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Page 1: SAP_AFS

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Apparel & Footwear Roadmap Update

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 2

Consumer  Apparel/Footwear 

CompanyMill/Trim Vendor 

Full PackageManufacturer 

Catalog

Retailer 

Distribution

Government

(i.e. Customs)

Apparel & Footwear Industry Ecosystem

Sub-Contractors

Internet

CGD1

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Slide 2

CGD1 Change Pictures where appropriateCeleste Donahoe; 26/5/2004

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 3

CO-PA

FI/CO

BW

MM-MD

PP-MD

SOP

Flexible Planning

SD RetailSourcing

MM/WM

Supplier Management

Subcontracting

Production

Production Planing

Subcontracting

Shop Floor Control

SAP AFS for Manufacturers

Product

Development

Enterprise

Management

BudgetNew

Styles

Pre-season

Forecasting

In Season

Supply Chain Execution

Post Season

Sales

Managers

Sales

Reps

Sales

Orders

Logistics

 Acti vi ty

Close Out

Inventory

Collab.

Planning

Inventory

Production

Orders

Planned

Orders

MRP

Planning

Purchase

Reqs

Purchase

Orders

Factory

 Acti vi ty

Logistics

 Acti vi ty

Factory

 Acti vi ty

Consensus

Forecast

CO-PA = Costing /

Profitability Analysis

FI/CO = FinancialsBW = Business Warehouse

MM = Materials Management

MD = Master Data

PP = Production PlanningSOP = Sales & Ops Planning

SD = Sales &

DistributionSourcing

WM = Warehouse

Management AFS Supplier Workplace

SAP AFS Background

 Al locat ion

RunDelivery Invoice

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 4

SAP AFS Customers – Status Q4 / 2005

D’Portenis

(Mexico)

Cutter and Buck

(United States)

CSP Int’l

(Italy)

Crystal Group

(Hong Kong)

Courtaulds Clothing

(Sri Lanka)

Cole Haan

(United States)

Camper 

(Spain)

Calzados G iovania

(Mexico)

Calida

(China)

Burberry

(United Kingdom)

Bruno Magli

(United States)

Brioni

(Italy)

Boyner Holdings

(Turkey)

Benetton

(Italy)

Bejing Li-Ning

(China)

(Canada Bauer 

Nike Hockey )

 Atateks

(Turkeu)

 Asics

(Japan)

 Arvind Mil ls

(India)

 Ar tisana

(Italy)

 And 1

(United States)

 Ambro Holdings

(New Zealand) Alpargatas Group

(Brazil)

 Adidas

(Germany)

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 5

Kwintet

(Denmark)

Koos of Course

(United States)

Justin Brands

(United States)

Jones Apparel

Group (United

States)

Induyco (Spain)Industrias

Piagui

(Mexico)

Imagemark

(United States)

Hwa Seung Vina

(Vietnam)

Hugo Boss

(Germany)

Head Tyrol ia

(Austria)

Global Brands

(United Statees)

G & K Services

(United States)

G & A Jewelry

(United Kingdom)

Fossil

(United States)

Foschini (South

 Africa)

Fornari (Italy)Fila (Italy)Fashion Box

(Italy)

Eurodress

(Germany)

Esquire

(Korea)

Embry Group

(China)

Ecco (Denmark)Dolfuss, Mieg & Cie

(France)

DeRigo

(Italy)

SAP AFS Customers – Status Q4 / 2005

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 6

Reebok

(United States)

QVC

(United States)

Preca Brummel

(Italy)

Prada

(Italy)

Playcorp

(Australia)

Pentland

(United Kingdom)

Peerless Clothing

(Canada))

Pantaloons

(India)

OP Profashion

(Czech Republic )

Oakley

(United States)

Nike

(United States)

Natural Textiles

(India)

Napapijri

(Italy)

Muratacho

(Japan)

Mast Industries

(United States)

Mascot

(Denmark)

MAS Holdings

(Sri Lanka)

Marzotto

(Italy)

Marui

(Japan)

Marcolin

(Italy)

