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SAP S/4HANA for Fashion

Transforming Fashion: Powered by S/4HANA Get in Touch

Latest trends

The fast-paced fashion industry constantly changes with new seasons, collections, and styles. Brands must be flexible and creative to stay competitive. This requires fashion businesses to be adaptable and use technology to meet the changing needs of the market. Here are some of the key trends driving the fashion industry.

Vertical integration in fashion industry

Vertical integration

The blurring of lines between retail and wholesale is driving a growing demand for a versatile ERP system such as S/4HANA Fashion that can seamlessly adapt to the evolving demands of a multi-channel marketplace.

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Design-to-market workflow

The increasing demand for faster design-to-market timelines underscores the critical importance of efficient inventory management

Hyper-personalization

Customer engagement strategies

The need to foster a deeper engagement while maintaining a cohesive brand experience across all channels, including physical stores, e-commerce platforms, and social media.

Sustainability

Sustainability in production

Minimize environmental impact by optimizing production, transportation, and energy consumption throughout the value chain.

Integration with advanced technologies

Machine learning analytics

Leveraging advanced technologies like AI for enhanced customer experiences necessitates advanced analytics and machine learning capabilities.

Global supply chain

Global supply chain management

The intricate nature of global supply chains, driven by sourcing and production from diverse locations, underscores the importance of effective supply chain management for operational efficiency.

S/4HANA For Fashion – Business Benefits

Moving to SAP S/4HANA for Fashion provides fashion businesses with real-time data access for quick decision-making and adaptability to changing trends. The platform streamlines operations and optimizes inventory for greater efficiency and cost savings. Advanced analytics enable trend forecasting, while omnichannel integration enhances customer experiences. S/4HANA Fashion’s focus on sustainability and compliance helps fashion retailers remain competitive in a dynamic market.

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Faster Transaction Processing with Fiori in S/4HANA

Faster Transaction processing through new Fiori interface. For example, Large sales orders can be managed more efficiently with mass change functionality as well as upload functionality out of the box reducing dependency on solutions like winshuttle.

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Simplified Idoc Processing in S/4HANA

Reduction in IDOC process and error management as previously external SAP systems are now part of core S/4HANA for e.g. EWM

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Vertical Integration with S/4HANA for Fashion

Avoid cost of maintaining separate systems for manufacturing, wholesale, retail and ecommerce with a vertically integrated system on a single server

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Reserve stock for priority customers with Supply Protection in S/4HANA Fashion

Prioritize stock for VIP customers or flagship stores and also cannibalize stock reserved for other customers/stores if required through supply protection

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Enhancing Business Alignment with aATP Allocation

Improved business accountability ensuring channels stick to the agreed plan and across departments through optimum stock and order allocation in aATP

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Reduced Total Cost of Ownership with clean core

Improved Total Cost of Ownership through reduced running costs and ability to adopt newer functionality faster while also going closer to standard with a clean core

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Informed Decision-Making with SAC Analytics

Data driven processes with Informed decision making in areas like capacity management and production planning in S/4HANA through embedded analytics with SAC

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Streamlined Ring-Fenced Stock Management in S/4HANA for Fashion

Optimized stock for all channels in same physical bins for multiple channels while retaining the ability to switch between channels when sales don’t go to plan through Supply Protection and segmentation.

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Book factory slots earlier

Book factory slots early in the planning cycle without size or destination details with Flexible Purchase Contracts. These can be called off against PO’s as plans firm up.

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Enhance Sales with PSST for Efficient Warehousing

Boost sales with enhanced customer service. PSST functionality lets you pack orders for specific needs (initial store allocation, bulk replenishment etc) and ship them together, streamlining warehouse operations.

Migrating to S/4HANA for Fashion with CeleRITE

Fashion companies often perceive greenfield migration as their only option for transitioning to S/4HANA due to the structural differences between AFS and S/4HANA. While ECC to S/4HANA migration supports brownfield approaches, the unique complexities of AFS lead to the assumption of greenfield migration. However, with Applexus, fashion companies can opt for a selective transition using CeleRITE, avoiding the need to build the S/4HANA system from scratch. CeleRITE offers options such as lift and shift, providing a smoother migration path tailored to the retailer's specific requirements.

Brownfield

Brownfield

Full Reuse
  • Clean & Start

    ECC simplification followed by S/4HANA conversion
  • Jumpstart

    S/4HANA conversion followed by S/4HANA simplification
Selective Transition

Selective Transition

Mix and match
  • Hybrid

    Selective migration to S4/HANA for certain areas and new implementation for other areas
  • Consolidate

    Selective migration from ECC to an existing S4/HANA environment
  • Carve Out

    Extract and migrate to a new S4/HANA environment
Greenfield

Greenfield

Full Redesign
  • Fit to Business

    Process Discovery & Scoping followed by S/4HANA Implementation
  • Fit to Standard

    Implement a new S/4HANA system focusing on standard SAP processess.

