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Stephen Henly, May 2015
SAP Fashion PlatformSAP Fashion Management Solution & SAP Merchandising for Retail
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
The best-run companies run simply vertical!
MARKET REALITY
SAP FASHION PLATFORM
BENEFITS
3© 2014 SAP SE or an SAP affiliate company. All rights reserved.
10 of the TOP 10most admired apparel and
footwear retailers in the world run SAP solutions
18 of the TOP 20apparel and footwear retailers in
the world run SAP solutions
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
What is fashion?
STYLES
COLOURS
SIZES
SEGMENTS
SHORT LIFECYCLE
TECHOLOGY
“Fashion is important because it is in almost everything.” Alfred H. Daniels 1956
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
Globalization• Sourcing & Manufacturing –
flexibility to deploy rapidly and globally
• Customer globalization in new markets – open up new channels in new markets simultaneously
Faster Fashion
• More products and styles more often
• Concurrent seasons
Customer Experience
• Customers know brands not channels
• Customers need consistent interaction with their preferred brands
Vertically Integrated Channels
• Manufacturers and Wholesalers develop retailing to increase revenue, margin and brand image
• Retailers move to Wholesale and Manufacturing to control brand image, quality, and margin
Fashion is moving fastCritical Drivers for Apparel, Footwear, Accessories and Fashion
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
“Know Me, Advise Me, & Let Me
Choose”
“My retailer knows my preferences, provides
valuable advice, and lets me tailor my entire
shopping and delivery experience.”
Most Retailers are Far Behind Customer Expectations
Cus
tom
er In
timac
y an
d En
gage
men
t “Inform Me”
“I can find information on
products via multiple channels”
“Make Buying Easy”
“I can choose where and how I buy”
Customer Expectations
Retail Reality
85% 7%8%
Every CUSTOMER shopping journey IS COMPLEX and different
IT complexity built up over decades limits the ability to DO customer FACING INNOVATIONS
Siloed applications prevent single consistent view of customer and business
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
Vertical Fashion Company
A Vertical Fashion Solution is Vital for Business Growth
To get the value of vertical integration of common processes on a shared global inventory, a vertical fashion solution is needed to support and optimize multiple channels: manufacturing, wholesale, and retail businesses.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
Answering the key questions
How can my business deliver shorter seasons across omnichannels with more styles?
How can I improve customer service and fill rates while reducing excess stock?
How can I make the best use of my inventory across channels and reduce markdowns?
How can I unify siloed, multichannel plans and sourcing?
How can we move quickly and efficiently into new channels and markets?
How can I have a single, central software instance with a common view across all business segments?
How can I lower my total cost of ownership?
How can I make my brand consistent across channels and geographies?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
Order to Cash
Master Data (WS,
Manuf)
Procure to Pay
Manufac-turing
Inventory Mgmt
Finance to Report
Wholesale Pricing
and Seasons
Omni-channel Mgmt
Organiza-tional
Structure (WS,
Manuf)
Allocation (Orders)
Supply Planning
MRP
Value-Added
Services
Merchan-dising
Master Data
(Retail)
Store Back-Office Mgmt
Promotion Mgmt
Inventory Mgmt
Finance to Report
Retail Pricing and Markdown
Omni-channel Mgmt
Organiza-tional
Structure (Retail)
Allocation (Stores)
Replenish-ment
Assort-ment
Planning
WS = WholesaleManuf = ManufacturingMgmt = ManagementMRP = Material requirements planning
Retail is a customer
of SAP Apparel
and Footwear
Historical world-class solutionsLEGACY RE ALITY
Traditional Database
ECC 6.0(including Finance)
Traditional Database
ECC 6.0(including Finance)
SAP Apparel and Footwear
SAP Retail Merchandising
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
Order to Cash
Master Data (WS,
Manuf)
Procure to Pay
Manufac-turing
Inventory Mgmt
Finance to Report
Wholesale Pricing
and Seasons
Omni-channel Mgmt
Organiza-tional
Structure (WS,
Manuf)
Allocation (Orders)
Supply Planning
MRP
Value-Added
Services
Merchan-dising
Master Data
(Retail)
Store Back-Office Mgmt
Promotion Mgmt
Inventory Mgmt
Finance to Report
Retail Pricing and Markdown
Omni-channel Mgmt
Organiza-tional
Structure (Retail)
Allocation (Stores)
Replenish-ment
Assort-ment
Planning
WS = WholesaleManuf = ManufacturingMgmt = ManagementMRP = Material requirements planning