Madura Garments

(India)

Lucia

(Germany)

Limited Brands

(United States)

Levi Strauss

(United States)

SAP AFS Customers – Status Q4 / 2005

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 7

MexicoUnited StatesUnited StatesUnited StatesWolverine

(United States)

Warnaco

(United States)

Charly

group

mexico

Marchon

Eyewear 

KSwissBurton

Snowboards

VF Corporation

(United States)

Under Armour 

(United States)

Uhlsport

(Germany)

Triumph

(Germany)

Tommy Hilfiger 

(Netherlands)

Tainan Enterprise

(Taiwan

Swiss Army

(United States)

Superior Uniform

(United States)

Stonefashion

(Netherlands)

Sports Supply Group

(United States)

Shanghai Three

Guns (China)

Scott Sports

(China)

Schiesser 

(Germany)

Samsonite

(United States)

Salamander 

(Germany)

Saez Merino (Spain)Rusty

(Australia)

Riddell Bell

(United States)

SAP AFS Customers – Status Q4 / 2005

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 8

Apparel and Footwear Recent Key Wins

Limited Brands

Samsonite

Underarmour 

Burberry

 ASICS

Prada

Piagui

 Alpargatas (BR)

Giovanna

Imagemark

DPortenis

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 9

Additional win data as March 2006

  Americas

 4thqtr 2005 1st qtr 2006

 Victorinix Swiss Army Brands Inc Emyco Mexico

 Bell Riddle Charly group Mexico

 Sports Supply, Marchon Eyewear 

 Burton Snowboards

 Jones Apparel

 Koos Jeanswear 

 KSwiss

 Vera Bradley

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 10

SAP is the De-facto Fashion Industry Standard

Apparel & Footwear – Industry Standard Processes

Order to Cash,

Global Sourcing,

and/or 

Financials

1997 2001 2003 20051999

227Manufacturing

and/or 

Warehouse Mgmt

CRMand/or 

Retail

SCM/VMI

Replenishment/

Netweaver/ ESA

l

l

2006

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 11

AFS Evolution 1

 AFS – Retail Interface

Business Warehouse for AFS

Mass Document Change

IDOC enhancements

IM Distributed system stock

transfer 

 Archiving enhancements SD/MM Distribution Profiles

(size curve via SIS history)

Basis Grid History & reporting

SD Customer Master 

additional data

SD Mass Customer change

SD VAS Enhancements

SD prepacks

SD Assortments

SD Multi-Store Order II

SD Quantity Contracts and calloffs

 Allocation Run (ARun)

- Order Scheduling

 ARun - Management Tool

 Allocation Fill Up

 Allocation Preview

 ARun Reorganisation

 AFS Vendor Functions

Transfer posting (1 & 2 step)

Subcontracting

Source Allocation

Invoice Verification

WM

Planning horizons

MRP List

Inventory Valuation

Costing

Profitability Analysis

2000

Controlled

Sales

ControlledSales

 AFS 2.5B

Roll OutRoll OutLaunchLaunch

CRM Interaction Center 

Parallel ARun

Category enhancements

EAN/UPC Recycling

NRF Code Support

MM Order confirmations

MM Shipping notifications

MM ATP for Subcontracting

 AFS MRP cockpit  AFS Stock/Requirements list

enhancements

PP – Phantom assemblies

BOM enhancements including

engineering change

management

PP – Missing Parts

 Assembly scrap and bundle qty

SD – UoM for sizes

SD – BOM correlation

SD – Multiple user contractrelease and call off 

 AFS Online Store

Quantity distribution profile

Delivery Program (seasons)

