Digitally empowered consumers and a global market are ... · PDF file4/11/2016 · Fashion: Style With Speed Digitally empowered consumers and a global market are rewriting the rules

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

Andreas Lueckler

SAP SE

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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

http://www.sap.com/asset/detail.2014-07-jul.fashion-management-animated-video-mp4.html

The Fashion Essentials Collection.mp4



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 JUNIOR6% (4%)

EA713% (8%)

EMPORIO ARMANI

27% (22%)

GIORGIO ARMANI3% (14%)

Per Brand

Sales Campaign 2015 – 23 Million Pieces* (% Value)

E-COMMERCE2% (1%)

RETAIL12% (19%)

TRAVEL RETAIL

3% (3%)

WHOLESALE83% (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

Sharingdata in real

time

Strong partnership with SAP

NAIS – New Armani Integrated Solution


WhyArmani 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


System

Sharingdata in real

time



WhatOne 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.

ValueSharing 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 SAPStrong 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


System

Sharingdata in real

time



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

OperationsGA SPA

GA

Subsidiaries

GA

Retail EU

Branches

ManufacturingFirst 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

20152016

NAIS – State of the Art


THANK YOU !

SAP.COM/FASHION

http://www.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

[email protected]

http://discover.sap.com/fashioncollection

http://sap-downloads.com/speed-with-style/

http://www.sap.com/fashion

http://go.sap.com/solution/industry/retail.html

mailto:[email protected]





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 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

http://www.sap.com/asset/detail.2014-07-jul.fashion-management-animated-video-mp4.html




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

http://imagedirectory.wdf.sap.corp:6085/ImageLibrary/ImageDetailsView?imageId=ded6050f-804f-4926-8991-f391a48b7570







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 RoadmapA Strategic Platform from Release 1.0 Onwards


Today Future DirectionPlanned Innovations

SAP Fashion ManagementProduct 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….




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Digitally empowered consumers and a global market are ... · PDF file4/11/2016 · Fashion: Style With Speed Digitally empowered consumers and a global market are rewriting the rules