GLOBAL APPAREL AND FOOTWEAR COMPANIES

RUN SAP.
SAP has Passion for Fashion, Apparel and Footwear Session 3305 - AFS Product Update Peter Akbar

Legal Disclaimer

This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

SAP 2010 / Page 2

AFS Roadmap

AFS and Supply Chain Management

Ideas for Next Release

The Global Fashion Lifestyle Industry is Huge which is why SAP supports it

Global Fashion Industry 500 Billion US$ business

Key Players Examples Designer Brands Retailers Brands Vendor/Manu facturer

Raw Material Suppliers Fabric, Trims & Accessories

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Apparel and Footwear Customers United States and Canada

Ariat Ballet Makers

2009 2008

2007 2006 & earlier

Hartmarx Image Mark Bauer Nike Hockey Jones Apparel Group Bell Justin Boots Boston Apparel Kenneth Cole Brown Shoe Company KNG International Bruno Magli Koos Manufacturing Burton K-Swiss Carhartt Levis Chicos Li & Fung Cintas Life is Good Cole Haan Limited Brands Cutter & Buck Maidenform Encompass Marchon Eyewear Fossil MacGregor Golf Co. G&K Services Movado GBMI Naartjie Hanesbrands

New Balance New Era Cap Nike Oakley Pacific Cycle Peerless QVC Reebok Samsonite Sports Supply Group Superior Uniforms Swiss Army Under Armour VF Corporation Vera Bradley Warnaco Wolverine

Note: not all 2009 customers shown

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Apparel and Footwear Customers Latin America

Administracin y Operacin, Mexica Deportivos con Estilo (Charly), Mexico Deportenis, Mexico Giovanna, Mexico Industrias Piagui, Mexico Livylu (Andre Badi), Mexico Groupo Yasbek, Mexico

2009 2008

2007 2006 & earlier

Emyco, Mexico

Encompass, Mexico

Alpargatas, Brazil Cia Hering, Brazil Dalponte, Brazil

Fabrica De Calcetines Crystal, Colombia

Vesuvio, Argentina Alpargatas, Argentina

Note: not all 2009 customers shown

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Apparel and Footwear Customers Asia Pacific Region

Asics Cheil Industries Esquire Hwa Seung Vina LG Fashion Marui Esquel

2009 2008

2007 2006 & earlier

Beijing Li-Ning Sports Goods Clover Group Changzhou Ability Garments Cobest Crystal Group Dongguan Huaboa Shoe Embry Guangzhou Hoyo Industrial Company Qingdao Ever Honest Garmet Co. Kaiser Holding

Metersbonwe Shanghai Three Guns Group Shanghai Titan Sports Shenzhen Fuanna Bedding Company South China Bleaching & Dyeing Vicutu Apparel Ltd. Yih Dah Zhejing Mengna Knitting Company Zhejiang Multiglory Group Company Zhejiang Baoxiniao Garment Company

Dome Corp.

Arvind Brands Bannari Amman Best and Crompton Hencom LTD House of Pearl Karle International M&B Footwear Madura Garments Natural Textiles Network Clothing Co. Numero Uno Clothing

Page Industries Pantaloon Pratibha Syntex Ltd Rahman Industries Raymond Relaxo Footwear Reliance Industries Shanta Denims Ltd S Kumar (SKNL) Vishal Retail Viyellatex Ltd MAS Holding Slimline Shadowline Leisureline Courtaulds Unichela Linea

DKSH, Malaysia Tainan Enterprises

Gazal Playcorp Rusty Sass & Bide Alliance Textiles, New Zealand

Note: not all 2009 customers shown

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Apparel and Footwear Customers EMEA

Adidas Esprit Eurodress Hugo Boss Lucia Uhlsport Amer Sport Escada Kwintet Mascot Ecco

2009 2008

2007 2006 & earlier

Vostok

Burberry G&A

SSL Intl Pentland

OP Prostejov

Calida Schiesser Tommy Hilfiger Delvaux Scott Sports DMC Barbara Chantelle Givenchy Louis Vuitton Triumph Strellson Switcher

Riopele Saez Merino Camper

Head

Benetton Turkey Atateks Artsana Aboutblu Aurelli Benetton Belvest Brioni Carpisa CSP DeRigo Fashion 5 Fashion Box Fila Fornari Gritti Gruppo Forall Mantero Marcolin Marzotto Miriade Napapijri Prada Preca Brummel Luxottica Taypa Textiles

