Documento apresentationV03.pptx

1. Business BluePrint Brazil DWM project September 2021

2. 2 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS

3. 3 PROCESS FLOW LEGENDA Symbol Definition Key Sub-Process Connection to another Process flow Step of the Process/Event Possible choice Database Connector Interface • Free Description • Free Description Process detail/notes I1 Refer to Process Legacy System SAP (on line transaction) Process activity (unspecified System support) Activity support System MM SAP (Batch processing) MM xxx Print Output

4. 4 ECC 1.1 Introduction: Purpose  The SAP WMS implementation will allow to manage in DWM the same Reserve information. This reflects in Warehouse management activities where the User will be able to perform Picking and Putaway regardless of the Reserves set in ECC System. DWM SKU A 50 pcs Reserve 999999 SKU A 100pcs Reserve 044000 SKU A 50 pcs Reserve 047000 SKU A 100pcs Reserve 999999  Transcoding will be done both from ECC to DWM during the Inbound Delivery distribution and Outbound Delivery distribution. In the Outbound process, when the System does the PGI in DWM, the Goods Issue movement is done on the Reserve chosen by a prior criteria managed in an ECC custom table. SKU A 150 pcs Reserve 999999

5. 5 Inventory Management (IM) is the basic feature available in ERP to manage the Stock. The Stock is managed at Storage Location level in IM. Key Features IM:  Inventory Management by quantity by Storage Location  Inventory Management by value, postings account in real-time  Integrated directly with MRP, Purchasing, Invoice Verification…  Documentation of all Receipt, Issues and Transfer  Management of Special Stocks  Carry out Physical Inventory at Material level Limitations IM:  Inaccurate System Inventory and Stock optimization is limited  Limited trace-ability  As replenishment cannot happen at the BIN/picking area level  No specific features are available for optimizing the space in a Storage Location  Cycle counting can only happen at Storage Location level  Not possible to use Mobile devices/RF applications Warehouse management (WM) is an extension of IM. The Stock is managed at Warehouse level in WM. Key Features WM:  Warehouse Management is real-time and automatic  Enables granular Stock traceability and control  Utilizes Stock Placement and Removal Strategies  Allocation of Storage BIN  Two-Step Picking  Packing – Pick and Pack in a single step  Standard RF technology allows the usage of all the standard transactions on mobile devices.  Integrated directly with modules SAP (Purchasing, Inventory, …) Limitations WM:  Increased master data maintenance  Additional process steps for receipt and picking  Higher volume of data  Complex processes 1.1 Features and limitations between IM & WM Will be implemented both SAP modules, further details in slide Plant Structure.

6. 6 Functionalities IM WM Manage Stock at Storage Location level   Goods Movements   Storage BIN Management  Removal Strategies  Pick Logic  Replenishment  Standard Mobile RF Technology  Storage Unit Management  Stock ID: Unique number that you use to identify Stock (that is, a product) with all its Stock attributes, such as quantity, Batch, or Stock type. 1.1 Functionalities IM & WM

7. 7 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 2.1 DEFINITION 2.2 PLANT STRUCTURE 2.3 WAREHOUSE STRUCTURE 2.4 CARTS

8. 8 ► A Plant is an Operating Unit or a Branch of a Company. ► It can be used to define Locations where Manufacturing or Storage activities are carried out. Plant ► The Storage Location is an Organizational Unit that allows the differentiation of Material Stocks within a Plant. ► Stock is managed at Storage Location level (i.e. Receiving and Picking functions must be processed through a Storage Location). Storage Location Value Stock QTY 2.1 Logistic Structure: Definition (1/2) LS-D-010

9. 9 Storage Location Warehouse Number Storage Type BIN N FIXED BIN / DYNAMIC BIN BIN 1 STORAGE LOCATION: is the sub-division of Plant where the Stocks are physically stored and maintained within a Plant. STORAGE SECTION: organizational subdivision of a Storage Type that groups together Storage BINs with similar features for the purpose of putting away Stock. The criteria for grouping BINs can be defined on a User-individual basis (Fast-Moving items, Slow-Moving items, Brand, etc…). A Storage type generally contains several Storage spaces or slots. These are called Storage BINs in Warehouse Management (WM). Normally, in the Interim Storage Area, we use Fixed BINs or Dynamic BINs (with reference to the SAP document). INDIVIDUAL WAREHOUSES: (High-Rack Storage, Block Storage, Picking area, and so on) is defined as Storage Types. All Storage Types of the same Storage Location are grouped together under a Warehouse number. STORAGE TYPE: Physical or Logical subdivision of a Warehouse Number characterized by its Warehouse technique, the space used, its organizational form, or its function. INTERIM STORAGE AREAS: Storage Types in WM that are shared by both the Inventory Management (IM) and Warehouse Management (WM) application (Goods Receipt Area, Goods Issue Area, etc…). Interim Storage Area Storage Section Structure QUANTS are separate identifiable quantities of Material that are stored in the Warehouse. If a quantity of the same Material in a BIN has two separate Batch numbers, for example, would be identified by 2 Quants 2.1 Logistic Structure: Definition (2/2) LS-D-011

10. 10 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 2.1 DEFINITION 2.2 PLANT STRUCTURE 2.3 WAREHOUSE STRUCTURE 2.4 CART

11. 11 B506 Obsolet Samples - RF B504 Temporary Samples COMPANY CODE PLANT CLIENT Luxottica SAP AFS1 B106 Discrepancy O’Store B526 F C Samples LUX BR - 0132 BR03 B502 Quality B203 Returns O´Store B201 Customer Return B206 Ticket B205 Costumer Return B501 To Destroy - RF B202 Transitory O´Store B101 B111 Warehouse B503 Temporary B601 Inbound Loss B107 B110 RB Remix B603 Blocked B605 Transit Italy B606 Transit Italy Samples B701 Refaturame nto B801 Discrepancy Return B901 Carrier Lost Legenda Legenda on SAP System & locations SAP ECC only SAP DWM ARUN*: Storage Location with scheduled ARUN jobs ARUN* B104 B114 Samples 2.2 Logistic Structure: Plant Structure STORAGE LOCATION BR1 WAREHOUSE B511 To Destroy B516 Obsolet Samples B108 Case Campinas B103 Trade Marketing ARUN* The proposal is to reduce the Storage Locations in order to simplify the stock management  will be implemented different Storage Types in DWM. LS-D-020 B110 Remix Cross Docking B604 Transit Latam New Storage Locations

13. 13 2.3 Logistic Structure: Warehouse Structure (1/8) Client 400 Company 0132 Plant BR03 Storage Location B1*… Bn* Storage Types EYE Picking SE1 Storage Sections Storage BINs Warehouse BR1 EYE Samples SE4 SP1 – SP2 EYE Reserve Pallet SE3 ▪ SU Mgt NOT allowed ▪ Mono SKU ▪ Fixed bins ▪ Dynamic bins ▪ Replenishment ▪ SU Mgt allowed ▪ Mono SKU and multi SU type ▪ Dynamic bins ▪ SU Mgt allowed ▪ Mixed SKU ▪ Dynamic bins EYE Reserve Carton SE2 SS1… SSn Bin B1 Bin Bn SS1… SSn ▪ SU Mgt allowed ▪ Multi SKU and multi SU type (every SU is mono SKU); ▪ Dynamic bins AFA Picking SA1 SS1… SSn SS1 … SSn AFA Reserve Pallet SA2 AP3 – AC3 AFA Reserve Fast Move SA3 CAS Factory pallets SF1 ▪ SU Mgt allowed ▪ Multi SKU and multi-SU type (every SU is mono SKU); ▪ Dynamic bins ▪ SU Mgt allowed ▪ Dynamic bins ▪ SU Mgt allowed ▪ Mono SKU and multi SU type ▪ Dynamic bins Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn ▪ SU Mgt NOT allowed ▪ Mono SKU ▪ Fixed bins ▪ Dynamic bins ▪ Replenishment Eyewear AFA PL1 LS-D-030

14. 14 2.3 Logistic Structure: Warehouse Structure (2/8) Client 400 Company 0132 Plant BR03 Storage Location B1*… Bn* Storage Types Cart SKU management STC Storage Sections Storage BINs Warehouse BR1 Quality SKU STU SSU Replenishment Cart ▪ SU Mgt NOT allowed ▪ Mono SKU, SKU in more than one BIN ▪ Not relevant for Delivery release ▪ Relevant for Netting Quantity in Replenishing ▪ SU Mgt NOT allowed ▪ Multi-SKU, SKU in more than one BIN ▪ Not relevant for Delivery release Cart SU management STK SSC Bin B1 Bin Bn SSK ▪ SU Mgt allowed ▪ Mono SKU, SKU in more than one BIN ▪ Not relevant for Delivery release ▪ Relevant for Netting Quantity in Replenishing Quality SU STQ SSQ Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn ▪ SU Mgt allowed ▪ Multi-SKU, SKU in more than one BIN ▪ Not relevant for Delivery release SSR Eyewear AFA ▪ SU Mgt allowed ▪ Mono SKU, SKU in more than one BIN ▪ Not relevant for Delivery release ▪ Relevant for Netting Quantity in Replenishing LS-D-031

