AFS Product Update v1

SAP has Passion for Fashion,Apparel and Footwear

Session 3305 - AFS Product UpdatePeter Akbar

GLOBAL APPAREL AND FOOTWEAR COMPANIES

RUN SAP.

© SAP 2010 / Page 2

Legal Disclaimer

This presentation is a preliminary version and not subject to your licenseagreement or any other agreement with SAP. This document contains onlyintended strategies, developments, and functionalities of the SAP® productand is not intended to be binding upon SAP to any particular course ofbusiness, product strategy, and/or development. Please note that thisdocument is subject to change and may be changed by SAP at any timewithout notice. SAP assumes no responsibility for errors or omissions in thisdocument.

AFS Roadmap

AFS and Supply Chain Management

Ideas for Next Release

© SAP 2010 / Page 4

The Global Fashion Lifestyle Industry is Hugewhich is why SAP supports it…

Raw Material Suppliers – Fabric, Trims & Accessories

Key Players Examples

Global Fashion Industry500 Billion US$ business

BrandsDesignerBrands

Retailers Vendor/Manufacturer

© SAP 2010 / Page 5

Apparel and Footwear CustomersUnited States and Canada 2008

2007

2006 & earlier

Justin Boots

Levis

Life is Good

Li & Fung

Kenneth Cole

Limited Brands

K-Swiss

Marchon Eyewear

Image Mark

Hartmarx

Jones Apparel Group

Movado

KNG International

Naartjie

MacGregor Golf Co.

Koos Manufacturing

Maidenform

Nike

QVC

Oakley

Superior Uniforms

Peerless

Reebok

New Era Cap

New Balance

Warnaco

Wolverine

Swiss Army

VF Corporation

Samsonite

Under Armour

Vera Bradley

Sports Supply Group

Pacific Cycle

2009

G&K Services

Cole Haan

Bauer Nike Hockey

Fossil

GBMI

Ariat

Cintas

Cutter & Buck

Bruno Magli

Bell

Burton

Chicos

Ballet Makers

Hanesbrands

Brown Shoe Company

Carhartt

Boston Apparel

Encompass

Note: not all 2009 customers shown

© SAP 2010 / Page 6

Apparel and Footwear CustomersLatin America

Encompass, Mexico

Deportivos con Estilo(Charly), Mexico

Alpargatas, Brazil

Emyco, Mexico

Giovanna, Mexico

Deportenis, Mexico

Dalponte, Brazil

Cia Hering, Brazil

Fabrica De CalcetinesCrystal, Colombia

Groupo Yasbek,Mexico

Livylu (Andre Badi),Mexico

Administración yOperación, Mexica

Alpargatas, Argentina

Industrias Piagui,Mexico

Vesuvio, Argentina

2008

2007

2006 & earlier

2009


© SAP 2010 / Page 7

Apparel and Footwear CustomersAsia Pacific Region

Tainan Enterprises

EsquelHwa Seung Vina

Esquire

Cheil IndustriesDome Corp.

Asics

Marui

DKSH,Malaysia

Alliance Textiles,New Zealand

Playcorp

Sass & Bide

Gazal

Rusty

Page Industries

Madura Garments

Natural Textiles

Pantaloon

M&B Footwear

Arvind Brands

Reliance Industries

RaymondHouse of Pearl

Pratibha Syntex Ltd

Shanta Denims Ltd

Best and Crompton

S Kumar (SKNL)

Vishal Retail

Bannari Amman

Viyellatex LtdNumero Uno Clothing

Karle International

Network Clothing Co.

Hencom LTD

MAS HoldingSlimlineShadowlineLeisurelineCourtauldsUnichelaLinea

2008

2007

2006 & earlier

2009

LG Fashion

Changzhou AbilityGarments

Qingdao EverHonest Garmet Co.

Embry

Crystal Group

Clover Group

Dongguan HuaboaShoe

Cobest

Beijing Li-NingSports Goods

Guangzhou HoyoIndustrial Company

Kaiser Holding

Shenzhen FuannaBedding Company

Shanghai TitanSports

Shanghai ThreeGuns Group

South ChinaBleaching & Dyeing

Zhejiang BaoxiniaoGarment Company

Zhejing MengnaKnitting Company

Vicutu ApparelLtd.

