]

Orange County Convention Center

Orlando, Florida | May 15-18, 2011
AFS and Retail Solutions Integration
Rena Cummings, Fossil
Cuneyt Vanli, Luxottica
Christoph Schroeder, SAP
Real Experience. Real Advantage.
[
AFS and Retail Solutions Integration
Consumers
Retail Store
Distribution
Center
Wholesale
Business
Sourcing Agent
Factory/
Sourcing
Critical Component Raw
Material Vendors
Consumer
Direct
Brand
Wholesalers
Retail Customers
3PL/4PL
Domestic Shipping
3PL
Freight
Consolidator
Retail
Business
SOs - POs
Distribution
Center
ecommerce
Real Experience. Real Advantage.
[ Agenda
Welcome & Introduction (Christoph Schroeder)
Fossil runs SAP (Rena Cummings)
Oakley runs SAP (Cuneyt Vanli)
Wrap up (Christoph Schroeder)
Real Experience. Real Advantage.
[ Fossil runs SAP
5
Real Experience. Real Advantage.
[
6
Learning Points
Fossils wins and hurdles
Process flow of an order between AFS and Retail
Data flows between AFS, Retail and POS
Real Experience. Real Advantage.
[ Basics
Have about 400 stores globally.
Initial go-live of Retail was April 2007. EMEA project in 2010 Retail and 2011 POS
Done in two phases our most recent project. Phase I EMEA stores moving on Retail
go-live in fall of 2010. Phase II is POS rollouts to EMEA stores, and is still going on..
The POS rollouts should be done by this summer. Asia Pacific would be next for POS
rollouts, perhaps 2012.
On ECC 5.0 in Retail and needing to upgrade to ECC 6.0; AFS 6.0
Before EMEA we were already live in UK, US, AU and CA. Coming in in perhaps late
2011 or early 2012: upgrade of Retail to ECC 6.0 and Asia Pacific stores on Retail. Asia
Pacific stores act as subsidiaries now. With a sub relationship in the wholesale AFS
system.
Ten countries included in the scope of the Global Fast project for EMEA: Germany
(DE), France (FR), Netherlands (NL), Denmark (DK), Spain (ES), Italy (IT), Austria (AT),
Belgium (BE), Sweden (SE) & Switzerland (CH).
Price differently for full price and outlet, so needed a mechanism that allowed different
prices by concept.
Real Experience. Real Advantage.
[
8
Best Practices / wins
Easier to segregate accounting transactions using Retail, instead of being a sub on
Wholesale.
Supported integration with an upgraded POS system. Have information of flow to
registers and back in this presentation.
Gives stores a mechanism for inventory control and visibility to shrinkage.
More visibility to purchasing related to individual Retail stores (Retail buyers can
purchase inside Retail directly), margins, profit and loss, open to buy Just makes
stores easier to analyze.
Less taxation on batch job stream b/c unless dependencies are required we can run
jobs in AFS at same time as Retail, have interfacing jobs. Allows Retail to run some
unique processes without impacting AFS.
Outages for Retail do not have to be same time/date as AFS & vice versa.
Real Experience. Real Advantage.
[ Challenges for Fossil
Pricing and listing requires much time and effort b/c of AFS houses the material master data.
There does not seem to be a good way to create large volumes of data directly into Retail (that
we are aware of)
Why is there not a CIF mechanism for moving data between AFS and Retail like there is
between AFS and CRM and AFS and APO????
Ability to use one default order type, so use multi-store order, need method for using no charge
order when items should be free of charge.
The styles have pricing by size in Retail but we do not price by size in AFS, so have issues with
idoc postings that require clean up. (Use return authorization in AFS, but idocs from Retail fail
b/c of pricing by size in Retail that we do not have in AFS.)
Our design requires transport of sold to per concept and country, not glamorous to transport
customer data.
The interface design is quite complex, there is a large learning curve for users to pick up master
data efforts.
Real Experience. Real Advantage.
[ Process flow of an order
PO placement
Purchase Order
Invoice Verification
Multi Store Order
Allocation (runs in background)
Post Goods Issue
Invoice job run
Billing output
SAP Retail SAP AFS
i
D
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c
i
D
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c
Real Experience. Real Advantage.
[ Data interfacing with POS
Real Experience. Real Advantage.
[ Retail order processing
*Use copy of BD10 transaction we call ZBD10 to load ARTMAS, COND_A & INFREC, DESAV
in our ZWRR delivery output and INVOIC in our Z810 output
Real Experience. Real Advantage.
[ Store processing
Real Experience. Real Advantage.
