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Historically apparel and footwear companies were wholesale/manufacturing or retail businesses but not both.

The growth of private label and the margin and marketing benefits of growing own retail has led to brands supporting multiple sales channels: Wholesalers and Manufacturers are expanding sales channels into retail, digital and

mobile

Retailers with strong brands are expanding sales channels into wholesale

Retailers realize they need more sophisticated solutions to get the value from long,

global apparel, footwear and fashion supply chains

Systems evolved separately to support each business, so companies often use two

ERP solutions (one AFS, one Retail) and two separate sets of business suite

applications around each ERP.

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Remark: not all topics are covered in this presentation (e.g. Assortment

Planning, Retail Promotion, Retail Markdowns)

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Integration of SAP Fashion Management with the SAP Business Suite

In addition to AFS retrofit and process harmonization within FMS, there is also

the need to integrate FMS with other solutions in the SAP Business Suite (BS).

As a rule of thumb, FMS (latest with its second release) will support the same

level of integration as it exists today between existing solutions of SAPs BS with either SAP AFS or SAP Retail. Exceptions from that have been agreed

upon.

The contract does not include the enablement of the Business Suite with

fashion-specific information where it was not available before. This refers to the

fashion article (or generic article) if it was not supported before as well as for

the FMS season, FMS distribution profiles or FMS requirements and stock

segmentation. Regarding segmentation: if stock segments are modeled as

badges, solutions that can work with badges are supported. However,

requirements segments are not known in BS solutions.

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Remark: The article views in general are configurable based on customer

needs. The views illustrated are only a template.

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User Parameter: WMMB_MATRIX_ALV

Variant matrix is also enabled in retail specific transactions Seasonal Purchase

Order (WPOHF4C) and Purchasing List (WRFAPC01). But these TAs are not recommended for SAP Fashion Management (no harmonization).

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For SAP Fashion Management a new season concept was introduced The old SAP Retail season fields and maintenance within customizing is disabled

within SAP Fashion Management

The season definition is a master data maintenance Up to Season Year, Season, Collection, Theme possible

Definition of purchasing periods

Definition of sales periods

Season usage definiton at article level More than 1 season can be assigned to an article Season Determination within the processes

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The seasons are maintained within the Season Workbench (FSH_SWB) Within the Season Workbench all available season data are available based on

selection

A tree with season data, a purchasing view and a sales view is available Functions for maintenance are available A switch to tree only display is possible Possibility to assign articles to the season Exceptions at variant level from a generic must be assigned within the article

master data

The highest possible data level is season year/ season + validity period Optional: Collection definition for a season year/ season Optional: Theme definition for a season year/ season / collection

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There are two possibilities:

Season can be manually entered on sales order item level.

The system checks whether the requested delivery date is inside the delivery

window of the sales view.

Season can be determined by system (sales order item level).

In this case the system selects all possible entries for the specified sales area (Org,

channel, country, ). It is possible that more than one season are selected. In this case the first entry is taken. The user can change this proposal via F4 help.

The season check is identically for manually entered seasons and system

determined season.

If season determination is activated on document type level either an error or

warning can be thrown. It is also possible to set it on information only.

Season re-determination report is available for both the sales and the

purchasing documents. Using this report, multiple sales or purchasing

documents can be selected and re-determination can be executed for all these

document items together.

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Maintenance level for season procession (Customizing document type) Purchase document: Purchase document type, purchase organization, purchase

group

Sales documents: Sales document type, sales organization, distribution channel, division

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Further Notes:

Advanced Shipping Notification (ASN): When creating ASN with reference to purchase order, season information is copied

from PO

System validates information regarding season, collection, and theme during ASN processing

Logistic Invoice Verification: Season information is copied from purchase order and cannot be changed

Goods Movement (MIGO): No season determination logic available in MIGO

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Characteristics like size can be called by different scales in different countries.

For example shoe size can have US size, UK size, printed in shoes.

Characteristics like color can have different names in different languages.

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This slide shows a general overview of how conversion type identifier is linked

to article master, vendor master and customer master records so that when a

combination of the article and customer / vendor is used in a process

document, then appropriate value conversion gets applied to the article / variant

description by default.

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Advanced Shipping Notification (ASN): Item based and document based conversion is possible in ASN

Purchase Contracts: Document and item based conversion of characteristic values is possible in

contracts

Goods Movement (MIGO): Supports characteristic value conversion based on items only. (Document based

conversion can take customer and vendor information into account)

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Businesses compete today in an increasingly customer-oriented market. Therefore, it becomes necessary to streamline internal processes and logistics around the needs of each market and its unique requirements through appropriate sourcing, planning, and supply of goods to meet market demands.

Some articles are expected to support large volumes of data. Segmentation can be used to order such articles by logically categorizing them based on certain criteria or characteristics.

For example, in the fashion industry, you can distinguish a fashion article such as a t-shirt based on the size and the color. This t-shirt in a particular size and color is called an article variant. You can enter a specific item line for an article variant. Using segmentation, you can also order article variants of different quality levels, for different customer channels, and from different countries of origin.

Segmentation categorizes demand and supply based on logical and/or physical aspects of a product. Your implemented segmentation strategy should answer the following questions: Protect or share stock? Separate stock physically or logically? Or both? Criteria to define the segments? Channel? Quality? Prioritization of segments? In which processes and functions to use segmentation? Planning? ATP? ? Etc.

