Transcript
Page 1: Sap retail fashion management

D e v e l o p e D w i t h f a s h i o n b r a n D s

f o r f a s h i o n b r a n D s

s a p ® f a s h i o n m a n a g e m e n t

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4e x e c u t i v e s u m m a r y

6o u r u n D e r s ta n D i n g

1 4t h e s a p s o l u t i o n

1 9w h y s a p ?

2 3n e x t s t e p s

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t a b l e o f c o n t e n t s

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Our understandingThe fashion world is constantly changing, which means you must continually invest to stay competitive. And what is one of the highest priority areas for investment? Tools that help shorten the time from concept to customer, boost collaboration across the supply chain, and offer end-to-end visibility, flexibility, speed, and verticalization. SAP solutions can help you achieve these objectives while reducing overall IT costs and promoting future growth. With our investment in the SAP® Fashion Management application, we have made a commitment to help fashion companies:• Become brands that stand out from the crowd• Drive efficiencies in their global operations • Be recognized market leaders

The SAP® solutionWe believe that SAP can play a key role in helping you execute your strategic growth priorities, such as global e-commerce, multichannel opportunities, and store expansion while delivering engaging customer experiences. Through our robust, vertically integrated solution we can help you drive significant bottom-line improvements and improve your competitive position. The SAP Fashion Management application helps you:• Achieve rapid wholesale and retail global expansion with support

for multiple languages, multiple currencies, multiple tax regimes, and multiple import and export requirements

• Globally command and control a single stock holding across all channels using a real-time supply and demand picture that drives better decisions

• Deliver a consistent customer experience with a unified solution that supports all channels

• Improve inventory efficiency with a single global inventory holding for retail, wholesale, and e-commerce channels

• Increase operational efficiency with common processes that share a single set of master and transaction data across all channels

Why SAP?At SAP we can draw on the following to help you achieve your strategic vision:• Our experience of working with a network of 12,200 retailers, fashion

brands, and wholesalers • Wholesale and retail software developed for the core business of fashion

companies, including product development, retail processes, and shopper interaction across all points of contact

• A global team of SAP experts that specialize in wholesale and retail fashion

• A proven value-engineering methodology, including benchmarking with peers or competitors and the development of a business case to support business process and improvements in your key performance indicators (KPIs)

SAP can help you transform your business by using a proven value framework that delivers immediate business value, as well as ongoing IT simplification that reduces total cost of ownership.

e x e c u T I v e S u M M A r y

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e x e c u T I v e S u m m A r y

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leading fashion companies are utilizing sap technology and software to increase market opportunity, achieve profit goals, and grow market share.

u p t o 1 5 %r e D u c t i o n i n i n v e n t o r y

5 0 %r e D u c t i o n i n o r D e r s c a n c e l l e D D u e t o n o n a v a i l a b i l i t y

source: sap performance benchmarking

let’s talkin this document we outline the challenges facing the fashion industryand how our solutions help you address them. take a few minutes to read through and, when you’ve finished, let’s talk about how we can help your company with its specific priorities.

to get in touchfind an sap office near you here

to get more informationvisit our retail web site

or follow us at

e x e c u t i v e s u m m a r y

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globalization• manufacturing flexibility to deploy

rapidly and globally • opening up of new channels in

new markets simultaneously to address customer globalization

• sustainable operations and manufacturing

faster fashion• asynchronous seasons

and themes• more styles• segmented regional and

localized seasons and trends – “look local think global”

customer experience• Knowledge of brands,

not channels• need for consistent interaction

with preferred brands• buying journey with many

touch points

vertically integrated channels • move by fashion retailers to

wholesale and manufacturing to control brand image and quality

• move by fashion manufacturers and wholesalers to retail to increase revenue, margin, and brand image

fashion is being driven by four critical forces:

o u r u n D e r s t a n D i n g

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t h e c u r r e n t m a r k e t r e a l i t y

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faster fashion how can my business deliver shorter seasons across omnichannels with more styles?

seasonal merchandising how can i improve customer service and fill rates while reducing excess stock?

increased revenue and margin how can i make the best use of my inventory across channels and reduce markdowns?

