1

Infor M3 Sachin Danave

Collaborate For Success India Partner Summit

2

Topics

Infor M3 – A brief background

Infor M3 for Fashion

Infor M3 Add on products

Infor M3 – Fashion Pedigree

1

2

3

4

3

Infor Products

• Infor Ln

• Infor M3

• Infor Syteline

• Horizontal products

4

M3 History

Copyright © 2010 Infor. All rights reserved. 4

2011 2010 1999 1998 1995 2006 2007 2001

M3 7.1

1st & biggest ever release of M3

Decoupled M3 Technology.

Smart Client/Office interface as "center piece“ Several

new applications and modules.

M3 10.1

Second major release of M3 with Lawson for

Industry solutions, Lawson Enterprise Search,

Package management, Bookmarks, GAM3

enhancement, Mash-ups and 600+ enhancements in

total,

M3 5.2 US

Movex BE 12.5Java

+ updates targeting the US market .

Rebrand from Movex/IAS to M3

Movex v12

Major developments for key industry

sectors plus expansion of

international coverage in the

standard solution

Movex v11

First Java version of

Movex introduced.

11NextGen

Movex MIA 10

Movex Industry Applications

- 1st real focus on specific

industries, F&B, Fashion and

Distribution

Movex v9

The Multi Unit Coordination

with the 'Division' entity

introduced. MRP concept

introduced. Terminology

adapted to the international

APICS standards.

1992

Movex v7

Solution redesigned &

rewritten. First version of

Movex Programming

Standards. AMACS and

Movex integrated into one

system.

1983 1989

Movex v4

The system rewritten for the

AS/400.

Movex v2

Developed for IBM S36

system, Initially on S34,

first ever on S3 1974.

IEPs

Industry Enrichment

Packages

Regulatory & Statutory

5 5

6

Topics

Infor M3 – A brief background

Infor M3 for Fashion

Infor M3 Add on products

Infor M3 – Fashion Pedigree

1

2

3

4

7

Outsourced Manufacturing

Internal markets / consumption

Competition from suppliers

Multi-channel strategies

Environmental protection

Hazardous Chemicals / processes

Fast, Bridge Fashion

Fashion - Global Perspectives

8

Conflicting Objectives

Multi-Channel

Omni-Channel

9

Western Retail Expansion into China • China’s ecommerce overtaken US*

• Western brands establishing online channels in China*

• Top Apparel market with strong growth – growth in

eCommerce, rise in Fast Fashion, evolution of luxury

Sources: *http://online.wsj.com/news/articles/SB10001424052702304799404579157081461605904 ,

Oct 27, 2013 **The 2013 Global Retail Development IndexTM, http://www.atkearney.co.uk, A.T.

Kearney Inc, 2013

Consolidation & Divestiture Growing again • Sears Holdings to Spin-Off Lands' End

• Hanesbrands acquires DB Apparel

• Nanjing Cenbest acquires House of Fraser Acquisition

• Castanea Partners invests in Aurora Brands

• Etc..……

Ownership of Brands & Retail • “….acquisition and investment activity by private equity

groups and other financial sponsors increased 50 percent

to their highest point since 2008, driven by large amounts

of unspent and expiring capital”

• Tilting toward Private Equity versus Venture Capital

Source: 2014 Apparel and Footwear M&A Outlook, http://apparel.edgl.com, 2/26/2014

Fashion Business Trends

10

Fashion Drivers and Issues

Brand Extensions • Diversification of brands - Pepsi

launch limited-edition clothing

collection*

• More product lines

• New categories

*Source: www.brandchannel.com, May 22, 104

Omnichannel & eCommerce • Everyone’s attention is on omnichannel

and eCommerce

• Many think it’s not making money

• “Omnichannel is a state of mind (and

action)”* *Source: 2014 Omnichannel Action Plan for Retailers,

inRetailagency.com, 2014

Influence of Celebrities &

Bloggers • www.manrepeller.com - 3.7 million page

views a month

• www.bryanboy.com - 328,000+ Twitter

followers

• Kate Middleton wore a blue Issa dress in

2010 and it sold out nearly collapsing the

brand’s business. Source: www.fashionista.com Jan 23, 2013

Boomers being Ignored • Born 1946-1964 – 50-68 age group

• Largest and highest-spending

demographic

Source: Amazon targets the over-50 set,

https://retailinginfocus.wordpress.com/tag/baby-boomers/, April 22,

2013

Wearable Technology • Rebecca Minkhoff unveils tech-

enabled pieces

• Ralph Lauren delivers bio-metric t-

shirts

• Wearables tripled last years sales

Source:

