SAP Fashion Management ≠ SAP Retail

Thu, May 5, 2016


SAP Fashion Management is built on SAP's IS Retail platform but it is much more than IS Retail. It is a total business solution for the fashion and lifestyle industry from needle to customer and consumer. The solution covers manufacturing, wholesale, e-commerce fulfillment and retail business processes.

Given the IS Retail foundation, often stakeholders might be led to believe (incorrectly) that FMS is “IS Retail”. As a result of this, fashion brands with multi-channel vertical operations may not be optimizing the solutions true capabilities.

Here are some examples of specific areas that need to be considered:

Segmentation Strategies - Functionality to manipulate and optimize channel stock and requirements

Business benefits

  • Increase customer satisfaction
  • Increase revenue by minimizing lost sales and backorders
  • Reduce markdowns by optimizing stock utilization
  • Reduce Sourcing costs

Seasonality – Functionality to tag sales and product by season, collection and themes with time parameters

Business benefits   

  • Reduced costs
  • Increased revenue and customer satisfaction by getting the right product to DC to store and customer/consumer at the right time
  • Advanced analytics for:
                       Carry over discontinuation decisions
                       Markdown decisions
                       Planning optimization

Multi-Channel Order Allocation – Functionality to optimize limited or short stock across channels

Business benefits

  • Enhanced customer satisfaction
  • Identify important customers or stores
  • Allocate meaningful size ranges
  • Minimum thresholds

These are some of the unique features of SAP FMS and require the right level of thinking in order to maximize value of the vertically integrated solution. Check out our webinar with SAP's Chief Product Owner for SAP FMS. Christoph Schroeder to get a better understanding of what FMS provides.