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The Procure-to-Pay for Fashion ES bundle service-enables SAP Apparel and Footwear (SAP AFS), an add-on to SAP ERP that provides companies in this industry with the ability to implement global strategies, ensure consistent quality, and react quickly to customer demands.

In particular, the bundle provides enterprise services to enable brand owners to enhance connectivity with their suppliers and vendors in order to support a number of procure-to-pay processes and scenarios.

For example, outsourcing manufacturing is a very important component of the fashion industry. Frequently, the design and marketing functions of a brand owner happens in the European and North American markets while manufacturing is outsourced to low-cost suppliers in the Asia-Pacific region and Mexico. It is also true that within this industry in particular, brand owners and their multiple suppliers and vendors must maintain a high level of interaction and communication in order to maintain a smooth flow of purchase, production, delivery, and invoice processes.

The Procure-to-Pay for Fashion ES bundle provides enterprise services that enable brand owners to create composite applications that support this critical connectivity and communications with their suppliers and vendors.

Buyers will be able to use such a composite application to select an appropriate supplier for a purchase requisition, translate the requisition into a purchase order, and then submit that purchase order to the supplier. Further, services in this ES bundle support item information at the Stock Keeping Unit (SKU) level of detail, which includes dimension characteristics (such as size and color) and category characteristics, such as quality. Information on season collection and theme are also available via these services.

Once a purchase order is received, the supplier sends confirmation that it is able to process the purchase order. The enterprise services included in this bundle also enable the brand owner or supplier to make changes to the purchase order as necessary. In addition, the bundle also enables suppliers to automatically update the status of a specific purchase order in the brand owner's system as well as sending Advanced Shipping Notifications (ASNs).

This ES bundle leverages enterprise SOA to supports a high level of collaboration between brand owners running SAP ERP and SAP AFS and the many suppliers and vendors that manufacture and their respective products, enabling the fast-moving procure-to-pay processes and scenarios that this industry requires to remain competitive.

Audience

System administrators, managers, and clerks in the apparel and footwear industry will find the Procure-to-Pay for Fashion ES bundle beneficial for improving document flow and speeding transactions.

For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.


How to Use This ES Bundle

The collaboration between a supplier and a brand owner can be especially time-critical, particularly if the brand owner wants something changed on a purchase order, such as quantities or delivery times. Further, the level of interaction and communication between brand owners and their manufacturing partners within the apparel and footwear industry can be significant and represent a critical element in the success of the relationship.

Making it easier for brand owners and their suppliers to communicate, especially in an industry where so much production is outsourced, can optimize the business value of applications on the brand owner's side, such as SAP ERP and SAP AFS, as well as facilitating the relationships brand owners have with their manufacturing partners.

The Procure-to-Pay for Fashion ES bundle provides a means for brand owners and their suppliers/vendors to enable a higher degree of collaboration and create more efficient procure-to-pay processes without the need for custom integration.

The following series of use cases for the Procure-to-Pay for Fashion ES bundle show how different outcomes can be achieved by using the enterprise services in different combinations. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and reusability of these business objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Procure-to-Pay for Fashion ES bundle.

Use Case 1: Buying Cockpit

Rather then entering information right into SAP ERP, buyers at this brand owner have been given a composite application, referred to as a buying cockpit, that enables them to handle purchase requisitions and purchase orders through a user interface that is targeted to their tasks. Note: This use case assumes that a composite application was developed by the brand owner using enterprise services from this ES bundle.

The buyer needs to source and assign a supplier to a purchase requisition in order to create and submit a purchase order for products. The buyer then needs to track and follow the purchase order from receipt by the supplier to the ultimate delivery of the goods.

Using this composite, the buyer can search for the correct supplier for the job, create a purchase order, submit the purchase order, track it, make changes, and receive confirmations as well as information about deliveries.

Rather then entering information right into SAP ERP, buyers at this brand owner have been given a composite application, referred to as a buying cockpit, that enables them to handle purchase requisitions and purchase orders through a user interface that is targeted to their tasks.

The buyer needs to source and assign a supplier to a purchase requisition in order to create and submit a purchase order for products. The buyer then needs to track and follow the purchase order from receipt by the supplier to the ultimate delivery of the goods.

Using this composite, the buyer can search for the correct supplier for the job, create a purchase order, submit the purchase order, track it, make changes, and receive confirmations as well as information about deliveries.

Purchase Requisitions

Typically, the buyer receives purchase requisitions from SAP Material Requirements Planning (SAP MRP). The buyer may need to supplement these purchase requisitions by creating some purchase requisitions directly using the composite application using the Create Purchase Request enterprise service operation.