http://www.forbes.com/sites/rachelarthur/2014/09/03/designers-are-

jumping-into-the-wearable-tech-space-this-new-york-fashion-week-

should-we-care/ Sep 3, 2014

11

Fashionomics

• Economic basics – The Influence of Demand over Supply dictates price

• The Fashion of Fashion – and the Business of Fashion – let’s not confuse them

• Utilize everything (including technology) for competitive advantage. Price alone is an unsustainable business model

12

• Inventory at any level of the value chain is a liability to all

• ‘Smart’ global sourcing is not an option – it’s a requirement

• And - Ethical compliance is no longer optional

• Parallel decision processes increase speed

• Sub-optimization of a broken process doesn’t make it better

• Technology is the key enabler for the next level of profits

Operational Level ….

13

Infor Fashion Infor Fashion Industry

Growth

Net New

M3 Fashion

in FY14

Luxury goods

6 of top 10

3 of top 5 Surf wear companies

2013 2014

Q4

Q3

Q2

Q1

35% Growth Y-o-Y 4 of top 10

sportswear companies

4 of 10 Largest footwear

companies

15

Infor Fashion suite New Names FY14

Note: Jerry Leigh is Demand Planning Only

New Fashion

Customers

in FY14

65

14

Quick Facts about the Solution Proposed

Consumers demand

to pay less – while

suppliers need to

charge more

3 of top 5

Surfwear Companies

China’s largest

Footwear Retailer &

Manufacturer

13000+ stores

Sri Lanka’s Largest

Apparel Exporter

Time to market is less

important than

Time to consumer…

3 of the top 5

Woven Shirt

Manufacturers

Consolidation has led

to fewer buyers

dealing with fewer

suppliers…

India’s Largest

Apparel Employer

Speed of inventory

and collection

management means

success

3 of top 5

Luxury Goods

Companies

Largest

Golf Equipment

Company

Norway’s Largest

Fashion Retailer

1 in every 6

Men’s Dress Shirts

Sold in the US

World’s Largest

Jeans OEM

Manufacturer

From High Fashion to

Low Fashion

Large to Small

15

M3 Solution

16

Fashion Industry

Apparel

• Flexible style/color /size /fit matrix by product

• Product configuration for embellishment

• Forecast and ordering by color/size scale template

• Collection management

• Pegging of orders with quantity tolerance handling

• Lot tracking for ethical sourcing

• Omni-channel sales

Accessories

• Handling style and non-style items in the same collection

• Raw materials and finished goods with a wide variety of attributes

• Attribute-based planning

Footwear

• Footwear

• Flexible style/size/width/ material matrix

• UoM for handling pairs

• Leather/hide attribute management

• Last management

• Cartonization of pairs

• Product configuration for personalization

Luxury

• Standard, configured and build-to-order home textiles

• Handing geographic based style and non-style size variations

• Roll attribute management - width/ shade/shrinkage, etc.

• Dye lot planning

• Kitting for sales packs

• Pre-pack and assortments

Home Textiles

• Standard, configured and build-to-order home textiles

• Handing geographic based style and non-style size variations

• Roll attribute management - width/ shade/shrinkage, etc.

• Dye lot planning

• Kitting for sales packs

• Pre-pack and assortments

17

Fashion – business models

Design, Source, Distribute

• Plan for the

future with confidence

• Achieving the right stock mix

• Meet demand

• Increase sales

• Maintain higher order fill rates

Private Brand Retail

• Increase sales

• Improve ability to meet demand

• Improve visibility in supply chain

• Improve forecasting

• Improve planning

• Get inventory management under control

Manufacturing

• Improve links in the supply chain

• Achieve transparency

• Achieve visibility

• Meet on-time delivery

• Grow your business

Vertically Integrated

• Single system

integration

• Lower costs

• Improve efficiencies

• Unlock the value of your data

• Improving management of your entire supply chain

Wholesale

• Improve forecasting

• Improving planning

• Help with supply chain execution

• Make warehouse management your friend

• Create efficient customer order entry

• Reduce operational costs

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Infor Fashion is for…. - Yarns,

