SAP Point of View Hong Kong Fashion Garment Industry Maximizing Business Value with SAP
Aug 2020 Table of Contents
4 Executive summary 5 Key Challenge 7 Strategic Priorities 14 Solution Overview 19 Deep Dive 36 Why SAP? 38 Customer Reference 41 Next Steps
< 2 / 41 > Executive Summary
Executive Summary
Our Place in the New World How can SAP Help? Market situation is ever-changing, the global economy and In this booklet, we shared our views on the market trends global supply chain are being disrupted by unprecedented and recommended industry-specific business priorities to crisis such as Trade War and Covid-19. While fashion help our fashion garment customers understand the market garment executives and business leaders are focusing on landscape and the challenges. crisis management and contingency planning, but eventually we must shift towards re-imagining our industry Additionally, we described the “before” and “today” altogether. Risks and opportunities always co-exist. capabilities in each key process where values can be achieved through SAP suite of integrated and intelligent We all aware that the industry itself is being reshaped by solutions. We guided our customers to become an new customer behaviors (e.g. Stay-at-home economy) and intelligent enterprise in the experience economy. rising customer expectations, the need to develop new digital skills and processes, competition from unexpected Why SAP? challengers, and the need for the flexibility to shift resources, SAP is the right partner for your digital transformation production, and capital around the world. Also, the trend • Deep experience in and understanding of leading-edge from a linear economy to a circular economy and the move and local fashion garment business models, processes toward sustainable energy, integrated mobility and livable and workflows, as demonstrated by strong global fashion cities underscores the need for trusted products. garment credentials and cases; • Industry-leading software solutions with comprehensive Being fashion retailers and garment manufacturers, functionalities in both retailer-side and manufacturing- strategic questions you should ask how can I run my side; business more visible, flexible, agile and speedy to response to customer needs? Can I swing from offline to more online? • Integrated solution suite to minimize IT risks and costs on How can I build flexibility and agility in procurement, sales future integration and maintenance, utilizing extensible ordering, inventory allocation to deal with market disruption? and robust technology platform that enables you to How to automate my production line and move toward innovate and integrate additional functionalities and Industry 4.0? How to retain and develop talents to support systems those new initiatives? With more than 25 years of success in Hong Kong, SAP Forward-looking companies recognize these as an looks forward to assisting your organization in a opportunity to rethink the fundamentals of their business, transformation that follows a value-focused approach and to identify and address their own experience gaps, and to that new, innovative capabilities deliver immediate build new capabilities rather than left behind. business value, ongoing simplification, and TCO reduction.
< 3 / 41 > Key Challenge
8 Megatrends to Fashion Garment Industry
Global Economy Consumer Behavior Shifts
On High Alerts Stay at Home Economy Discount Mindsets Sustainability First
Global recession, Trade War, Online sales, teleconferencing Rise in anti-consumerism, a glut Fashion companies are growing Pandemic. Companies surviving and entertainment making major in inventory and cash-strapped interest in energy consumption, the immediate crisis will have strides amid social distancing consumers looking to trade down recycled clothing, and textile made bold and rapid and lockdowns to contain the or turn to off-price channels. To recycling by new technology to interventions to stabilize their pandemic. But forced reach increasingly frugal and reuse materials from both post- core business before seeking out digitalization is also increasing disillusioned consumers, brands consumer and pre-consumer, like new markets, strategic the technological divide between must find inventive ways to scrap. Clothing-as-a-service opportunities and future growth. companies, industries and regain value and rethink their model will change the regions, unless companies scale broader business mission. consumption behavior from pay up and strengthen their digital at clothes purchase to pay only capabilities in the recovery phase when using those clothes. of the crisis.
Organization System
Darwinian Shakeout Innovation Imperative Supply Chain Disruption Digital Recalibration
Investor apprehension is growing The pandemic is leading to To cope with new restrictions, The pandemic has put the actual over the path to profitability for massive waves of consolidation, mitigate the damaging impact of nature of global supply chains, some digital players, from online M&A activity and insolvencies. the pandemic and adapt to integral to the vast majority of pure play retailers and News of closure of retail stores or economic and consumer shifts, businesses, into sharp relief. Free marketplaces, to direct-to- retailers being acquired happen companies must introduce new and open movement of goods consumer brands and other every few days. To secure tools and strategies across the and services is a fine principle — digital-first business models. companies future, companies value chain to future-proof their but loaded with risk, and that risk Emerging technologies (such as, must adapt to the new market business models. E.g. Fashion- is accentuated at every stage Big Data, AI, IoT, Robotics, 3D environment by evaluating on-demand model, or, Make-to- when there is reliance on people. Printing, Blockchain) are divestment and acquisition measure. fundamentally changing the way opportunities to strengthen their businesses operate. core.
< 4 / 41 > Key Challenge
The Challenges of Driving Changes in Fashion Garment Industry
Global Economy Consumer Behavior Shifts
On High Alerts Stay at Home Economy Discount Mindsets Sustainability First
This drives for better IT This drives for moving from This drives for improvement on This drives for IoT and sensors infrastructure to enable mobility offline to online, omni-channels, productivity and efficiency to solution to monitor the water, and cloud from keeping data on new capabilities such as: offset the increase of cost, such energy consumption, and air, premise; and advanced and 1. Buy online, ship to store; as activity-based analysis, cost- water quality ; digitalization for integrated business planning for 2. Buy online, pick at store; optimization analysis, better paperless operation ; new different scenarios. 3. Buy online, return at store; margin management; process machinery investment to handle 4. Single view of inventory; review and improvement to recycling manufacturing ; new 5. Dropship shorten lead-time; quality issue product development such as analysis and preventive actions. nature dyeing garments
Organization System
Darwinian Shakeout Innovation Imperative Supply Chain Disruption Digital Recalibration
This drives for better digital Companies will require a digital Companies can't survive if serve This drives for on-shoring and platform which can seamlessly core which is capable of only "make to order" or "make to near-shoring; digital control integrate between IT and OT integrating with different stock", they have to address to tower for supply chain visibility solutions, quicker pace of platform and technologies when unique individual needs and and "what-if" scenarios automation and people strategy M&A occurs, or go for vertical offerings such as "Make to capabilities to deal with supply on attracting, retaining talents, integration in business. Measure" ; Companies will need chain disruption. reskilling talents such as needing the capability for Business Model more of citizen data scientist or innovation, examples like some citizen AI engineer for data and garment manufacturers switched technology democratization in some production lines for the company. surgical masks or sanitizing gels.
< 5 / 41 > Strategic Priorities
Target audience, how to use this guide
As a Manufacturer As a Retailer
Fabric Sourcing Fashion Retailer Yarn Garment Consumer Accessories Company Marketplace
For ease of using this booklet, we have grouped different players into two main categories namely:
Manufacturing-side • Yarn Mill – producing yarn spindles from raw materials of cotton, wool, silk or synthetic materials • Fabric Mill – producing fabrics from input of natural or synthetic yarns. • Accessories Manufacturer – producing trims for a garment including button, labels, ribbon…etc. • Garment Manufacturer – ODM or OEM cut-to-sew discrete manufacturing of garments
Retailing-side • Sourcing Company – helping retailers to source at the best price that meeting required quality standards. • Fashion Retailer – brand owner operates either online or offline, or both. • Marketplace – an online landlord which provides B2B2C platform service to brand owners
We have seen that the fashion companies exist in multiple formats and there is a growing trend that fashion companies extend their footprints vertically, for example, a garment manufacturer extends to downstream operation - fashion retailer or vice versa ; or a garment manufacturer extends to upstream operation - fabric and yarn.