15. 15 2.3 Logistic Structure: Warehouse Structure (3/8) Client 400 Company 0132 Plant BR03 Storage Location B1*… Bn* Storage Types HOUSEKEEPING CART CEL STH Storage Sections Storage BINs Warehouse BR1 Inbound EYE Exceptions STE STE Inbound EYE exceptions POP Reserve Pallet SP2 ▪ SU Mgt NOT allowed ▪ Mono SKU ▪ Fixed BINs ▪ SU Mgt allowed ▪ Dynamic BINs ▪ SU Mgt allowed ▪ Multi SKU and multi SU type (every Storage unit is mono SKU) ▪ Used in case of not enough space during Putaway process or if there are no putaway strategies assigned to the material/sku ▪ BIN quantity is unlimited ▪ Not relevant for delivery release POP Picking SP1 SSH Bin B1 Bin Bn P01 – P03 ▪ 100% goes to picking ▪ Mono SKU ▪ Fixed BINs Inbound AFA Exceptions STA STA Inbound AFA exceptions Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn Bin B1 Bin Bn P04- P08 Eyewear AFA ▪ SU Mgt allowed ▪ Multi SKU and multi SU type (every Storage unit is mono SKU) ▪ Used in case of not enough space during Putaway process or if there are no putaway strategies assigned to the material/sku ▪ BIN quantity is unlimited ▪ Not relevant for delivery release LS-D-032

16. 16 Interim Storage Area Description Use 902 - GR Area External Rcpts STO / PO into B111 just created, Putaway Cart not yet filled. 916 - Shipping Area Deliveries Picking completed with automatic Goods Issue not active. 922 - Posting Change Area Putaway Cart completed. 996 - Differences inventory Stock counting completed, Write-Off not yet executed. 998 - Init. Entry of Inv. Data Stock loading from conversion before TO confirmation. 999 - Differences Short Pick for a completed Picking, Write-Off not yet executed. 200 - Intermed.Zone 2-Step Pck. 2-Step Picking Storage Type. Interim Storage Areas: SAP standard Areas where Stock is temporary managed that are shared by both the Inventory Management (IM) and Warehouse Management (WM) applications (Goods Receipt area, Goods Issue area, etc…). 2.3 Logistic Structure: Warehouse Structure (4/8) LS-D-033

17. 17 Picking Area managed by Fixed Bins - One Fixed Bin for SKU. Fixed Bin means that one Bin can contain one and only one SKU. It will be managed through a custom table in DWM (ZTWM_FIXBIN) which contains the association between SKU and Bin. 2.3 Logistic Structure: Warehouse Structure (5/8) Bin11||||| Bin21 ||||| Bin41 ||||| Bin31 ||||| Bin11||||| Bin21 ||||| Bin41 ||||| Bin31 ||||| Bin11||||| Bin21 ||||| Bin41 ||||| Bin31 ||||| Bin11||||| Bin21 ||||| Bin41 ||||| Bin31 ||||| SKU4 SKU1 SKU2 SKU3 LS-D-034

18. 18 Bin3 ||||| Bin2 ||||| Bin1 ||||| Bin4 ||||| Reserve Carton Area will be divided into different Zones (Storage Sections). Each one will correspond to a Zone near the Fixed Picking Bin. Multi SKU and Multi Storage Unit Type (every Storage Unit is Mono SKU). 2.3 Logistic Structure: Warehouse Structure (6/8) LS-D-035

19. 19 2.3 Logistic Structure: Warehouse Structure (7/8) Bin Mono SKU and Multi Storage Unit Type. Bin11||||| Bin21 ||||| Bin41 ||||| Bin31 ||||| SKU7 SKU4 SKU5 SKU6 Reserve Pallet Area and Mono SKU Bins. Bin11||||| Bin21||||| Bin31||||| Bin12||||| Bin22||||| Bin32||||| Bin12||||| Bin22 ||||| Bin42 ||||| Bin32 ||||| Bin3 ||||| Bin14||||| Bin24 ||||| Bin44 ||||| Bin34 ||||| LS-D-036

20. 20 N.B.: The Areas and Bins code will be defined during Functional Analysis. Process use Bin’s name to define the path. The path is optimized by the System which sorts the Bins (basing on the name) in ascending or descending order both for Putaway and Picking process. Example: 2.3 Logistic Structure: Warehouse Structure (8/8) Z 02 002 03 04 Digits Description 1°(Z) WAREHOUSE ZONE 2°-3° (02) AISLE 4°-5°-6° (002) SHELF 7°-8° (03) LEVEL 9°-10° (04) COLUMN * * Columns will have odd and even values in different sides of the Aisle. In SAP, Bin’s length is 10 digits. Bins will be assigned to Placement and Removal Zones with X digit length: 1st Digit Floor. 2nd Digit Level (G-Ground, F-Forklift). 3rd Digit ZONE. LS-D-037

22. 22 ► It is used as a reference while performing Replenishment Up To Need based on previous Picking Face Stock analysis. Replenishment Up To Need Cart ► It is used for Putaway process: User moves the SU from Interim Area 902 to the Cart’s BIN in STK. ► The Putaway process is triggered by a Stock Transport Order from the sourcing IM Storage Location to the destination DWM Storage Location. ► Each Stock BIN has a “Putaway Area” that is shown to the User in order to build Carts per Zone (just a suggestion from the System in RF Terminal, not controlled/forced by the System). Putaway Cart 2.4 Logistic Structure: Carts (1/5) ► It is used for Picking process: User scans the Picking Cart which can contain several Deliveries, and which will optimize the Picking path. ► It is also used as a reference in Transfer to MM Storage Location. Picking Cart ► It is used as a reference while performing Replenishment based on Max-Min Threshold. ► Internal WH Transfer Cart: it is used to move Stock inside the Warehouse starting from uploaded excel file. Replenishment based on Max- Min Threshold Cart LS-D-040

23. 23 2.4 Logistic Structure: Carts (2/5) Putaway cart (10 digits) 1°: Cart Function = W 2°, 3° and 4° digit: Warehouse Number 5°, 6° and 7°: Cart Number 8° digit: “-” 9° and 10° digit: Cart Cell Example: WUZ2001-01 For Putaway Carts, Cart Type will be defined according to number of Cells (e.g.: Cart 1 Cell, Cart 4 Cells, etc.). An appropriate custom table will be defined to map all possible types Picking Cart (10 digits) 1°: 1 2° to 10° digit: Incremental Example: 1000000000 For Picking Carts, Cart Type will be defined only as ‘Picking Cart’ The naming of the Carts will be: LS-D-041

24. 24 2.4 Logistic Structure: Carts (3/5) Replenishment based on Max-Min Threshold Cart (10 digits) 1°: Cart Function = R 2°, 3° and 4° digit: Warehouse Number 5°, 6° and 7°: Cart Number 8° digit: “-” 9° and 10° digit: Cart Cell Example: RUZ2001-01 For Replenishment based on Threshold Carts, Cart Type will be defined only as ‘Replenishment-Threshold’ Internal WH transfer Cart (10 digits) 1°: 2 2° to 10°digit: Incremental Example: 2000000000 For Internal WH transfer Cart, Cart Type will be defined only as ‘Internal WH Transfer’ The naming of the Carts will be: LS-D-042

25. 25 2.4 Logistic Structure: Carts (4/5) Replenishment Up To Need Cart (10 digits) 1°: Cart Function = U 2°, 3° and 4° digit: Warehouse Number 5°, 6° and 7°: Cart Number 8° digit: “-” 9° and 10° digit: Cart Cell Example: UUZ2001-01 For Replenishment Up To Need Carts, Cart Type will be defined only as ‘Replenishment-Up To Need’ The naming of the Carts will be: Under Investigation LS-D-043

26. 26 2.4 Logistic Structure: Carts (5/5) Carts are assigned with a specific status according to the degree of completeness: Status Description 10 Pick/Repl Cart Created 20 Pick/Repl Label Printed 25 Pick/Repl Cart Started 30 Pick/Repl Cart Completed 90 Cart In ERROR 99 Cart DELETED Status 10, 20, 25 and 30 are valid only for Picking Carts, Replenishment Carts, Internal Movement Carts. Status 90 and 99 are valid for all types of Carts. LS-D-044

