The 2017 release of SAP S/4HANA, SAP®’s next-generation ERP, featured a specific solution for the Fashion industry for the first time. SAP S/4HANA for Fashion and Vertical Business brought together existing and new capabilities that when combined are specifically intended to work for fashion businesses.
With the newest release in late 2018, SAP has expanded the functionality of SAP S/4HANA for Fashion and Vertical Business, showing the vendor’s continued commitment to the industry.
Why was a specific solution created for fashion and vertical businesses? In the past, fashion businesses looking to sell their apparel both in their own stores and other locations—such as online retailers and department stores— typically had to have two ERP systems to conduct their business. SAP S/4HANA for Fashion and Vertical Business looks to bring the capabilities of retail, wholesale, and manufacturing into a single product.
That integrated functionality, combined with consumer-grade user interfaces, embedded intelligence and analytical functionality, and simplified processes in SAP S/4HANA will help companies in the fashion industry meet the demands of an on-demand and digital market.
What’s New in SAP S/4HANA for Fashion and Vertical Business
The initial release of SAP S/4HANA for Fashion and Vertical Business focused on retail wholesale functionality, with the promise that manufacturing would come next. With the delivery of the fall 2018 update of SAP S/4HANA, that promise was kept.
You can view all Fashion and Vertical Business updates on the S/4HANA 1809 release notes from SAP, but here are some of the manufacturing highlights:
Enhancements in Materials Requirement Planning (MRP)
Updates to MRP in SAP S/4HANA Fashion and Vertical Business include functionality in monitor material coverage, a Fiori application for monitoring shortage situations of segmented materials and articles, stock sort based on segmentation, consumption of planned independent requirement (PIR), cut-off calendar, planning mode, and supply assignment.
Segmentation in Stock Overview
With this upgrade, companies can view stock overview for materials in a tree structure by company code, plant, storage location, batch, and segment-based batch.
Why These Enhancements Matter for Customers
These enhancements within MRP enable efficiencies around stock, which ultimately makes your stock more productive by limiting markdowns, waste, displacement and shortages. The main goal in Fashion Retail (in simple terms) is how to get product in the right place, at the right time and in the right quantity. The additional features highlighted above essentially improve upstream processes by providing enhanced visibility and flexibility. This allows controllers to make quicker decisions that will ultimately minimize costs, which drives higher margins.
The Benefits of a Unified System
With SAP S/4HANA Fashion and Vertical Business allow fashion organizations to operate in a wholly integrated manner—rather than segmented because of lacking technology, that enables agility via the merging of materials, inventory, sales, and more. Designed specifically to meet the needs of today’s fashion industry, SAP S/4 HANA for Fashion offers a simple answer to a new set of customer and market demands. An intelligent ERP suite, it helps fashion companies run every facet of their business in real time with less complexity, faster business processes and new business capabilities that weren’t possible before.
That means efficiency, and in an increasingly competitive fashion market, gains that allow a company to deliver products faster for consumers are worth achieving.