unified planning and sourcing how can i unify siloed, multichannel plans and sourcing?

adaptable global business how can we move quickly and efficiently into new channels and markets?

simplification 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?

common face to all channels how can my brand be consistent across channels and geographies?

fashion executives’ challenges that sap fashion management resolves:

o u r u n D e r s t a n D i n g

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brand and merchandise managementinability to develop assortments and pricing targeted to the needs of the customer across asynchronous seasons, regional trends, and demand for global ranges that respect local and regional trends

sourcing and procurementDifficulty managing a large and fluid vendor network

supply chaininability to respond to customer demands for flexibility and responsiveness

customer experiencefickle customers that have temporary loyalty to the brand, not the channel, and demand consistent standards regardless of touch point to the brand

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c h a l l e n g e s i n t h e f a s h i o n i n D u s t r y

››

››

››

›D i s t r i b u t i o n c e n t e r s

w h o l e s a l e

o r e x t e r n a l

c u s t o m e r s

t h i r D - pa r t y

l o g i s t i c s

p r o v i D e r s

e - c o m m e r c e

s t o r e ss u p p l i e r s

brand and merchandise management

sourcing, procurement, and

manufacturing

human resources

finance

information technology

technology and platform

supply chain

omnichannel customer

experience

o u r u n D e r s t a n D i n g

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sap helps fashion companies with multiple sales channels to act as one, with common processes based on a global real-time foundation that improves efficiency and delights customers.

globalization• Develop profitable new channels,

markets, and brands • work closely with business partners,

suppliers, and manufacturers to develop new products

• adapt supply and sourcing to flexible global-trading strategies and business models

faster fashion • make more styles available more

often• Develop focused target segments

and assortments by analyzing customer behavior and building customer profiles

• build localized and relevant assortments

customer experience• unify the customer experience

through all phases and touch points• increase visibility of trading across

channels and customers

vertically integrated channels • integrate wholesale and retail

sourcing, supply chain, and delivery processes

• improve service levels while lowering channel inventory investment

• optimize brand distribution and image

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o u r u n D e r s t a n D i n g o f y o u r p r i o r i t i e s

s t r at e g i c p r i o r i t i e s

o u r u n D e r s t a n D i n g

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bill mcDermott, ceo, sap se

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“ t o D ay ’ s e m p l o y e e s a n D c o n s u m e r s a r e n e t w o r K e D a n D o n t h e m o v e . g r e at p r o D u c t s

a l o n e a r e n o l o n g e r e n o u g h t o e a r n t h e i r l o ya l t y. b u s i n e s s e s h a v e t o p r o v i D e

a n e x t- g e n e r at i o n e x p e r i e n c e , ta i l o r e D c o m p l e t e ly t o t h e i n D i v i D u a l . s a p i s D r i v e n b y

a r e l e n t l e s s pa s s i o n t o h e l p o u r c u s t o m e r s i n n o v at e t o w i n . w e D e l i v e r t h e i n D u s t r y

s o l u t i o n s a n D t h e r e a l -t i m e p l at f o r m f o r e n t e r p r i s e s t o r u n l i K e n e v e r b e f o r e .”

o u r u n D e r s t a n D i n g

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• stock-outs

• revenue from substitutes or alternatives

• reduction in chargebacks

• number of sales transactions where up-sell and cross-sell are offered

• stock-outs

• sales and gross margin optimization

• markdown or discount management (reduction of markdowns)

