – New Req
Customer Feedback
• New requirements from Implementations
• Prioritized requirements from Fashion Council
Analytics and Dashboards
• Sales Cockpit
• Stock Protection Dashboard
• Fiori App: Confirmation for Shop floor manager
• Fiori App: Goods movements at shop floor
Internet of things: automated production of individual
products
Customer Feedback
• Prioritized requirements from Fashion Council
2016 2017 2018
This is the current state of planning and may be changed by SAP at any time.

SAP Fashion Management Starter Pack
Scope: Starter Pack for Fashion is….

Sap fashion management intro

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