Purchase requisitions are less detailed than purchase orders (for example, they have typically not been not assigned a vendor yet). Purchase orders are legal documents that represent an agreement with a vendor to supply certain very specific items in a very specific timeframe. It is the buyer's job to do all the sourcing work and to transform purchase requisitions, which may be very general, into purchase orders that will fulfill the needs of the company in terms of its new styles and fashions or raw materials for subcontracting.

Purchase Requisition to Purchase Order

The user then would search for and select a supplier based on a number of attributes, such as price and capability to fulfill the order, and convert the requisition to a purchase order. At this point, the composite application invokes the Create Purchase Order enterprise service, which saves the purchase order into the company's ERP system and submits it to the supplier as well.

Confirming the Purchase Order

Upon receipt, the supplier responds with a confirmation message indicating they have received the purchase order and can commit to fulfilling it. At this point, the supplier's system invokes the Change Purchase Order Based on Purchase Order Confirmation enterprise service. This service may be used multiple times as the supplier moves forward in the production process and reaches certain milestones, allowing the supplier to update the buyer about the status of the order as frequently as needed.

Changing a Purchase Order

The vendor or buyer is also able to make changes to the purchase order when appropriate. For example, the delivery date or quantity may be changed prior to agreed upon milestones for the order. The enterprise service invoked by either the buyer's composite application or the supplier's system is Change Purchase Order.

Sending an ASN

Upon completion of the order, the supplier sends an Advanced Shipping Notification, which causes the system to invoke the Maintain Inbound Delivery Based on Despatched Delivery Notification enterprise service.

Upon receiving the ASN, the buyer's composite application will read the ASN by invoking the Read Inbound Delivery enterprise service.

Tracking Deliveries

After the delivery date of the products, the buyer can then do a search to determine that the delivery reached the specified delivery point. The composite application invokes the Find Inventory by Location and Material enterprise service. The user can then select the order from a search results list, which causes the composite application to invoke the Read Inventory enterprise service.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: MRP system generates purchase requisitions and propagates them to the buyer's UI.

(no enterprise service is invoked during this step)

Step 2 (optional): The buyer creates any supplemental purchase requisitions

Create Purchase Request

Step 3: The buyer selects a supplier and converts the purchase requisition into a purchase order

Create Purchase Order

Step 4: The supplier confirms purchase order

Confirm Purchase Order

Step 5: If needed and permissible, the supplier or buyer can make timely changes to the purchase order.

Change Purchase Order

Step 6: Supplier sends ASN

Maintain Inbound Delivery Based On Despatched Delivery Notification

Step 7: Buyer reviews inbound deliveries

Read Inbound Delivery

Step 8: Buyer checks location of inbound delivery

Find Inventory by Location and Material
Read Inventory

Use Case 2: Vendor Collaboration

This use case can be considered the flip side of Use Case 1 in that it represents the interaction and communication from the supplier's side. When a vendor logs into the brand owner's composite application, they can receive purchase orders and report back changes and update status information as orders are processed. The purchase orders are automatically converted into sales orders in the vendor system. The vendor also can use the composite application to send shipping notifications upon production completion.

To begin, rather than rely on email or some other manual process for submitting purchase orders, the brand owner gives the supplier access to a composite application. The brand owner created this composite application using the enterprise services contained in this bundle.

When the supplier logs into the composite application, the composite application invokes the [Find Purchase Order Item by Account Assignment enterprise service in order to create a list of purchase orders. The supplier can then confirm that it can fill the purchase order and can even make some changes to it (based on business rules). This causes the composite application to invoke the [Change Purchase Order Based on Purchase Order Confirmation enterprise service. The supplier may also use this enterprise service to create confirmations as milestones in the production process are reached.

Also, the brand owner or supplier can make changes to the purchase order, which are replicated in both systems. This action causes the composite application to invoke the Change Purchase Order enterprise service.

Once the order has been produced, the supplier can prepare and send an Advanced Shipping Notice to the brand owner. This action causes the composite application to invoke the [Maintain Inbound Delivery Based on Despatched Delivery Notification enterprise service. Receipt of the ASN is also the trigger for the brand owner's ERP system to create a goods receipt.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Vendor logs into the Web-based composite app and is presented with a list of purchase orders.

Find Purchase Order Item by Account Assignment

Step 2: Vendor sends confirmations, changing quantities or dates as needed.

Change Purchase Order based on Purchase Order Confirmation

Step 3: If needed, the brand owner makes changes to the purchase order, which is reflected in the vendor's system.

Change Purchase Order

Step 4: Vendor sends more confirmations as production milestones are reached.

Change Purchase Order based on Purchase Order Confirmation

Step 4: Vendor sends ASN.

Maintain Inbound Delivery based on Despatched Delivery Notification

Step 5: Brand owner creates a goods receipt for the inbound delivery in ERP.

(no enterprise service is invoked during this step)

Future Directions

Future directions for this ES bundle will be market-driven.

System Requirements

Related ES Bundles