• reduction in revenue loss with quick time to market

• reduction in finished goods inventory

• reduction in chargebacks

• number of sales transactions where up-sell and cross-sell are offered

• revenue from substitutes or alternatives

• warehouse operations efficiency

• warehouse technology cost

• on-time shipment of orders

• order-receipt-to-ship cycle time

• orders expedited

• inventory accuracy

• improvement in on-time delivery of shipments to customers or stores

• business and operations reporting productivity

• invoice processing efficiency

• it cost to support planning and consolidation

• time to create new finance report

• procurement productivity

• improvement in annual savings on direct and indirect materials

• improvement in annual services savings

• increase in spend under contract

• reduction in work-in-progress inventory

• purchase order error rate

• improvement in on-time delivery of pos to suppliers

• new-contract creation cycle time

• reduction in work-in-progress inventory

• reduction in cost to support supplier contract management

• it budget spent on data cleansing

• it integration cost

• it data-quality repair cost

• it efficiency

© 2 0 1 4 s a p s e o r a n s a p a f f i l i a t e c o m p a n y | 1 1

o p p o r t u n i t i e s f o r y o u r c o m p a n y

brand and merchandise management

sourcing, procurement, and

manufacturing

human resources

finance

information technology

technology and platform

supply chain

omnichannel customer

experience

the sap fashion management application impacts many Kpis across key operational processes. below is a selection of the metrics that we can benchmark and use to identify opportunities for improvement to drive value.

o u r u n D e r s t a n D i n g

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m o v i n g t h e n e e D l e

implementation of the sap fashion management application can help you “move the needle” for these Kpis. for example, improving the business processes that touch the Kpis below is critical for your company to achieve corporate and shareholder value objectives as well as continue to deliver world-class experiences for its customers. our industry value engineering team would be pleased to work with you to identify core metrics and potential improvements.

strategic priority Kpi impacteD area

globalization

transportation spend (% of revenue)

sourcing and procurementproduct data formally managed

(in %)

faster fashion

time to market for new products (in months)

brand and merchandise managementnew products launched annually

per us$100 million of revenue

customer experience

orders backordered (in % make for stock)

customer experienceorders cancelled

(% of orders backordered)

vertically integrated channels

expedited transportation spend (% of revenue)

supply chaininventory cover

(weeks of supply)

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sap has identified four areas where value can be created for you.

brand and merchandise management

sourcing and procurement

supply chain

customer experience

t h e s a p s o l u t i o n

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h o W s a p c a n h e l p y o u a c h i e v e y o u r v i s i o n

1

2

3

4

we believe that sap can play an important role in helping you transform your business, stay competitive, and deliver on your business imperatives.

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• predict, understand, and adapt to customer behavior with powerful analytics

• plan and deliver assortments based on current customer preferences and trends

• win new customers with compelling promotions and marketing campaigns

• Drive top-line growth and improve customer satisfaction with strategic pricing

• manage multiple seasons• offer customized products to customers with value-added

services

brands that leverage detailed customer information to develop personalized marketing and merchandising strategies can have greater success in maintaining loyal customers.

• provide one source of product master data across all parts of your enterprise

• manage and analyze season, collection, and theme across the entire value chain

• Develop deep insights about your customers’ buying preferences and manage their shopping experiences across e-commerce, stores, and social channels in real time

• create integrated marketing, promotions, and loyalty programs based on a common view of the customer

• strategically plan assortments by customer, product, and location to provide relevant and localized merchandise

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b r a n D a n D m e r c h a n D i s e m a n a g e m e n t

b e n e f i t ss o l u t i o n c a pa b i l i t i e s

you have the opportunity to win over demanding customers to your brand, improve customer loyalty, and increase sales and brand value. by enlarging the footprint of the brand with more styles available more often and shorter selling seasons, you can manage a targeted global and local range of products.

t h e s a p s o l u t i o n

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• find new suppliers and speed onboarding by creating rich profiles with transactional information

• enrich supplier relationships over time with improved performance and risk management

• Develop strategic sourcing and contracting and identify more opportunities to save

• plan product creation – from design and component sourcing to production and quality management

• effectively collaborate with vendors across ordering, invoicing, and payment processing

• reduce costs with special handling and services delivered at the source

• benefit from advantages in improved lot sizes and cost savings in transportation

Keeping pace with demanding customers in a dynamic – even volatile – marketplace while managing increased complexity at a reasonable cost is exceptionally challenging. successful fashion companies collaborate with a global business network of vendors, manufacturers, and logistics service providers to deliver greater, differentiating value to customers in a profitable way.