The upcoming recommended business priorities, process mapping, solution will be grouped to manufacturing- side and retailing-side for ease of reference.
< 6 / 41 > Strategic Priorities
As a Retailer SAP recommends 5 Strategic Priorities for Retailers
Sustainable Circular Fashion • Shift away from take-make-waste-model • Embrace circular economy principles • Offer sustainable products at competitive prices
Inspiring Brand Experience • Deliver a channel-less brand experience • Personalized and frictionless • Innovate store interaction to foster the brand
Connected Supply Chain • Greater efficiency with automation and AI • Fast response to market changes • Better stock control and lower business risks
Segment Of One • Personalization and mass customization • Curated fashion and services • Customer for life relationships
Adaptive Business models • Create platform scale to enter adjacent businesses • Move from singular transactions to continuity models • Embrace “Transformation as status quo”
< 7 / 41 > Strategic Priorities
As a Retailer SAP brings intelligent key processes across the Retail Value Chain
Omni-channel Marketing Customer-centric Merchandizing
Sustainable Circular Customer Segmentation Trusted Products Fashion Before: Marketing activities based on own Before: No proof points if product is clean, system data only safe, reliable, genuine, sustainable Today: Using sentiment analysis experience, Today: Proofed origin and properties of and social media feedback every component that goes into the products Inspiring Brand Experience Smart Recommendations Assortment Planning Before: Simple recommendations based on Before: No real-world feedback into similar purchases assortment decisions Today: AI powered product Today: Tailored assortment plans based on recommendations based on lifestyle customer trends and preferences
Connected Campaign Execution Assortment Planning Supply Chain Before: Wasting marketing budgets on Before: Over-ordering of prepacks poorly managed campaigns Today: Prepack optimization to determine Today: Anticipating consumer needs early prepacks that will match demand best with predictive insights and social listening
Segment of One Campaign Execution Promotion Planning Before: Broadcasting to customer groups Before: Running promotions with no insight Today: Realtime customer profile and on cross-product impact intelligent scores Today: Affinity analysis to understand promotion impact
Adaptive Business Models Customer Retention Promotion Planning Before: No insight into root cause for Before: No real-world feedback into declining customer satisfaction promotion decisions Today: Using Machine Learning (ML) to Today: Optimized promotions with insights anticipate customer behavior, such as from smart shelves, heat maps, shopper abandon cart, product cancellations or insights from virtual stores renewals < 8 / 41 > Strategic Priorities
As a Retailer SAP brings intelligent key processes across the Retail Value Chain
Procurement Excellence Digital Supply Chain Omnichannel Customer Service
Contract Management Assortment Planning Conversational AI Before: Manual-based process Before: Difficulties to handle new Before: Manual ordering Today: Enabling compliance and products Today: Conversational Commerce with realizing savings you negotiate using Today: Unified demand forecast using access to all customer, product and contract authoring, execution, and product similarity scores as modelling inventory information repository at aggregated level
Working Capital Management Order Intelligence Smart Recommendations Before: Not able to capture early Before: Ordering based on static rules Before: Simple recommendations payment discounts Today: Order Intelligence for cost- based on similar purchases Today: Proactive notification to inform optimal deliveries Today: Upsell/Cross offers for known about early payment discounts at risk and unknown preferences
Standardization of Store Supplies Retail Allocation Smart Replenishment Procurement with Suppliers Before: Poor management of new Before: High waste in fresh item Before: Different stores or stores in grocery spot products categories different regions are running different Today: Capacity optimization for Today: Cost-optimal Ordering in Store practice for store supply procurement. promotion allocation of new products Replenishment with data intelligence Today: One standard for all stores. with data intelligence
Order Intelligence Retail Allocation Smart Recommendations Before: Mass purchasing Before: Poor balancing of end-of-life Before: Simple recommendations Today: Flexible supply networks with stock based on similar purchases direct-to-consumer offerings to the lot Today: Cross-product store allocation Today: Upsell/ cross offers for known size of one with linear optimization and unknown preferences
GR/IR Reconciliation Warehouse Insights Democratizing Use of Data Before: Time consuming matching of Before: Simple monitoring of Before: Reliance on data engineer and goods and invoice receipts, highly warehouse operations data scientist manual process Today: Warehouse insights for Today: Cultivating innovative and Today: Automated goods receipt/ optimized warehouse operations using learning culture, grooming talents to be invoice receipt account reconciliation ML citizen data scientists process < 9 / 41 > Strategic Priorities
As a Manufacturer SAP recommends 5 Strategic Priorities for Manufacturers with vision of Industry 4.0
Growing Vertical Massive M&A opportunities but leading companies require a digital core which is capable of integrating with different platform and providing master data standardization across different vertical businesses.
Segment of One Providing solutions that precisely fit the needs of one single customer has been commonplace in traditional make-to-order environments. Now, the ability to capture customer requirements effectively and enable mass customization is the key to giving customers exactly what they want.
Smart Product and Factory Using digital capabilities to improve productivity and efficiency such as IoT sensor solution to improve order and process visibility, machine-to-machine automation, paperless operation, predictive maintenance and repairs.
Intelligent Digital Supply Chain Creating a digital control tower with realtime visibility on supply chain activities, inventory on-hand, transportation status, suppliers’ performance …etc., and able to stimulate “what-if” scenarios for better decision making and dealing with supply chain disruption.
Servitization and New Business Models As traditional products are commoditized, Garment manufacturers are shifting from selling products to providing complete solutions and charging for outcome or even monetizing asset data. Generating more revenue from services is a goal for manufacturers who are looking for higher profit margins and increased customer intimacy.