Note: not all 2009 customers shown

SAP 2010 / Page 8

Apparel & Footwear Companies grow into the SAP Business Suite
SAP is the De-facto Fashion Industry Standard
SCM / VMI / Netweaver
l

CRM and/or Retail

Manufacturing and/or Warehouse Mgmt

227
Esquel

JONES APPAREL GROUP

Escada

Order to Cash Procure to Pay Allocation, and/or Financials

Esquel

v v

Louis Vuitton

1997

1999

2001

2003

2005

2007

2009

SAP 2010 / Page 9

Great Brands Great RelationshipsGlobal Ads

SAP 2010 / Page 10

SAP is the Only Vendor Who Can Manage the Complex Fashion Value Chain in ONE SOLUTION
Supply Chain Retail Demand Chain

Sourcing and Logistics

Sales and Service

Government Factory/ Sourcing

Critical Component Raw Material Vendors (Textile Mills/ Leather Factories)

Brand Wholesaler

Retail Store

Consumer

Sourcing Agent

Home Office Fashion Company

Distribution Center

Consumer Direct

3PL Freight Consolidator

Ports of Exit/ Entry

Compliance & Security

3PL/4PL Domestic Shipping

Catalog

FedEx/UPS

Key Finding
The line between Retailers & Wholesalers is blurring, with more collaboration between suppliers, wholesalers and retailers for risk management and greater efficiency. Only companies who can orchestrate this complex environment will succeed.
SAP 2010 / Page 11

SAP Apparel & Footwear has evolved with the Fashion Industry
AFS Releases
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

AFS 3.0 R/3 4.6c

AFS 5.0 / ECC 5.0

Netweaver

AFS 6.0 / ECC 6.0

Netweaver

SAP Apparel and Footwear

AFS Enhancement Packs (EHP)

AFS 6.0, AFS 6.3, AFS 6.4 based on SAP ECC 6.0 Netweaver SAP Retail SAP ECC 6.0
Retail Enhancement Packs (EHP)

SAP AFS 6.4 is now on General Release!

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Key SAP Business Suite Availability for AFS

1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

ERP AFS Releases AFS 1.0 R/3 3.1I AFS 2.5 R/3 4.5B AFS 3.0 R/3 4.6C AFS 5.0 ECC 5.0
Netweaver

AFS 6.0 ECC 6.0 Netweaver

GTS MDM*

Enhancement Packages**

Data WH & Analytics

Call Center

Internet Sales 3.0 Demand Planning Reseller Portal Retail

Internet Sales 4.0

Collaborative PLM

Enhancement Packages**

SCM Supply Network Planning (SNP) SCM Responsive Replenishment (RR VMI) SCM Demand Planning (DP) plus Collaboratation with Retailers Enhancement Packages** Internet Sales CRM Edition (B2B) CRM Field Mobile Sales CRM Call Center

Key Processes Available for AFS

DMS

Event Mgmt (SCEM)

Roadmap showing key Business Suite availability for AFS

AFS 6.4 based on ECC 6.4 General Release March 2009 * Adding AFS content is variable by customer and customer project ** Dates and scope subject to change Note: Not all processes in the Business Suite / SAP Ecosystem are needed or supported for AFS

SAP 2010 / Page 13

with customer driven AFS Enhancement Packages

June 2008 March 2010 2010 on*

SAP AFS 6.3

Enhancement Package 1 Enhancement Package 2 Enhancement Package 3

SAP AFS 6.4

Enhancement Package 4

Roll In
Enhancement Package 5

SIMPLIFICATION

HCM Shared Services

Order To Cash

Procure To Pay

Attract To Perform

Accounting To Reporting

Adaptive Manufacturing ENTERPRISE SOA Credit and Collections

Order To Cash

Procure To Pay

Financial Shared Services

Learning

Fast Closing

Compensation

Treasury

FUNCTIONALITY

Retail INDUSTRIES

Service Industries

Trading Industries

Discrete Industries

Process Industries

AFS enhancement packs include new AFS features plus relevant features from previous EHPs for AFS style/color/size. * Planned dates/features subject to change

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Long Term Goal: Shorten Time to Implement and Reduce TCO while Securing Continuity
AFS Enhancement Packages designed to achieve Long Term Goal