- Textiles,

- Leather,

- Apparel,

- Footwear,

- Home Textiles,

- Accessories,

- Jewelry,

- Timepieces,

- Luggage,

- Fragrances,

- Eyewear, and

- many cosmetic and personal care products

19

Infor M3 Technology

Windows

SQL Server

AIX

Oracle

System I

dB2

Fin

ance

Custo

mer

Managem

ent

Invento

ry

Accounts

Payable

Purc

hasin

g

Ord

ering

Work

flow

Auto

mation

Busin

ess

Inte

lligence

Inte

rnal

Port

al…

Part

ner

Port

al…

20

Business challenges we see

Constant

Change

Tighter

Margins

Time to

Consumer

from Concept to Consumer

Omni-channel

21

Constant

Change

Tighter

Margins

Time to

Consumer Omni-channel

What if you could ..

Ship faster,

replenish

seamlessly

Design and

develop more

lines faster

Collaborate

more easily

and accurately

Tie

omni-channel

into consumer

behaviors

from Concept to Consumer

22 Copyright © 2013. Infor. All Rights Reserved. www.infor.com

22

Meeting your business challenges

With fashion-specific functionality tailored to your needs, not bolted on

23

Style and non-style products Constant

Change

Infor Difference

• Handles style and non-style items in one system

• Style, color and size plus additional dimension

• Single definition of style in a matrix

• Add unlimited attributes

Non-Style Style Based

“.. we chose M3 for its ability to handle both style items and non-style items –

but also having the ability to handle attributes other than style as well … “

Issue: Most fashion systems only handle only one or the other

+ =

24

Supply chain compliance Constant

Change

Non-compliance or inability to prove compliance can seriously harm brand value

Infor Difference: Offers complete trace-to-source insight for raw material pedigree

Issue: Proving ethical sourcing, no conflict minerals & no hazardous substances

Textile Manufacture Logistics Omni-channel

25

Product profitability Tighter

margins

Infor Difference

• Integrated financials

• Flexible & detailed product costing

• Activity based costing

• Factory, landed and distribution cost elements

• Analytics for Fashion

Issue: Did a collection, style, color or SKU make or lose money?

Range

Collections

Styles

Colors

SKUs

“…..integrated financials has made a big difference for us. We can now review detailed metrics

for all divisions every month, which gives us much greater visibility.”

26

“Increased inventory turns from two to six per year, a 300% improvement”

Excess and obsolete inventory Tighter

margins

Infor Difference

• Advanced demand planning

• Global inventory visibility & control

• Material & distribution requirements planning

• Quality Control

• Inventory allocation and valuation

! Working capital tied up ! Low inventory turns

! High holding costs

! Confusion and errors

! Obsolete/clearance

inventory risk ! Health and

safety hazards ! Disaster risk

! Filled up putaway

Locations/no space

! Inefficient putaway

and picking

27

Complex picking and packing Tighter

margins

Infor Difference

• Intelligent put away

• Mobility for efficiency

• Kitting & pre-packs

• Same day pick, pack & ship

• Value-added re-packing,

hanging, ticketing, etc.

• Cross-docking

Issue

• Bulk / box picking

for wholesale vs.

individual picking

and packing for

retail

• Pre-season push vs. in-season replenishment

“...We are pushing 30 percent more product through our distribution

center with no increase in personnel”

28

Collections and seasonality Time to

Consumer

From two collections per year to 4, 6, 8, 12, 26…….

Issue: Many collections and components – one late component can cost $millions

0

200

400

600

800

1000

1200

0 2 4 6 8 10 12 14

Collections

Collection 1 Collection 2 Collection 3 Collection 4 Collection 5

Infor difference

• Handles short life-

cycle products

• Seasons and delivery

window definition

• Collection

management includes

phasing out SKUs

29

Warehouse Retail

Rapid replenishment Time to

consumer

Infor Difference: Powerful material and distribution planning, inventory visibility and pegged orders

"Our customers can serve their customers more effectively because they know

what’s in stock and can relay this information immediately."

Raw Material Manufacture

Issue: You cannot sell what you have not got!