< 10 / 41 > Strategic Priorities
As a Manufacturer SAP brings intelligent key processes across the Manufacturing Value Chain
Design & Collaborate Forecast & Plan Growing Vertical Fiber, Yarn and Fabrics Maintenance Integrate Textile and Garment Production Before: Static human driven rules Before: Separate system without integration Today: Modularized product concepts and Today: Same master data (Yarn, Fabric, well structured product families Garment, Trim, Color) carried through from upstream to downstream in each supply chain process Segment of One Tailoring to individual Sales and Operation Planning Before: Manual body measures Before: Manual, excel-based Today: 360 body scan and body measures Today: Using supply chain planning to data auto-transfer from store to factory anticipate and manage demand, inventory, and operational risk and opportunity
Smart Product Tech-pack Management Production Planning with Capacity Constraint and Factory Before: Intensive data input from the info Before: Infinite scheduling assuming unlimited received capacity/offline schedule Today: Enhanced operational efficiency and Today: Reduced manual effort and time by user productivity by applying intelligent optimizing your capacity-based production technologies to automate repeated tasks in an schedule while processing requirements enterprise Intelligent Digital Supply Quotation and Margin Management Inventory Optimization Chain Before: Experience and excel-based Before: Overstock to avoid shortage Today: Reducing costs by securing future Today: Optimized safety stock quantity while product margins early, when the design is minimizing working capital investments evolving and master data is incomplete. Configurable Options in Customer Ordering Intelligent Reporting Servitization and New Before: Manual processing to quote Before: Static reporting with manual Business Models configurable price and options preparation effort Today: Realtime collaboration with customer Today: Realtime intelligent insights without to gain an accurate understanding on bias at the right moment for better decision requirements and consistently deliver the making perfect order < 11 / 41 > Strategic Priorities
As a Manufacturer SAP brings intelligent key processes across the Manufacturing Value Chain
Procure & Store Make & Deliver Maintain & Sustain
Direct Ship Flexibility WIP Traceability Mitigate Risk & Sustainability Before: Cumbersome adaption to changes in Before: Off system tracking on production Before: Off system tracking without procurement WIP with no traceability systematic assessment Today: Efficient procurement processes, Today: Increased visibility & traceability of Today: Mitigating environment, health, & easily react to demand changes, thereby work-in-process through ability to put WIP safety risks by performing thorough risk avoiding overstocking on stock, & enable more precise recalls assessments, measuring & reporting emissions and designing effective controls Purchase Order Intelligence IoT Enablement Global Traceability Before: Mass purchasing with manual Before: No such capability before Before: Limited tracking scope and no sourcing Today: Supporting identity management, integration with other capability Today: Enabling economics of scale & flexible geospatial, predictive, & device management Today: Leveraging item serialization for call orders with strategic and agile global technology. Services include data ingestion automation & product traceability for supplier-network management & management from sensors & databases compliance with realtime and batch support Procurement Flexibility Smart Manufacturing Predictive Maintenance Before: Difficult to react to market changes Before: Manual yield & start/end time Before: Periodic maintenance cycle Today: Keeping purchasing commitment on reporting, lack of realtime visibility regardless of asset healthiness status high level to react flexibly to market changes Today: Tightly controlled manufacturing Today: Predictive maintenance & service processes & operations by integrating with capabilities & the Internet of Things to take business & manufacturing systems to enable corrective actions early & optimize efficient, high quality production on the shop availability of assets. floor Supplier Collaboration Transportation Management Asset Performance Management Before: Manual confirmation with time delay Before: Lack of visibility on shipment Before: Manual tracking on asset operation system update capability & details tracking hours Today: Operating one unified procurement Today: Reduced costs & improved service Today: Full digital representation of physical process with realtime collaboration with with streamlined transportation objects, including realtime sensor data for supplier on PO, confirmation & invoices management processes end-to-end visibility & realtime insight across the operating landscape of connected assets Warehouse Execution & Insights Predictive Quality Asset Intelligence Network (AIN) Before: Simple monitoring of warehouse Before: Routine sample check without Before: Asset are running siloed operations consideration failure likelihood Today: Collaborative network services Today: Increased warehouse efficiency Today: Predictive product quality by among business partners for managing through improved visualization, improved integrating business & operational data for equipment, sharing asset information and resource utilization and optimization. real-time decision making asset performance < 12 / 41 > Solution Overview
SAP enables Fashion Garment companies to become intelligent enterprise in the experience economy
To win in this experience economy, intelligent enterprises connect experiences with operations. They use both experience data (X-data) and operational data (O-data) to guide their business decisions. Intelligent enterprises collect insights from customers, employees, products, products, and brands at every touch point. They use powerful technologies to automate and integrate their data, processes, and applications, enabling them to sense risks, trends, and opportunities. And they act on this intelligence across every part of their business. SAP enables intelligent enterprise to turn insight into action. As a Manufacturer As a Retailer
Fabric Sourcing Fashion Retailer Yarn Garment Consumer Accessories Company Marketplace
Driven by New Business Priorities Smart Intelligent Servitization & Sustainable Inspiring Adaptive Growing Segment Connected Segment Product & Digital new business Circular Brand Business Vertical of One Supply Chain of One Factory Supply Chain models Fashion Experience Model
Enabled by SAP Intelligent Enterprise
< 13 / 41 > Solution Overview
As a Retailer SAP brings intelligent solution key processes across the Retail Value Chain
Omni-channel Marketing Customer-centric Merchandizing Sustainable Circular Fashion Customer Segmentation Master Data Governance Customer profile is built by identifying Centrally govern the master data lifecycle to CX multiple accounts of the same customer FVB increase the quality and consistency of across multiple channels information across your organization. Value: Gain deeper customer insights on customer Value: Provide high quality and consistent master behaviour data
Inspiring Brand Experience Smart Recommendations Assortment Planning Automated segmentation and campaign Plan and optimize sales and margins CX management to reach out the customer at the CAR through tailored product assortments right time based on their interactions Value: Improve marketers’ time and efficiency, and Value: Provide realtime analytics and algorithm provide marketers insight of marketing campaigns results tied to assortment plans efficiencies
Connected Campaign Execution Assortment Planning Supply Chain Make Intelligent products and offers Define financial targets and build CX recommendation by customer’s preferences CAR merchandize plans across channels and and AI prediction. product hierarchy Value: Improve customer’s satisfaction and drive Value: Offer the right products in the right locations more sales and streamline the process
Campaign Execution Promotion Planning Segment of One Segment customers with interest-specific Optimal and personalized marketing CX content marketing across touchpoints with CAR campaigns with a comprehensive solution timely and personalized engagements for retail offers and marketing campaigns Value: Increase personalized relevancy and ultimately Value: Sell more by strategic pricing management improve lead conversions, and drive more sales across retail sales channels and locations
Customer Retention Promotion Planning Personalized offering and service from Enhance promotion planning management Adaptive Business Models QU CAR insights of by combining Experience and across your enterprise. Operation data. Value: Deliver better customer experiences and Value: Increase in online & offline sales in total. increase customer satisfaction Customer Activity Customer Ariba CAI Conversational AI CAR CX Repository Experience
< 14 / 41 > Solution Overview
As a Retailer SAP brings intelligent solution key processes across the Retail Value Chain
Procurement Excellence Digital Supply Chain Omnichannel Customer Service
Contract Management Assortment Planning Conversational AI Automate contract authoring, Plan and optimize sales and margins Become an intelligent enterprise by workflow, and negotiation CAR through tailored product assortments CAI building AI bots with our bot-building platform Value: Enforced compliance to corporate Value: Increase revenue through customer- Value: Provide powerful enterprise chatbots procurement policies and contracts centric decisions and relevant assortments by using our multilingual natural language drive more sales, increased transaction size processing (NLP) technology Financial Supply Chain Management Merchandize Planning Customer Service Management Automate the early-payment A predictive platform for an A platform for Customer Service CAR FVB discounting process between the integrated, omnichannel planning CX teams to respond immediately and buyers and its suppliers process efficiently of all incoming enquiries
Value: Proactive notification to inform about Value: Increase margin through better Value: Quickly gather all related information cash discounts at risk forecasting, reduce inventory leftover for CS team to respond efficiently. Sourcing and Ordering Store Supplies Demand Forecasting Allocation Management Provide standard for every store Unify demand forecasting to support Allocation Management is part of the including sourcing, order placement, CAR accurate planning and predictive CAR lifecycle replenishment process and communication with suppliers insights based on consumer demand Value: Increase customer satisfaction & profit Value: Improve operation efficiency, enforce Value: Higher profit by reducing markdowns, and minimize store-to-store transfers the compliance with corporate control out of stocks and store-to-store movements Order Intelligence Allocation Management Smart Recommendations Provide direct-to-consumer offerings Intelligently assign right products, in Upsell/ cross offers for known and FVB CAR CX to the lot size of one right quantities, to the right locations unknown preferences
Value: Streamline ordering process for lot size Value: High automation level freeing up time Value: Improve Customer Experience and of one for business-critical tasks Increase the Revenue E-Invoicing Extended Warehouse Management Grooming Digital Talents
Streamline invoice management and EWM Manage a high volume of goods with a A complete solution for talent FVB compliance documents workflow. modern, flexible warehouse SF development and management management Value: Reduce costs and improve cash Value: Improve employee satisfaction and management Value: Realtime visibility into stock, engagement, speed up learning curve processes, labour utilization, and warehouse automation.