[ Store register example
Real Experience. Real Advantage.
[ Agenda
Welcome & Introduction (Christoph Schroeder)
Fossil runs SAP (Rena Cummings)
Oakley runs SAP (Cuneyt Vanli)
Wrap up (Christoph Schroeder)
Real Experience. Real Advantage.
[ Oakley runs SAP
16
Real Experience. Real Advantage.
[ Background Oakleys Experience
Oakley has implemented SAP Retail in 2004 to support its retail stores.
Most of the implementation effort was dedicated to enhancing and building the
integration points between Oakleys AFS and retail systems.
Oakleys integration efforts included the following:
Article master Standard interface was utilized and enhanced with custom solutions to
allow handling of large number of articles with minimal manual handling.
Financials Custom interfaces were created to address the requirement to move the
financial data to the AFS system as the system of record.
Order management Standard IDOCs were utilized with various user exit
enhancements.
Pricing Custom interfaces were created to monitor the changes in the key pricing
elements in the AFS system and update pricing and cost in the retail system.
BW extracts Standard extracts with user exit enhancements were used to normalize
data.
Various reporting tools These were created to address the requirement to provide
real time inventory visibility across the systems.
Real Experience. Real Advantage.
[ Dual Instance Integration Points
As the number of retail doors increase, the need for more robust, comprehensive
integration between AFS and Retail is needed:
Financials
Inventory visibility and Merchandise Distribution
Master data
Material master
Price and Cost
Order processing
Business warehouse integration
Real Experience. Real Advantage.
[ System Landscape
LEGEND
SAP RETAIL
SAP AFS
Material
Master
Article
Master
SYSTEM
OF
RECORD
Article
Enrichment
Material
Creation
Key Pricing
Data
Key Pricing
Data
Retail
Pricing
Pricing
Creation
Sales
Order
Purchase
Order
Fulfillment
Request
Allocation
Shipment
Ship
Notification
POS
Receipt
Sales
Returns
Inventory
Adjustment
s
Financial
Postings
Via POS
Integration
G/L Data
Extract
G/L Data
Posting
Financial
Reporting
Accounting
for Retail
Inventory
Lookup
Inventory
Lookup
Reporting
DC on Hand
for Retail
SAP BW
Function
Integration
Process
Custom Enhancements
Standard Integration
Minor Improvements
Real Experience. Real Advantage.
[ Financials
REQUIREMENTS
The AFS system is determined as the system of record for the organization.
Retail company codes are closed in the AFS system together with all other company
codes for the organization.
Financial reporting for the organization, including retail business, is produced out of
the AFS system.
All financial transactions are replicated in the AFS system in detail.
CHALLENGES
Financial data is critical and failures in the integration can have unforeseen financial
and legal ramifications.
Significant development effort needed for custom solutions to build a robust tool
that can handle large volumes of financial data with proper monitoring tools.
Continuous maintenance and support of the complex custom interfaces
WHAT EXISTS
There are no standard integration tools to move financials as journal entries from
one system to the other in the context discussed here.
WHAT IS NEEDED
Standard integration between the retail and the AFS systems to move financial
transactions.
Proper monitoring and error resolution tools to ensure transactions are not
duplicated or lost and all financial data is properly moved.
Integration will need to be able to support large volumes of data.
Configuration tools to manage the integration parameters.
Real Experience. Real Advantage.
[ Inventory Visibility and Merchandise Distribution
REQUIREMENTS
Distribution centers are managed in the AFS system.
Retail stores are replenished and fulfilled from the DCs in the AFS system.
Day to day retail operations require visibility to DC inventory.
Planning distribution to retails stores based on DC quantities or receipt against a
collective purchase order.
CHALLENGES
DC inventory levels play a key role in the retail planning and replenishment
processes. W
A number of function in the retail system especially around merchandise distribution
cannot be utilized due to lack of a retail DC. However the DCs that exists in the AFS
system serve as the DC to retail business.
WHAT EXISTS
No standard tools exists.
WHAT IS NEEDED
Capability to have full visibility to DC inventory levels across the systems.
Capability to execute push and pull type of distribution planning in the retail system.
Capability to execute on the distribution plan in the AFS system.
Best practice scenarios defined and configured to support these processes.
Real Experience. Real Advantage.
[ Master Data Article Master
REQUIREMENTS
The AFS system originates material master data.
A selected assortment is needed in the retail system.
Materials and grids are mapped to articles and variants.
Data is extended in the retail system for retail use.
CHALLENGES
Typically the large number of materials that need to be replicated and the
complexity of the data object (due to style SKU relation), makes the manual handling
during the integration process unpractical.
