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The Expert Series:

SAP S/4HANA for Fashion

and Vertical Business

Introduction

The Expert Series on SAP S/4HANA for Fashion and Vertical Business is a resource for organizations considering or are in the midst of an S/4HANA implementation. Through articles, cheat-sheets, interviews and webinars, we hope to provide real-world insights to industry leaders looking to transform their operations with a digital platform.

Considerations for Building a Global Template for S/4HANA Rollouts

Fashion companies implementing SAP S/4HANA for Fashion and Vertical Business recognize that unlike perhaps their existing fragmented systems, a unified S/4HANA solution can give them a more accurate and consistent understanding of their business at any given time and drive greater efficiencies across their global operations.

While the benefits are compelling, a global S/4HANA Fashion rollout is a massive and complex undertaking. Because such an initiative involves a spectrum of "moving parts"—before, during and after go-live—it's crucial that a company stages and executes the implementation in a way that provides the right balance between cost and time; to ensure the effectiveness of the system. Following are a few steps that we recommend based on a recent S/4HANA global rollout project:

  • Identify and document all the key processes across the different channels - Wholesale, Retail, and e-commerce.
  • Harmonize key processes across all sales subsidiaries - across all regions. This will help create a template that is truly global. For instance, the order creation process across German and Italian subsidiaries would generally be common. If there are any deviations, identify the reasons; i.e. – is it a legal requirement, if not, is it necessary and can it be harmonized?
  • Localize where needed. When harmonizing, it may not be possible to know the exact processes followed by each subsidiary. Hence, following the principle of making sure that the template solution covers 80% of the requirements would be helpful. The remaining 20% can be taken as localization and should be taken in to consideration as a part of the rollout plan.
  • Example: In most instances the outbound logistics process for Wholesale, Retail and ECOM, across all subsidiaries, would be common. Hence, the potential exists to review the process followed when shipping the goods out from the warehouse and harmonize the steps in order to define a common solution in SAP as a part of the template.

Exclusive knowledge share for fashion companies

If you're planning a global SAP S/4HANA Fashion project, and would like to know more about building global template, we can help you get started.

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From SAP AFS to S/4HANA Fashion: Impact on Key Processes

The SAP Apparel and Footwear solution (SAP AFS) has been around since the early 2000s, and many of its users over the years have grown accustomed to certain functionality and processes that it offered. Any changes to these need to be understood clearly, including how the new functionality will work and the potential impact to the business. With SAP S/4HANA Fashion and Vertical Business moving closer to the core business solution and with the harmonization that has gone in to the new product, SAP AFS user will notice the following significant changes:

  • Available to Promise (ATP) is now Advance ATP (aATP). Key differences are:
    • Advance Available to Promise (aATP) consists of 2 main components Product Availability Check (PAC) and Product Allocation (PAL)
    • Introduction of confirmation strategies during instances of re-ATP to better manage the order book
    • Rescheduling Report for orders
    • Ability to use BOP Fiori App for ATP and Supply Assignment together
  • ARUN (Allocation Run) is now Supply Assignment. Key differences are:
    • Introduction of new statuses to determine which quantities are acceptable for customers
    • Replacement of the ARUN Optimizer Tool with a more detailed reporting tool - ARUN Insight to Action
    • Exception Rules can now be defined by users with more ease
    • Supply Assignment can be executed together with ATP via the BOP Fiori app
  • Rebates
    • New transaction used in S/4HANA to create Rebates (WCOCO)
    • Users can create Rebate Agreements (Condition Contract in S/4HANA) together with the condition records used for accruing the required values
  • Business Partner replaces the traditional customer and vendor master record
    • Both Customer and Vendor Master records maintained as Business Partners with transaction BP
    • No separate transactions to maintain Customer master (XD01) and Vendor master (XK01) in S/4HANA
    • The transaction FD32 used in AFS to maintain master data for Credit Management no longer exists in S/4HANA
    • Handling Authorization to control data changes in Customer and Vendor masters is different in S/4HANA
  • Finance: Credit Management
    • Credit Management is no longer part of Sales and Distribution as it was in AFS earlier. It is now part of Financial Supply Chain Management (FSCM)
    • The transaction FD32 used in AFS to maintain master data for Credit Management no longer exists in S/4HANA
    • The master data maintenance is part of Business Partner (BP) transaction

Migrating from SAP AFS to S/4HANA Fashion

If you're on SAP AFS and would like to know how you can make the move to S/4HANA, we can help. Talk to us today to get started.

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Upcoming Topic: What to consider when designing a central DC for Wholesale, Retail and Ecommerce

How do you consolidate a central DC with the flexibility to handle unpredictable demand across all sales channels? Although the omnichannel model is now relatively well established, a challenge that retailers continued to grapple with is how to reconfigure their supply networks to achieve better alignment between delivery responsiveness, product variety, and convenience.

We will be covering a few insights on what fashion companies need to consider when centralizing inventory to keep track of what’s on hand, what’s headed out the door, and what’s coming in.

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