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SAP FASHION MANAGEMENT (FMS) OVERVIEWRetail WebinarDecember 11, 2015

Agenda1About our hosts2Who is /N SPRO?3What is FMS?4Where does FMS fit?5FMS Functionality & Benefits6Recommended Next Steps /N SPRO INC. 2015. All rights reserved.2

About our hostsBrian CederborgVP, Retail and Wholesale ConsultingBrian has led retail transformation programs at organizations across NorthAmerica including BJ’s Wholesale Club, Loblaw Companies Ltd., andBrookshire Grocery Company. Brian has developed an innovative approachto leveraging technology to better drive retail business value.Wes LoweConsulting Manager, Retail and WholesaleWes is a Retail & Wholesale Consulting Manager at /N SPRO. With 25 yearscombined industry and consulting experience, he brings a mix of functionaland technical experience bridging the Business and IT worlds. Wes has 9years experience with SAP IS-AFS and SAP IS- Retail. /N SPRO INC. 2015. All rights reserved.3

About our hostsLee AltonSolution Architect, Retail and FMSLee has designed integrated solutions for organizations across North Americaincluding Luxottica Retail, Big Lots Stores Inc., Nike Inc., and Ann Taylor Inc.Lee has fulfilled roles as a Solution Architect, Cutover Manager, and ProcessLead on SAP Retail expansion projects and has participated in multiple fullcycle SAP implementations, covering more than 10 years.Shailendra GaikwadSenior Consultant, AFS and FMSShailendra is a Senior Consultant focusing on Retail & Wholesale industries for/N SPRO. Shailendra has over 10 years experience within SAP IS-AFS andSAP Fashion Management Solutions, and robust configuration and applicationskills in Sales & Distribution, LogisticsExecutions, and Materials Management. /N SPRO INC. 2015. All rights reserved.4

/N SPRO - Who we areis one of the top product development andconsulting service providers across all of SAP’s ConsumerIndustries software suite and the ‘GO-TO’ expert in the market service provider advising SAP (on behalf of leadingretailers) on the future state direction for AllocationPlanning, Assortment Planning and MerchandiseFinancial Planning SAP Retail Partner of the Year for 2015KEY PARTNER of the SAP Industry Business Unit,advising SAP and customers across the entire breadth ofthe SAP Retail software suiteWith office locations WORLDWIDE.and an aggressive geographical expansion plan100Completed overSAP implementations 17of SAPImplementationexperience YEARS with more than in more than30specific to SAP1O experienceConsumer IndustriesYEARSsolutions for COUNTRIESOUR EMPLOYEES:More than300 Retail & SAP professionals worldwideTurnoverof less than5%IN Q1 OF 2015MERCHANDISING /N SPRO INC. 2015. All rights reserved.STORESFINANCESUPPLY CHAINMARKETING

Solution ExpertiseIS-Retail ERP; S4/HANAMerchandise Planning for RetailFashion Management Solution (FMS)Customer Relationship Management (CRM)HANAhybris MarketingCustomer Activity Repository (CAR) &Consuming ApplicationsMobile CommerceForecasting & Replenishment (F&R)Business Warehouse (BW) & BusinessObjects (BOBJ) /N SPRO INC. 2015. All rights reserved.Business Planning & Consolidation (BPC)

What is SAP Fashion Management?SAP Fashion Management (FMS) is a vertically integrated solutioncombining the functionality and processes from Apparel & Footwear (AFS)and IS Retail into a single ERP hannelBrand install /N SPRO INC. 2015. All rights reserved.of SAP FashionManagementbegins with IS-Retailinstall7

What is SAP Fashion Management?Significant benefits and operational efficiencies can be achieved throughSAP’s Fashion Management Solution» Lower TCO from a single ERP platform for growing a more flexible and efficientvertically run business» A consistent customer experience with a unified solution that supports all channels» Common global inventory across all channels using a real-time supply and demandpicture that drives better decisions» Provides optimal cross-channel allocation methods from planning through execution» One source of product master data across all parts of your enterprise /N SPRO INC. 2015. All rights reserved.8

FMS Similarities to Retail SolutionFashionby SAP beginswith ManagementMASTERArticle allationVendorMasterSiteMasterBill ofMaterials(Prepack,Set)Tickets andAdditionals(VAS)Seasons &CollectionsQuotaScales9Listing,Assortment& erchandiseDistributionERP functionality with RetailFashion enhancements /N SPRO INC. 2015. All rights reserved.Retail specific reMIMReplenishment/ ESRetailPricingInventoryMgmtATP, ReSchedulingGeneric ndGeneric Article9