 ARun customizing check tool

Delivery Check tool

Dynamic OTD date

Parallel ARun for faster 

performance

 ARun preview (to future

receipts) enhancements Release rule in sales order 

 ARun for sales order storage

location and batch

Management Tool selection

Over-delivery MTP/PTO

Reallocation strategy

enhancement

2001 2002

 AFS 3.0B

 AFS 1.0B

1998

Early

 Adopters

Early Adopters

First Customer Shipment

 AFS Release 1.0B

Material Grid

Sales Grid

Purchasing Grid

Category

MRP Planning

Purchasing

Material Mgt

FERT Generator  Sales & Distribution

 ATP

Size Pricing

Value Added Services

 Allocation Run

Mutil Store Order I

Production

2004

ISA

R/3 Edition

 APO DP

Reseller 

Portal

 AFS 5.0 ERP

Development

 AFS 5.0

ERP2004

SCM 5.0Development

CRM 5.0

Development

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 12

AFS 5.0 Footprint Scope

Mass Document

Change (SD)

Select orders

Specify changes

 Add new items and

SKUs

Update order 

MM

Integration with

Future Receipts

Subcontracting

Enhancements

Use of standard

transactions

 ATP Reschedule

(SD)

Select materials

Specify sort

Keep old

confirmations

Performance

Improvements

Update orders

PP

Integration with

Future Receipts

 Al locat ion Run

Select orders and

Stock

Filter and

Prioritize orders

 Allocate

 Al location toFuture Receipts

Early Warning

Report

Hot Product

 Al locat ion

 Auto Substi tu tions

Release Check

 Auto Rejections

Performance

Improvements

Post Orders

 ARun Opt imizer 

Customer Sales Reps

Select orders

Manage Orders

Run Release Rule

Manual rejections

Re Do Allocation

Private Stock

Flagged Orders

Substitute materials,

SKUs, Plants

Branch to VA02/03

VAS support

Post changes

SD

Enter material

 ATP check

MSO II + standard

order support for 

 ATP relevant VAS

 Auto ATPSubstitutions

(material, SKU,

plant)

Multiplant Support

for MSO II

 Al locat ion Groups Pricing/Credit

VAS Determination

Order Scheduling

Order Save

Material Size Grids and Stock Categories now Defined in Classification

SKU Level Integration with SCM:DP, SNP, RR

SKU Level Integration with CRM: eCommerce, Mobile Sales, Call Center 

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 13

AFS Releases

mySAP Business Suite

1998 2000 2001 2002 2003 2004 2005 2006 2007 2008…

 AFS 1.0

R/3 3.1I

 AFS 2.5

R/3 4.5B

 AFS 3.0

R/3 4.6C

MDMe MDM Matrix Product

BW

CRM IC

e-Commerce R/3ISA 3.1 R/3 Edition

E-commerce R/3

ISA 4.0 R/3 Edition

 APO DP

SCM Supply Network Planning (SNP)

CRM Field Sales / Mobile Sales

CRM E-commerce (Internet Sales)

SCM Store Replenishment (RR)

 Available

SCEM

PLM

cProjects

cFolders

Planned Development for style/size (note planned dates and/or content may change)

Reseller 

Portal

DMS

SCM Seasonal Demand Planning (DP)

Roadmap mySAP for Apparel and Footwear 

 AFS 3.0R/3 4.6c

 AFS release number in bold, R/3 basis in normal type

 AFS 5.0 is on ramp-up Dec 04. General Availability July 25 2005

 AFS

Release

Basis tbd

Netweaver 

 AFS 5.0

ERP 2004

/ ECC 5.0

Netweaver 

CRM Order Management (Call Center)

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Apparel & Footwear Appendix

 AFS – SAP Retail

 AFS Planning Solutions

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Apparel & Footwear: Who WAS Doing What in 2001?

Vertical

Fashion

Retailer 

 Apparel and Footwear Co

with Wholesale & Retail Channels

StoreStoreFactoryFactory

Design, develop, source andsell goods to consumers

through own retail channels

(B2C)

Design, develop, source andsell goods to B2B wholesale

customers and to consumers

through own retail channels

Design, develop, manufacture/source and sell goods to B2B

wholesale customer (Retailers)

Fashion/Apparel

CPG Company

Oreton

French Connection

VERTICAL SILOS VERTICAL SILOS

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Apparel & Footwear: 2005 Everyone is doing Everything!