Extended Warehouse S/4HANA Fashion EWM QU Qualtrics FVB SF SuccessFactors Management Vertical Business < 15 / 41 > Solution Overview
As a Manufacturer SAP provides intelligent solution to key processes across Manufacturing Value Chain
Design & Collaborate Forecast & Plan Growing Vertical Fiber, Yarn & Fabrics Maintenance Integrate Textile & Garment Production Model multiple characteristics with Mill and FVB share same set of material to QU Advanced Variant Configuration (AVC) MILL FVB allow tighter integration throughout product lifecycle Value: Reduce TCO, complexity and effort for master Value: Increase revenue growth with better product data synchronization personalization
Segment of One Tailoring to individual Sales and Operation Planning Article Personalization to support Make-to- Maximize product strategy and launch plans FVB IBP Measure process through effective review Value: Increase profit with product personalization, Value: Reduce days in inventory, Reduce overall supply customer satisfaction chain planning cost
Smart Product Tech-pack Management Production Planning with Capacity Constraint Automation of recurring manual activities to Production Planning and Detailed and Factory iRPA MILL FVB leverage operational efficiencies Scheduling plan and optimize capacity- Value: Reduce data entry errors and associated based production schedule costs Value: Reduce manufacturing cycle time, Increase worker capacity utilization
Quotation and Margin Management Inventory Optimization Intelligent Digital Supply Generate Quotation with clear actual cost in IBP Inventory Optimization (IO) plans safety PLC IBP Chain early stage and identify cost driver for profit stock quantity while minimizing working margin improvement capital Value: Reduce COGS with better product design Value: Reduce inventory carrying cost, days of decisions, reduce time to market inventory, provide “what-if” scenario analysis
Configurable Options in Customer Ordering Intelligent Reporting Servitization and New Accelerate your sales cycles and win more Produce high-impact reports Business Models CX deals with quotes and proposals built in SAC with analytics seconds Value: Find intelligent insights quickly and without bias Value: Reduce sales cost, increase conversion of at the right moment to make better decisions qualified leads
Customer Environment, Health & Extended Warehouse Intelligence Asset Integrated Business Robotic Process Ariba CX EHS EWM IAM IBP iRPA Experience Safety Management Management Management Planning Automation < 16 / 41 > Solution Overview
As a Manufacturer SAP provides intelligent solution to key processes across Manufacturing Value Chain
Procure & Store Make & Deliver Maintain & Sustain
Direct Ship Flexibility WIP Traceability Mitigate Risk and Susta Provide flexibility to handle associated Mill WIP Batch provides ability to put Offer full visibility into the lifecycle of FVB POs when SO cancel/reduce quantity MILL WIP on stock for single /combined EHS serialized products and track in 3rd party order scenario process orders. products across multiple systems Value: Improve FTE productivity by eliminate Value: Increase the transparency, enforce Value: Reduce EHS penalties and fines, rework, process standardization end-to-end batch traceability Increase employee engagement Purchase Order Intelligence IoT Enablement Global Traceability Simplify buying with one-stop Integrate live data from Internet of Offer full visibility into the lifecycle of purchase order processing FVB Things sensors FVB serialized products and track Value: Gain real-time spend visibility across the Value: Provide realtime visibility on products across multiple systems organization productivity, order status, shipment status Value: Improve product traceability
Procurement Flexibility Smart Manufacturing Predictive Maintenance Keep procurement commitments on MES provide realtime visibility and Collect and analyze sensor data from FVB high level and leaving final details MES transparency across multiple plants, IAM physical assets to predict operational open as long as possible vendor and machine types failure Value: Improve revenue by quicker market Value: Improve on-time delivery, reduce Value: Improve overall equipment response, reduce wastage manufacturing cycle time effectiveness Supplier Collaboration Transportation Management Asset Performance Management Provide premier service for matching TM manage transportation plans and Determine risk and criticality of assets TM IAM business buyers and suppliers execute through carrier and optimize maintenance strategies globally communication and collaboration Value: Reduce asset maintenance cost, Value: Reduce the effort to find suppliers by Value: Reduce order fulfilment lead time, reduce un-planned downtime or outages up to 90% and enable cost savings through a reduce total logistics cost broader network of suppliers Warehouse Execution and Insights Predictive Quality Asset Intelligence Network (AIN) Visualize warehouse layout, analyze Improve quality, reduce rework, cut Collaborate with manufacturers, EWM MILL warehouse operational KPIs wastage. Build up knowledge in IAM operators, service suppliers, across Value: Improve supply chain FTE productivity, system. the network on asset information. Reduce total logistics cost Value: Optimize Quality Assurance Value: Reduce asset data management cost
Manufacturing Mill for Product Lifecycle S/4HANA Fashion SAP Analytic Transportation MES MILL PLC QU Qualtrics FVB SAC TM Execution Textile Costing Vertical Business Cloud Management < 17 / 41 > Deep Dive
Procurement SAP Ariba
SAP Ariba solution can help fashion garment clients move beyond manual, disparate processes to a streamlined procurement and operational efficiency. SAP Ariba offers the only end-to-end platform for digitizing and simplifying procurement from sourcing through payment. The Ariba Network enables fashion garment clients to tap into the biggest supplier base and collaborate with them in a dynamic marketplace.
Solution Capabilities Benefits
Source to Contract • Enterprise-wide standardization of data • Aggregate and enrich spend data across systems and excels definition, process and system tool, across • Streamline sourcing process leveraging best practice manufacturing plants or retail stores templates and workflows, including auctions, RFxs, and • Improve operation efficiency through commodity bidding eliminating manual work and cross- • Automate contract authoring, workflow, and negotiation department information sharing • Integrated with S/4HANA FVB • Enforce compliance to corporate procurement policies and contracts Procure to Pay • Optimization of supply base through clear • Provide consumer-grade user interface and catalogs for visibility to spend ordering indirect goods and services, capital equipment or • Reduce cost by doing more competitive retail supplies, with built-in contract, budget and policy bidding compliance • Reduce supplier and regulatory risks • Track change orders, shipments prior to receipt • Reduce sourcing cycle times • Support three-way match to eliminate discrepancies • Reduce invoice errors • Reduce time to market for new products Supplier Performance and Risk through better supplier collaboration • Automate supplier onboarding, qualification and performance • Increase free cash flow and improve evaluation working capital metrics • Leverage risk-exposure scoring to calculate inherent risk using • Capture more early payment discounts internal and external data
Network for Supply Chain Collaboration Support end-to-end trading partner collaboration, from sourcing , catalog, purchase order to invoice
Supply Chain Finance Automate the early-payment discounting process between the buyer and its suppliers, from initial offer through final capture < 18 / 41 > Deep Dive
Conversational AI CAI
Provide outstanding customer and employee experiences using chatbots and take the lead in the conversation-driven economy
Solution Capabilities Benefits
Bot-Building Platform • Automate and improve customer service and • Bot training - analyze text inputs and enrich key data in any efficiency language with our world-class natural language processing • Simplify user experience for large teams (NLP) technology • Build chatbots in any language • Bot building - Build adaptable conversational flows and skills • Achieve a faster time to market through our powerful bot builder • Bot connector - Connect chatbots to any SAP solution external communication channel, or back-end system • Bot analytics - Understand how customers and employees talk to your chatbot and improve the user experience based on usage and training data
Enterprise Digital Assistant • Unified user interface - Interact with all SAP chatbots built with the SAP Conversational AI bot-building platform from a unique and efficient user interface • Support for everyday business tasks - Create a leave request, enter a new lead, or check the travel expense policy in a heartbeat • Support online customer service – Answer inquiries of shipment status, product information, product/SKU availability • Always-on conversational interface - Empower your employees with constant access to information, improving efficiency and freeing up time for high-value tasks
< 19 / 41 > Deep Dive
Customer Activity Repository SAP CAR and its Applications
SAP Customer Activity Repository improves demand forecasting, maximize promotion and assortment effectiveness with a unified data repository that collects multichannel (both online and offline) customer, point- of-sale data in real time and makes it ready for consumption by other applications.