Segmentation information is kept throughout the whole E2E process chain

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*Stock transport from segmented location to segmented location STO can carry requirement and stock segment

Stock transport from segmented location to not segmented location STO can only carry requirement segment

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Stock transport order DC to DC (both segmentation relevant):

STO can carry both, requirement and stock segment

Stock transport order DC to store (only DC segmentation relevant):

STO can only carry requirement segment

Remark: List above is not complete. Please see slide Segmentation in documents

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Use case stock protection with physical separation: Instead of using real values

for channel (e.g. Wholesale, Retail) you can also use e.g. the value common for all channels: Common QualityA, Common QualityB.

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Scope 2

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Example with Scope 2

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All sales relevant document types have been enhanced to support fashion

specific data: Inquiries Quotations Contracts Sales Orders Deliveries Billing Segmentation information is copied automatically if documents are created with

reference.

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Purchase documents with segmentation: Purchase Info Rec Purchase Requisition Purchase Contract Purchase Order Stock Transport Order Inbound Delivery Goods Movement Reservation Retail Stock Overview Invoice Verification Physical Inventory

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SAP Fashion Management uses MRP Live (based on SAP HANA).

Purchase requisition and purchase orders can be internal (Stock transport from

DC to DC) or external.

Grouping for Purchase Requisitions during MRP run

combines the requirements of all variants of a generic article into one Purchase

Requisition (to be activated in Customizing)

Applicable only for variants of a generic article Following attributes must have the same value across variants of the generic

article: Plant

Release date

Delivery date

Supplying plant (in stock transport requisition)

Supplier or vendor (in external procurement)

Account assignment category

Purchasing organization

Purchasing group

Requirement segments

Stock segments

Document Type

Document Category (Item category)

Storage Location

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Note : Segmentation Strategy Scope

Scope option defines mapping rules or segment combinations in segmentation

strategy. Following scope options are defined:

1 Requirements and Stock Segments Maintained, 2 Only Requirements Segments Maintained

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Retailers often have to centrally distribute merchandise among a large number of recipients (for example, stores). One example would be fashion merchandise or promotional items. Using allocation tables, you can plan the distribution of this type of merchandise and then trigger the necessary goods movements.

An allocation table is a tool for planning merchandise distribution used by a head office to plan, control, and monitor supplies to sites (stores, distribution centers). It is used, for example, in initial distribution of articles, distribution of promotional goods, distribution of stocks, and distribution of imported goods procured centrally.

You create an allocation table in SAP Retail to split up a specific quantity of merchandise. The allocation table contains all the important information on the how the merchandise is to be distributed, such as the articles to be allocated, the source of supply, the recipients, the quantity each is to receive and the delivery dates. You also determine the goods movements (for example, direct-store-delivery) at this point. You can have the system propose the sites. To do this, you enter an allocation rule or a site group. You can include your own allocation strategy. You can change any default data suggested by the system. Allocation strategy The allocation strategy defines how the system calculates the planned quantities for the recipients. A strategy can process data from SAP Retail, but also data from SAP BI (for example, sales history). Some allocation strategies are included in the scope of delivery, others can be created by you. You can use an allocation strategy instead of an allocation rule or manual distribution. You can maintain an allocation strategy in the Customizing settings for the allocation table type. This strategy is proposed in the allocation table at item level.

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New Button inside Allocation Table: Soft ATP Check: on DC Level with Article and quantity delivery date or delivery phases Pop-Up with the available quantity coming back from ATP. The user can choose either to adopt them into allocation table or cancel it and

stick to the original planned quantity.

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Further fashion specific enhancements in purchase info record: Possibility to add planned delivery time components like packing lead times

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Structured article: The stock segment you select for the structured article at the

header level is not copied to its components. When you process these articles

in the purchasing documents, the system only considers the stock segment

assigned at the header level. If the components have different stock segments,

they are neither displayed nor considered for processing inside the purchase

order.

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Depending on the use case there are different Customizing entries to set up the requirement segment determination: A) If the site is relevant for segmentation (e.g. DC) and is supplying to site relevant for segmentation (e.g. DC) the requirement segment is determined based on the stock segment in one of the following ways: Priority 1: Based on the segment value you maintain in the Customizing Logistics General

-> Segmentation -> Define Segmentation Strategies Priority 2: Based on the default segment you maintain in the Customizing Logistics

General -> Segmentation -> Define Segmentation Structures Priority 3: Based on BAdI: Segment Values in Purchase Order Priority 4: If BLANK is not a valid segment and no segment value is found, the system

displays an error message

B) Site relevant for segmentation (e.g. DC) is supplying to site not relevant for segmentation (e.g. Store). The appropriate requirement segment is determined in one of the following ways: Priority 1: Based on the segment value assignment you maintain in the Customizing Logistics General -> Segmentation -> Define Requirement Segment for Supplying Plants Priority 2: Based on the default stock segment you maintain in the Customizing Logistics General -> Segmentation -> Define Segmentation Structures Priority 3: If BLANK is not a valid segment and no segment value is found, the system displays an error message

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All variants of a generic article can be displayed with detailed information

(Prerequisite: user parameter WGEN_VAR is entered in the user profile).

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Prerequisite In IMG: split valuation is activated and configured In the characteristic for segmentation (e.g. Quality), TA = CT04:

Segment specific valuation is flagged (relevancy of segmentation)

In article master: Article is segmented

In Accounting Distribution Channel Data:

Valuation Category X is enabled to do new value calculation during batch creations and updates

(For each segment value both, standard price and moving average price can be used)

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Maintenance of valuation types and standard prices is supported by Fast Entry Characteristic Value Conversion

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