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Inventory visibility Time to

Consumer

Infor Difference

• Organizational structure

• Single view of the

customer

• Available to Promise

• Global inventory with

internal reconciliation

• Automated transfer

pricing and invoicing

“The system is extremely stable and does an excellent job of meeting our needs across all divisions.”

Order

Invoice

Deliver

Legal Entity or Parent

Operating Division or Legal Entity

(Financial Level)

Legal Entity or Parent

Branch, Factory,

Depot or Sales Office

(Sales & Cost Level)

Warehouse

(Planning & Transactions)

Division

Company

Division Division

Facility Facility Facility Facility

Warehouse Warehouse Warehouse Warehouse Warehouse

Issue: Lack global inventory visibility for customer order promising and delivery

$$$

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Infor M3 Standard Modules for Fashion

Process Adaptations

Operational Analytics Enterprise Search, Mashup

Designer Analytics & Reporting

Designers

Financial Accounting Internal Cost Accounting Multi Company Management

Fixed Asset Management

Process Integration External Collaboration

Runtime Environment

Output Solutions Lifecycle

Management Document Archiving

Security & Traceability

Product Data Management Production Planning Manufacturing Execution

Supply Chain Planning Inventory Management Procurement Warehouse Management

Customer & Market Management Multi Channel Sales Management Sales Pricing & Charge Mgmt

Smart Office User Productivity Platform

Financial Management

Manufacturing Operations

Supply Chain Management

Customer Sales & Service

Business Process Platform

India

nis

ation

32 Copyright © 2013. Infor. All Rights Reserved. www.infor.com

32

Infor M3 Features

33

Style Management • Single definition of a style - all common information

• Matrix handling style plus three dimensions

• Additional configuration capability attributes (e.g. finishing, packaging, labelling)

Size Color

0

2P

4 TALL

White

Khaki

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Attributes Overview

Examples of usage

Quality

Dye number

Length

Fabric

Width

Grade

Water %

Grains per

kilo

Grain

…..

Grade

Length

Diameter

Metals

…..

Quality

Salt %

Ph value

Cheese

…..

35

M3 Warehouse Mobility Enquiry - stock enquiry (by item, location, lot, container)

- package enquiry (by package, SSCC)

Inbound Logistics - purchase order receipt

- ASN-based receipt

- quality inspection

- put-away

- two step put-away

- distribution order receipt

- miscellaneous receipt

(create DO/RO)

In Warehouse Logistics - batch stock take

- quick stock take

- stock replenishment

- stock movement

- container movement

- package management

Outbound Logistics - pick reporting (CO,DO,RO)

- pack reporting (CO,DO)

- shipment loading

- shipment picking

- wave picking

- wave packing

- package administration

- delivery document printing

- pick reporting (MO)

- goods receipt (MO)

- material issue (MO)

- operation reporting (MO)

- orderless reporting (MO)

- reclassification

Online with M3 BE => realtime

16 Languages

36

Infor Process Automation

Page 37

Page 38

Page 39

Page 40

41

Infor Process Designer (IPD) • Approve customer

42

Topics

Infor M3 – A brief background

Infor M3 for Fashion

Infor M3 Add on products

Infor M3 – Fashion Pedigree

1

2

3

4

43

Infor Fashion PLM

44

Infor Fashion PLM

Great user

experience

Department

integration

Efficient

processes

Higher

margins

Effective

collaboration

One version

of the truth

45

Product Information

Management

Rhythm

E-Commerce Interaction Advisor

Credit Card Payments

Design Services Hook & Loop gives you full-service treatment from a worldclass team, including layout,

design, user interface, and on-going strategic support, plus the ability to easily add and

manage content on your own once your site is up and running.

Your ERP

ENGAGEMENT

PLATFORM

Note: Natural Language Search, Business Intelligence/Reporting and Ming.le are currently planned for the Rev 2 delivery in summer 2014

46

DESIGN

AGENCY

ENGAGEMENT

PLATFORM

ERP

Integration

47

What makes Infor RhythmTM different?

Expert design services Personalized experience

Content optimization Configuration of products

Tight ERP integration

Omni-channel support

Infor’s internal design agency, Hook

& Loop, gives you full-service

treatment from a world-class team.