Solution Capabilities Benefits
• Consumer Demand Analytics – Gain better insight into the • Reduce customer churn forecast, forecast model and all demand influencing factors • Reduce revenue loss due to stock-outs • Master Data Management for merchandizing – Centralize • Reduce inventory carrying cost master data management for merchandizing to improve • Increase revenue share of new customers productivity with realtime insight • Improve the reliability of master data • Merchandize Planning – Create financial plans for your merchandize hierarchy using next-generation merchandize • Improve the quality and consistency of master planning data with product data governance • Assortment Planning and Optimization – Plan and optimize • Increase revenue from cross-sell/up-sell sales and margins through tailored product assortments • Improve merchandizing FTE productivity • Consumer Demand Forecasting – Unify demand forecasting • Reduce unplanned markdowns to support accurate planning and predictive insights based on consumer demand • Allocation Planning – Automate allocation planning of seasonal products using SAP Customer Activity Repository • Store Layout Management – Plan store layouts and integrate to space management systems with next- generation SAP S/4HANA • Promotion Planning – Facilitate promotion planning management across your enterprise
< 20 / 41 > Deep Dive
Customer Experience SAP CX
SAP Customer Experience (CX) helps fashion garment clients to reach, influence, and inspire consumers – down to markets of one through the unique customer journey, from attraction, evaluation, purchasing, retention to advocacy. Delivering relevant, personalized information and offers across physical and digital channels optimizing marketing and promotion effectiveness while maximizing the customer lifetime value.
Well leveraging customer data is the key of success in big data era. With SAP CX, it offers a completed 360 customer profile with seamless integration with SAP ERP, SAP Commerce, and exchanging data with 3rd party solutions like POS with ease to win over customer. Solution Capabilities Benefits
Marketing Optimization Enable your marketing organization to be more • Holistic customer view and enable complete context agile • Streamlining marketing activities around planning, budgeting, • Increase sales and customer lifetime value and program execution with program management • Increase brand value • Collaborating with key stakeholders to increase speed to • Drive better marketing decisions market and decision making processes • Increase margin and revenue growth • Gaining accurate, realtime insights into customer behavior, • Improve understanding to customer quick react to changing market trends with customer • Increase customer satisfaction engagement intelligence • Reduce customer churn
E-Commerce Expansion Connect end-to-end to the Customer Journeys • B2B, B2C, B2B2C e-commerce capability in same platform to with O2O (Online to offline) model support business model transform and sales channels • Increase operational efficiency and map to • Comprehensive Suite including CMS (Content Management business KPIs like Conversion and Average System), OMS (Order Management System), PIM (Product Order Value Information Management), and advanced context-driven • Reduce the total cost of ownership in full suite services to well take care each aspects of e-commerce business of SAP CX solutions
Perfect Store Deliver superior value and win at the shelf • Delivering a streamlined and flexible order experience for • Revenue and market share growth consumers with options like buy online and pick up in-store • Drive higher conversion and revenue • Consolidating and centralizing management of product • Increase customer loyalty information and attributes to reduce content management costs, and use functionalities for vouchers, personalization, and cross-selling to help drive sales < 21 / 41 > Deep Dive
Mitigate Risk and Sustainability SAP Environment, Health, and Safety (EHS) Management
Move beyond compliance to operate more safely and reliably. With the SAP Environment, Health, and Safety Management (SAP EHS Management) application, you can proactively identify, analyze, and mitigate environment, health, and safety (EHS) risks; manage chemicals safely; monitor industrial hygiene; and reduce your environmental impact.
Solution Capabilities Benefits
Environment management • Make operations safer • Manage air and water emissions to fulfill legal requirements • Manage EHS more efficiently • Calculate and aggregate emissions while fostering proactive • Safeguard operational continuity data transparency and monitoring • Detect and communicate deviations, manage investigations, and track follow-up activities
Compliance management • Provide a central legal registry with integration to external content providers that update your processes with regulatory changes • Assign legal requirements and internal policies to operations within your organization • Establish consistent compliance workflows
Health and safety management • Establish a unified approach to EHS risk assessment including different risk analysis methods • Manage chemicals effectively, including vendor safety management and hygiene monitoring • Track employees’ health and support a risk-based occupational health process that’s integrated with central HR data
< 22 / 41 > Deep Dive
Optimize Warehouse Execution and Insight Extended Warehouse Management (EWM)
Manage high-volume warehouse operations and integrate complex supply chain logistics with your warehouse and distribution processes – delivering the ultimate in visibility and control. Optimize inventory tracking, cross- docking, distribution operations, multichannel fulfilment, and more – all in real time.
Solution Capabilities Benefits
Inbound processes • Reduce warehouse costs by maximize the • Advanced shipment notification use of resources • Yard management • Improve service by reduce order cycle times and offer modern, value-added services to • Inbound optimization customers • Quality management • Increase productivity and accuracy by standardize processes and procedures, Storage and operations reducing error rates and increasing • Physical inventory inventory accuracy • Replenishment • Enhance flexibility and scalability by making • Slotting and re-arrangement processes more malleable and using • Kitting and value added services automation to handle high-volume transactions seamlessly Outbound processes • Boost transparency into stock, processes, • Warehouse order optimization labour utilization, and warehouse automation • Wave management • Packing control • Process monitoring
< 23 / 41 > Deep Dive
Next Generation Asset Management SAP Intelligent Asset Management (IAM)
Support textile and garment manufacturers in defining, planning and monitoring the optimal service and maintenance strategy for physical products and assets by providing the required level of collaboration, integration and analytical insights.
Solution Capabilities Benefits
Asset Strategy and Performance Management • Balance risk, cost, and performance • Asset information management • Lower risk by avoid unplanned downtime • Risk and criticality assessment • Reduce maintenance spend • Failure modes and effects analysis
Predictive Maintenance • Improve service profitability • 360-degree view of assets • Reduce maintenance costs • Advanced predictive analytics • Increase asset availability • Intuitive and scalable intelligence
Asset Tracking • Enable collaborative asset management • Collaborative Enterprise Asset Management • Find all the asset information you need in one • Centralized asset data repository place • Automated equipment tracking • Exchange asset performance feedback
Asset Management • Reduce downtime and maintenance backlog • Work order management • Extend and improve asset life and reliability • Compatibility with multiple devices • Turn capital spending into operational • Mobile asset management investments
< 24 / 41 > Deep Dive
Next Generation Business Planning Integrated Business Planning (IBP)
Respond quickly and cost-effectively to changes in supply, demand, and market conditions. Connect all your planning processes and use realtime and intelligent technologies to improve lead times and service levels. Simplify demand planning with connected processes and visibility across operational, strategic, tactical, and external data.