27. 27 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 3.1 GUIDELINES 3.2 INBOUND PROCESS 3.3 CART FILLING STEPS 3.4 PUTAWAY STEPS 3.5 PUTAWAY CUSTOM LOGIC 3.6 UNDER DELIVERY MANAGEMENT 3.7 OVER DELIVERY MANAGEMENT

28. 28 3.1 Inbound Process: Guidelines (1/2) Inbound process for Brazil begins with the Intercompany or Vendor Goods Receipt in a Transit Storage Location. The Goods Receipt triggers the NFe (Nota Fiscal) which is sent to the Government: once the NFe is approved (this process won’t be impacted by DWM and will remain as today) the Goods are moved towards the DWM Storage Location (through STO) and an Inbound Delivery in AFS1 is created and distributed in DWM System.  The Delivery created in AFS1 will turn informations included in the Inbound Delivery document to the DWM System through standard Idoc /AFS/SHP_IBDLV_SAVEREPLICA .  Inbound Delivery in DWM will not have the detail of Customer Reserve information in Stock Category field: a common Dummy Reserve will be used (more details in slide “Introduction: Purpose”).  Putaway process consists in 2 steps: 1. Cart Filling + Goods Receipt confirmation to AFS1 in Blocked Stock through standard Idoc SHP_IBDLV_CONFIRM_DECENTRAL . 2. Putaway Cart + Posting Change to AFS1 in Unrestricted Stock through standard Idoc MBGMCR .  Partial quantities will be managed during Inbound process. IN-D-000

29. 29 3.1 Inbound Process: Guidelines (2/2) Main features:  Automatic creation of Putaway TO, related to the Inbound Strategy assigned to SKUs.  Automatic Replenishment for Picking Face Bins (SE1 – SA1):  Minimum quantity and Maximum quantity in Storage Bins.  Automatic Replenishment for Reserve:  Minimum quantity and Maximum quantity in Storage Type.  Inbound Cart dedicated to few areas (to be managed by Warehouse resources).  Strategies should be assigned to SKUs before their arrival otherwise the SKUs could have STE/STA as default Strategies if those are missing.  Assignments of the Fixed Bin to the SKUs should be done before their arrival otherwise the System will drive them to Dynamic Bins.  Assignments of the Max quantity in the Reserve to SKUs should be done before their arrival. IN-D-001

30. 30 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 3.1 GUIDELINES 3.2 INBOUND PROCESS 3.2.1 REMIX CROSS DOCKING 3.3 CART FILLING STEPS 3.4 PUTAWAY STEPS 3.5 PUTAWAY CUSTOM LOGIC 3.6 UNDER DELIVERY MANAGEMENT 3.7 OVER DELIVERY MANAGEMENT

31. 31 ZS5 Inbound Process Flow - Intercompany SAP BR03 Finished Goods POP Mkt B605 ZA1 B503 BA1 IN-F-010 Samples B606 B504 BA1 B111 B114 311 311 New Solution Old flow to be changed B101 B104 3.2 Inbound Process: Inbound Process Flow (1/6) £ ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 DWM System ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015

32. 32 Inbound Process Flow – Intracompany SAP BR03 B503 IN-F-011 Estojos / Case B108 B111 B111 ZA1 New Solution Old flow to be changed B101 3.2 Inbound Process: Inbound Process Flow (2/6) DWM System @ Grilamid B109 B111 Finished products 861 (STO) Samples B504 B114 ZA1 B104 861 (STO) 861 (STO) Y61 (STO) ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015

33. 33 Inbound Process Flow – National Purchasing SAP BR03 LATAM ZA1 B604 IN-F-012 Finished Products Spare Parts POP B503 B111 B111 ZA1 New Solution Old flow to be changed B106 3.2 Inbound Process: Inbound Process Flow (3/6) DWM System LATAM products will be segregated by specific Stock Category as Military products of the US flow. 861 Samples B504 B114 861 ZA1 B104 ZA1 B104 @ ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015 ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015

34. 34 Inbound Process Flow – Customer Returns SAP BR03 Return Sales Order Inbound Delivery Finished Goods B201 653 IN-F-013 B111 New Solution Old flow to be changed 3.2 Inbound Process: Inbound Process Flow (4/6) DWM System Are Goods OK? B501 NO B101 YES 311 311 @ ZSDO_TRF_GOODS INBOUND to DWM Detail Slide IN-F-015

35. 35 3.2 Inbound Process: Inbound Process Flow (5/6) ECC DWM IN-F-014 Inbound Process Flow – Perfect Returns A Automatic activity M Manual activity Idoc from DWM to ECC 1. Return Sales Order creation with reference M 2. Inbound Delivery creation A 2a. Inbound Delivery replica A Idoc from ECC to DWM 3. Cart Filling 4. Putaway M M Stock Category Custom Logic 5. Goods Receipt 6. Billing M A Stock Category Custom Logic @

36. 36 Step Description Responsible System Action 1 Return Sales Order creation with reference SAP ECC Return Sales Order is created manually. 2 Inbound Delivery creation SAP ECC Inbound Delivery is created automatically. 2a Inbound Delivery replica SAP DWM Inbound Delivery is distributed from ECC to DWM through standard Idoc /AFS/SHP_IBDLV_SAVEREPLICA. 3 Cart Filling SAP DWM User fills the Cart through RF transaction. 4 Putaway SAP DWM According to Custom rules, User performs through RF Transaction the Putaway activities. 5 Goods Receipt SAP ECC After User performs the Putaway, DWM System sends the Idoc SHP_IBDLV_CONFIRM_DECENTRAL to ECC where will be done the Goods Receipt. 6 Billing SAP ECC The Billing document is created manually. 3.2 Inbound Process: Inbound Process – Perfect Returns Details IN-D-014 @

37. 37 3.2 Inbound Process: Inbound Process Flow (6/6) ECC DWM IN-F-015 Inbound Process Flow 1. Stock Transfer Order creation 3. Goods Issue 5. Cart Filling 2. Outbound Delivery creation 4. Inbound Delivery creation 4a. Inbound Delivery replica Stock Category Custom Logic 5a. Goods Receipt in Blocked Stock 6. Putaway 6a. Unlock Stock Idoc from ECC to DWM Idoc from DWM to ECC Stock Category Custom Logic Partial confirmations Partial confirmations Blocked stock Unrestricted stock A Automatic activity M Manual activity End M M A A A A A A Idoc from DWM to ECC ZSDO_TRF_GOODS £ A NFe Data

38. 38 Step Description Responsible System Action NFe Data SAP ECC The system retrieves all necessary data from the NFe that is manually input by the User. 1 Stock Transfer Order creation SAP ECC Stock Transfer Order is created to transfer Material from the transit Storage Location to the receiving Storage Location. 2 Outbound Delivery creation SAP ECC Outbound Delivery creation, with STO as reference. 3 Goods Issue SAP ECC Goods have to be issued from transit Storage Location to receiving Storage Location (and they are put in status “in transit”). 4 Inbound Delivery creation SAP ECC Inbound Delivery is created by the STO process through the custom transaction ZSDO_TRF_GOODS. 4a Inbound Delivery replica SAP DWM Inbound Delivery is distributed from ECC to DWM through standard Idoc /AFS/SHP_IBDLV_SAVEREPLICA. 5 Cart Filling SAP DWM User fills the Cart through RF transaction. 3.2 Inbound Process: Inbound Process Details (1/2) IN-D-015 £

39. 39 Step Description Responsible System Action 5a Goods Receipt in Blocked Stock SAP ECC After User confirms the Stock in Cart, DWM System sends the Idoc SHP_IBDLV_CONFIRM_DECENTRAL to ECC where will be done the Goods Receipt in Blocked Status into Logical Warehouse. Partial confirmations will be managed. 6 Putaway SAP DWM According to Custom rules, User performs through RF Transaction the Putaway activities. 6a Unlock Stock SAP ECC When Putaway is completed, DWM System sends the Idoc MBGMCR which unlocks the Stock. At this point the Goods are ready to be allocated. 3.2 Inbound Process: Inbound Process Details (2/2) IN-D-016 £

40. 40 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 3.1 GUIDELINES 3.2 INBOUND PROCESS 3.2.1 REMIX CROSS DOCKING 3.3 CART FILLING STEPS 3.4 PUTAWAY STEPS 3.5 PUTAWAY CUSTOM LOGIC 3.6 UNDER DELIVERY MANAGEMENT 3.7 OVER DELIVERY MANAGEMENT

