3005 AFS 3.0 Upgrades

Agenda

•VF Corporate Overview

•VF Supply Chain

•System Overview

•System Rollout

•Lessons Learned

VF Corporate Overview

•VF is the largest apparel company in the world with 2002 sales of $5B

•Publicly traded on New York Stock Exchange - symbol VFC

•Founded 1899 Reading, PA

•Headquartered in Greensboro, NC with locations worldwide

•Over 57,000 employees worldwide

VF Corporate Overview

•Divided into 5 operating coalitions:

•Jeanswear - Wrangler, Lee, Rustler, Brittania, Chic

•Intimates - Vanity Fair, Vassarette, Bestform

•Imagewear - Red Kap, Bulwark, Penn State, Nutmeg

•Playwear - Healthtex, Lee Kids

•Outdoor - Jansport, Eastpak, The North Face

Discount StoresDiscount Stores

Department StoresDepartment Stores

Casual PantsCasual Pants

1 out of every 4 jeans sold in the U.S. is a VF Brand!

®

WesternWestern

North & South American Jeanswear Coalition

Global Intimate Apparel CoalitionGlobal Intimate Apparel Coalition

• DomesticDomestic

InternationalInternational

Outdoor CoalitionOutdoor Coalition

•

JanSportJanSport

The North FaceThe North Face

EastpakEastpak

Imagewear CoalitionImagewear Coalition

• VF WorkwearVF Workwear

VF Brand SolutionsVF Brand Solutions

®

Licenses to produce Licenses to produce apparel from NFL,apparel from NFL,MLB, NBA, NHL, MLB, NBA, NHL, NASCARNASCAR

Customers include FedEx, Customers include FedEx, American Airlines, INS, American Airlines, INS, Sysco, AT&TSysco, AT&T

Licensed Sports Licensed Sports VF Solutions

International Jeanswear CoalitionInternational Jeanswear Coalition

•

Strong market shares in a Strong market shares in a variety of global marketsvariety of global marketsStrong market shares in a Strong market shares in a variety of global marketsvariety of global markets

VF Supply Chain Jeanswear

•65 % of end item product is produced internally

•7 Distribution centers, 22 manufacturing facilities, 7 cutting centers, 8 laundries

•60 contract manufacturing plants

•1025 active fabrics

•4047 active trims

•Owned plants in U.S., Mexico, Central America, and Europe

•Other managed suppliers worldwide

VF Supply Chain

•Over 500,000 SKU’s offered to customers worldwide

•Customers are in all channels of distribution

•Mass, Department Store, Mid-Tier

•Wholesale and direct distribution

•eRetail direct to consumer

•Primarily ‘made-to-forecast’ business

•High service level requirements

•Vendor managed inventories

VF Supply Chain

•Constantly changing merchandise

•Fashion driven

•Three seasons at a time

•Variety of lead time

•70% of jeans are “at once” delivery

•Forecasts based on style and color

•Size is determined by i2 SCP

Systems Overview

•Common System Initiative

•Infrastructure

•Connectivity

•Reliability

•Acquisitions

Systems Overview

•Architecture

•SAP

•Logility

•WebPDM

•i2 SCP

•i2 DF

•Legacy

•Data Warehouse

Systems Overview

•Connectivity

•Interfaces

•MQ Series

•MQI

•TIBCO

Systems Overview

•Reliability

•Vendor Support

•Timely enhancements

•Customization

•Industry Specific Solutions

Systems Overview

•Acquisition

•Standard approach

•Package solution

•Best practices

Solution Overview SAP

•Selected SAP as ERP common system - 1995

•Designed AFS solution with SAP and Reebok

•Installed SAP (MM,PP,FI and CO) in Jeanswear - Feb 2000

•Upgraded to release 4.6 / 3.0

•Installed SAP common solution in Outdoor (Jansport) - Jan 2003

•Installed SAP common solution in Outdoor (The North Face) - May 2003

Solution Overview - Jeanswear

M aster DataO rder EntryW arehouse

(Legacy)

Product Developm ent(W ebPDM )

ATP(i2 DF)

SAPM aster Data

SAP(FI)

SAPRaw MaterialPurchasing

(M M)

SAPProduction

O rderCosting(PP/CO)

Forecasting(Logility)

ProductionPlanning(i2 SCP)

ProductionO rder

G eneration(Legacy)

FTP

FTP

FTPM

Q

MQ/MQI

MQ/MQI

M Q /M Q I

M Q /M Q I

MQ/MQI

Master DataOrder EntryWarehouse

(Legacy)Product

Development(WebPDM)

ATP(i2 DF)

SAPMaster Data

SAP(FI)

SAPRaw Material

M inimum BuyAnalysis

(MM)Inventory

SAPPurchase

OrderCosting(PP/CO)