Solution Capabilities Benefits
Sales and Operations Planning • Create optimal business plans to drive revenue • Deliver a cross-departmental sales and operations plan that growth and increase market share balance inventory, service levels, and profitability • Increase the speed and agility of planning to • Balance demand and supply effectively, and attain financial support profitable operations targets • Improve forecast accuracy and on-time delivery Inventory Optimization • Maximize the efficiency of inventory and • Establish optimal inventory targets that enable you to working capital maximize profits, while leaving a buffer to help you meet • Automate and standardize planning processes unexpected demand to improve planner productivity • Provide inventory targets that not only meet or exceed • Enable shorter and more complete inventory customer service levels, but also reduce working capital target-setting cycles at each tier Integration with SAP Supply Chain Control Tower • Reduce product and distribution costs • Gain end-to-end visibility of your supply chain, decision support, and fast corrective action through integration with • Increase end-to-end visibility SAP Supply Chain Control Tower (which facilitates the • Improve on-time delivery performance tracking and resolution of supply chain problems and • Decrease overall inventory levels while provides end-to-end intelligent visibility of the supply chain) reducing risk • Improve supply chain performance by monitoring, • Boost supply chain agility and reduce supply measuring, and responding to supply chain alerts and chain cost metrics in real time
< 25 / 41 > Deep Dive
Automation Intelligent Robotic Process Automation (iRPA)
Automate your business by emulating your users.
Automate repetitive manual processes by creating, scheduling, managing, and monitoring intelligent bots. With SAP Intelligent Robotic Process Automation services, you can redirect resources toward high- value activities and processes.
Solution Capabilities Benefits
Visual Design of Bot-enabled Workflows • Reduce the Presence of Repetitive and • Develop bots with a step-by-step sequence and set of Manual Activities – Systematize time- dependencies consuming, manual activities by developing bots that support error-free, scalable tasks • Attach trigger mechanisms for attended or scheduled and help you focus on high-value processes autonomous bots • Make Customers Happier with a Better • Apply APIs and machine learning services to make bots Experience – Bring a new level of operational intelligent speed and efficiency to respond to customer needs proactively and augment Repository for Bot Skills and Analytics resources to address more high-value tasks • Tap into a container of automation steps that can be reused • Reinvent Processes and Improve for bot development Continuously – Cut across organizational • Publish or consume available RPA bots that meet your barriers while driving optimal process business needs models for maximum efficiency and taking • Analyze bot-operation statistics and expedite process advantage of intelligent bots to make more execution history intelligent decisions
Prebuilt Bots for Accelerated Processes • Speed your transition to SAP S/4HANA with preconfigured content and predefined bots • Use the APIs and metadata used behind the operation of bots • Manage every aspect of your bots
< 26 / 41 > Deep Dive
Smart Factory Manufacturing Execution (MES)
Leverage manufacturing execution and Industrial IoT to optimize manufacturing processes and provide realtime visibility and transparency across multiple plants, vendors and machine types. You can then tie this information back to the business context of the order, quality and performance. Connect supply chain networks to manufacturing processes and operations while lowering total manufacturing costs in scalable, flexible, cost-effective deployment options.
Solution Capabilities Benefits
Centralized operations • Improve visibility into manufacturing • Manage the production of order, lot, or unique serialized processes items • Assess and resolve quality and productivity • Adapt routing of materials based on production events issues quickly, • Provide employees with intuitive role-based touch screen • Reduce warranty and liability risk, through interfaces to support manufacturing workflows better, more transparent production management. Automated data collection • Adapt to meet individualization • Record traceability, quality, and all other relevant requirements production data • Utilize assets effectively • Monitor adherence to production specifications • Facilitate predictive maintenance, minimize • Trigger a predetermined non-conformance process if there downtime, and keep manufacturing is any deviation from production specifications operations running smoothly • Integrate with the master data process for your ERP system
Detect tracking and resolution • Create full device history records for serialized products • Provide track-and-trace visibility across the entire supply chain • Analyze manufacturing performance data to gain insights into areas where you can increase efficiency and save costs
< 27 / 41 > Deep Dive
Core ERP Platform SAP Mill for Textile
SAP Mill for Textile leverages sophisticated attribute-based functionality that is integrated with the full range of planning and execution processes, including planning, pricing, production scheduling and execution, inventory, transportation, billing, and profitability analysis. This next-generation enterprise applications successfully leverage and resolve the integrated planning conundrum. They have achieved significant gains in business process efficiency and successfully turned complexity into a strategic advantage.
Solution Capabilities Benefits
Operational Management in the Mills • Gain clear and timely visibility into cost • Optimize production schedule and gain visibility into structure of product produced costs • Accelerate procurement order and invoicing • Improve on-time delivery with optimized manufacturing cycle times capacity • Reduce logistics costs with flexible, integrated • End-to-end traceability of the WIP and original batch processes • Reduce operational expenses and Procurement (external/internal) transportation spend • Automate operational processes to reduce purchasing • Accelerate your sales cycles and win more errors deals with quotes and proposals • Build collaborative supplier relationship and integrate supplier into your procurement process
Logistics • Increase perfect order fulfilment with integrated planning and logistics • Improve warehouse efficiency with automated processes and tighter controls
Sales Eliminate errors and enable faster selling by dynamically configuring and bundling complex offers with easy-to- follow configuration processes
< 28 / 41 > Deep Dive
Quotation and Margin Analysis SAP Product Lifecycle Costing (PLC)
Secure future product margins in the early stages, when the design is evolving and master data is incomplete. With the SAP Product Lifecycle Costing solution, you can gain visibility across teams, proactively manage costs, and support new product innovations and customer-specific engineered products.
Solution Capabilities Benefits
Product cost calculation and simulation • Minimize costs by securing future product • Handle calculations flexibly with manual override and margins early, when the design is evolving and recalculation capabilities master data is incomplete • Enable versioning, what-if simulation, and target costing • Manage costs for new product innovations and customer-specific engineered products with Pricing proactive costing • Use the price selection strategy for components and • Simulate the impact of cost reduction activities measures by identifying cost drivers in later stages of the product lifecycle • Support different currencies and dimensions • Gain visibility on cost structures across diverse • Calculate overhead cost through any number of costing teams sheets • Reduce COGS with better product design Analytics and reporting decisions by enabling better understanding of cost drivers, faster simulation and visibility • Apply management reporting across diverse teams • Use project analysis and reporting across the product • Reduce time to market for new products by lifecycle, costing categories, and other dimensions driving down product costs already in the • Access version comparison engineering and design phase
< 29 / 41 > Deep Dive
Experience Management Qualtrics
Qualtrics can understand how your customers and employees are feeling – and deliver better and more personalized experiences that make them happy with SAP Experience Management solutions.
Operational data (O) – like costs, revenues, and sales – show what is happening in your business. But you also need experience data (X) to understand the feelings of t he people involved and why things are happening.
SAP Experience Management solutions combine X-data and O-data. By collecting experience data at every meaningful touchpoint, you can analyze and understand experience gaps – and determine what to do about them.
Your company can then automate actions across business functions to drive improvement in customer, Solutionemployee,Capabilities product, and brand experiences. Benefits
Employee Experience Management • Improve employee engagement ( deliver 3x Combine operational data (O) with experience data (X) to get more revenue per employee) a complete view of all events inside and outside of work that • Reduce employee turnover (by 40% than the impact your employees. Then support them at every moment average organization) that matters. • Employees who feel their employer acts on • Understand the intersection of your employees' work and their feedback are 12x more likely to publicly life advocate for them • Create intelligent action plans • Discover new insights from combining operation data + experience data Customer Experience Management • Create great digital experience to employees Frontline Connect and customers • Understand new customer needs and requirements • Reduce customer churns • Confidence Pulse • Improve effectiveness and efficiency in • Learn how to help and keep your customers response to customer issue • Deploy an always-on website listening post
< 30 / 41 > Deep Dive
Core ERP Platform SAP S/4HANA Fashion and Vertical Business (FVB)
SAP S/4HANA for fashion and vertical business helps companies with multiple sales channels to act as one, with common processes from manufacturing down to retail based on a global real-time solution that improves efficiency and delights customers. It specifically supports fashion companies that make, trade and sell fashion merchandise and other goods, and have challenges with multiple dimensions (style color size), seasonal demand and managing shortages and limited availability across multiple sales channels.