Zhejiang MultigloryGroup Company

Yih Dah

Metersbonwe

Rahman Industries

Relaxo Footwear


© SAP 2010 / Page 8

Apparel and Footwear CustomersEMEA

FashionBox

Pentland

Benetton

Atateks

Ecco

DeRigo

CSP

Calida

Brioni

Fornari

Triumph

Scott Sports

Fila

Napapijri

Marcolin

Artsana

Saez Merino

Head

Marzotto

BenettonTurkey

Carpisa

Camper

Kwintet

OP Prostejov

Schiesser

Mascot

PrecaBrummel

Burberry SSL Int’l

Belvest

Gritti

Mantero

Aboutblu Prada

G&A

GruppoForall

Aurelli

Vostok

Luxottica

Tommy Hilfiger Delvaux

Strellson

Fashion 5

Riopele

Miriade

Switcher

Adidas

Hugo Boss

Eurodress

Uhlsport

Lucia

Esprit

Amer Sport

Escada

Taypa Textiles

DMC

Barbara

Chantelle

Louis Vuitton

Givenchy

2008

2007

2006 & earlier

2009


© SAP 2010 / Page 9

SAP is the De-facto Fashion Industry Standard

Apparel & Footwear Companies grow into theSAP Business Suite

Order to CashProcure to PayAllocation,and/orFinancials

227Manufacturingand/orWarehouseMgmt

CRMand/orRetail

SCM / VMI /Netweaver

v

l

l

v

JONES APPAREL GROUP

1997 1999 2001 2003 2005 2007 2009

Escada

Louis Vuitton

Esquel

Esquel

© SAP 2010 / Page 10

Great Brands… Great Relationships…GlobalAds

© SAP 2010 / Page 11

Supply Chain Retail Demand Chain

Sourcing and Logistics Sales and Service

Key FindingThe line between Retailers & Wholesalers is blurring, with more collaboration between suppliers, wholesalers and retailers forrisk management and greater efficiency. Only companies who can orchestrate this complex environment will succeed.

Factory/Sourcing

SourcingAgent

Ports of Exit/Entry

Government

Compliance& Security

Home OfficeFashion

Company

BrandWholesaler

3PL/4PLDomesticShipping

DistributionCenter

Catalog

ConsumerDirect

Retail Store

3PLFreight

Consolidator

CriticalComponentRaw Material

Vendors(Textile Mills/

LeatherFactories)

Consumer

FedEx/UPS

SAP is the Only Vendor Who Can Manage theComplex Fashion Value Chain in ONE SOLUTION

© SAP 2010 / Page 12

SAP Apparel & Footwear has evolved withthe Fashion Industry…

AFS Releases1998 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

AFS 3.0R/3 4.6c

AFS 6.0/ ECC 6.0

Netweaver

AFS 5.0/ ECC 5.0

Netweaver

SAP Retail

SAP ECC 6.0

RetailEnhancement Packs (EHP)

Netweaver

SAP Apparel and Footwear

AFS 6.0, AFS 6.3, AFS 6.4 based on SAP ECC 6.0

AFSEnhancement Packs (EHP)

SAP AFS 6.4 is now on General Release!

© SAP 2010 / Page 13

Key SAP Business Suite Availability for AFS

1998 2000

ERP AFS Releases

Roadmap showing key Business Suite availability for AFS

2001 2002 2003 2004 2005 2006 2007 2008

DataWH &Analytics

CallCenter

InternetSales 3.0DemandPlanningResellerPortalRetail

InternetSales4.0

Event Mgmt(SCEM)

CollaborativePLM

DMS

AFS 5.0

ECC 5.0

Netweaver

SCM Supply Network Planning (SNP)SCM Responsive Replenishment (RR – VMI)SCM Demand Planning (DP) plusCollaboratation with Retailers

Internet Sales CRM Edition (B2B)CRM Field Mobile SalesCRM Call Center

MDM*

AFS 2.5

R/3 4.5B

AFS 3.0

R/3 4.6C

AFS 1.0

R/3 3.1I

GTS

AFS 6.4 based on ECC 6.4 – General Release March 2009* Adding AFS content is variable by customer and customer project** Dates and scope subject to changeNote: Not all processes in the Business Suite / SAP Ecosystem are needed or supported for AFS

Key ProcessesAvailable for AFS

EnhancementPackages**

2009



AFS 6.0

ECC 6.0

Netweaver

© SAP 2010 / Page 14

EnhancementPackage 1

HCM SharedServices

AdaptiveManufacturing

Credit andCollections

Retail


Order ToCash

Order ToCash

Learning

ServiceIndustries


Procure ToPay

Procure ToPay

Fast Closing

TradingIndustries


AccountingTo Reporting

Treasury

ProcessIndustries


Attract ToPerform

FinancialShared

Services

Compensation

DiscreteIndustries

…with customer driven AFS EnhancementPackages

SIMPLIFICATION

ENTERPRISE SOA

FUNCTIONALITY

INDUSTRIES

SAP AFS 6.3 SAP AFS 6.4 Roll In

AFS enhancement packs include new AFS features plus relevant features from previous EHP’s for AFS style/color/size.* Planned dates/features subject to change

