AFS EVENT

Value Proposition & Proposed Solution

SAP Best Practices for Apparel &

Footwear (AFS)
AFS covers the entire process from conception of new collections and
styles to collaborative planning and forecasting, sales and distribution,
procurement of finished goods and components as well as in-house
and external, subcontracted manufacturing. AFS supports Make-ToStock (MTS) business as well as Make-To-Order (MTO) processes
typically found at contract manufacturers.

Strategies for success

Apparel and footwear companies can differentiate their business within this rapidly
changing And highly competitive market by utilizing the following strategies for success:

Integrate business processes and people resulting in a more efficient work flow

higher productivity and lower costs

Strategically linking business from procurement through to sales and distribution to

ensure consistent quality, regulatory compliance and increased customer satisfaction.

Creation of seamless operations that provides management with timely and strategic
information. This ensures faster time-to-market and enables enterprise to take on new
challenges and business opportunities.

Setting the stage to manage change keeping pace with industry mergers, business
improvements and a changing customer focus whilst maintaining
control and financial stability.

AFS Unique Functionalities

Product Development
Collaborative Product Development
AFS Master Data
Theme/ Collection/ Season
Valuation/ Costing
SAP e-Commerce for SAP CRM
Set & Assortment
Value Added Services
Order Types- Standard, Rush, Multi-store
Contract Call off
Production Order- External Processing
Distribute & Deliver cockpit
Allocation Run
Rescheduling
Seasonal Dashboard

Challenges faced by Apparel and Footwear Industry

Growing customer demands

Seasonality
rapid time-to-market
competitive environment
Product obsolescence on shelves
Cost control
Geographical spread of operations

SAP Apparel and Footwear Solution

Map
Suppliers &
Partners

Design, Plan & Forecast Procure & Manufacture

Go-to-Market

Sell

Strategic
Planning
Ranging & Planning
Time-to-Market
New Product Development and Introduction
Integrated Supply Chain Planning
Demand & Supply Planning
Production Planning & Detailed Scheduling
Sourcing & Procurement
Strategic Purchasing and Sourcing
Procure To Pay
Sales & Marketing
Order-to-Cash
Brand Equity Management
Account Management
Sales Force Management
Demand Fulfillment & Execution
Manufacturing
Inbound & Outbound Logistics
Enterprise Management & Support
Data ExchangeAnalytics
& Legal Requirements
Financials
Traceability & Environmental
Compliance
HumanData
Capital
Management
Global
Synchronization
Corporate Services
Operations Support

Deliver & Service

Consumers,
Customers (e.g.
Retailers) &
Channel
Partners

Scenarios for the Apparel and Footwear

Industry
Building
Block

Preconfiguration
Documentation
Print Forms
End user training
Testing
Localization

SAP Best Practices is a platform of reusable and

layered content Building Blocks out of which fully
functioning end-to-end scenarios are composed
To compose your own solution, deselect unnecessary
Building Blocks from SAP and add your own

Customer view

Own scenario
Own scenario

Own Building
Block

Own Building
Block

Own Building
Block

Own Building
Block

Own Building
Block

Sales Order
Processing

Finished
Goods Cross
Company

Rushorder

Purchase to
Order

Make to Stock

Finished
Goods
Sourcing

Sales Order Processing

Pre-Order
Finshed Goods Sourcing

Combined
Order

AFS MM
MM Basic
Basic Warehouse
AFS SD Basic AFS PP Basic AFS
Settings
Settings
Settings
Management
Settings

Production
Planning and
Control

Product Cost
Planning

Batch
Management

Internal
Internal
Procurement
Procurement

Extended
Sales Order

Organizational
Structure

External
Accounting

Cost/PC
Accounting

Materials
Management

Sales &
Distribution

Central Master
Data

SAP Modules Integration

Typical AFS Planning and Production

AFS Planning and Production Process

Sales Planning-Flexible Planning-Management

Perspective

In SAP AFS, Sales Planning can be addressed through Flexible

Planning
In Flexible planning a planning hierarchy is created where in the
hierarchy could be i.e Plant Dist Channel Division Product
Group Material

Advantages are Planning versions can be created and

can be compared

Sales Planning-Flexible PlanningCustomer Perspective

Master data in AFS

AFS Material Master

AFS Specific Functionalities

AFS Material Grids

Application Grids

AFS Segmentation with Categories

AFS Seasons Functionality

AFS BOM Types

AFS Bill of Material

AFS materials contain information about colors, sizes and qualities that are
stored in grids and categories.
Due to the data quantity, there are certain requirements for the bill of material
that must be covered by AFS. These requirements are also used as a quantity
structure for the product costing

BOM QTY DISTRIBUTION

PROFILE

The quantity distribution profile facilitates the data maintenance in the bill of material.

Example - You produce ladies' blazers and know from experience that you have an
excess consumption of 2% per size. .

AFS Pre-pack (Pricing at Header level)

AFS-Assortment (Pricing at Item Level)

Value Added Services

Third Party Ordering Process

In third party order processing, your company passes a sales order on to an external supplier,
or third party, who then sends the goods directly to the customer. Nevertheless the invoice
is issued by your company

Allocation Run

The special situation of the apparel and footwear industry requires an optimization of the
assignment of existing stock to open requirements.
If a stock shortage occurs, the allocation run ensures an optimal assignment of stock to the open
requirements.
The allocation run distributes the currently available stock to due sales orders according to
certain calculation logics at a specific time.
If the ordered quantities are larger than the actually available stock, you can use the allocation
run to reach the best customer satisfaction under the given circumstances in your business.
You can use the ARun Optimizer, you can check and manually correct the results of the allocation
run if necessary.