Solution Capabilities Benefits
• Vertical integration from Manufacturing down to Retail (in • Manage their company as a whole across all combination with S/4HANA Retail for merchandise channels and businesses. management) • Optimize business processes, compete • One platform for the entire fashion business to stay agile for the effectively and gain market share future • Transparency across the business to drive • Inventory handling geared to fashion business with unique efficiency and optimize the value chain concepts like stock segmentation and demand supply match, • Establishes consistent/common/collaborative flexible purchasing commitment and providing inventory processes to be agile and responsive, such as visibility across channels joint planning, joint procurement for different • End-to-end processes with capabilities for style/colors/size and channels and joint supply value added services • Allows for global visibility into all processes, • Developed natively on the SAP HANA® platform with all options data, assets and resources and share these for for real-time analytics, integration, and application services most profitable deployment and operations. • Redesigned with highly simplified data models and processes in • Free-up time for innovation key areas such as inventory management, stock valuation, • One face to the customer across channels supply assignment, and even closer integration into the SAP • Results in overall reduced cost (TCO, S/4HANA Finance solution, leading to high throughput and fast resources and assets) and increased revenue reporting in key processes from higher service levels and less markdowns • Consistent user experience and launch pad access across all functional areas, allowing new ways of working for business users • “Industry to core” – one platform that unites various industry solutions using harmonized data models and objects, thus opening up potential for synergies and cross-industry scenarios • Extends manufacturing functionality to monitor and execute production from a single workbench and match up available component stock with open orders.
< 31 / 41 > Deep Dive
Advanced Analytics SAP Analytics Cloud (SAC)
Meaningful insights, better decisions, and immediate action come together SAP Analytics Cloud. SAP next generation of business intelligence, planning, and predictive capabilities are blended with a context-rich experience tailored for each individual in the organization. The result is an easy to use application – for all operation to management level - that can turn your business investments into a strategic asset for exponential growth.
Solution Capabilities Benefits
Enterprise Analytics • Increase staff productivity in analysis and • Automate data cleansing to alert errors and categorize reporting processes measures and dimensions to enhance your data and • Increase business profitability through gain deeper insights improved visibility of performance and more • Discover key influencers and relationships in your data actionable insights to boost performance, detect anomalies, and take • Gain a better understanding of customer remedial actions needs, service requirements and buying • Predict potential outcomes and forecasts you can trust patterns with the push of a button and no data science skills • Enable increased sales and improved sales required strategy through customer segmentation • Link and create financial and operational plans analysis seamlessly in one solution to drive better decisions with • Simplify the IT estate for analytics and integrated plans reporting • Default dashboard templates for retailers and • Provide common analytics tools thereby manufacturers reducing training effort associated with diverse toolsets
< 32 / 41 > Deep Dive
Talent Management SAP SuccessFactors
SAP SuccessFactors provides retail and consumer goods clients with a unified talent solution that includes onboarding, recruiting, performance and goals, learning, compensation, and succession and development, with each solution being the recognized leader in its area. While each solution can be used alone, they can also be used together seamlessly to support a comprehensive talent management strategy that further aligns, optimizes, and accelerates the workforce.
As the HR function moves beyond automating processes and ensuring compliance, SAP SuccessFactors’ core HR solution, fully integrated with talent suites, will enable company to drive better operations by making workforce decisions based on a 360-degree view of the employee.
Solution Capabilities Benefits
Enterprise-grade Core HR Functionality • Reduce HR operational costs • Provides support for any combination of business units, • Increase employee and manager self-service geographies, or cost centers • Improve employee engagement and retention • Powerful self-service capability for employees to manage • Improve employee experience and enhance HR transactions effectiveness via mobile devices employer branding • Highly extensible platform architecture to tackle company- • Reduce cost per hire specific requirements • Reduce time to fill • Increase quality of hires Unified Talent Management Platform • Improve new hire productivity • Single solution to support different talent management • Identify top talent and future leaders initiatives, allowing analytics across various HR processes • Improve business agility and reduce risk and multiple locations • Increase speed to value with faster learning • Competency or skill assessment result provides HR with the program rollout necessary information to promote internal talent mobility • Improve HR workforce forecasting • Advanced talent acquisition platform to drive higher volume • Make better decisions of applications and ease the workload of HR team when handling mass recruitment • Mobile-optimized solution to deliver supreme e-Learning experiences through mobile devices, addressing the learning need of individual
< 33 / 41 > Deep Dive
Intelligent Digital Supply Chain SAP Transportation Management
Consolidate orders and maximize the return on your transportation spend. Forecast demand and shipment volumes accurately to fine-tune transportation planning. Enhance freight, fleet, and logistics management to gain realtime visibility into global transportation and domestic shipping across all transportation modes and industries.
Solution Capabilities Benefits
• Strategic Freight Management – Optimize freight • Increase business productivity procurement for multiple modes. Use a sophisticated • Improve end-to-end visibility and service transportation management system to lower spending and • Improve cashflow for freight measure shipper- and trade-agreement compliance. transportation • Order Management – Minimize freight costs and enhance • standardize logistics processes and customer service. Improve the efficiency of order and operation process management and generate optimized, rules-based routing proposals dynamically. • Accelerate decision-making with real time insight • Transportation Planning – Lower transportation costs and achieve on-time delivery. Enhance resource use and carrier selection with automated planning processes and integrated local business views. • Transportation Execution – Improve cargo handling to run your logistics faster, more dynamically, and more responsively. Reduce shipping costs with a streamlined process and maximized efficiency. • Freight Costing and Settlement – Improve the accuracy and transparency of your transportation costing and invoicing. Automate freight calculations and integrate transportation management and billing data.
< 34 / 41 > WhyWhy SAP?SAP?
WhyWhy SAP?SAP?
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35 / 41 > < 3536 /| 41SA >P proprietary and confidential Why SAP?
SAP’s Value Proposition for Fashion Garment Companies
SAP provides fashion garment companies a proven framework to adopt industry best practices while attaining operational excellence and unparallel customer experience across the value chain
STRATEGY ENABLEMENT BUSINESS BENEFITS* • Support modern customer journey with seamless • Reduction in markdown by 10% -60% experiences • Reduction in days of inventory 10% - 45% • Accelerate new business model innovation, and drive new • Reduction in inventory carrying cost 5%-10% revenue generation opportunities • Reduction in revenue loss due to stockout 10%-40% • Run Simple (master complexity) – Simplified and efficient • Reduction in total manufacturing costs up to 10% production engineering, production planning, and execution • Reduction in manufacturing cycle time up to 10% processes • Reduction in scrap value up to 25% • Run live – Decision-making with automated transfer of • Reduction in order fulfilment lead time by 10%-15% production results and realtime updates on performance • Increase material posting throughput from 5x-25x • Automation that enables business process transformation • Improved labor utilization with “live” production monitoring by 5%-10% – Reduction in logistics cost by 5%-25% – Reduction in supply chain planning cost by Strategy Business 10%-25% Enablement Benefits – Reduction in procurement cost by 2%-10%
Risk Employee Management Engagement
RISK MANAGEMENT EMPLOYEE ENGAGEMENT • Distributed manufacturing that enables reduction of inventory • Increase in productivity through tailored UX and risk of revenue loss due to stock-outs • Higher throughput • Integration of execution and planning systems that reduces risk • Easier-to-use interface and simplified workflow of revenue loss due to cancelled orders • Improved technician productivity • Reduced accident and incident rate • Reduced lost-time accidents by 1% - 5%* • Lower cost of risk mitigation • Reduced training costs • Reduced compliance penalties and fines by 5% - 10%*
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA
< 36 / 41 > Customer Reference
SAP Customer Success PVH: How Can Specialized Solutions Help Shape Corporations into Economic Catalysts?
