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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 Enterprise
3
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 templates,
layouts, reports, test scenarios and scripts
Explicitly designed to bring quick results and ROI
Highly scalable ad will grow with the business
4
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
5
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
6
FashionPath is Delivered with Tools and Documentation
7
FashionPath Harmonized Business Process Model
Capgemini 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
Accounting
Sales Audit
Accounts
Receivable
Period End
Closing
Cash
Management
Asset
Accounting
Article Master
Vendor
Master
Value
Added
Services
Seasons &
Collections,
Sales Kit
Size
Conversion &
Distribution
Inventory
Segments
Customer
Master
Bill of
Materials
Routing
Location
Master
Sales
Order
Available to
Promise
Order
Allocation
Shipping Billing POS
Inbound
In-Season
Procurement
Seasonal
Procurement
Purchase
Requisition
Purchase
Order
Advance Ship
Notice
Invoice
Verification
Merchandise
Distribution
Goods
Receipt
Inventory
Management
Listing,
Assortment
& Layout
Pricing
Retail
Promotions
Retail
Markdowns
POS
Outbound
Material
Requirements
Planning
Retail
Allocation
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)
Warehouse
Mgmt.
External
PLM
Trading Partners
(EDI)
MRP
Processing
Procure
to Pay
Order to
Cash
Price & Promo.
Mgmt.
Store Allocation
Store
Replenishment
SAP Financials ( Traditional or Simple Finance)
SAP Master Data and Fashion Master Data
Wholesale Demand
Planning.
PointofSale
Master Data
SAP HANA & FIORI
Inventory Management / Segmentation
Business Intelligence on HANA
External
Application
External
Application
POS-DM
Price/Promo
Retail
Sales Audit
Seasonal Processing
& VAS
Assortment
Planning
Merchandise
Planning
FashionPath Applications Architecture Component Model
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.
Inventory
Segmentation
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
10
FashionPath Global Supply Chain Model
US-DC
Corporate/
Head
Office (US)
Vendor - India
VENDOR
MEXICO
VENDOR CHINA
Retail Stores
Regional office
&
Europe – DC (NL)
CG Fashion’s Company’s global supply chain is centralized 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 distribution 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 Utilization
Considerations
• 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. Retail
2. Wholesale
E-Commerce 1. E-Commerce
2. Retail
3. 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, InterIntra 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 Utilization
Considerations
• 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 inventory?
– 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 Management
(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 Lambert
SVP and Fashion
Microsegment Leader
steven.lambert@capgemini.com
Mobile: 601 940-2138
Andrea France
Principal, GTM Lead,
Fashion
andrea.france@capgemini.com
Mobile: 312-286-1622
Joe Desrosiers
Lead Solution Architect
Sales Support
Managing Business Analyst
joe.desrosiers@capgemini.com
Mobile: 781-217-4897
Barry de Jonge
Solution Architect/Program
Manager
Sales Support
Program Manager
barry.de-jonge@capgemini.com
Mobile: 503-568-5637
Ted Levine
Global CPRD Sector Lead
Michael Wohlfart
VP Retail
Project Sponsor
michael.wohlfart@capgemini.com
Mobile: 646-203-4870
Who’s Who in Fashion at Capgemini
Dan Gillis
Solution Architect,
Retail Sector Lead
Service Line
dan.gillis@capgemini.com
Mobile: 404-543-3631
Thank you for your time
Follow us on at @ASUG365
Questions?

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Capgemini's FashionPath - An Accelerated Approach to Implementing SAP Fashion Management

  • 1. Enabling a Fashion Enterprise with a Digital Core: An Accelerated Approach to Implementing SAP FMS Andrea France / Dan Gillis Capgemini Session ID 5272
  • 2. 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 Enterprise
  • 3. 3 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 templates, layouts, reports, test scenarios and scripts Explicitly designed to bring quick results and ROI Highly scalable ad will grow with the business
  • 4. 4 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
  • 5. 5 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
  • 6. 6 FashionPath is Delivered with Tools and Documentation
  • 7. 7 FashionPath Harmonized Business Process Model Capgemini 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 Accounting Sales Audit Accounts Receivable Period End Closing Cash Management Asset Accounting Article Master Vendor Master Value Added Services Seasons & Collections, Sales Kit Size Conversion & Distribution Inventory Segments Customer Master Bill of Materials Routing Location Master Sales Order Available to Promise Order Allocation Shipping Billing POS Inbound In-Season Procurement Seasonal Procurement Purchase Requisition Purchase Order Advance Ship Notice Invoice Verification Merchandise Distribution Goods Receipt Inventory Management Listing, Assortment & Layout Pricing Retail Promotions Retail Markdowns POS Outbound Material Requirements Planning Retail Allocation Standard Replenishent / VMI Retail Replenishment Planned Independent Requirements SAP FMS AdditionsStandard ECC Features SAP FMS Extension SAP Standard Retail Features
  • 8. Sales Order Allocation SAP FMS (Rel. 1.5) SAP Process Orchestration (PO) Warehouse Mgmt. External PLM Trading Partners (EDI) MRP Processing Procure to Pay Order to Cash Price & Promo. Mgmt. Store Allocation Store Replenishment SAP Financials ( Traditional or Simple Finance) SAP Master Data and Fashion Master Data Wholesale Demand Planning. PointofSale Master Data SAP HANA & FIORI Inventory Management / Segmentation Business Intelligence on HANA External Application External Application POS-DM Price/Promo Retail Sales Audit Seasonal Processing & VAS Assortment Planning Merchandise Planning FashionPath Applications Architecture Component Model
  • 9. 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. Inventory Segmentation 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
  • 10. 10 FashionPath Global Supply Chain Model US-DC Corporate/ Head Office (US) Vendor - India VENDOR MEXICO VENDOR CHINA Retail Stores Regional office & Europe – DC (NL) CG Fashion’s Company’s global supply chain is centralized 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 distribution 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
  • 11. Our POV: Retail/Wholesale Allocation and Inventory Utilization Considerations • 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. Retail 2. Wholesale E-Commerce 1. E-Commerce 2. Retail 3. Wholesale Wholesale 1. Wholesale
  • 12. • 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, InterIntra 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 Utilization Considerations
  • 13. • 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 inventory? – 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
  • 14. Improving Adoption – Organizational Change Management (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:
  • 15. 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?
  • 16. Steve Lambert SVP and Fashion Microsegment Leader steven.lambert@capgemini.com Mobile: 601 940-2138 Andrea France Principal, GTM Lead, Fashion andrea.france@capgemini.com Mobile: 312-286-1622 Joe Desrosiers Lead Solution Architect Sales Support Managing Business Analyst joe.desrosiers@capgemini.com Mobile: 781-217-4897 Barry de Jonge Solution Architect/Program Manager Sales Support Program Manager barry.de-jonge@capgemini.com Mobile: 503-568-5637 Ted Levine Global CPRD Sector Lead Michael Wohlfart VP Retail Project Sponsor michael.wohlfart@capgemini.com Mobile: 646-203-4870 Who’s Who in Fashion at Capgemini Dan Gillis Solution Architect, Retail Sector Lead Service Line dan.gillis@capgemini.com Mobile: 404-543-3631
  • 17. Thank you for your time Follow us on at @ASUG365 Questions?