FMS Similarities to Apparel & Footwear Solution (AFS)Fashionactivates AFS business IS-Retailfunctions after installationManagementMASTERArticle ndorMasterBill ofMaterialsRoutingValueAddedServicesSeasons &CollectionsPrepacks icing10SALES(O2C)Sales OrderPLANNINGSOP(Forecast)PIRATP, SNPurchaseRequisitionPlanned RYMGMTERP functionality with WholesaleFashion enhancements /N SPRO INC. 2015. All rights onValuation/ProductCostingGoodReceiptWholesale Fashion ryMgmtWarehouseMgmtGrids, Size Conversion andCategories10

System Landscape – SAP Solutions for Retail andWholesale BusinessesOMNI COMMERCE CUSTOMER EXPERIENCEhybris Commerce Suite, SAP CRM, SAP POS by GKMARKETING &MERCHANSE PLANNINGSAP CAR, hybris MarketingSOURCING, BUYING &PRIVATE LABELAriba, gicom, VistexSUPPLY CHAINSAP F&RSAP EWM/TM/EMMASTER DATASAP MDG, hybris Product Content Management, SAP DAM by OpenTextREAL-TIME CUSTOMER & BUSINESS INSIGHTSAP CAR, hybris Marketing Data Management, SAP BICORE MERCHANDISING & FINANCE & HRSAP IS-Retail / FMS on HANA, SAP SFIN, SAP IBP Finance, SAP CFM, SuccessFactorsPOWERED BY SAP HANA /N SPRO INC. 2015. All rights reserved.

Fashion YearSEASONSCOLLECTIONSIn fashion timing of product design, production and merchandising iscritical.Selection of outfits that designers put together for up coming season, itreflects trends, colors, cut & proportionsTHEMEBUSINESAREASALESLOGISTICSPURCHASE /N SPRO INC. 2015. All rights 12

ALLOCATION RUN (ARUN)BenefitsKey Drivers /N SPRO INC. 2015. All rights reserved.Optimization of stock allocationOn-time deliveryMinimize charge backsImproved customer satisfactionMaximize order fill rateLong replenishment lead timeShort selling seasonsUnpredictable demandsInaccurate forecast/careful buying – Stock outs13

ALLOCATION OVERVIEW /N SPRO INC. 2015. All rights reserved.14

SEGMENTATIONCUSTOMERGROUPINGSTRATEGY /N SPRO INC. 2015. All rights reserved.Sensitivity to priceProduct qualityValue they place on styleSales channel (wholesale, retail & web commerce)Ability to allocate stock to customer orders by customersegmentsRestrict allocation of premium/high demand product bycustomer group/sales channel.Helps company to achieve bottom line results.15

SEGMENTATION STRATEGY /N SPRO INC. 2015. All rights reserved.16

SPECIAL SERVICES (VALUE ADDED SERVICES)TicketingFashion products requires unique care & FMSaddresses all those special requirements.Value Added Service either determined or addedmanually on customer order.LabelingValue Added Service determined or addedmanually on purchase order.Special packingSpecial Services /N SPRO INC. 2015. All rights reserved.Possible to charge Value Added Service tocustomer.It is possible to handle Value Added itemsseparately for ATP and ARun.18

Standard Migration Paths to the FMS PlatformBased on the current landscape, there are three distinct customer scenarios.RETAIL CUSTOMERAFS onUpgrade / transitionAFS & RETAILCUSTOMERSAPAFSSAPFMSSAPRetailHANAMigration for AFS /N SPRO INC. 2015. All rights reserved.19

Customers with active FMS projectsFMS Consortium MembersActive FMS Installations» Giorgio Armani» Under Armour» Luxottica» ALDO» Adidas» Burberry» Tommy Hilfiger /N SPRO INC. 2015. All rights reserved.20

FMS Value Proposition with /N SPROBusinessBenefitsDecreased Stock-Outs & Inventory LevelsReduce ChargebacksIncrease Order Fill Rates & On-Time DeliveryImproved Time-to-MarketMaximize Inventory AccuracyTotal Cost ofOwnershipReductionReduce Budget Spent on Data MaintenanceReduce IT Integration CostMaximize Data QualityMaximize System & Support EfficiencyDecrease Interface MaintenanceImplementationAccelerators /N SPRO INC. 2015. All rights reserved.Proven record of success supplying SAP services/N SPRO’s Dual IT Methodology/N SPRO’s Fast Forward Pre-Configured SolutionFocused on New Solutions with SAPSupport North American Member of FMS Consortium21

QuestionsQUESTIONS /N SPRO INC. 2015. All rights reserved.22

Recommended Next StepsAdditional research:» http://n-spro.com/solutions/retail/fms/» http://help.sap.com/saphelp fms10/» SAP Retail Forum Resource CenterOn-site demonstrationProof of ConceptTalk with active customers /N SPRO INC. 2015. All rights reserved.23

THANK YOU!Brian CederborgWes LoweLee AltonShailendra m

SAP Fashion Management Solutions, and robust configuration and application skills in Sales & Distribution, Logistics. Executions, and Materials Management. Lee Alton . Solution Architect, Retail and FMS. Lee has designed in