41. 41 Will be created a new IM (not linked to WM Warehouse) Storage Location in order to manage the Cross Docking process for the Remix products. Remix Cross Docking Flow SAP BR03 1. Remix products 2. B605 Transit Italy ZA1 3. B503 AFA Transit Sloc BA1 IN-F-020 New Solution Old flow to be changed 4. Scan HU 3.2.1 Inbound Process: Remix Cross Docking Flow * Remix/OCP products will be not managed in DWM but will be send to Grey Area (custom area in ECC) directly. 5. B110 Remix 311 6. Renaming original HU 7. Create HU 8. HU filling M A A A A HU creation in Grey Area Detail Slide GA-D-000

42. 42 Step Description Responsible System Action 1 Remix products SAP ECC Goods are received in Brazil from Italy via Intercompany flow. 2 B605 Transit Italy SAP ECC Goods Receipt in Transit Storage Location B605 from Sedico through ZA1 movement. 3 B503 Transit Sloc SAP ECC Goods are moved from the Storage Location B605 “Transit Italy” to B503 “Transit Sloc” through the BA1 movement type triggered by ??? 4 Scan HU SAP ECC User scans the HU barcode through RF transaction or RF gun and the System performs the following steps automatically. 5 B110 Remix SAP ECC Goods are moved from B503 “Transit Sloc“ to B110 “Remix Sloc” through the movement type 311. 6 Renaming Original HU SAP ECC After the Stock is available in B110 “Remix” Storage Location, the System automatically renames the original HU linked to the IC Shipment coming from Italy to Brazil. The renaming must be done as it is not possible to have the same HU code on two different Plants. 7 Create HU SAP ECC The System creates custom HU automatically in Grey Area inheriting the original HU code (that is to say the physical Label sticked on the Package). 8 HU filling SAP ECC The System fills the HU with the Deliveries linked to the HU considered. 3.2.1 Inbound Process: Remix Cross Docking Details IN-D-012

44. 44 3.3 Inbound Process: Cart Filling steps (1/3) User, through RF Gun, selects INBOUND PROCESS option in order to start the process. User selects CART FILL option. User inserts the Receipt ID, that represents the STO number created in the first step of the Putaway process. In case the Products contained in the Inbound Delivery do not have the Volume valued at Master Data level, the System will show a pop- up saying “Please go to Cubic Scan and update Master Data of Material XXXX”. IN-D-020

45. 45 3.3 Inbound Process: Cart Filling steps (2/3) User scans the Stock ID and System automatically retrieves: - Material number; - Grid Value; - Stock Category; - SKU Unit Volume(necessary to check the Material master data); - Open quantity of the first Inbound Delivery item (if there are more items of the same SKU in the Inbound Delivery, it is necessary to Receipt all quantity of the first item to see the open quantity of the second item). If the SKU can’t be stored in a Fixed Bin, the System shows the Storage Unit screen, where the User has to scan the Storage Unit number and insert the Storage Unit Type. The System automatically propose the Strategy linked to the SKU. IN-D-021

46. 46 3.3 Inbound Process: Cart Filling steps (3/3) The System creates the Transfer Order (TO) to book the final destination Bin. Using this Transfer Order the System displays: - The Zone of the final destination Bin (Sort Field Placement of the Bin’s Master Data); - Storage Type of the final destination Bin; - Putaway quantity. User scans the Cart Cell and completes the first step (Cart Filling). In this moment, the System: - Confirms the Storage Unit (or the Product) in the Cart Cell; - Posts Goods Receipt in blocked Stock; - Creates an unconfirmed Transfer Order to the final Bin. IN-D-022

48. 48 User, through RF Gun, selects INBOUND PROCESS option in order to go ahead with the process. User selects PUTAWAY PROCESS option. User scans the Cart Number previously used during Cart Filling step. 3.4 Inbound Process: Putaway steps (1/2) IN-D-030

49. 49 3.4 Inbound Process: Putaway steps (2/2) If the TO is moving a Storage Unit (like the screen shown on the left), User has to scan: - Storage Unit; - Final destination Bin. Otherwise, if the TO is moving a Product managed by Fixed Bin, User has to scan: - Stock ID; - Final destination Bin After each Bin has been scanned, the System: - Confirms Storage Unit (or Product) in the Cart Cell; - Unlocks Stock in both DWM and ECC Systems. When all Transfer Order of the Cart are confirmed, the System shows the message “Putaway completed”. IN-D-031

51. 51 3.5 Inbound Process: Putaway Custom Logic The Putaway for AFA will follow these rules:  After the scan of the Stock ID of a Product, the System checks (in the ZTWM_FIXBIN table) if the Product is managed by Fixed Bin. In case a Fixed Bin is found, the System checks the Maximum Bin’s quantity and the number of pieces currently contained in the Fixed Bin: 1. The System checks:  If the User inserts a quantity greater than Max Bin Qty AND the Flag Loose is valued (with X), the System proposes a new quantity in order to fulfill the Fixed Bin up to Max capacity. The remaining quantity will be stored in Storage Unit  Reserve Area.  If the User inserts a quantity greater than Max Bin Qty AND the Flag Loose is not valued (blank), the System drives the User to store the Goods in Storage Unit  Reserve Area. 2. In the Reserve Area, the System proposes the Bin with the least number of pieces contained.  If the product is not managed by Fixed Bin the system will drive the user (based on the strategies set) to store the goods in Reserve Area  When a new product will be created, the product will have a defaulted strategy and the system will drive the user to store it in the Reserve Area.  It is never possible to break the full Storage Unit during the Put away process.  The path will be optimized according to the Area of the destination bins of the Cart content.(Ascending order or descending order). IN-D-040

53. 53 3.6 Inbound Process: Under Delivery Management Flow AFS1 DWM IN-F-030 Under Delivery Management Flow User has processed all the SKUs of the Pallet, which is physically empty A Automatic activity M Manual activity SKUs physically available in STL Lost & Found*? NO User returns Reference Document to Back Office (HU Label) User returns Reference Document to Back Office (HU Label) Back Office closes Inbound Delivery setting quantities equal to Put away Quantity & PGR SKUs given to the Putaway team YES Delivery quantity updated according to DWM changes Change the destination Storage Location in the STO Inbound Delivery to X5XX and write off * A M M M M M M The “Lost & Found” Area has two different applications: • On the physical side, it has all the SKUs Over-Delivered, that is without System stock. • On the System side, it has all the SKUs Under-Delivered, that is without physical Goods. The “Lost & Found” Area is used to balance the scenarios of MB switching (MB declared on HU 1 but then moved physically to HU 2), but it has to be periodically balanced: • Loading the SKUs physically onside and triggering the Putaway process with a manual STO. • Unloading the “System only” Stock.

55. 55 3.7 Inbound Process: Over Delivery Management Flow AFS1 DWM IN-F-035 Over Delivery Management Flow User has processed all the SKUs of the Inbound Delivery but there are still to be processed A Automatic activity M Manual activity SKUs available in sys stock of STL Lost & Found*? NO User returns Reference Document (HU Label) and exceeding SKUs to Back Office Back Office verifies gap between Packing List and Putaway Carts (all processed) YES Create a manual STO to start the Putaway procedure Park the additional SKUs in the STL Lost & Found area (only physically) * M M M M M The “Lost & Found” Area has two different applications: • On the physical side, it has all the SKUs Over-Delivered, that is without System stock. • On the System side, it has all the SKUs Under-Delivered, that is without physical Goods. The “Lost & Found” Area is used to balance the scenarios of MB switching (MB declared on HU 1 but then moved physically to HU 2), but it has to be periodically balanced: • Loading the SKUs physically onside and triggering the Putaway process with a manual STO. • Unloading the “System only” Stock.