• identify and onboard suitable vendors, manage the entire vendor lifecycle, and continuously analyze vendor performance

• understand total spend, define your sourcing strategy, and efficiently manage the operational buying process

• create differentiation by delivering brand and product innovation and development, as well as production planning and execution

• source and buy for all channels, combining purchase demand across channels in one purchase order, optionally using segmentation

• use sourcing variants such as third-party order, purchase to order, and make to order, with value-added services at the source

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s o u r c i n g a n D p r o c u r e m e n t

b e n e f i t ss o l u t i o n c a pa b i l i t i e s

Develop stronger relationships with your sourcing and manufacturing partners and gain efficiency opportunities with effective cross-channel sourcing.

t h e s a p s o l u t i o n

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• improve use of inventory - gain greater forecast accuracy and optimize inventory for higher

customer satisfaction - Deliver products on time and as promised – how, when,

and where customers want them • optimize inventory allocation

- reduce lost sales due to stock-outs - improve order fill rate - enhance customer satisfaction - increase service levels and reduce chargebacks and deductions

caused by suboptimal allocation and fulfillment• improve service levels and easily comply with vendor restrictions• harmonize supply plans across the network

- optimize sourcing - maximize efficiency in sourcing - improve price, quality, and transparency - reduce transportation cost

with improved visibility into channel demand, a customer-driven supply chain can synchronize supply with your extended business network. simultaneously, it must integrate and automate logistics and fulfillment across stores, customers, distribution centers, and warehouses – meeting demand where it actually occurs.

• immediate inventory visibility across all channels (wholesale, retail, franchisee, and digital)

• integrated systems that provide optimal cross-channel allocation methods from planning through execution, helping to ensure superior customer service and higher profitability

• segmentation and common inventory to optimize inventory allocation to demand changes

• full traceability of historical demand to improve future planning

source: sap performance benchmarking

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s u p p l y c h a i n

2 5 . 8 % r e D u c t i o n i n r e v e n u e l o s s D u e t o s t o c K - o u t s w h e r e f o r e c a s t s i n c o r p o r at e D e m a n D

h i s t o r y a n D a u t o m at i c a D j u s t m e n t s f o r b a D D ata a n D pa s t p r o m o t i o n s

b e n e f i t ss o l u t i o n c a pa b i l i t i e s

reap the benefits of improved planning, optimized inventory, and accurate order allocation.

t h e s a p s o l u t i o n

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• improve margin and revenue figures• focus and deliver on excellent customer service• hit customer retention targets• increase customer satisfaction levels • improve product availability with better demand fulfillment • operate effectively with one view of the customer across

all interaction channels• Design for channel expansion, from wholesale to retail sales

or vice versa • minimize seasonal excess stock and avoid price markdowns

customers expect a consistent sales experience, regardless of how they engage with a brand. to serve the various sales channels, brand owners must understand their customers’ needs, anticipate their demands, and offer consistent, omnichannel interactions.

• manage your wholesale customer and key accounts

• assign inventory to the right customer demand by providing product availability information and rules-based order allocation and inventory segmentation

• effectively develop price strategies based on seasonality, size, color, customer, price groups, and other characteristics

• use seasonal processing to maximize control and fine-tune seasonal delivery periods

• improve customer service with value-added services such as ticketing, labeling, and special handling

• manage your own retail channels, from stores, e-commerce, and b2c to franchisee

c u s t o m e r e x p e r i e n c e

b e n e f i t ss o l u t i o n c a pa b i l i t i e s

brand owners have the opportunity to serve and sell to customers by using different channels such as wholesale, retail, and digital as well as various customer-facing technologies.

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w h y s a p ?

we are the market leader in enterprise application software, with more than 183,000 customers across 120 countries. our solutions and services are today’s business enablers, and we continuously work with customers to help them address the needs of tomorrow.

the sap fashion management application provides:

• a vertically integrated solution to deliver adaptable global business, faster fashion, and a unified customer experience

• support for end-to-end, real-time processes based on a single global inventory foundation that improves efficiency and delights customers

• a comprehensive fashion solution based on the sap erp application

sap has:

• Deep industry experience coupled with strong and engaged customers

• excellent customer references with tangible business benefits

W h y s a p ?

sap’s vision is to help the world run better and improve people’s lives. our mission is to help every customer become a best-run business – this is what we bring to you.

