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Enabling a Fashion Enterprise with a Digital Core:An Accelerated Approach to Implementing SAP FMS
Andrea France / Dan Gillis
Capgemini
Session ID 5272
People
Big Data
Internet of Things
Business
networks
Social networks
Application SAP Fiori SAP HANA
Customers
Devices
SAP S/4HANA
SAP S/4 HANA: A Real Time Platform at the Core of the Digital Ent erprise
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Capgemini’s FashionPath: Our Low Cost, Easy to Implement Solution for SAP’s Fashion Management Solution
Capgemini’s FashionPATH Low Cost , Easy to Implement Offering:
� Software and Implementation
• Bundle the cost of SAP FMS with FashionPath Implementation Services
� Add Cloud Service (if desired)
• Runs in the Cloud
• Hardware option available
� Financial and Cash Flow flexibility based on clients financial needs
• A single monthly capital or operating expense payment across a multiyear term
• Can include Application Management if needed
FashionPath helps fashion companies optimize business processes for wholesale, retail and digital channels on one single, flexible ERP
solution on the SAP S/4 HANA Platform
Cloud ERP solution based on SAP Fashion Management
Built on industry leading practices and business processes
Contains Capgemini Industry Enhancements
Includes industry reference models, solution templa tes, layouts, reports, test scenarios and scripts
Explicitly designed to bring quick results and ROI
Highly scalable ad will grow with the business
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FashionPath Scope
Harmonized Financial Management
� General Ledger� Accounts Receivables� Accounts Payable� Period End Closing� Cost Center
Accounting� Product Costing
� Global Organizational Structures
� Article Master Management
� Customer Master Management
� Vendor Master management
� Site Creation/Stores & DC’s
� Seasonal Definitions� Value Added Services� Merchandise &
Product Hierarchies
� Bulk & Call Off Order processing
� Direct Customer Delivery
� e-Commerce order management
� Retail Allocation & Replenishment processing
� Order Allocation� ATP based on
segmentation & business rules
� Value Added Services� Wholesale & Retail
pricing
� Demand driven procurement
� Seasonal driven procurement
� Bulk order processing� Customer direct
delivery procurement� Value Added Services
integration� Goods Receipts
processing� Invoice Verification
and Subsequent Settlement
Harmonized Data Management
Harmonized Sales Order Management
Harmonized Procurement
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FashionPath Scope
Omnichannel Management Support
� Inventory Segmentation by distribution channel
� Advanced Seasonality functions
� Order Allocation (Sales, Own Stores, E-Commerce)
� Order Orchestration
� Store Connectivity
� Returns Management
Retail Specific Processes
� Merchandise Life Cycle
• Store Assortments
• Price Management
• Promotion Management
• Markdown Management
� Supply Chain
• Merchandise Distribution/ Store Allocation
� Store Integration
• POS Inbound
• Data integration outbound
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FashionPath is Delivered with Tools and Documentati on
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FashionPath Harmonized Business Process ModelCapgemini Release 1.0 Wholesale & Retail
Finance to Manage
Master Data
Sales (O2C)
Planning
Procurement(P2P)
Manufacturing(FMS Release 2.0)
Capgemini Future Release
Inventory Management
Merchandising
General Ledger
Accounts Payable
Cost Center Planning
Overhead Cost
AccountingSales Audit
Accounts Receivable
Period End Closing
Cash Management
Asset Accounting
Article MasterVendorMaster
Value Added
Services
Seasons &Collections,
Sales Kit
Size Conversion &Distribution
Inventory Segments
CustomerMaster
Bill ofMaterials
RoutingLocationMaster
SalesOrder
Available to Promise
Order Allocation
Shipping Billing POSInbound
In-Season Procurement
Seasonal Procurement
PurchaseRequisition
Purchase Order
Advance Ship Notice
InvoiceVerification
MerchandiseDistribution
GoodsReceipt
Inventory Management
Listing,Assortment
& LayoutPricing
RetailPromotions
RetailMarkdowns
POS Outbound
Material Requirements
Planning
RetailAllocation
Standard Replenishent /
VMI
Retail Replenishment
Planned Independent
Requirements
SAP FMS AdditionsStandard ECC Features SAP FMS Extension SAP Standard Retail Features
Sales Order Allocation
SAP FMS(Rel. 1.5)
SAP Process Orchestration (PO)
WarehouseMgmt.
ExternalPLM
Trading Partners(EDI)
MRPProcessing
Procureto Pay
Order toCash
Price & Promo.Mgmt.
Store Allocation
Store Replenishment
SAP Financials ( Traditional or Simple Finance)
SAP Master Data and Fashion Master Data
Wholesale Demand Planning.
Point of S
ale
Master Data
SAP HANA & FIORI
Inventory Management / Segmentation
Business Intelligence on HANA
ExternalApplication
ExternalApplication
POS-DM
Price/Promo
RetailSales Audit
Seasonal Processing& VAS
Assortment Planning
Merchandise Planning
FashionPath Applications Architecture Component Mod el
FMS Function FashionPath Concept Data Level
Article Master� Size conversions will be defined for Global
distribution� Reference Articles will be created to
enhance data consistency
� Generic articles will be defined at the Style, Color and size level� Size conversions will be configured for US/CA, EU and UK.
InventorySegmentation
� Inventory segmentation will be positioned as virtual only and be used for segmenting Chanel inventory .