Forecasting(Logility)

ProductionPlanning(i2 SCP)

M Q /M Q I

M Q

Solution Overview - Outdoor

System Rollout - Outdoor

•Kick off August 2001

•Rollout time line•Gapping Sept 2001 - Nov 2001•Master data mapping Nov 2001 - Jan 2002•Design and configuration Dec 2001 - Feb 2002•Code and unit test Mar 2002 - Sept 2002•System test Oct 2002 - Dec 2002•Training Jansport •Go live Jansport - Jan 2003•Training The North Face - Feb 2003 - May 2003•Go live The North Face - May 2003

System Rollout - Outdoor

•Staff reduction of 10 Outdoor IS

•Retired 2 legacy systems, ACS (Jansport), MOVEX (TNF)

•Facilitated combining Jansport and TNF as one business unit

System Rollout

•Staffing•Common Systems

5 Business analysts7 System analysts5 ABAP programmers5 Cobol programmers2 Trainers

•Jansport7 Business users4 Programmers

System Rollout

•The North Face

7 Business users

3 programmers

System Rollout

•Did not map As-Is, Gapped to To-Be•Controlled scope in gapping phase•Determined gaps and defined solutions

•Process change•System change

•Concentrated on Master Data

System Rollout - Testing

•Built stand alone complete test system

•Copied production systemprograms

libraries

JCL

configuration

batch scheduler system (ESP)

•Loaded test system with Production data

System Rollout - Testing

•Verified test system

batch run duplicating a process day

scripted batch verification

•Loaded test system with Outdoor data

•Test calendar

•Developed test scenarios with quanifiable results

•Scripted automated tests using Test Director

Planning Calendar

Sun Mon Tue Wed Thu Fri Sat16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar

Cycle 5 Check Batch ResultsDR Production Copy - basis for SysD/G Build 8 PM

Rebuilt Sysd will look exactly like production as of 03/18 Tuesday 8 PMBuild QACV from Production 8 AM Turnover QA (sysd/g) and T09/CV4 to IT 8:00 AMCopy SAP D08 to A01

Sun Mon Tue Wed Thu Fri Sat23-Mar 24-Mar 25-Mar 26-Mar 27-Mar 28-Mar 29-Mar

COW 1Batch - Wed night 03/19 Refreshed CV4/T09 will look exactly like SYSD as of 03/20 8 AMCV4/T09 Ready for Use

Sun Mon Tue Wed Thu Fri Sat30-Mar 31-Mar 01-Apr 02-Apr 03-Apr 04-Apr 05-Apr

Cycle 6 BatchCycle 7Batch

Sun Mon Tue Wed Thu Fri Sat06-Apr 07-Apr 08-Apr 09-Apr 10-Apr 11-Apr 12-Apr

Cycle 8 BatchCycle 9 Batch

Sun Mon Tue Wed Thu Fri Sat13-Apr 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr

Cycle 10 Cycle 10 - 03/25 - Tues Easter HolidayBatchCycle 11 Batch

Sun Mon Tue Wed Thu Fri Sat20-Apr 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr

Cycle 12 BatchCycle 13 Batch

Sun Mon Tue Wed Thu Fri Sat27-Apr 28-Apr 29-Apr 30-Apr 01-May 02-May 03-May

Preparation for Go Live

TNF System Planning Calendar

Cycle 5

Cycle 9 - 03/24 - Mon

Cycle 6 - 03/20 - Thurs

Cycle 7 - 03/21 - Fri

Preparation & Go Live Activities

Prod to QACV

COW 1 - Load TNF dataComplete Build / DR Batch

Refresh CV4/T09

Cycle 11 - 03/26 - Wed

Cycle 12 - 03/27 - Thurs

Cycle 13 - 03/28- Fri

D08 to A01

Cycle 8 - 03/22 - Sat

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

6PM Batch

System Rollout - Cut Over

•Conducted 5 practice cut overs (3 Jansport, 2 TNF)

•Developed comprehensive, detailed cut over plan (Artemis)

•Loaded Outdoor data to production instance

•without disruption to production

•developed plan to cut over around current production schedule

•Practices captured data time and record counts

•Load to production over 4 days (Jansport) 9 days (TNF)

Lessons Learned

•Don’t underestimate

•Time to complete

•Resistance to change

•Amount of process change

•Training

•Data cleansing effort

•Post go live support

•Staffing requirements - dedicated resources

•Hardware requirements

Lesson Learned

•Control the scope

•Just say NO

•Already is a production system

•Show the process, not just the system

•Value of a robust test system

•Don’t forget best practice processes

•Do not schedule another rollout immediately

•Detailed project plan with dependencies

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Session Code: [3005]