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source: sap analysis of forbes 2000 rankings (may 2013) and sap customer database as of march 2014

o u r p l a c e i n t h e f a s h i o n i n D u s t r y

1 0 o f t h e t o p 1 0most admired apparel and footwear retailers

in the world run sap solutions

1 8 o f t h e t o p 2 0apparel and footwear retailers in the world run

sap solutions

1 2 , 2 0 0 retail customers worldwide

vertically integrated channels on a single platform

Deep industry-specific functionality

built on industry best practices

clear industry road map

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w h y s a p ?

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the sap fashion management application provides a comprehensive solution for fashion companies that:

• breaks down the barriers and inefficiencies across sales channels with a single, real-time solution

• increases the speed of range introduction and improves targeting to channels and sales locations to maximize sales potential

• helps you gain up-to-the-minute visibility across all partners to expedite deliveries to match customer need

with 15 years of product innovation, sap offers a complete fashion suite that helps you run right now, based on a single foundation that helps remove organizational silos, enabling you to establish best-business processes and create an information-driven culture.

we believe our strategy and solutions will help fashion companies drive action and measurable results. to anchor our global leadership position, we will continue to invest and innovate in this strategic focus for sap.

i n t e g r a t e D s o l u t i o n f o r f a s h i o n

brand and merchandise management • social, marketing, and

merchandising insight• product design and development • omnichannel marketing• optimized merchandise and

assortment planning• pricing and promotion

sourcing, procurement, and manufacturing• sourcing, supplier management,

and insight• procurement • branded manufacturing• sustainable operations

supply chain

• supply chain insight• Demand planning• supply planning• omnichannel inventory and

order response• optimized logistics and

fulfillment

ominchannel customer experience• customer insight• customer interaction and

personalization• Digital commerce• order management and

orchestration• store excellence

v a l u e m a p f o r fa s h i o n

corporate functions > human resources | procurement | information technology

technology > big Data | analytics | enterprise mobility | cloud solutions

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w h y s a p ?

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sap brings a strategic partnership with an unparalleled amount of experience and track record to the fashion industry to assist with the business and it transformation journey. whether you needs solutions in applications, cloud, mobile, analytics, or database and technology areas, sap can partner and deliver.

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t h e v a l u e o f p a r t n e r i n g W i t h s a p

tightly integrated complete solutions sap offers a comprehensive portfolio for fashion companies, enabling a total customer experience from offer to monetization of any transaction – integrated, yet modular by design.

key breakthrough innovationsthe sap portfolio is based on the industry’s most innovative technology – including the sap hana® platform and mobile, analytics, and cloud solutions – to deliver business process optimization and efficiency at the lowest possible cost.

proven time to value in large-scale implementationsleading fashion companies throughout the world continue to rely on sap to enable them to offer a comprehensive customer experience.

Delivering value to your companymany of the world’s leading fashion companies, across every segment, are reaping the benefits and running better with sap software and services.

w h y s a p ?

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n e x t s t e p s

achieving your vision will require significant focus and executive commitment along with a business partnership with sap to drive a successful outcome.

recommended next steps for your transformation journey:

• thought leadership workshop with business and it executives to identify key value areas

• connection with other fashion companies to exchange best practices and experiences

• an industry value engineering approach to identify commercial business and specific use cases

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n e x t s t e p s

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© 2014 sap se or an sap affiliate company. all rights reserved.no part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of sap se or an sap affiliate company.

sap and other sap products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of sap se (or an sap affiliate company) in germany and other countries. please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices. some software products marketed by sap se and its distributors contain proprietary software components of other software vendors.

national product specifications may vary.

these materials are provided by sap se or an sap affiliate company for informational purposes only, without representation or warranty of any kind, and sap se or its affiliated companies shall not be liable for errors or omissions with respect to the materials. the only warranties for sap se or sap affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. nothing herein should be construed as constituting an additional warranty.

in particular, sap se or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. this document, or any related presentation, and sap se’s or its affiliated companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by sap se or its affiliated companies at any time for any reason without notice. the information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. all forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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