Infor ION-enables seamless

connections to core Infor ERP

solutions, including Infor LN, Infor

M3, and Infor SyteLine.

Personalized online experience with

tailored content, marketing

messages, and offers based on user

activity and buying behavior.

Transform your business with a

holistic view of how your site is

performing and who’s visiting, while

also tracking buying behavior.

Optimize online interactions across a

wide variety of devices, deliver

consistent information and an

enhanced user experiences.

Product configuration option gives

you the power and flexibility to

personalize products or services.

48

Infor PCM Solution Architecture

Configurator Flex Suite

e.g. 2D, 3D,

Docs

Other Order

Sources

SOA

SBA Infor M3

Configuration Services

Sales Portal

Configuration

Services

Integration Points:

Configurator Integration

Sales Integration

Web

Services

e.g. Price, Availability

e.g. Cost,

Stock

Quoting & Ordering Services

Concept: Integration in progress

49

PCM Configurator: Fashion

Concept: M3 user adds configured item to order, and clicks “Configure” to launch the Configurator.

Configurator provides full configuration visual capabilities, with dynamic pricing, images, and more.

50

PCM Sales Portal: Fashion

Need Sales Portal

Screen Shot

Concept: Sales Portal user on the web creates quotations and decides to place order. Orders are transferred into M3 for processing.

Once the M3 order is created, changes are managed in M3. Orders may contain configured and non-configured items

❷

51

Topics

Infor M3 – A brief background

Infor M3 for Fashion

Infor M3 Add on products

Infor M3 – Fashion Pedigree

1

2

3

4

52

More than 1,700 customers in 90+ countries

1 out of every 6 men’s dress shirts sold in the US is made by an Infor customer

We serve 3 of the top 5 luxury goods companies

India’s largest apparel employer and exporter uses M3 software

Over 20 years of Experience

53

54

Business Challenge The Belle business model is built around many Fast

Fashion principles. Multiple small collections and fast change from collection to collection – not much carry over and very few basics.

Since Belle is also their own supply chain for most products – they have to sync demand and supply very closely.

Belle has a combination of Regional and “City” DC’s – and the stores are treated as customers – they supply / replenish directly from City / Regional / Manufacturing as needed.

Results Belle has grown at a rate of ~1000 stores per year. With no

additional software beyond M3 Fashion and their Retail Management System.

Belle plans to upgrade to the latest version of M3 – a process that is underway.

Profile

Private Brand Retail

HQ: Hong Kong

13,000 Retail stores throughout China

IPO 2007 – current annual revenue ~US$3.7billion

Belle is the largest women’s shoe manufacturer and retailer in China.

Belle owns 13 brands such as:

Belle

Teenmix

Tata

Staccato

FATO

MILLIE’S

Joy & Peace.

In addition Belle is also the largest sportswear distributor in China carrying brands like:

Nike

Adidas

Reebok and

Puma

Largest Women’s Shoe Maker & Retailer

55

Business Challenge Cut-throat price driven industry

Cost kept in Inventory

Market shift changes

Results 30% reduction of inventory levels

Synchronized global supply chain

Customer responsiveness.

Efficiency improvements from 5s/line to 2s/line on shipping volumes of 8-9k lines a day.

Profile Contract Manufacturer

Innovator in Apparel Manufacturing

HQ: Hong Kong

Multiple Factories

“Our customers recognize the huge benefits they reap from TAL’s value-added services and Infor/Lawson. Fashion has become an integral part of our ability to deliver those services.”

Delman Lee, Director of Technology, TAL Apparel

Sells 1 out of 6 Dress Shirts in the US

56

Nien Hsing is the world’s largest jeans original equipment manufacturer (OEM). The company produces around 50 million pieces annually and dominates about 3-4 percent of the U.S. market.

Nien Hsing is listed on the Taiwan Stock Exchange and reported consolidated revenues of TWD 14.9 billion (USD 467.5 million) in 2007.

Headquarter Taiwan – 3 garment factories and a denim plus ring spinning mill in Lesotho, Africa; 3 garment factories and a dyeing house in Nicaragua; 1 denim mill and garment factory in Mexico; 3 garment factories in Cambodia and 2 garment factories in Vietnam.