56. 56 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

57. 57 4.1 Outbound Process: Guidelines Outbound process for Brazil begins with the Delivery creation in AFS1 which will be automatically distributed in DWM:  The Outbound Delivery is sent from AFS1 to DWM through standard Idoc /AFS/SHP_IBDLV_SAVEREPLICA  The Outbound Delivery in DWM, generally, will not have the detail of Customer Reserve information in Stock Category field, but it will have a Dynamic Reserve (e.g.: 999999).  The outbound delivery of LATAM or other specific scenarios can be characterized by a Static Reserve (e.g.:  The System sums the SKU quantity in order to flatten the Item position.  The Picking activities can start only when Loose quantities for each SKU of the Outbound Delivery is available in Picking Area for EYE products, for AFA products it is possible to pick the SU from Reserve Area if the picking quantity is not enough.  Once the picking process ends, DWM returns picking information for each Delivery to AFS1 through standard Idoc: /SHP_OBDLV_CONFIRM_DECENTRAL.  It will be possible to post Goods Issue for Outbound Delivery when the last piece of the Delivery will be picked (it means when all Transfer orders related to the Delivery are confirmed) and if there are no VAS blocking.  It is not possible to post Goods Issue at Item level.  In case of Shortpick, the DWM System updates the Delivery quantity to the quantity picked and it performs the Goods Issue, so the Delivery quantity will be updated also in ECC through the standard Idoc /SHP_OBDLV_CONFIRM_DECENTRAL. The quantity missing will be moved to the “Lost & Found” Storage Location and it will remain allocated to the initial Sales Order. OU-D-000

59. 59 4.2 Outbound Process: Outbound Process Flow (1/2) ECC DWM OU-F-010 Outbound Process Flow 1. Sales Order creation Cart Label Printing, Cells Printing VAS ? 3b. Outbound Delivery replica 3. Outbound Delivery creation 4. Picking Cart creation 5. RF Picking activities NO YES 7. Good Issue confirmation 7b. Goods Issue replica Stock Category Custom Logic Idoc from DWM to ECC 2. Allocation Run Stock Category Custom Logic Idoc from ECC to DWM 8. Grey Area Detail Slide GA-D-000 6. VAS Cockpit Detail Slide OU-D-053 3c. Carrier Change Detail Slide OU-D-030 A Automatic activity M Manual activity A A A A A A M M M M M M M M

60. 60 Step Description Responsible System Action 1 Sales Order creation SAP ECC Creation of a Sales Order manually in AFS1 or automatically if the sales order comes from the Front End (e.g.: e-commerce SGH) 2 Allocation Run SAP ECC Allocation Run of the Sales Order created. 3 Outbound Delivery creation SAP ECC Creation of Outbound Delivery starting from Sales Order. 3b Outbound Delivery replica SAP DWM Replica of Outbound Delivery in DWM through Idoc /AFS/SHP_OBDLV_SAVEREPLICA and transformation of Outbound Delivery according to DWM logics. 3c Carrier Change SAP DWM It will be possible to change the carrier in DWM through a custom transaction. The carrier will be sent to ECC only during the PGI. 4 Picking Cart creation SAP DWM Creation of Cart (according to custom rules) to be used for Picking activities; optional is the printout of the Label. 5 RF Picking activities SAP DWM Picking activities managed through RF transaction. 6 VAS Cockpit SAP ECC VAS activities (eg. Label printout) execution if requested by Customer. N.B. in case of Delivery with MROUTING, a Carrier change is requested and a specific VAS has to be defined in order to block the PGI execution until the Carrier is changed. More details on Carrier change in Slide OU-D-060. 4.2 Outbound Process: Outbound Process Details (1/2) OU-D-010

61. 61 Step Description Responsible System Action 7 Good Issue confirmation SAP DWM Good Issue confirmation will be done automatically in SAP DWM System when last piece of the Delivery is picked. The Idoc SHP_OBDLV_CONFIRM_DECENTRAL will trigger Good Issue in SAP ECC System to allow following steps. 7b Good Issue replica SAP ECC Good Issue confirmation in SAP ECC System. 8 Grey Area SAP ECC Package sent to Grey Area to continue with the Shipping flow. 4.2 Outbound Process: Outbound Process Details (2/2) OU-D-011

62. 62 4.2 Outbound Process: Outbound Process Flow (2/2) ECC DWM Outbound Process Flow from STO 1. Stock Transfer Order creation Cart Label Printing, Cells Printing 2b. Outbound Delivery replica 2. Outbound Delivery creation 3. Picking Cart creation for STO 4. RF Picking activities 5. Good Issue confirmation 5b. Goods Issue replica Stock Category Custom Logic Idoc from DWM to ECC 7. Inbound Delivery creation Stock Category Custom Logic Idoc from ECC to DWM 6. Grey Area Detail Slide GA-D-000 A Automatic activity M Manual activity A A A A A M M M OU-F-012 @ ZSDO_TRF_GOODS 8. Goods Receipt in destination Storage Location A A

63. 63 Step Description Responsible System Action 1 Stock Transfer Order creation SAP ECC Stock Transfer Order is created automatically through the transaction ZSDO_TRF_GOODS in AFS1. 2 Outbound Delivery creation SAP ECC Outbound Delivery is created starting from Stock Transfer Order. 2b Outbound Delivery replica SAP DWM Outbound Delivery Replica in DWM through Idoc /AFS/SHP_OBDLV_SAVEREPLICA and transformation of Outbound Delivery according to DWM logics. 3 Picking Cart creation for STO SAP DWM Creation of Cart (according to custom rules) to be used for Picking activities; optional is the printout of the Label. 4 RF Picking activities SAP DWM Picking activities managed through RF transaction. 5 Good Issue confirmation SAP DWM Good Issue confirmation is done automatically in SAP DWM System when last piece of the Delivery is picked. SHP_OBDLV_CONFIRM_DECENTRAL Idoc will trigger Good Issue in SAP ECC System to allow following steps. 5b Good Issue replica SAP ECC Good Issue confirmation in SAP ECC System. 6 Grey Area SAP ECC Package sent to Grey Area to continue with the Shipping flow. 7 Inbound delivery creation SAP ECC The Inbound Delivery is created automatically when the System does the Goods Issue of the Outbound Delivery. 8 Goods Receipt in destination Storage Location SAP ECC The System does the Goods Receipt in the destination Storage Location. 4.2 Outbound Process: Outbound Process from STO Details OU-D-012 @

64. 64 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.3.1 PICKING STRATEGIES 4.3.2 PICKING TYPES 4.3.3 PICKING CART CREATION STEPS 4.3.4 PICKING ACTIVITIES STEPS 4.3.5 SHORT PICK 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

65. 65 The Picking Strategy for Brazilian DC will be implemented following User-defined strategies. The System will execute the appropriate Picking Strategy to assign the best Picking location, considering:  Flow (Factory, Distribution and Export).  Material Type (Case, Grilamid, Finished Frames, POP, AFA, Samples and Spare Parts). Case Grilamid Finished Frames POP AFA Samples Finished Frames Samples Spare Parts AFA X – Replenishment by full SU X – Replenishment by SU (can be broken) for display and folders X – Replenishment by full SU for leaflets and bags X X X X X X X X X X X X – (display only) X X X X X 4.3.1 Outbound Process: Picking strategies OU-D-020 Replenishment Up To Need Picking from Picking Active Location Picking from Reserve (no SU breakage) Factory Distribution (Brazil) Export

67. 67 The Picking models for Brazilian DC will be split in Small Orders, Multiple Orders and Batch Picking (P2W). The System will consider:  Flow (Factory, Distribution and Export).  Material Type (Case, Grilamid, Finished Frames, POP, AFA, Samples and Spare Parts). Case Grilamid Finished Frames POP AFA Samples Finished Frames Samples Spare Parts AFA TBD TBD X X X X X X X X X X X X X X X X X X 4.3.2 Outbound Process: Picking types OU-D-025 Multiple Orders Batch Picking Factory Distribution (Brazil) Export Small Orders

68. 68  Pick and Pack in Shipping Boxes during path.  One Delivery in a single Cart.  In one Cart more Deliveries.  Carts building rules (settable parameters):  Number of pieces.  Delivery Volume.  Path optimization (selection of Warehouse Areas).  Max number of Deliveries per Cart.  VAS (yes/no).  VAS Type.  Logistic Agent Group.  Delivery date.  Print Cart Label and Picking Labels before Picking path.  Carts creation simulation. 4.3.2 Outbound Process: Picking types – Small Orders OU-D-026

69. 69 1° STEP LABEL 2° STEP LABEL OU-D-027  Two-Step Picking: first step is massive for Deliveries, not for SKUs.  One Delivery in more Carts.  In one Cart more Deliveries.  Carts building rules (settable parameters):  Delivery Volume.  Path optimization (selection of Warehouse Areas).  Max number of Deliveries per Cart.  VAS (yes/no).  VAS Type.  Logistic Agent Group.  Delivery date.  Print Cart Label before Picking, print Delivery Labels after boxes.  Carts creation simulation. DEL1 100 pc ------------------ SKU1 30 pc + SKU2 70 pc DEL2 200 pc ------------------ SKU1 50 pc + SKU2 150 pc 4.3.2 Outbound Process: Picking types – Multiple Orders

70. 70 OU-D-028  Two-Step Picking: first step is Massive for SKUs, not for Deliveries.  One Delivery in more Carts.  In one Cart more Deliveries.  Carts building rules (settable parameters):  Number of pieces.  Delivery Volume.  Path optimization (selection of Warehouse Areas).  Max number of Deliveries per Cart.  VAS (yes/no).  VAS Type.  Logistic Agent Group.  Delivery date.  System during 2° step show Delivery Volume, Warehouse resource choose Bin.  Print Cart Label before Picking, print Delivery Labels after boxes closure.  Is necessary to consolidate and Repack after Picking (query for complete Delivery).  When resource confirm first box in Put To Wall associates Delivery to the selected Bin. 1° STEP LABEL 2° STEP LABEL SKU1 100 pc ------------------ DEL1 30 pc + DEL2 70 pc 4.3.2 Outbound Process: Picking types – Batch Picking (P2W)

72. 72 4.3.3 Outbound Process: Picking Cart creation steps (1/3) Mandatory input parameters are:  Plant  Warehouse Number  Delivery type (default WOG e WOD) (the transaction screen continues in the next slide) OU-D-030

73. 73 4.3.3 Outbound Process: Picking Cart creation steps (2/3) Mandatory input parameters are:  Cart number: maximum number of Carts that the System can create.  Cart type OU-D-031

74. 74 4.3.3 Outbound Process: Picking Cart creation steps (3/3) OU-D-032 System shows the Cart number created and the Deliveries assigned to each Cart. After the creation of the Cart, all the Cart Labels needed will be printed automatically.