Vertical

Fashion

Retailer 

 Apparel and Footwear Co

with Wholesale & Retail Channels

Verticalization Verticalization

StoreStoreFactoryFactory

Design, develop, source andsell goods to consumers

through own retail channels

(B2C)

Design, develop, source andsell goods to B2B wholesale

customers and to consumers

through own retail channels

Design, develop, manufacture/source and sell goods to B2B

wholesale customer (Retailers)

Fashion/Apparel

CPG Company

Oreton

French Connection

French Connection

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Business Intelligence

Merchandising& Assortment

Planning (MAP)

SAP’s Fashion Solution Landscape

   V  e  n   d  o  r  s

   /

   F  a  c   t  o  r   i  e  s

 Own S  t   or  e s 

 AFS 5.0

ECC 5.0

Retail

ECC 5.0

   P  r  o   d  u  c   t   i  o  n   /

   O  r   d  e  r  s   /   V   M   I

   P  u  r  c   h  a  s   i  n  g

Local Purchase Orders

Forecast &Replenishment

(F&R)

Store Planning

 S  t   or  e O p er  a t  i   on s 

Consolidated

Financials

Human Resources

Corporate Services

Integration viaSAP Netweaver 

PLM

Customer OrdersProducts

CRM

B2B / B2C

   C  u  s   t  o  m

  e  r  s

   S   t  o  r  e

  s

SCM

RR

SCM

DP

SCM

SNP

Business Intelligence(BW)

MDMe

IS-AFS Landscape IS-Retail Landscape

VMI Collaborative Supply

Forecasting Planning

GTSPOS Data

Management

Store

Management

SAP Netweaver 

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AFS to Retail – Master Data Integration

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AFS to Retail – Process Flow

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Supply Chain Planning for Apparel and Footwear 

Seasonal Demand PlanningSupply Network Planning

(SNP)

Responsive Replenishment

(VMI)

Supply Chain Event

Management

 APO

DP

 AFS

PIR MRPPurch.

Req

Purchase

Order 

 APODP SNP  AFSMRPPurch.Req PurchaseOrder 

Strategic Tactical Operational

0 – 3 Years 0 – 12 Months

Style/Group Style/Color/Size

DPCollaboration

Responsive

Replenishment(VMI)

DeliverySalesOrder 

0 – 1 Year 0 – 16 Weeks Weekly – Daily – Sub-Daily

DEMAND

PLANNING

SUPPLY

NETWORK

PLANNING

VMI/CPFR

SCEMSupply Chain Event Management

Demand Planning

(DP)

P l   an

ni  n g

P l   anni  n g

P l   anni  n g

H or i  z  on

L  ev  el   

H or i  z  on

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 21

Apparel & Footwear Processes and Solutions

StrategicPlanning

Sourcing &Procurement

Supply Chain

Execution

Sales &

Marketing

BW

• Strategic Planning

• Marketing Planning• Assortment/Range

Planning (MAP)*

• Demand Planning (DP)

• Supply Planning (SNP)

• Vendor Managed Inventory

(RR) SCM

PLM

• New Product Development*

• New Product Introduction

 AFS ERP

• Production Planning

/ MRP

 AFS ERP

• Vendor Relationship Mgmt

• Operational Purchasing

• Global Sourcing (SNP)

SCM

• Foreign Trade Mgmt*

• Global Trade Services*GTS

• Inventory Management

• Manufacturing

• Order Fulfi llment

• Al locat ion (ARun)

