JD Edwards Summit Effectively Selling to Apparel Companies Pat Mariles – Business Development Director Sharon Winter – Principal Product Manager Geoff Rollins – Sales Consulting Manager Ed Kubulins – Principal Sales Consultant Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 2 Program Agenda 1 Understanding Apparel Industries 2 Target Industries 3 When to Position Best of Breed (BoB) Solutions 4 Demo Fundamentals 5 Customers 6 Collateral Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 3 JD Edwards EnterpriseOne Apparel Management SELL SHEET Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 5 Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Know the industry and competition Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Apparel Industry Background • History of point solutions – Financials – JD Edwards, Microsoft, Great Plains – Apparel – niche players, AFS, RLM, Re…., Blue Cherry – PLM – Siemens, Gerber • Low margin, fashion driven up’s and downs • Outsourced manufacturing • Everyone knows everyone Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 7 Talk the Talk Know the Fashion Industry Terminology • Understand their industry segment • Be smart about how to demo – Create the style item relative to their business, don’t call it an item – Once a Style Item (Jean.Blk.32.34) is created it works like any stock JDE E1 item – Understand how they define a collections and how to support the style item in a collection/season – Under how they ship/allocate goods (region, size, colors, etc) – Understand the Seasonality; Buy Week/Season Introductions, Bulk(Planning) orders; confirmation or distro orders; prepacks; estimated vs. actual costs. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management Potential Apparel Target Industries: •Wholesale Distribution •Manufacturing •Textiles •Retail Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management Textiles • The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. – The raw material may be natural, or synthetic using products of the chemical industry. • Any cloth or goods produced by weaving, knitting, or felting. • A material, as a fiber or yarn, used in or suitable for weaving: Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management Manufacturing • Two distinct manufacturing processes: (1) cut and sew (i.e., purchasing fabric and cutting and sewing to make a garment), and (2) the manufacture of garments in establishments that first knit fabric and then cut and sew the fabric into a garment. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management Wholesale Distribution • Wholesale fashion distribution refers to the global market of bulk clothing sales, in which producers, wholesalers and sellers are involved in a commercial, businessto-business process Apparel companies design and produce/source items that they sell to retailers, including department stores, specialty shops and discounters. • Often, a company owns licenses to manufacture goods under particular brand names, and will market and advertise these lines. • Wholesale from a retailer company perspective, especially retailers who either have both internal and external customers or handle the retail stores as customers of the wholesale buying organization. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management Retail – Retailers consist of small and large for-profit businesses that sell products directly to consumers. To realize a profit, retailers search for products that coincide with their business objectives and find suppliers with the most competitive pricing. Generally, a retailer can buy small quantities of an item from a distributor or a wholesaler. – Retail stores are typically more profitable than their wholesale brethren. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. When to Position Best of Breed (BoB) Solutions Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management When to Position Best of Breed Solutions: Product Lifecycle Management (PLM) • http://www.whichplm.com/ • Good reference site - Independent digital magazine dedicated to the fashion industry. • • • • • • Gerber Infor Runtime PLM Lawson Lectra PLM - European French solution supporting the automated cutting (hardware & software) Oracle Agile PLM - This solution does not support the Style Items TXT e-solution PLM - European Italian solution with SME in the apparel • Excel is widely used on a global level Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management – Retail Industry Inventory and procurement overlap Full integration versus drill back with CAFE1 Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management When to Position Best of Breed Solutions: Point of Sale (POS) • On September 8, 2014, Oracle completed the acquisition of MICROS Systems. • MICROS headquartered in Columbia, Maryland,: http://www.micros.com/ • MICROS multi-channel software solutions are all about enabling you to create a shopping experience that allows customers to purchase when, where, and however they prefer— even using multiple channels for a single transaction. For your organization, it means gaining immediate visibility across your stores, website, and catalogs and mailings. MICROS helps you to connect supply to demand enabling you to provide excellent customer service, increase revenues, and reduce costs. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management When to Position Best of Breed Solutions: GTM/OTM • Global Trade Management (GTM): – Global trade automation platform that enables companies to optimize and streamline business processes related to cross-border trade. With well-structured compliance policies, and trade automation tools to help implement and enforce those policies, companies can achieve best practices in global trade both within and outside of their organization. – GTM allows companies to holistically manage all aspects of trade and transportation on a single logistics platform • Oracle Transportation Management (OTM) – Transportation Management integrates and streamlines transportation planning, execution, and freight payment on a single application across all modes of transportation, from full truckload to complex multi-leg air, ocean, and rail shipments. