Historically apparel brands were either known as Wholesaler/ Manufacturer or Retailor but not both. Over the time its their “Brand Value” which
led them supporting multiple channel. Strong Wholesale brands expanded them self and turned into successful Retailor and same goes to
Retailor who turned into Wholesaler.
SAP AFS & Retail are two solution exists to support wholesale and retail business. Currently Vertical fashion companies are
running on SAP Retail + SAP AFS + SAP Business suite. Almost managed like two separate businesses driven by high
complex interfaces between Retail & AFS. Some of challenges faced by this model are inaccurate global stock position at
any given point of time Customer/Consumer information spread across the systems. Complex warehouse process in place
to handle goods movement from common pool of stock.
SAP FMS is multichannel vertically integrated fashion solution, brings the majority of active AFS processes onto an SAP Retail base
which led to giving one Integrated ERP solution powered by HANA to help enable faster fashion and grow an adaptable global business
while helping increase revenues, margin and efficiency.
SAP FMS is covering and harmonizing end to end Wholesale and Retail specific process in O2C and P2P. To run SAP FMS, it’s very essential
to have good understanding of both the systems as an example ;
“To run assortment planning for retail channel, PO needs to created followed by MRP which further sourced from vendor and based on
Retail allocation further goods movement to retail stores takes place followed by AFS allocation run of STO/SO. This entire process
controlled by season and segmentation“
SAP Retail + SAP AFS = SAP FMS led by harmonizing the processes
Some of the major goal can be achieve with the help of Fashion Management solution as ;
- The changing consumers, consumer don’t shop channels they shop brands, customer even don’t know what a channel is.
Journey to become Omni channel will be easier with the help of SAP FMS and SAP CAR.
- During in season , situation could be; for some SKU Retail channel is doing good at some store however in wholesale channel same
SKU is piled up at DC because of one key wholesale customer has cancelled the SKU in seasonal order. By the time this becomes
visible at operation level demand stock turns into left overs. Vertical company can break the walls between Retail and Wholesale channel
by having more insight into common pool of stock in FMS.
- Stock Protection, optimize capability to consume the stock in rush situation among different channels and supply across different channels
in real-time based segmentation strategies, less leftovers at the end of season.
- Common master data(Customer/Material) for better promotional/campaigning event and loyalty management can be achieved in CRM.
Personalized offering to Customer/Consumers.
- Highly effective segmentation strategy can be achieved which helps to optimize the stock consumption in common pool of stock across channel wholesale, retail, e-commerce and digital.
- No early morning surprise ->When you expect your retail allocation run overnight and it should create call-off in AFS so that next day stock should move to retail stores however early morning its been found that none of call-offs has hit the AFS because all were stuck in inbound queue(FIFO)…
Vertical companies can achieve many significant results by migrating to FMS.