SAP FASHION MANAGEMENT (FMS) OVERVIEW

Retail Webinar
December 11, 2015
Agenda

1 About our hosts

2 Who is /N SPRO?

3 What is FMS?

4 Where does FMS fit?

5 FMS Functionality & Benefits

6 Recommended Next Steps

© /N SPRO INC. 2015. All rights reserved. 2

About our hosts

Brian Cederborg
VP, Retail and Wholesale Consulting

Brian has led retail transformation programs at organizations across North

America including BJ’s Wholesale Club, Loblaw Companies Ltd., and
Brookshire Grocery Company. Brian has developed an innovative approach
to leveraging technology to better drive retail business value.

Wes Lowe
Consulting Manager, Retail and Wholesale
Wes is a Retail & Wholesale Consulting Manager at /N SPRO. With 25 years
combined industry and consulting experience, he brings a mix of functional
and technical experience bridging the Business and IT worlds. Wes has 9
years experience with SAP IS-AFS and SAP IS- Retail.

© /N SPRO INC. 2015. All rights reserved. 3

About our hosts

Lee Alton
Solution Architect, Retail and FMS
Lee has designed integrated solutions for organizations across North America
including Luxottica Retail, Big Lots Stores Inc., Nike Inc., and Ann Taylor Inc.
Lee has fulfilled roles as a Solution Architect, Cutover Manager, and Process
Lead on SAP Retail expansion projects and has participated in multiple full-
cycle SAP implementations, covering more than 10 years.

Shailendra Gaikwad
Senior Consultant, AFS and FMS
Shailendra is a Senior Consultant focusing on Retail & Wholesale industries for
/N SPRO. Shailendra has over 10 years experience within SAP IS-AFS and
SAP Fashion Management Solutions, and robust configuration and application
skills in Sales & Distribution, Logistics
Executions, and Materials Management.

© /N SPRO INC. 2015. All rights reserved. 4

/N SPRO - Who we are

is one of the top product development and
consulting service providers across all of SAP’s Consumer
Industries software suite and the ‘GO-TO’ expert in the market
KEY PARTNER of the SAP Industry Business Unit,
advising SAP and customers across the entire breadth of
the SAP Retail software suite
…service provider advising SAP (on behalf of leading
retailers) on the future state direction for Allocation
Planning, Assortment Planning and Merchandise
Financial Planning
…SAP Retail Partner of the Year for 2015

With office locations WORLDWIDE

..and an aggressive geographical expansion plan
Completed over 100
SAP implementations… 17 of SAP
Implementation
YEARS
experience…

…with more than

1O experience specific to SAP

Consumer Industries
YEARS
30
solutions for…
…in more than
COUNTRIES

OUR EMPLOYEES:

FINANCE STORES
Turnover
of less than
300 Retail & SAP
More than
…professionals worldwide
5%
IN Q1 OF 2015

MERCHANDISING SUPPLY CHAIN MARKETING

© /N SPRO INC. 2015. All rights reserved.

Solution Expertise

IS-Retail ERP; S4/HANA Merchandise Planning for Retail

Fashion Management Solution (FMS) Customer Relationship Management (CRM)

HANA hybris Marketing

Customer Activity Repository (CAR) & Mobile Commerce

Consuming Applications
Forecasting & Replenishment (F&R)
Business Warehouse (BW) & Business
Objects (BOBJ) Business Planning & Consolidation (BPC)

© /N SPRO INC. 2015. All rights reserved.

What is SAP Fashion Management?

SAP Fashion Management (FMS) is a vertically integrated solution

combining the functionality and processes from Apparel & Footwear (AFS)
and IS Retail into a single ERP solution

RETAILER
WHOLESALER

WHOLESALER
RETAILER
Omni-Channel
Brand Growth
Verticalization

MANUFACTURER MANUFACTURER

Every
install of SAP Fashion
Management
begins with… IS-Retail
© /N SPRO INC. 2015. All rights reserved. install 7
What is SAP Fashion Management?

Significant benefits and operational efficiencies can be achieved through

SAP’s Fashion Management Solution

» Lower TCO from a single ERP platform for growing a more flexible and efficient
vertically run business

» A consistent customer experience with a unified solution that supports all channels

» Common global inventory across all channels using a real-time supply and demand
picture that drives better decisions

» Provides optimal cross-channel allocation methods from planning through execution

» One source of product master data across all parts of your enterprise

© /N SPRO INC. 2015. All rights reserved. 8

 FMS Similarities to Retail Solution
Fashion by SAP begins IS-Retail
Management with… installation

Bill of
Tickets and
MASTER
Article Master
Article Customer Vendor Site Materials
Additionals
Seasons & Quota
Master Master Master Master (Prepack, Collections Scales
DATA Set)
(VAS)
9

Listing,
Retail Retail Retail In-Store
MERCHANDISING Assortment
Pricing Promotions Markdowns MIM
& Layout

Retail Replenishment
PLANNING OAPC
Allocation / VMI

Seasonal Purchase Invoice

PROCUREMENT Procurement Order
ASN
Verification

Merchandise Goods Inventory Warehouse

INVENTORY Distribution Receipt Mgmt Mgmt

Sales ATP, Re- POS

SALES Order Scheduling
Shipping Billing
Outbound

ERP functionality with Retail Retail specific functionality Generic functionality Generic Article
Fashion enhancements
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FMS Similarities to Apparel & Footwear Solution (AFS)
Fashion activates AFS business IS-Retail
Management functions after… installation

Size
Value
MASTER
Article Master
Material
Categories
Customer Vendor Bill of
Routing Added
Seasons & Prepacks & Conversion Wholesale
Master Master Master Materials Collections Assortments & Pricing
DATA Services
Distribution
10