� Stock Protection scenarios will be considered if time allows
� Inventory channel segments will be defined as;• Wholesale• Retail• E-Commerce
� Segmentation Strategy will be configured using standard SAP prioritization with Retail #1,E-Comm. #2 and Wholesale #3
Value Added Services (VAS)
VAS will account for � Standard CG Fashion hang tags/pricing
labels� Hangers� Define delivered on hangers or folded in
poly bags.
� Suits should require Hangers and be delivered on hangers. � All other Apparel will be folded and placed in poly bags.
Seasonality
� Seasons will be defined for control purposes (e.g. Sales order start & end dates, Procurement start & end dates, Article season definition)
� Seasons will not be defined as relevant for inventory purposes
Summer: June 2016 and 2017 thru Aug. 2016 and 2017
Spring: March 2016 and 2017 thru May 2016 and 2017
Fall: Sept. 2016 and 2017 thru Nov. 2016 and 2017
Winter: Dec. 2016 and 2017 thru Feb. 2016 and 2017
Structured Article
� Pre-Packs� Sets� Displays
� Footwear will be placed in pre-packs /outer cartons 12 to a carton and split at Goods receipt
� Musical size run pre-packs will not be split at goods receipt� Suits must be packaged and sold as a set, (e.g. jacket and
pants)
FashionPath Master Data Approach
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FashionPath Global Supply Chain Model
US-DC
Corporate/ Head Office (US)
Vendor - India
VENDORMEXICO
VENDOR CHINA
Retail Stores
Regional office &
Europe – DC (NL)
CG Fashion’s Company’s global supply chain is centr alized in the US with all demands flowing through this organization. The global supply chain team executes all global supply requirements, across DC’s/countries, and distributi on channels, and coordinates the supply flow from manufacturer direct to regional DC’s and customers as required.
Languages Enabled:English, Dutch, French, German and Italian
Our POV: Retail/Wholesale Allocation and Inventory UtilizationConsiderations
• Demand Segmentation by Channels – Retail, Wholesale and E-Commerce• Inventory Utilization based on priorities of supply, for example:
• Discrete representation of demand– Retail: SKU, by store, in-store date (initial push and replenishment)– Wholesale: SKU, by customer, delivery date– B2C: SKU, safety stock inventory levels managed through segmentation
• Since Order Allocation plays an important role in a brand’s operations, time needs to be allocated to understand the specific requirements and how to support them in FMS
Demand Supply
Retail 1. Retail2. Wholesale
E-Commerce 1. E-Commerce2. Retail3. Wholesale
Wholesale 1. Wholesale
• Retail allocation from store clustering to STOs takes place before order allocation• STOs feed into order allocation as demand, together with wholesale orders
(futures, at-once, contracts, call-offs), B2C orders, Inter\Intra company STOs, etc.• Order allocation to select, group, sort/prioritize and allocate inventory to demand• Release for subsequent step (delivery creation/fulfillment)
Our POV: Retail/Wholesale Allocation and Inventory UtilizationConsiderations
• What is DOM?– Distributed Order Management Solutions help to intelligently broker orders across
the various systems and processes utilized by the multiple parties involved in fulfillling an order.
– The best way to achieve this is to provide a single, global view of all inventory available in order to intelligently source the line item components of that order, ensuring that the business can meet both current and future customer demand while optimizing inventory, logistics, and asset utilization.
• Doesn’t FMS provide a single global view of invento ry?– Yes, FMS provides the single view of global inventory, but . . .
• The only way to intelligently source this inventory from multiple stores is to configure hybris for B2C.
• The only way to intelligently source this inventory from multiple DC’s and Warehouses is to configure SAP SCM.
• What’s the bottom line?– Depending on your SAP solution footprint, you may need to include your current
DOM with FMS in your application landscape for sourcing optimization.
Our POV: FMS and Distributed Order Management
Improving Adoption – Organizational Change Managemen t (OCM)
Business and Organizational Change Management activities need to be an integral part of the overall program, not an add-on.
The diagram below illustrates how Business and Organizational Change Management can significantly improve the overall perception and adoption of the change:
OCM Focus Areas
Capgemini approaches Business and Organizational Change Management through the ‘eyes of the business’ and revolves around five key interconnected focus areas:
Through leveraging these services, some specific questions regarding the principles and approach can be addressed:
• What is the greater business value that the modernized systems will enable?
• How do these support new market growth opportunities?
• What will be the specific efficiencies delivered through the new ERP system?
• How is the program set-up to ensure the right level of business involvement and has the business committed to provide this?
• What are the metrics and measures around the modernized systems?
Steve LambertSVP and Fashion Microsegment [email protected]
Mobile: 601 940-2138
Andrea FrancePrincipal, GTM Lead, [email protected]
Mobile: 312-286-1622
Joe DesrosiersLead Solution ArchitectSales SupportManaging Business Analyst [email protected]
Mobile: 781-217-4897
Barry de JongeSolution Architect/Program ManagerSales SupportProgram [email protected]
Mobile: 503-568-5637
Ted LevineGlobal CPRD Sector Lead
Michael WohlfartVP RetailProject [email protected]
Mobile: 646-203-4870
Who’s Who in Fashion at Capgemini
Dan GillisSolution Architect, Retail Sector LeadService [email protected]
Mobile: 404-543-3631
Thank you for your timeFollow us on at @ASUG365
Questions?