Helping a fashion powerhouse achieve industry firsts with software that unifies business processes PVH Corp. is one of the most admired fashion and lifestyle companies in the world, with a portfolio of brands including CALVIN KLEIN, TOMMY HILFIGER, Van Heusen, and IZOD. The apparel company is grounded in entrepreneurial roots, dating back to 1881 when its founders began mending and selling shirts for local coal miners. PVH powers brands that drive fashion forward – for good. Committed to honoring that innovative spirit, PVH began a search for revolutionary software designed specifically for the fashion industry. It sought a unique platform capable of harmonizing the retail and fashion structure while optimizing manufacturing and wholesale functionality.
PVH is one of the first to roll out a modern, intelligent platform for the fashion industry, helping streamline the future of retail. PVH Corp. completed its conversion to the SAP S/4HANA® solution for fashion and vertical business with premium-level support from SAP MaxAttention™ services, allowing the fashion house to profit from: • Consolidated business processes that increase efficiency and data transparency • Greater responsiveness with a supply and demand overview enabled by the SAP Fiori® user experience on SAP® Cloud Platform • Improved reporting and visibility with the SAP BW/4HANA® solution • A smooth implementation, thanks to extra support in safeguarding the project using on-site and off-site • SAP MaxAttention services for pre- and postlaunch checks • Continued country rollouts, including a successful cutover in Hong Kong and Macau, China, performed with all off-site SAP MaxAttention services • An enhanced platform for innovation, using new functionality in SAP S/4HANA rather than building custom solutions
“Our IT platform is key to driving our strategy by supporting innovation, modernization, digitalization, and scalability. Moving to SAP S/4HANA for fashion and vertical business with support from SAP MaxAttention services has given us the transparency and flexibility we need to continue to grow.” Eileen Mahoney, Executive Vice President, Global CIO, PVH Corp.
PVH Corp. Industry Employees Revenue Featured Solutions and Services New York, New York Retail 40,000 US$9.9 billion SAP S/4HANA for fashion and vertical www.pvh.com business, SAP BW/4HANA, and SAP MaxAttention < 37 / 41 > Customer Reference SAP Customer Success Beeline: How Do Proven Standards for Fashion Speed Digital Transformation?
Fashion jewelry and accessories sold in 23,000 retail spaces across 53 countries Whatever statement your outfit makes, Beeline GmbH has the perfect piece of jewelry to punctuate it. Starting out as a wholesale jeweler almost 30 years ago, Beeline grew to become a global business, selling its brands through concession partners and its own stores worldwide. Sales soon spanned more than 100 million individual items per year. With its highly manual operational processes, Beeline had trouble tracking sales, running reports, and planning for future demand accurately. It needed integrated, end-to-end process management and greater insight into customer activity. The answer was total digital transformation. The question was how to make it fast and affordable with minimal risk.
Beeline realizes value faster with a digital transformation that will help it better understand customers and meet demand.
Using the SAP® Model Company service for Fashion and Vertical Business, Beeline GmbH has accelerated the deployment of SAP S/4HANA® and the SAP Customer Activity Repository application through: • Deep knowledge and expertise in retail and fashion best practices and SAP applications • Fit-to-standard workshops to align to-be processes with proven industry standards and best practices, reducing efforts in the “explore” phase by 50% • Rapid deployment to a sandbox system for faster realization through identification of relevant best practices • The preconfigured omnichannel content add-on for the SAP Assortment Planning application • Support for development, a build design, and customization to meet Beeline’s unique business needs • Efficient, agile implementation using the SAP Activate methodology • Inclusion of the SAP Analytics Cloud solution for use in front-end reporting • Use of the SAP Cloud Platform Integration service to connect and integrate native mobile apps
“SAP Model Company significantly reduced our exploration efforts. More importantly, we were able to define target processes according to best-practice standards demonstrated in the design workshops. We now have a template for future projects.” Dirk Reusch, Head of SAP Application Management, Beeline GmbH
Beeline GmbH Industry Employees Revenue Featured Solutions and Services Köln, Germany Wholesale 4,500 €500 million SAP S/4HANA, SAP Customer www.beeline- distribution & Activity Repository, and SAP Model group.com/en retail Company for Fashion and Vertical Business
< 38 / 41 > Customer Reference
SAP Customer Success Buffalo David Bitton: Offering Customers Speed & Ease of Use with the SAP® Hybris® Commerce Solution
Buffalo David Bitton is an iconic brand that offers denim clothing and a full fashion collection to customers seeking effortless style. The company was founded in France and 157% brought to Montreal over 30 years ago. It was acquired by Global Brands (GBG) in 2015. Increase in sales over a three-month With a presence now in 18 countries and over 3,000 locations, the company needed a period from October to January, with: new e-commerce platform that would be stable and scalable enough to grow its online business.
When the time came to transition away from its legacy system, Buffalo David Bitton chose the SAP® Hybris® Commerce solution and went live before its busy holiday 44% shopping period. The launch captured all of the more than 100 requirements within the Increase in transactions in Canada project scope, and the benefits were practically immediate – the company saw a 157% increase in sales over the previous holiday season.
Objectives • Transition off of the legacy platform, which had reached end of life 76% • Implement a state-of-the art solution, with all requirements satisfied within the project Increase in transactions in the United scope, in time for the holiday shopping season States
Why SAP® Hybris® solutions • SAP Hybris Commerce provides the stability and speed necessary to keep customers happy 67% • The e-commerce solution has the ability to scale to accommodate future growth Increase in order value in Canada Resolution • Used an agile implementation methodology, going live on time after extensive testing, despite changes to the project scope • Increased customer loyalty by making transactions faster and easier to navigate • Dramatically grew total sales, transactions, and order value in both Canada and the United States
Future plans • Integrate into SAP ERP within a year and increase the business 10-fold within two years • Add a lower-price-point brand to the site and integrate with other GBG brands
Beeline GmbH Industry Products and Services Employees Featured Solutions and Montreal, Canada Consumer Denim clothing and other 270 Services www.buffalojeans.com products – fashions SAP Commerce fashion
< 39 / 41 > Next Steps
Next Steps
Achieving your vision will require significant focus and executive commitment along with a business partnership with SAP to drive a successful outcome. SAP brings unparalleled experience and a strong track record that will help you run and grow your business more effectively for years to come.
Recommended next steps for your transformation journey • Thought leadership workshop with business and IT executives to identify key value areas • Connect with other global fashion garment companies to exchange best practices and experiences • Leverage the SAP wealth of services to identify commercial business and use cases
SAP is committed to enabling a successful transformation program for your organization. SAP is looking forward to growing the relationship and assisting you to achieve your corporate and business strategy objectives.
< 40 / 41 > www.sap.com/hk/contactsap
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