SALES ATP, Re- Allocation

Shipping Billing
Sales
Information
Sales Order
Scheduling Run
(O2C) System

SOP Size
PLANNING (Forecast)
PIR
Distribution
MRP

PROCUREMENT Purchase Purchase

ASN
Invoice
Requisition Order Verification
(P2P)

Marketing Valuation/ Order

Production
Planned Order Production Product Information
MANUFACTURING Order
Lots Costing System

INVENTORY Good Inventory Warehouse

Receipt Mgmt Mgmt
MGMT

ERP functionality with Wholesale Wholesale Fashion specific Grids, Size Conversion and
Fashion enhancements functionality Categories
© /N SPRO INC. 2015. All rights reserved. 10
System Landscape – SAP Solutions for Retail and
Wholesale Businesses

OMNI COMMERCE CUSTOMER EXPERIENCE

hybris Commerce Suite, SAP CRM, SAP POS by GK

MARKETING & SOURCING, BUYING & SUPPLY CHAIN

MERCHANSE PLANNING PRIVATE LABEL SAP F&R
SAP CAR, hybris Marketing Ariba, gicom, Vistex SAP EWM/TM/EM

MASTER DATA
SAP MDG, hybris Product Content Management, SAP DAM by OpenText

REAL-TIME CUSTOMER & BUSINESS INSIGHT

SAP CAR, hybris Marketing Data Management, SAP BI

CORE MERCHANDISING & FINANCE & HR

SAP IS-Retail / FMS on HANA, SAP SFIN, SAP IBP Finance, SAP CFM, SuccessFactors

POWERED BY SAP HANA

© /N SPRO INC. 2015. All rights reserved.

Fashion Year

In fashion timing of product design, production and merchandising is

SEASONS
critical.

Selection of outfits that designers put together for up coming season, it

COLLECTIONS
reflects trends, colors, cut & proportions

THEME

BUSINES ASSIGNMENT SEASON VALIDITY DOCUMENT

AREA ACTIVATION PERIOD UPDATE

SALES ARTICLE ARTICLE WORK- WORK-

LOGISTICS PLANT BENCH BENCH
PURCHASE

© /N SPRO INC. 2015. All rights reserved. 12

ALLOCATION RUN (ARUN)

Optimization of stock allocation

On-time delivery
Benefits Minimize charge backs
Improved customer satisfaction
Maximize order fill rate

Long replenishment lead time

Short selling seasons
Key Drivers Unpredictable demands
Inaccurate forecast/careful buying – Stock outs

© /N SPRO INC. 2015. All rights reserved. 13

ALLOCATION OVERVIEW

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SEGMENTATION

Sensitivity to price
CUSTOMER Product quality
GROUPING Value they place on style
Sales channel (wholesale, retail & web commerce)

Ability to allocate stock to customer orders by customer

segments
Restrict allocation of premium/high demand product by
STRATEGY
customer group/sales channel.
Helps company to achieve bottom line results.

© /N SPRO INC. 2015. All rights reserved. 15

SEGMENTATION STRATEGY

© /N SPRO INC. 2015. All rights reserved.

16
SPECIAL SERVICES (VALUE ADDED SERVICES)

Fashion products requires unique care & FMS

Ticketing addresses all those special requirements.

Value Added Service either determined or added

manually on customer order.
Labeling
Value Added Service determined or added
manually on purchase order.

Special packing Possible to charge Value Added Service to

customer.

It is possible to handle Value Added items

Special Services separately for ATP and ARun.

© /N SPRO INC. 2015. All rights reserved. 18

Standard Migration Paths to the FMS Platform

Based on the current landscape, there are three distinct customer scenarios.

RETAIL CUSTOMER
AFS CUSTOMER

SAP SAP
SAP SAP
AFS FMS FMS
Retail
HANA HANA
Migration
Upgrade / transition

AFS & RETAIL

CUSTOMER

SAP
SAP
AFS
FMS
SAP
Retail HANA
Migration for AFS

© /N SPRO INC. 2015. All rights reserved. 19

Customers with active FMS projects

FMS Consortium Members Active FMS Installations

» Giorgio Armani » Under Armour

» Luxottica » ALDO

» Adidas » Burberry

» Tommy Hilfiger

© /N SPRO INC. 2015. All rights reserved. 20

FMS Value Proposition with /N SPRO

Decreased Stock-Outs & Inventory Levels

Reduce Chargebacks
Business
Benefits Increase Order Fill Rates & On-Time Delivery
Improved Time-to-Market
Maximize Inventory Accuracy

Reduce Budget Spent on Data Maintenance

Total Cost of Reduce IT Integration Cost
Ownership Maximize Data Quality
Reduction Maximize System & Support Efficiency
Decrease Interface Maintenance

Proven record of success supplying SAP services

/N SPRO’s Dual IT ® Methodology
Implementation
Accelerators
/N SPRO’s Fast Forward ® Pre-Configured Solution
Focused on New Solutions with SAP
Support North American Member of FMS Consortium

© /N SPRO INC. 2015. All rights reserved. 21

Questions

QUESTIONS

© /N SPRO INC. 2015. All rights reserved. 22

Recommended Next Steps

Additional research:

» http://n-spro.com/solutions/retail/fms/

» http://help.sap.com/saphelp_fms10/

» SAP Retail Forum Resource Center

On-site demonstration

Proof of Concept

Talk with active customers

© /N SPRO INC. 2015. All rights reserved. 23

THANK YOU!

Brian Cederborg brian.cederborg@n-spro.com

Wes Lowe wes.lowe@n-spro.com
Lee Alton lee.alton@n-spro.com
Shailendra Gaikwad shailendra.gaikwad@n-spro.com