June 2008 March 2010 2010 on*

© SAP 2010 / Page 15

Long Term Goal: Shorten Time to Implement andReduce TCO while Securing Continuity

Further eSOA enablementof SAP Apparel and Footwear

Enhance AFS specificservice offeringsDefine AFS specificcomposites withcustomers/partners

Support new and evolvingcore industry businessscenariosDrive collaborativescenarios andEcosystem Applicationsto address the extendedenterpriseDeliver a holistic offering ofservices accessible fordifferent applications

2007

2009

201X

2008

AFS Enhancement Packages designedto achieve Long Term Goal

ERP generic round offs+ eSOA order to cash

2009 Manufacturing focused+ eSOA procure to pay

201X Suite harmonization +eSOA manufacturing

SAP Influence

AFS Roadmap



© SAP 2010 / Page 17

Crystal, Lining, Baoxinaio,Confirmation in Combined Order

Ecco, Madura, Arvind Brands, DMC,Levi, Preca BrummelProduction Order Info System Enhancement

SAP: User Interface ImprovementSimplification: Sales Order List

Triumph, Crystal, Justin BootsSKU Group Based Routing

Burberry, Crystal, G&K Services, SAPItalyBAPI Batch Assignment Production Order

Burberry, Hugo Boss, Crystal Knitters,MAS HoldingsBatch Determination Enablement

SAP Italy, Cheil Industry, EmbryGroup, Crystal Knitters, EccoBOM Enhancement

Scott, Crystal, G & K services,CamargoCO41 Enhancement

Enterprise Service Bundle: Procure to Pay for Fashion

PP Confirmation BAPI

ARun Change Log

New Enterprise Business Functions

Nike/Bauer, Nike, Under Armor, VFCorp

Hanes, Madura, Raymond, Hartmarx

Nike, Wipro, attune

Requested by Customer

SAP Apparel and Footwear 6.4 – CustomerInfluence

© SAP 2010 / Page 18

Market Driven Roll-In Process

© SAP 2010 / Page 19

SAP SCM – Development RequestsDirect Shipment Planning / Third Party Order Processing

Functional EnhancementsIn the third party purchase-to-order process, the sales person and/oruser exit determines if the sales order should be a direct shipment (e.g.based on the product type, the customer, and the order size)If direct ship, AFS looks for a suitable vendor and calculates thedelivery date from the vendor to the customer ship-toAFS creates a blocked purchase requisition and transfers it to SAPAPOSAP APO checks if the vendor has capacity to supply the requestedquantity.If the vendor can supply the requested quantity on time, the purchasingprocess starts.

“This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments,and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that thisdocument is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.”

© SAP 2010 / Page 20

DPPlanned

IndependentRequirement

(PIR)

MaterialRequirements

Planning(MRP)

PurchaseRequisition/ Planned

Order

Purchase Order /Production Order

Supply ChainManagement

(SAP SCM)

DEMANDPLANNING

(SAP DP)

SUPPLYNETWORKPLANNING

(SAP SNP)

VMI/CPFR(SAP RR)

SNC / SCEM(SAP SNC, SCEM) Supplier Network Collaboration (SNC) / Supply Chain Event Management (SCEM)

Style/Color/Size in Fashion Planning

Yellow = Supply Chain Management Blue = Apparel and Footwear Solution AFS 5.0 / AFS 6.0

Strategic Tactical OperationalSegment – Style Style/Color/Size Style/Color/Size

3 - 0 Years 12 - 0 Months

DP SNP MRP Purchase Order /Production Order

PurchaseRequisition/ Planned

Order

DPCollaboration

ResponsiveReplenishment

(VMI/VMR)Delivery

SalesOrders at

Store/Style/SKU

AllocationRun (ARun)

AFS Roadmap



© SAP 2010 / Page 22

Parallel Release Checkfor Allocation Groups

Potential Topics for the next EHP AFS 6.5

ForecastingPlanning

LogisticsExecutionAllocationProcure-

mentSales

ExternalProcure-

ment

InternalProduction

Invoice andFinancial

Accounting

Outsourced Manufacturingfor AFS in MM (subcontracting,

batch for external operations)

Direct Shipment Planningin SCM SNP

AFS ReschedulingStock Transport

Orders

Outsourced ManufacturingFor AFS in PP

(flexible batch assignment,order report, interactive planning,

MRP Simulation)

Performance Enhancements (MRP, SCM interface)Accessibility

VAS in MM Enhancements(re-determination, edit VAS)

VAS info to DWMS

Ramp-up dependent on std EHP 5

© SAP 2010 / Page 23

Thank you!

Session 3305AFS Product Update

© SAP 2010 / Page 24

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AFS Product Update v1