M3 v7.1 with IBM System-i

M3 Enterprise Management System , M3 Supply Chain Management , M3 Business Performance Management , M3 Finance Management

Installed Infor M3 in 2004

Across its global operations, including those in Taiwan, Nicaragua, Mexico and Lesotho on one single instance

Integrated enterprise system that manages business globally. Shorten the lead time, improve customer service, and improve business processes in order to enhance Nien Hsing’s economics.

NIEN HSING www. nhjeans.com/en/

57

Sri Lanka’s largest apparel exporter, also provides over 50% of value addition locally through their

backward-linked operations in textiles, thread, buttons, and hangers.

M3 v7.1

Finance, DRP, Manufacturing, BI, Planning, WMS, Mobility

Sri Lanka, Bangladesh, India

Project go-live 2009

Brandix Sri Lanka www.brandix.com

Activity

Key Figures

Country

M3 Solution

Technology

Applications

Go-live Status

Annual turnover exceeding USD 320 million.

20,000+ associates and indirect employment

58

Bodynits started in Singapore as a brand of fitness wear catering to a generation of fashion and fitness conscious ladies in the early eighties. A family business, it was started by two sisters, Kheng and Lynn Tan, who saw the market niche in the burgeoning aerobics market. It was incorporated in 1984 as a private limited company.

HQ in Singapore

v10.1

Lawson Business Intelligence, Manufacturing, Supply Chain, Financials

Live since 2009, decided to upgrade in May 2011.

BODYNITS SINGAPORE www.bodynits.com

59

Wonderful Garments specializes in producing intimate apparel, fashionable women’s and sports wear. The company also produces knit and winter wear. Most of their products are exported to Europe, USA and Japan.

2000 Employees - 60 M RMB Annual Revenue

Changzhou, China

M3 v12.4

Customer Order Management , Manufacturing Order Management , Purchase Order Management

Duration: 8 months (Go-live in May, 2003)

60 Users

“We anticipate that this partnership will see the adoption of Infor’s best business practices within our organization.”

Mr. He GuangYu, General Manager, Wonderful Garments

CHANGZHOU WONDERFUL GARMENTS www.cnwonderful.com

60

Intimate Apparel Creation, manufacturing and distribution Intimate Apparel and Lingerie

Approx. 200 Million Euros and 900 employees

Headquarter in Germany. Plants in Central Europe

Distribution in 24 countries

M3 5.2 JAVA- 775 Users (Germany, Slovakia..)

Finance, Manufacturing, Purchasing, Logistics, Sales , ARP

Customer live on V5.2 since 2006

775 Users

SCHIESSER www.schiesser.com

61

Largest Russian retailer specializing in fashion apparel, footwear and accessories for customers of all ages under the Gloria Jeans and Gee Jay brand.

12,000 employees

$850K Annual Revenue

430 stores – 33 Plants

Russia Headquarters (Plants in Ukraine, Vietnam, HK)

M3 v10.1 on Windows Platform

Manufacturing, Distribution, and Procurement, Planning Work Bench (PWB) and Scheduling Work Bench (SWB) + LBI & Fashion Analytics, LSO, Mashups, LES, LPA, DAF

Project go-live 2013

150 Users

GLORIA JEANS www.gloria-jeans.ru

62

Business Challenge Maintain optimum inventory levels for 10 divisions

while supporting growth

Ensure that specific commodities arrive in the US at the right time to be shipped in bulk with other products

Identify inventory at a discrete level in order to supply the same product to multiple customers who each require their own packaging

Results Enabled incorporation of an acquired business while

implementing an existing complex product line

Ensured that the correct packaging stays with its specific customer during bulk shipments

Allowed the standardization of processes by consolidating all divisions under one umbrella

Resulted in a lower employee learning curve since every distribution center now follows the same procedures and best practices

Profile A leader in fashion and lifestyle accessories, including belts, small leather goods, and gifts. Serves the US and international markets, with accounts ranging from mass merchants to specialty stores and upper end department stores.

“The Infor solution allows payment schemes to be brought onboard easily, which helped significantly increase Tandy’s workload without adding staff.”

One of Our Oldest Fashion Customers – Tandy

63

Topics

Infor M3 – A brief background

Infor M3 for Fashion

Infor M3 Add on products

Infor M3 – Fashion Pedigree

1

2

3

4

64