• Warehouse Mgmt

• Transportation  AFS ERP

• Catalog, e-Commerce &

Call Center 

CRM

• Sales Order Management

• Brand Mgmt

• Sales Force Mgmt

• Account Mgmt  AFS ERP

• Supply Chain Event Mgmt

SCM

* Not fully tested or Testing in

Process

Time-to-Market

Supply Chain

Planning

• SAP Retail Integration

• AFS to Retail Master Data

• Retail to AFS Ordering

• AFS Leading Financials

 AFS ERP

   N  e   t  w  e  a  v  e  r   /   E   S   A

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WW

POS

• Store Inv

• Sales

• PO Nbrs

•Promo

•PO Ack’ment

Demand

Planning

Mid-long

Term

Store

Forecast

Sales

Orders

Sales History

Sales

Inventory

Stock

Future Receipts

Order 

Generation

Forecast

Collaboration

BW APO-DP

APO-DP

CollaborationXI

RR AFSRR

Customer Customer 

16

weeks

Forecast /

Promotion

Collaboration

Send POS /

Store Inventory

Sales

PO Ack’ment

XI

AFS Store Replenishment – Example

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Order Entry Delivery

Creation

 ARun

Optimizer 

 Allocation

Run (Arun)

Select / Filter 

Prioritize/Sort

Reservations to

Stock

Reservations to

Future Receipts

Release

  Create Orders  Allocate Stock  ARun Management Deliver 

 ARun Stock

ManagementManagement Tool

Run Release Rule

Manual rejection

functionality

Respread alloc.qtywithin an alloc.group

Customer Service Area

Private Stock

Flagged Orders

Branch to VA02/03

Substitute Materials

Substitute Sizes

VAS support

Move stock to own

buffer – Customer 

Service Rep (CSR)

Move stock between

CRS‘s

Order Management  Al location Run Al location against

future receipts ARun Optimizer Delivery Invoice

Allocation Run - ARun

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 24

  Order Entry  Allocate Stock Tracking Changes Stock Decision

Order Entry Future

Receipt /Order 

Change

 ARun

Optimizer 

 Allocation

Run (Arun)

Goods

Receipt

Changes to order 

reflected in

reservations

See reservations

See late orders

Drill Down

Delete reservations

Changes Reflected

in reservations

Reservationspassed from PO to

SN and back

Safety window

Deallocate orders in

reverse priori ty

sequence

Logging

deallocations

Reservations to

Future receipts(FR)

2 Release checks

Future MRP Status

Season / Cancel

date checks

against FR‘s

Not for all orders

Keep stock reserved

OR

Free up stock for 

next Arun

Sorting Rule

Order Management  Al location Run Al location against

future receipts ARun Optimizer Delivery Invoice

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© SAP AG 2005, Apparel & Footwear, AFS Roadmap Update August 2005, Peter Akbar 25

With the additional functionality provided by the SAP AFS Industry Solution, the

following issues in a typical Apparel and Footwear company can addressed:

Optimizing service levels

Streamlining operations for efficiency

Excess/redundant inventory or Stock shortages/out of stock

Poor on time delivery

Inefficient logistics and distribution process

Lack of demand visibility

 Allocating inventory to key customers

Chargeback’s

Benefits in using the SAP Apparel and Footwear Industry Solution

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Benefits in using the SAP Apparel and Footwear Industry Solution

With the additional functionality provided by the SAP AFS Industry Solution, the followingissues in a typical Apparel and Footwear company can addressed:

Inability to commit delivery at order time (ATP)

Lack of visibility to consolidated spend across the enterprise

Delivering real business value

Handle large volumes of data

Grid with style/ color/size

 At SKU level manage

inventory

materials management purchasing

forecasting

production orders

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© SAP AG 2005, Page 1

IS AFS 5.0 (based on ERP 2004)

Invoice

Verification

Material

GridsCategories

Material

Master 

Customer 

Master Pricing

Value

 AddedServices

 AFS

Master 

Data

Sales and

DistributionSales  Allocati on

RunDelivery Billing BIW

Bill of 

Materials

Vendor 

Master Seasons

Procurement

Purchase

Requisition

Purchase

Order 

Production

Inventory

ManagementWMMRP

SOP

PIRBOM

RoutingPlanned

Order  Production

MarkersProduction

Lots

Valuation/

Product

Costing

Warehouse

Management

R/3 Standard functionality with AFS enhancements

 AFS specific functionality

Combined

Orders

Grids and Categories

 ATP

Confirm-

ation

Multi-Store

Orders

The following Slide also gives a good overview of the additional AFS functionality versus Standard SAP.