Tuesday, January 28, 2014

Shortcomings of SAP Retail for Apparel and Footwear Companies - Trying to understand SAP


So how come SAP solution for Apparel and Footwear companies that sell their products to consumers is to implement two different systems (SAP Retail + SAP AFS)? Well, we have to go back a little in time to try to explain. It seems standard SAP R/3 was initially developed with a generic manufacturing industry in mind. Since there are so many manufacturing industries with unique requirements, the natural evolution was to enhance the R/3 system to create system flavors in order to fit better niche industries. That's why there are SAP industry solucions for the automobile, oil, pharma, oil, apparel and footwear industries, etc.

Following this strategy, SAP classified Retail as an industry as well, and went on to develop a solution for it which it named SAP Retail. However SAP missed the point that companies acting in manufacturing industries might as well decide to act as retailers as well in order to sell their goods directly to end customers. Classic example here are apparel and footwear companies that own stores and franchises.

Well, it seems SAP was paying attention. Following post from SAP (taken from this link) mentions that SAP is working on a single vertical solution for apparel and footwear companies with retail operations. This stuff will be a killer!!!:



SAP Brings Best Practices Back Into Fashion

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NEW YORK — SAP AG today announced plans to collaborate with key customers to better meet the challenges faced by apparel, footwear and accessory companies. Working with adidas, Luxottica and Tommy Hilfiger, SAP envisions bringing a new fashion solution to the marketplace that will better enable fashion brands to manufacture their products and sell them to retailers and consumers using one single, vertical solution. The announcement was made at the NRF 103rd Annual Convention and EXPO, being held January 12-15 at the Javits Convention Center in New York City.

Stay tuned for future posts about this new solution!