76. 76 N.B.: The RF Menu will be adapted with the transaction needed. The screens above are related to Atlanta Menu. 4.3.4 Outbound Process: Picking activities steps (1/3) OU-D-035 User, through RF Gun, selects OUTBOUND PROCESS option in order to start the process. Based on the type of Picking, User selects the desired option. For the example proposed, we are proceeding with the PICKING CONF step. User scans the Cart number.

77. 77 4.3.4 Outbound Process: Picking activities steps (2/3) The RF transaction displays all Info of the Materials to be picked:  L Q (Left Quantity)  L V (Left Volume)  Picking Bin  Material  Grid Value  Stock Category  Quantity  Stock ID  Conf. NR (Confirmation number) In case the Picking Bin is in Picking Face Area, User have to confirm:  Stock ID (n times, as the Quantity) After every Stock ID has been scanned:  HU ID  Pack Mat (Packaging Material of the HU used)  Conf Chk (Confirmation number) The RF transaction displays all Info of the Materials to be picked:  L Q (Left Quantity)  L V (Left Volume)  Picking Bin  Material  Grid Value  Stock Category  Quantity  Storage Unit  Stock ID  Conf. NR (Confirmation number) In case the Picking Bin is in Reserve Area, User have to confirm:  Storage Unit  Stock ID  Box Qty (the quantity picked)  HU ID  Pack Mat (Packaging Material of the HU used)  Conf Chk (Confirmation number) OU-D-036

78. 78 4.3.4 Outbound Process: Picking activities steps (3/3) After the Picking is completed, User have to close the HU, opening the specific transaction and scanning the HU. After the HU has been scanned, the Picking process ends and the message “HU No CXXXXXXXXXXX Closed” OU-D-037

80. 80 4.3.5 Outbound Process: Short Pick During the Picking User can perform Short Pick: he has to stop scanning the Stock ID and press “Short Pick” button. In case of partial Picking of Outbound Delivery quantity, caused by Short Pick in DWM Warehouse:  Missing pieces are transferred to the Storage Type 999 (Lost & Found).  Delivery quantities are updated with DWM picked quantities.  Picked Stock Category is determined based on Stock Category priority.  Quantities not picked will be still seen as “Reserved” in AFS1, in order to avoid a new allocation of missing parts not already decreased in ECC Stock. OU-D-040

81. 81 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.4.1 VAS ACTIVITIES STEPS 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

82. 82 4.4 Outbound Process: VAS activities overview (1/3) VAS (acronym for Value Added Services) are activities of various kinds (such as Label printing, a sticker to be added to a Product, a list of products to be added to the Handling Unit before it’s closed) that could be needed in order to complete the Outbound Delivery process. These activities – Output defined at Outbound Delivery header level – could be valid for a specific Customer, for a specific Sales Organization and so on: the rules for which the VAS activities have to be triggered will be defined at a later time. There are some custom tables used to store VAS Master data, VAS group data and also to manage exceptions. VAS activities can be regrouped in two main groups: VAS that are blocking for the PGI execution (so until they are not processed, NO PGI will be done neither in DWM System nor in ECC System) and VAS that is possible to perform after the PGI execution. An example of VAS blocking could be a Label that has to be applied on a product or a repacking activity that allows to change the HU contents in DWM. An example of VAS not blocking could be a tag box that has to be applied on the Handling Unit that can be printed at Shipping Station area. In case of a Delivery with VAS, it will not be possible to process the PGI until all VAS that are blocking for the PGI are processed. In order to process VAS activities, is provided in SAP ECC System a specific transaction in order to use the VAS Cockpit. In the next pages will be shown how to use it. OU-D-050 The Audit process for Outbound will be set as a VAS blocking for the PGI. It has been decided that the Audit will be set as a Shipping Activity that will be done after the PGI in the Shipping VAS Area.

83. 83 4.4 Outbound Process: VAS activities overview (2/3) VAS activities that will be considered are: OU-D-051  VAS Super Carol (VAS Type = V):  Put in the Premium boxes.  VAS not blocking for the PGI execution.  No Labels requested.  Needs to be done before the Audit process.  VAS Samples (VAS Type = L):  VAS not blocking for the PGI execution.  Labels printing requested.  Can be done anytime after picking.  VAS E-Commerce (VAS Type = V):  Put in the Premium boxes.  Dispatch bags.  VAS not blocking for the PGI execution.  No Labels requested.  VAS Dafiti (only Apparel, only for Caps) (VAS Type = V):  Put in the Premium boxes.  VAS not blocking for the PGI execution.  No Labels requested.  Can be done anytime after picking.  VAS Repacking Bazar (VAS Type = V):  Remove Cases from Frame.  Remove Label from AFA products.  Shipping Box consolidation.  VAS not blocking for the PGI execution.  No Labels requested.  Can be done anytime after picking.

84. 84 4.4 Outbound Process: VAS activities overview (3/3) VAS activities that will be considered are: OU-D-052  VAS DUFRY (VAS Type = L):  VAS not blocking for the PGI execution.  Labels printing requested  Price tag Label.  Can be done anytime after picking.  VAS Fotoptica (VAS Type = L):  VAS not blocking for the PGI execution.  Labels printing requested  Price tag Label.  Can be done anytime after picking.  VAS Manual (VAS Type = L):  VAS not blocking for the PGI execution.  Labels printing requested  Price tag Label.  Can be done anytime after picking.  VAS Mexico (VAS Type = L):  VAS blocking for the PGI execution.  One pre-printed Label for Sun frames.  One pre-printed Label for RX frames.  One extra pre-printed Label for Kipling brand.  VAS Mexico (VAS Type = G):  VAS blocking for the PGI execution.  Delivery Packing List printing.  If a Delivery is contained in more than one HU, the Packing List must be printed and inserted only in 1 HU.

85. 85 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.4.1 VAS ACTIVITIES STEPS 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

86. 86 4.4.1 Outbound Process: VAS activities steps (1/5) Highlighted in red, are shown the VAS activities valid for the Delivery considered. In the VAS Master data table (ZTLSHVASCODEUSAA) they are defined as: - UV45: S (Text in the Shipping Station) - UVB6: V (Manual at VAS Station) - UVH0: L (Labels) - UVJ8: V (Manual at VAS Station) UVB6, UVH0 and UVJ8 are VAS blocking for the PGI execution, so User will have to necessarily process them in order to proceed with the flow. UV45, as it’s defined as “S” type, can be executed only after the PGI execution at Shipping Station area. OU-D-053

87. 87 4.4.1 Outbound Process: VAS activities steps (2/5) OU-D-054 Only authorized Users are able to enter in the VAS Cockpit transaction. Group type for Brazil will be always “V”, which stands for “VAS”. The User can be able to see also the printers associated to the SAP User of the workstation where the VAS Cockpit transaction is currently used by clicking on the “Check Printer Setting”. It is possible to enter in the VAS Cockpit transaction with different objects: - Handling Unit (HU Number); - Confirmation Number (WPO); - Delivery. The User can decide which one he wants to scan in order to enter.

88. 88 4.4.1 Outbound Process: VAS activities steps (3/5) OU-D-055 Once entered in the VAS Cockpit, the System will show the list of all VAS valid for the object used to enter (in this case the Delivery): User can select the VAS that are defined as “L” type (Labels) and press the “Execute VAS/QA” button in order to print the Labels for the pieces for which the VAS is valid. N.B. for this VAS, the field “Exception” is valued (there is a red square with a white lightning inside), this means that the VAS is managed in the VAS Exception table (ZOUTPUT_VAS) In fact, UVH0 is valid only for some specific Brands (as shown in the left screenshot). As the VAS is an Output defined at Delivery header level, it is important to correctly define the Exceptions in order to process the VAS activities only for the products that effectively requires them.