Retail is a customer
of SAP Apparel
and Footwear
Historical world-class solutionsLEGACY RE ALITY
Traditional Database
ECC 6.0(including Finance)
Traditional Database
ECC 6.0(including Finance)
SAP Apparel and Footwear
SAP Retail Merchandising
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
A historic opportunity for simplification
SAP Apparel and Footwear
SAP Retail Merchandising
Order to Cash
Master Data (WS,
Manuf)
Procure to Pay
Manufac-turing
Inventory Mgmt
Finance to Report
Wholesale Pricing
and Seasons
Omni-channel Mgmt
Organiza-tional
Structure (WS,
Manuf)
Allocation (Orders)
Supply Planning
MRP
Value- Added
Services
Merchan-dising
Master Data
(Retail)
Store Back-Office Mgmt
Promotion Mgmt
Inventory Mgmt
Finance to Report
Retail Pricing and Markdown
Omni-channel Mgmt
Organiza-tional
Structure (Retail)
Allocation (Stores)
Replenish-ment
Assort-ment
Planning
WS = WholesaleManuf = ManufacturingMgmt = ManagementMRP = Material requirements planning
NEW V ERTICAL RE ALITY
SAP HANA Platform
ECC 6.0(including Finance)
Traditional Database
ECC 6.0(including Finance)
With the creation of the SAP HANA platform for in-memory technology, SAP was able to bring AFS wholesale and manufacturing functionality onto the IS-Retail Platform to create the new Fashion Retail Platform.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
A historic opportunity for simplification
SAP Apparel and Footwear
SAP Retail Merchandising
Order to Cash
Master Data (WS,
Manuf)
Procure to Pay
Manufac-turing
Inventory Mgmt
Finance to Report
Wholesale Pricing
and Seasons
Omni-channel Mgmt
Organiza-tional
Structure (WS,
Manuf)
Allocation (Orders)
Supply Planning
MRP
Value- Added
Services
Merchan-dising
Master Data
(Retail)
Store Back-Office Mgmt
Promotion Mgmt
Inventory Mgmt
Finance to Report
Retail Pricing and Markdown
Omni-channel Mgmt
Organiza-tional
Structure (Retail)
Allocation (Stores)
Replenish-ment
Assort-ment
Planning
WS = WholesaleManuf = ManufacturingMgmt = ManagementMRP = Material requirements planning
SAP Fashion Management
Single vertical solution on SAP HANABased on SAP Retail Merchandising
NEW V ERTICAL RE ALITY
SAP HANA Platform
ECC 6.0(including Finance)
Traditional Database
ECC 6.0(including Finance)
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
Merchandis-ing
Master Data
(Omni)
Store Back-Office Mgmt
Promotion Mgmt
Inventory Mgmt
and P2P
Finance to Report
Omni Pricing
and Markdow
n
Omni Channel
Mgmt
Organiza-tional
Structure (Omni)
Omni Channel Allocatio
n
Replenish-ment and
MRP
Assort-ment
Planning
Manufactur-ing Order to
Cash
Retail, wholesale, and manufacturing on one global inventory
SAP Fashion Platform vertical solution in-memory
(SAP HANA) based on SAP Retail
Mgmt = ManagementMRP = Material requirements planningP2P = Procure to pay
NEW V ERTICAL RE ALITY
ECC 6.0(including Finance)
SAP HANA Platform
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Retail Merchandising and Store Business Processes**
Wholesale Business Processes*
The SAP Fashion Platform
* Included with purchase of SAP Fashion Management Solution** Requires additional purchase of SAP Merchandising for Retail
SAP HANA Platform
ECC 6.0 Foundation
Omni-channel Inventory and Order Response
Wholesale Pricing
Demand and Supply Planning
Order Management and Orchestration
Manufacturing and Private Label
Store Forecasting and Replenishment
Store Operations
Markdown Management
Consumer Pricing and Promotions
Store Inventory Management
Finance Human Resources
Core Processes*
Purchase Order Management
Supply Chain Execution
Master Data – Styles, Sites, Style Hierarchy
Inventory Management and Valuation
Logistics Invoice Verification (3-Way Match)
Fashion Management (Industry) Solution
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15
The SAP Fashion PlatformThe Journey so far
• Released May 2014
• Co-Developed with 4 Customers:
─ 2 SAP Apparel Footwear (AFS) Customers
─ 1 SAP Retail Customer
─ 1 Customer running both SAP AFS and Retail
• 15+ implementations in process globally
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
UP TO 15%REDUCTION IN INVENTORY
50%REDUCTION IN ORDERS CANCELLED DUE TO NONAVAILABILITY
Source: SAP Performance Benchmarking
UP TO 75%IMPROVED PHYSICAL INVENTORY PERFORMANCE
50%REDUCTION IN TIME TO CREATE PURCHASE ORDERS
Significant Results
Leading fashion companies are utilizing SAP technology and software to increase market opportunity, achieve profit goals, and grow market share.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Stephen HenlyRegional Industry Principalstephen.henly@sap/.com
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