AFS Multi Store Order

Presizing Functionality

Presizing lets you automatically spread the requirement based on the

Distribution Profiles to different

Plants,Categories,Periods,Grid values

Sales Processing in AFS

Sales Order Processing
Allocation Run
Procurement Process

Sales
Order

Procurement

Selection Grouping Sorting Allocation Release

Allocation
Run

Delivery

Invoice and

Transfer order and

Financial
Post Goods
Issue
Accounting

ATP

MRP
File

Internal Planned
Production Order

Production
Production
Activity
Order
Control

External
Purchase
Source
Purchase
ProcureRequisition Allocation Order
ment

Goods
Receipt

Credit Management within Sales

Process
Good customer or
Bad customer ???
Check !

Sales
Sales Order
Order
Processing
Processing
Inventory
Inventory
Sourcing
Sourcing

Pre-Sales
Pre-SalesActivities
Activities

Payment
Payment

Shipping
Shipping

Invoice

Billing
Billing

Goods leave the company

Point of no return

Check !

Scenario: Make-to-Stock
Independent Requirements
Goods receipt for
individual production
orders

Planning
MRP

BOM explosion

Goods
Receipt

Manufacturing

Planned
Order

Manufacturing
Production orders
are processed
individually

Manufacturing

Combined Order
is cut

Production
Order

Procurement of
Components

Combined
Order
Several production orders
combined into one

Scenario: Make-to-Order
Book production capacity
+ export quota

Pre-order
Detailed Product
Specification

Profit
Analysis

Customer
Sales Order

Billing to
Customer

Centralized
Purchasing
Delivery to
Customer

Procurement
Accessories

Manufacturing
in Factory
Direct Delivery of Components

Shipment to Customer
(DC)

Monitoring from Head Office

Procurement: Business Process

Material Procurement 1
8

Determination of
requirements

Payment
processing

Material
Procurement

Invoice verification

Determination
of source of supply

Vendor selection

Goods receipt

5
Purchase order
monitoring

4
Order
processing

Purchase to Pay process

Invoice Verification

Service &
Goods Receipt

Order Follow Up

Requirement to Buy

MM

Allocate Source
Of Supply

Order Processing

Production Planning - Highlights

Sales and Operations Planning Flexible Planning

Statistical Dimension Distribution
APO Demand Planning
Bills of Material size / color dependent
Phantom Assembly
MRP at Material and SKU Level
MRP evaluation options
Missing Parts List
Order Progress Report
Combined Production Order

Production Planning

Product Cost Controlling and

Valuation

The basis of the costing of a product is its quantity structure. In the product costing the
quantity structure is based on the specifications of the BOM and the routing.
In the AFS system, the quantity structure of a product can be defined as grid/categorydependent. Product costing considers these grid/category-dependent specifications.
When costing a certain stock keeping unit, the system explodes the bill of material for the
corresponding SKU and determines the relevant routing.

Product Costing in AFS

Complete Financial Solution

Parallel
Analytics
Accounting
Billing

General Ledger
Legal
Accounts
Receivables
Consolidation
Accounts Payable

Expense
Management
Check Printing

Asset Accounting
Budgeting

Payroll
Funds
Management
Treasury
Cash
Management
Joint Venture
Accounting

Streamlines information
control, analysis, and
delivery

Enables performance
planning, measurement,
and management

Optimizes the financial

supply chain

Overhead Cost
Controlling
Activity Based
Costing
Profitability
Analysis

Most comprehensive,
functionally-rich solution on the
market
Market-leading solutions and
customers in all industries
Reliable, proven business
partner with solution and
industry expertise

One solution addressing all financials

roles

One consistent platform for all people involved in finance processes

Work environments tailored to the role of the user to maximize people productivity

CFO
Management of
Internal Controls

Head of Strategy

Financial
Analyst

Corporate
Accountant

xAPP Analytics

ze
y
al
n
A

Ac
co
u

Cash&Liquidity
Treasury

nt

Cost Center
Internal Orders
Profit-Center

Cash Manager
Treasurer

Controller

SAP ERP
Financials
Financial
Analytics

rt
po
Re

Head of
Corporate
Reporting

Strategic Enterprise
Management

Accounting Clerk
Asset Manager

Payables /
Receivables
Fixed Assets

Cl

e
os

Closing
Cockpit

Audit
Support/AIS

Business Area
Controller

Intercompany
Reconciliation

Business
Consolidation

Accountant

Internal Auditor

General
Ledger

Head of Finance

Profitability Analysis Reports

Management accounting
COPA

Overhead
Cost Controlling

CO-PC

Product
Cost Controlling
Material
Valuation

Process
Cost
Center

Internal
Order

Production
MaterialLabor OH Process
Order

Cost Element Accounting

FI

Financial
Accounting

HR Human
Resources

WIP

Asset

Procure

Product

Stock

Warehouse

Revenue

Sales

ECPCA

Profit Center Accounting

CO
OM

Profitability
segment

Profitability
Analysis

SEAL Implementation methodology

SEALS clients-India

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VASANTH & CO.