S/4HANA Fashion implementation with CeleRITE for AFS/FMS Customers

CeleRITE, our AI-powered platform for comprehensive S/4HANA migrations is specifically designed to address the diverse needs of S/4HANA migration projects. Especially for fashion customers, CeleRITE provides an additional option for selectively migrating some of the customizations from AFS to S/4HANA Fashion. Let's explore the CeleRITE approach in detail to understand its implications and determine the optimal path for an AFS customer. For fashion brands transitioning from AFS to S/4HANA Fashion with CeleRITE, the process unfolds in three strategic steps:

Lift and shift

Lift & Shift

Initially, CeleRITE simplifies the migration of processes that require minimal changes when moving to S/4 Fashion. The primary distinction between AFS and S/4HANA Fashion lies in the use of J tables in AFS, which primarily affects fashion-related areas like the material grid and its references. However, other areas, such as finance, journal postings, general ledger, and accounting practices, remain unchanged and can be directly transferred to S/4HANA Fashion using CeleRITE.

Enhance

Enhance

In certain areas, CeleRITE can map elements from AFS to their corresponding counterparts in S/4 Fashion. For example, the key attributes of the material grid in AFS can be mapped to generic articles and variants in the Material Masters of S/4HANA Fashion. Elements from the J tables can be mapped, enhanced, and migrated to the Generic and Variants tables in S/4HANA Fashion, with CeleRITE utilizing Generative AI.

Capabilities

Activate New S/4 Capabilities

inally, CeleRITE, in collaboration with our functional experts, identifies and activates new, industry-specific functionalities within S/4HANA Fashion using a fit-to-standard approach. This includes features not available in AFS, such as flexible purchasing commitments, direct ship flexibility, and multi-level purchasing contracts. By strategically activating these functionalities, we ensure that S/4HANA Fashion operates at its full potential, enhancing supply chain management and operational agility. These new features may even replace some custom developments from previous systems, contributing to a more streamlined and standardized approach as part of the Selective Transition methodology.

Why Applexus for your S/4HANA Fashion Implementation?

With over 15 years of expertise in the retail sector, Applexus offers tailored solutions designed to meet your specific needs. We boast partnerships with major fashion brands, ensuring cutting-edge integration with the latest technologies. Our pre-configured solutions accelerate your business processes, supported by expert teams.

Fashion client meeting

Fashion Expertise

Our team has extensive experience working with multiple fashion clients, bringing deep industry knowledge to every project. We understand the unique challenges of fashion retail and tailor our approach to meet specific needs. This expertise allows us to deliver effective solutions that drive results and maximize value.

S/4HANA Migration Approach

Selective Transition Approach with J Tables remediation

We employ a targeted approach to migration, focusing on key areas of your business for maximum impact. By selectively transitioning critical processes and data, we minimize disruptions and streamline the overall migration process, ensuring a smooth and efficient journey to S/4 Fashion.

Methodology

Industry-Focused Solution for Fashion

Our solutions are specifically designed to address the nuances of the fashion industry. From supply chain management to customer engagement, we provide tools and strategies that optimize operations, improve efficiency, and enhance your brand's presence in the market.

Implementation and consulting expertise

CeleRITE for AFS to S/4HANA Fashion Migration

CeleRITE is our proprietary tool that accelerates and simplifies the migration from AFS to S/4 Fashion. It offers a seamless transition by efficiently managing complexities and minimizing potential disruptions, allowing you to focus on your core business.

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Saving Up to 50% Costs and Time on Migration:

With our tailored approach and advanced tools, we can help you achieve significant savings in both cost and time during your migration process. Our efficient methods and expertise ensure a faster, more streamlined transition to S/4 Fashion, maximizing your investment.

CeleRITE S/4HANA Transformations

S/4HANA Fashion Assessment

CeleRITE specializes in providing tailored assessments for fashion retailers seeking an efficient migration to S/4HANA without resorting to a greenfield approach. Our process is meticulously crafted to address the unique needs of fashion retail businesses, ensuring a seamless transition while maximizing operational efficiency.

Once you sign up, with CeleRITE, we will be conducting a comprehensive analysis of the source system, meticulously examining various facets including business processes, custom code, and master data to understand the current landscape. We also keep stakeholder alignment as a key focus, where we identify process improvement opportunities, define data requirements, and facilitate crucial decisions to ensure a smooth migration journey.

And in the end, the deliverables include a detailed Technical Assessment Report, providing valuable insights into the current system landscape and actionable recommendations for optimization. Additionally, we offer a comprehensive Implementation Approach, detailing adoption frameworks, fit-to-standard scope, and mapping new capabilities to the roadmap, ensuring that fashion retailers can harness the full potential of S/4HANA while minimizing disruption to their operations.

Get Your Free Assessment

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Talk to our Experts

Norb Brumbergs

Norb Brumbergs

Senior Vice President-SAP Delivery
Chris Couch

Chris Couch

Vice President and General Manager
Don Valentine

Don Valentine

Vice President-Sales & Client Services
Richard Pascoe

Richard Pascoe

Vice President-Consulting Services

Schedule a time to meet us

We would love to discuss how our platform can support your needs. Reach out to schedule a meeting with our team today.