Further eSOA enablement of SAP Apparel and Footwear

2007 2009

Enhance AFS specific service offerings Define AFS specific composites with customers/partners Support new and evolving core industry business scenarios Drive collaborative scenarios and Ecosystem Applications to address the extended enterprise Deliver a holistic offering of services accessible for different applications

2008

ERP generic round offs + eSOA order to cash

2009

Manufacturing focused + eSOA procure to pay

201X

Suite harmonization + eSOA manufacturing

201X
SAP 2010 / Page 15

AFS Roadmap SAP Influence AFS and Supply Chain Management

Ideas for Next Release

SAP Apparel and Footwear 6.4 Customer Influence

New Enterprise Business Functions ARun Change Log BAPI Batch Assignment Production Order Batch Determination Enablement BOM Enhancement CO41 Enhancement PP Confirmation BAPI Confirmation in Combined Order Production Order Info System Enhancement Simplification: Sales Order List SKU Group Based Routing Enterprise Service Bundle: Procure to Pay for Fashion Requested by Customer
Nike/Bauer, Nike, Under Armor, VF Corp Burberry, Crystal, G&K Services, SAP Italy Burberry, Hugo Boss, Crystal Knitters, MAS Holdings SAP Italy, Cheil Industry, Embry Group, Crystal Knitters, Ecco Scott, Crystal, G & K services, Camargo Hanes, Madura, Raymond, Hartmarx Crystal, Lining, Baoxinaio, Ecco, Madura, Arvind Brands, DMC, Levi, Preca Brummel SAP: User Interface Improvement Triumph, Crystal, Justin Boots Nike, Wipro, attune

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Market Driven Roll-In Process

SAP 2010 / Page 18

SAP SCM Development Requests

Direct Shipment Planning / Third Party Order Processing Functional Enhancements In the third party purchase-to-order process, the sales person and/or user exit determines if the sales order should be a direct shipment (e.g. based on the product type, the customer, and the order size) If direct ship, AFS looks for a suitable vendor and calculates the delivery date from the vendor to the customer ship-to AFS creates a blocked purchase requisition and transfers it to SAP APO SAP APO checks if the vendor has capacity to supply the requested quantity. If the vendor can supply the requested quantity on time, the purchasing process starts.

This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document SAP 2010 / Page 19is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.

Style/Color/Size in Fashion Planning

Supply Chain Management
(SAP SCM)

Strategic Segment Style 3 - 0 Years

Tactical Style/Color/Size

Operational Style/Color/Size 12 - 0 Months

DEMAND PLANNING
(SAP DP)

DP

Planned Independent Requirement (PIR)

Material Requirements Planning (MRP)

Purchase Requisition / Planned Order

Purchase Order / Production Order

SUPPLY NETWORK PLANNING

(SAP SNP)

DP

SNP

Purchase Requisition / Planned Order

MRP

Purchase Order / Production Order

VMI/ CPFR
(SAP RR)

DP Collaboration

Responsive Replenishment (VMI/VMR)

Sales Orders at Store/Style/ SKU

Allocation Run (ARun)

Delivery

SNC / SCEM
(SAP SNC, SCEM)

Supplier Network Collaboration (SNC) / Supply Chain Event Management (SCEM)

Blue = Apparel and Footwear Solution AFS 5.0 / AFS 6.0

Yellow = Supply Chain Management

SAP 2010 / Page 20

AFS Roadmap

AFS and Supply Chain Management

Ideas for Next Release

Potential Topics for the next EHP AFS 6.5

Ramp-up dependent on std EHP 5

Outsourced Manufacturing for AFS in MM (subcontracting, batch for external operations)

VAS in MM Enhancements (re-determination, edit VAS)

AFS Rescheduling Stock Transport Orders

External Procurement

Parallel Release Check for Allocation Groups

VAS info to DWMS

Forecasting Planning

Sales

Procurement

Allocation

Logistics Execution

Invoice and Financial Accounting

Direct Shipment Planning in SCM SNP

Internal Production

Outsourced Manufacturing For AFS in PP (flexible batch assignment, order report, interactive planning, MRP Simulation)

Performance Enhancements (MRP, SCM interface) Accessibility

SAP 2010 / Page 22

Thank you!

Session 3305 AFS Product Update

SAP 2010 / Page 23

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SAP 2010 / Page 24