Because of the mapping between material-grid to article-variant the replication of
the data is only possible through the interface.
Enrichment of the article master data in the retail system requires manual
intervention.
WHAT EXISTS
Standard AFS to retail interface for articles is provided by SAP.
A workflow technique is proposed to trigger a manual process to extend the
articles in the Retail system.
WHAT IS NEEDED
Extended mapping options and ability to initiate a process chain to allow automated
enrichment of article data in the retail system.
Ability to monitor and alert for errors during the process.
Ability to manage certain changes to update article master data in the retail system.
Real Experience. Real Advantage.
[ Master Data - Pricing and Cost
REQUIREMENTS
The AFS system identifies key price lists such as MSRP and wholesale pricing.
Ability to utilize these price points in the retail system directly or as basis for
further pricing.
CHALLENGES
Having price variations between the two system can lead to financial ramifications
and lost opportunities.
WHAT EXISTS
Integration exists to move sales pricing conditions from the AFS system to the retail
system as purchase conditions.
WHAT IS NEEDED
Further capability to move any type of sales and purchasing pricing data from the
AFS system to the retail system and store them as various pricing elements as needed.
Capability to keep pricing in sync in between the two systems.
Real Experience. Real Advantage.
[ Order Processing
REQUIREMENTS
Establish a buy-sell relation between the two systems where the retail system buys
from the AFS system.
Fulfill replenishment requests generated from the retail system.
Execute shipping and receiving functions while keeping related documents across the
systems updated accordingly.
CHALLENGES
Reconciliation processes between the retail system and the AFS system for open
quantities, inventory in-transit and quantity differences encompasses a large number of
documents.
WHAT EXISTS
Integration is managed through standard EDI flows that encompasses purchase
order, shipping notification and invoice.
WHAT IS NEEDED
Enhanced integration capabilities between the two systems to keep purchase orders
and sales orders in sync constantly. (Integration model between SAP CRM and SAP
ERP can be taken as an example here).
Clear view of unfulfilled demand.
Real Experience. Real Advantage.
[ Business Warehouse Integration
REQUIREMENTS
Provide a common view of the organization including all lines of businesses including
retail, wholesale, e-commerce etc.
CHALLENGES
For the organization there is one item master data which is typically the material
master in the AFS system. Thus article numbers need to be mapped to material
numbers for the common data structures.
Differences in the structure of article and material master data requires a data
normalization effort while extracting into BW.
Differences in the transaction structures requires some mapping effort to populate
the BW data structures.
WHAT EXISTS
Standard BW extracts exists
BW can handle both article and material numbers.
WHAT IS NEEDED
Mapping tools to normalize the data for a common data structure.
Real Experience. Real Advantage.
[ Agenda
Welcome & Introduction (Christoph Schroeder)
Fossil runs SAP (Rena Cummings)
Oakley runs SAP (Cuneyt Vanli)
Wrap up (Christoph Schroeder)
Real Experience. Real Advantage.
[
Wrap up: AFS and Retail Solutions Integration
Consumers
Retail Store
Distribution
Center
Wholesale
Business
Sourcing Agent
Factory/
Sourcing
Critical Component Raw
Material Vendors
Consumer
Direct
Brand
Wholesalers
Retail Customers
3PL/4PL
Domestic Shipping
3PL
Freight
Consolidator
Retail
Business
SOs - POs
Distribution
Center
ecommerce
Real Experience. Real Advantage.
[ Relationship Between the Two Systems
Both systems must be configured as EDI Partners in
order to exchange business documents
AFS defined as the Vendor in Retail
Retail defined as the Customer in AFS
Retail Sold-To partner function defined for Corporate Retail
Account
Retail Ship-To partner function defined for Retail Stores and
DCs
Implementation scenario
Begin with AFS
Retail in conjunction
Real Experience. Real Advantage.
[
Leveraging Coordinated Business Processes across two Systems
Merchandise Category
Style Master
Assign Styles to Stores
(Workflow)
Purchasing Price
Info Record w/ Conditions
Purchase Order
Invoice Verification
Customizing Tables
for Interface
Style Master
Sales Price
w/ Conditions
Sales Order
Delivery
Invoice
Merchandise Category &
Related Data via ALE
Article Master via ALE
Info Record & Pricing
Conditions via ALE
Purchase Order via ALE
Advanced Shipping Notice
(ASN) via ALE
Invoice via ALE
SAP Retail SAP AFS
Real Experience. Real Advantage.
[
]
Thank you for participating.
SESSION CODE:
3003
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