89. 89 4.4.1 Outbound Process: VAS activities steps (4/5) For all VAS defined at SKU level, the System will show an additional screen where the User will be able to scan the Stock ID for each piece in order to correctly process the activities. Once the User has finished with the activities at SKU level, he can go back to the main screen and if all VAS are finished (the Status is GREEN for all the VAS – except for the “S” type VAS and the total remaining pieces to be processed is zero) the User can exit from VAS Cockpit. OU-D-056

90. 90 4.4.1 Outbound Process: VAS activities steps (5/5) OU-D-057 It is also possible to select and Reset a VAS already processed, in order to reprocess it again. It will not possible to process in the VAS Cockpit a VAS defined as “S” type  this VAS can be processed only at Shipping Station. Once all VAS activities that are blocking for the PGI execution are done (so the Status is green for everyone of them) the User will be able to proceed with the PGI execution and the rest of the Outbound flow.

92. 92 4.5 Carrier change The Carrier change can be done in various steps of the flow and both in DWM and ECC Systems:  In DWM System, before the User creates the Picking Cart;  In DWM System, while performing VAS activities if the Carrier change is set as a VAS (e.g.: MROUTING)  N.B. If the other VAS activities are finished, the System will automatically block the PGI execution of a Delivery that requires MROUTING until the User has changed the Carrier;  In ECC System, after the PGI execution, in the Shipping Station area, while performing Shipping VAS activities. A specific transaction will be provided in both DWM and ECC Systems to perform the Carrier change. OU-D-060

93. 93 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.6.1 BIN2BIN 4.6.2 SPLIT 4.6.3 MERGE/INSERT 4.6.4 TRUCK LOADING 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

94. 94 4.6 Outbound Process: Grey Area Overview (1/3) GA-D-000 6 Loading Bays SHIPPING VAS AREA 1a 3 REMIX 2 INCOMING AREA DWM DWM BIN DEFAULT BIN S2 BIN Sn BIN W1S1 BIN Wn S1 Staging BIN Wn S2 BIN Wn Sn Exception BIN E1S1 BIN T1 Remix Cross Docking From Slide IN-F-020 1b 4 5 BIN S1 BIN S1 BIN W1S1 BIN T1 Grey Area: Warehouse Area divided in physical or logic Zones where HU Pallet are stored / managed before they are loaded on Trucks. Constraints:  In the Grey Area it is possible to manage only custom HUs.  SKUs cannot be managed. Loading Unloading X W1S1 Loading N.b.: Slide with animations

95. 95 Step Description Responsible System Action 1a DWM SAP DWM-ECC Through PGI interface triggered when last piece is picked the HU is created in Incoming Area (ECC) in a default bin. 1b Remix Cross Docking SAP ECC Through the Remix Cross Docking flow the HU is created in Incoming Area in a default bin. 2 Incoming Area SAP ECC The Incoming Area can be characterized by the following Sub-Areas: - DWM Sub-Area: where all the HUs managed by "SAP DWM" are created. - Remix Sub-Area: where all the HUS managed by "Remix Cross Docking" flow are created. In Grey Area the users can change the HU structure with the following functionalities: Insert, Union, Merge and Split. This missions can be executed only in Areas/Subareas/Bins previously allowed to these functionalities. 3 Shipping VAS Area SAP ECC Area in which all the Shipping activities are done.The list of the Shipping activities can be found here. Through the "Bin2Bin" functionality the HU can be moved in a "bin Sn" that identifies the Shipping Station where the Shipping Activities are executed. The invoice creation will be set as a Shipping Activity, the user can move through the Bin2Bin the HU in waiting for NF approval in a "Staging Sub-Area". 4.6 Outbound Process: Grey Area Overview (2/3) GA-D-001

96. 96 Step Description Responsible System Action 4 Staging Sub-Area SAP ECC In this Sub-Area there are all the HUs that are waiting for the Nota Fiscal approval from the Government. Once the Nota Fiscal is approved, the users can print the Shipping Labels and through the "Posicao" field of the "etiqueta P2" he can find the bin code where the HU is stored. When the Shipping Labels are applied on the HUs, the HU Confirmation flow can start. 5 Exception Sub-Area SAP ECC In this sub-area there are all the HUs with issues and are waiting for a fix. 6 Loading Bays SAP ECC Loading Area where each bay is one Truck and each Truck will be defined in SAP as a grey area bin and it will be a shipment, so the user can move the HU form the source bin (e.g.: bin of Staging Sub- Area) to the destination bin (Truck). Once the shipment has been set in "Shipment Start" the system automatically delete from Grey Area the HUs loaded on Truck (this step is not reversible). 4.6 Outbound Process: Grey Area Overview (3/3) GA-D-002

98. 98 4.6.1 Outbound Process: Bin2Bin Flow Grey Area – Bin2Bin Flow ECC GA-F-010 A Automatic activity M Manual activity 1. Incoming Area From Slide OU-F-010 2. Select Bin2Bin functionality A M 3. Scan Cart Barcode M 4. Scan HU Barcode M 5. Mission creation A 6. Move HU to destination Bin M 7. Scan destination Bin Barcode M 8. Consistency checks A 9. Mission closing A

99. 99 Step Description Responsible System Action 1 Incoming Area SAP ECC HU Pallet is moved to Incoming Area. The User will scan the highest HU with a transaction in order to move it to the correct Grey Area Zone. 2 Select Bin2Bin functionality SAP ECC User with RF gun selects Bin2Bin functionality which allows to move HU from a Bin to another Bin. 3 Scan Cart Barcode SAP ECC User scans the Barcode of the Cart used for the Mission. 4 Scan HU Barcode SAP ECC User starts to scan HUs which must be placed in the Cart. System performs following checks on HU read:  HU exists.  HU is not in another Mission which is still open and owned by another User.  HU is in a Mission – opened by the User – whose type is different from Bin2Bin.  Calls VAS Cockpit and checks if there are pending VAS activities  in this case the User is not allowed to pick the HU.  If the HU is a Multicollo and displays a message.  If there are some Special Shipping VAS activities to be performed  in this case it displays the Zone where to move the HU.  Calls Shipping Station and checks if HU has pending Shipping VAS activities to be performed  in this case it displays the Zone where to move the HU.  If the Zone where the HU should be moved is equal to the Zone of the previous HUs  if the Zones are different, the System displays a warning message. 5 Mission creation SAP ECC If previous checks end successfully, System creates a new Mission and save data in DB. 4.6.1 Outbound Process: Bin2Bin Details (1/2) GA-D-010

100. 100 Step Description Responsible System Action 6 Move HU to destination Bin SAP ECC After all HUs are loaded in the Cart, the User moves them into the destination Bin. 7 Scan destination Bin Barcode SAP ECC User scans the destination Bin Barcode. 8 Consistency checks SAP ECC Once User scans the destination Bin, System performs the following checks:  If the Bin exists.  Consistency for Putaway activities (e.g. checks if Bin needs to store HU with the same Logistic Agent).  Consistency for Shipping VAS activities to be performed (e.g. checks if HU has pending Shipping VAS  in this case User can’t move the HU in the Bin). 9 Mission closing SAP ECC If all checks end successfully, User moves HU from source Bin to destination Bin and closes the Mission. 4.6.1 Outbound Process: Bin2Bin Details (2/2) GA-D-011

102. 102 4.6.2 Outbound Process: Split Flow Grey Area – Split Flow ECC GA-F-020 A Automatic activity M Manual activity 1. Incoming Area From Slide OU-F-010 2. Select Split functionality YES NO A M 3. Scan Barcode of HU to be Split M 5. Mission creation A 6. Scan the barcode of HU to be extracted M 7. Remove physically the HU scanned M 8. Confirm the Split 9. Remove link between the HU Mother and HUs extracted A M 4. Retrieve Mission A Mission Open? YES NO Is HU Mother Empty? 12. Mission closing 11. Reset Shipping VAS activities 10. Destroy HU Mother A A A

103. 103 Step Description Responsible System Action 1 Incoming Area SAP ECC HU Pallet is moved to Incoming Area. The User will scan the highest HU with a transaction in order to move it to the correct Grey Area Zone. 2 Select Split functionality SAP ECC User with RF gun selects Split functionality. 3 Scan Barcode of HU to be Split SAP ECC User scans the Barcode of the HU he wants to Split. The System performs the following checks:  HU exists.  HU is not in another Mission which is still open and owned by another User.  HU is in a Mission – opened by the User – whose type is different from Split.  HU is in a Bin that allows the Split activity.  HU is the Highest Level of the Pallet  Calls VAS Cockpit and checks if there are pending VAS activities  in this case the User is not allowed to pick the HU. 4 Retrieve Mission SAP ECC If User has already a Split open Mission, the System retrieves Mission number  if there is an open Mission of different type, System displays an error message. 5 Mission creation SAP ECC The System creates the Mission when the User scans the HUs to be removed and it sets the Source Bin in the mission table equal to the Source Bin where the Mother HU is stored. 4.6.2 Outbound Process: Split Details (1/2) GA-D-020