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Demo Fundamentals Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 20 Why We Won, Why We Lost, Lessons Learned • Why We Won: • Fully embedded solution • Existing install base customer, lower TCO • Mature base wholesale distribution solution • Why We Lost: • SAP AFS solution is well marketed – Must stop the noise! • Microsoft – Familiarity – Ease of use but not all-inclusive • Lack of embedded POS and PLM Solution • Lack of understanding of solution Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Why we won, why we lost, Lessons Learned • Lessons Learned • RFP discovery & understanding of customer requirements are vital • Known your industry lingo • Pull in industry SME’s to assist throughout the sales deal • Consider co-partnering with a SME Apparel Consultant • Contact Business Development Organization to assist • Understand how the Oracle BoB solution can round out the offering • Understand the importance of third party solutions like PLM & WMS – Understand how JDE E1 integrates with third party BoB solution • Do not setup items on the fly during the demo. Have the items setup already. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Challenge Areas • Known Challenge Areas – Procurement Pricing, Costing, Mass Maintenance, Import of style child items • Learn what is on the roadmap and what can be customize easily. – Lack of reference that emulate your prospect exactly. • Be creative, think outside of box, use what we have • Reference-able stories exist across industries…show momentum. – Provide Solutions to missing functionality Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Main Competition Oracle Differentiators with Competition Part of the Oracle Family, Fully Embedded Solution , Broader range of functionality to support multiple industries, Core functionality set to address market needs, Low Cost of Ownership, Open Platform choices, Speed of implementation, Ability to support companies of all sizes with easily configurable applications. SAP AFS Strength • • Weakness • • • • Microsoft – Blue Cherry Lawson Strength Strength • • • Seems easy to personalize for customer, Demo’s well, Nice integration to Microsoft Office. • • • • • Apparel Template is not a Microsoft Solution, Blue Cherry is used as a ‘bolt -on’, Poor range of Apparel functionalities, Apparel Solution strong presence in USA and Italy, Microsoft Dynamics Ax considered more as a toolbox than as a strong ERP Application. Weakness Dominant market share with global presence, Strong reference base, Better marketing. AFS is not part of the native SAP ERP solution, AFS was built outside of SAP, Documented high TCO. 2 item databases – syncing issues between AFS & SAP, Not all the ERP functionalities are available for Apparel business, Solution to expensive and complex for a mid-market company • • • • • Strong Apparel & Footwear install base (mainly in Europe) Deep Apparel and Footwear functionality Preconfigured solution Offers a strong PLM solution Aggressive Pricing • • • Lack of flexibility Not a complete ERP Solution – No TMS Fashion solution perceived as a Eurocentric software with light U.S. and APAC presence Weakness Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 27 Customers Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne Apparel Management 1 1 1 Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 29 JD Edwards EnterpriseOne Apparel Management 25 20 15 Total Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 30 JD Edwards EnterpriseOne Sampling of Customer Install Base * Validation of References required Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Key points Gaining Traction in apparel Know the industry Leverage Oracle SC’s demo pages Understand the challenge areas and have options Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards EnterpriseOne DSS Documentation Available GSE documentation via home page: • https://demo.oracle.com/apex/f?p=100:10:112867424005513:SEARCH:N O:10%2CRP:F_SEARCH:JDE+apparel+Management • • • • • • • JDE Apparel Management Cheat Sheet JDE Apparel Management Data Plan JDE Apparel Management Demo Script JDE Apparel Management TOI Data Plan JDE Apparel Management Roll Product Definition JDE Apparel Management T Shirt Product Definition JDE E1 Apparel Management How To Script • Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Additional Documentation and Information • Doc ID 1468154.1 – JDE E1 Apparel Management Tutorial - 120 minute recorded selfstudy tutorial. • Doc ID 1329957.1, 1228573.1, 238883.1 • • • • • • • • • • • • • JDE E1 Apparel Management 9.0 Implementation Guide, Release Notes, Webcast Links, JDE E1 Apparel Management 9.0: Master Work Order Issues, Changes to Base Programs for JDE E1 Apparel Management, Modifications to PCW081 and PCW082 Collections Management Programs. Doc ID 1502200.1 - Creating Style Items for Apparel. Doc ID 1310896.1 - Country of Origin functionality (9.1 enhancement) within the manufacturing Apparel Master Work Order Processing module. Doc ID 1501184.1 - Interoperability process for loading Apparel style items. Doc ID 1501204.1 - Can Product Scheduling Work With JDE E1 9.1 Apparel Management? Doc ID 1516275.1 - PCW47 – Understanding the Processing options and how they work. Doc ID 1448036.1 - How are hours & quantities entered at the Master Work Order level for Style Work orders. AND MORE! Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 40 Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 41