104. 104 Step Description Responsible System Action 6 Scan the barcode of HU to be extracted SAP ECC User scans the HU Barcode that he wants to extract from the Mother HU. The system performs the following checks:  HU exists.  HU must not be in an open Mission.  HU to be removed must be contained in the Mother HU scanned for the Split.  HU must be linked to a Mother HU that must not have links with an Highest HU. 7 Remove physically the HU scanned SAP ECC User has to remove from the Mother HU the Split HU. 8 Confirm the Split SAP ECC User has to confirm the end of the Split activity with a specific button on the RF Gun. 9 Remove link between the HU Mother and HUs exatracted SAP ECC The Split confirmation allows the System to remove the link between the HUs scanned and the Mother HU. 10 Destroy HU Mother SAP ECC The System will destroy the Mother HU if it has been emptied after the Split. 11 Reset Shipping VAS activities SAP ECC The System will reset all the Shipping VAS activities for the HU removed and for the Mother HU  User will have to repeat the activities again after the Split. 12 Mission closing SAP ECC The System closes the Mission and updates the Mission table setting the source Bin equal to the destination Bin. 4.6.2 Outbound Process: Split Details (2/2) GA-D-021

106. 106 4.6.3 Outbound Process: Merge/Insert Flow Grey Area – Merge/Insert Flow ECC GA-F-030 A Automatic activity M Manual activity 1. Incoming Area From Slide OU-F-010 2. Select Merge/Insert functionality YES NO A M 5. Mission creation A 6. Read HU destination M 7. Confirm Merge/Insert M 8. Reset Shipping VAS activities 9. Mission closing A 4. Retrieve Mission A Mission Open? A 3. Scan Barcode of HU to be inserted M

107. 107 Step Description Responsible System Action 1 Incoming Area SAP ECC HU Pallet is moved to Incoming Area. The User will scan the highest HU with a transaction in order to move it to the correct Grey Area Zone. 2 Select Merge/Insert functionality SAP ECC User with RF gun selects Merge/Insert functionality. 3 Scan Barcode of HU to be inserted SAP ECC User scans the Barcode of the HU he wants to Split. The System performs the following checks:  HU exists.  HU is not in another Mission which is still open and owned by another User.  HU is in a Mission – opened by the User – whose type is different from Merge/Insert.  HU is in a Bin that allows the Merge/Insert activity.  HU must have the Palletstring and Logistic Agent equal to the others selected.  Calls VAS Cockpit and checks if there are pending VAS activities  in this case the User is not allowed to pick the HU. 4 Retrieve Mission SAP ECC If User has already a Merge/Insert open Mission, the System retrieves Mission number  if there is an open Mission of different type, System displays an error message. 5 Mission creation SAP ECC If no Merge/Insert open Mission exists, System creates a new Mission and saves data in DB. 4.6.3 Outbound Process: Merge/Insert Details (1/2) GA-D-030

108. 108 Step Description Responsible System Action 6 Read HU destination SAP ECC User selects the destination HU. The system performs the following checks:  HU exists.  HU is not in another Mission which is still open and owned by another User.  HU is in a Mission – opened by the User – whose type is different from Merge/Insert.  HU is stored in an authorized Bin.  HU must not have Higher Level HU linked.  HU must have same Palletstring of HU to be inserted.  HU must be an Higher Level then the HU to be inserted. System automatically sets the destination Bin equal to the Bin of the destination HU. 7 Confirm Merge/Insert SAP ECC User confirms Merge/Insert activity closure and System performs following activities:  Removes link of inserted HUs from previous HU and inserts the new link.  Calls Shipping Station in order to re-determine Shipping VAS activities.  Remove inserted HUs from original Bin. 8 Reset Shipping VAS activities SAP ECC The System will reset all the Shipping VAS activities for the HU inserted and for the destination HU  User will have to repeat the activities again after the Merge/Insert. 9 Mission closing SAP ECC The System stores the HU in the destination Bin and closes the Mission. 4.6.3 Outbound Process: Merge/Insert Details (2/2) GA-D-031

110. 110 5. Mission closing 4.6.4 Outbound Process: Truck Loading Flow Grey Area – Truck Loading Flow ECC GA-F-040 A Automatic activity M Manual activity 1. Select Truck Loading mission M 2. Scan Cart / Gaylord Barcode 3. Scan HU Barcode M M A 4. Scan Destination BIN M Loading completed? 8. HU Standard creation A 7. Delivery queuing A YES NO 2 9. Shipment status update: Planning M 10. Shipment status update: Shipment completion M 11. Shipment status update: Shipment start M 13. Shipment status update: Shipment end M 12. Deletion of custom HUs in Grey Area A Truck Loading Transaction 6. HU Confirm Slide SH-D-020 M

111. 111 Step Description Responsible System Action 1 Select Truck Loading mission SAP ECC The User selects the Truck Loading mission with an RF Transaction, it is possible to start the shipping flow when the NF is approved and the Shipping Labels are printed and applied. 2 Scan Cart / Gaylord Barcode SAP ECC The user scans the cart barcode or the Gaylord (which is a carton box) used to move the HUs from original bin to destination bin. 3 Scan HU Barcode SAP ECC The user scans the HUs barcode ready to be shipped that will be moved in destination bin (that identifies the Truck). In this moment will be start the Truck Loading mission. 4 Scan Bin destination (HU confirmation) SAP ECC The user scans destination bin and the system checks if the HUs to be loaded have the same Logistic Agent. 5 Mission closing SAP ECC The system closes the truck loading mission when all the HUs of the Cart / Gaylord have been loaded on truck (destination bin). 6 HU Confirm SAP ECC If the truck is fully loaded, the user can confirm the HU or the Truck Bin in order to link the HU to the shipment (in custom table). 7 Delivery queuing SAP ECC The system through a job running in background queues the deliveries to the Shipment (in standard table). 8 HU Standard creation SAP ECC The system through a job running in background creates the standard HUs in order to pack the deliveries (in standard table). *2 Go back to Step 2 SAP ECC If the loading is not completely done the user can continue the loading activities. 4.6.4 Outbound Process: Truck Loading Details (1/2) GA-D-040

112. 112 Step Description Responsible System Action 9 Shipment status update: Planning SAP ECC User press «Planning» button. At this moment, the Shipment is freezed and can’t be modified no more. 10 Shipment status update: Shipment completion SAP ECC User press «Shipment completion» button. 11 Shipment status update: Shipment start SAP ECC User press «Shipment start» button. 12 Deletion of custom HUs in Grey Area SAP ECC The system, triggered by the Shipment Start, deletes the custom HUs from Grey Area. This process is not reversible, it means that will be not possible to unload the truck anymore. 13 Shipment status update: Shipment end SAP ECC User press «Shipment end» button. 4.6.4 Outbound Process: Truck Loading Details (2/2) GA-D-041

113. 113 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING STATION OVERVIEW 4.7.1 SHIPPING STATION PROCESS 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

114. 114 4.7 Outbound Process: Shipping Station Overview The Shipping Station program is used to complete the Shipping activities. The HUs arrive at the Shipping Station Area after picking and VAS activities are finished and PGI has been executed. If all the relevant checks for each HU are completed, all manual Shipping activities (e.g. Shipping Labels printing) are executed and the HUs can be loaded on the Shipment and shipped to the Customer. Shipping Station is composed by multiple steps, one for each activity needed  User is able to execute the next step only after the previous one is completed. Once the User has scanned the HU, will be proposed the Shipping Station activities needed, one by one. SS-D-000

115. 115 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING STATION OVERVIEW 4.7.1 SHIPPING STATION PROCESS 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS

116. 116 4.7.1 Outbound Process: Shipping Station Process Flow Shipping Station Process Flow ECC SS-F-010 A Automatic activity M Manual activity 01 – RFID reading 02 – Shipping VAS 03 – Hu mesureament 04 – Box type update 05 – AUDIT check 06 – Carrier change 07 – Invoice creation 08 – Invoice printing 09 – Delivery note printing 10 – Others delivery’s document printing 11 – ROTA insertion 13 – NFE Check A M M M M M M A A A A A 14 – Shipping labels printing M 15 – RFID reading 12 –Bin2Bin to staging area Slide GA-D-000 M

117. 117 Description Responsible System Action 01 RFID reading SAP ECC Activity done during PGI, before shipping station. 02 Shipping VAS SAP ECC User can perform shipping VAS activities (e.g: Premium box packaging) 03 HU measurement SAP ECC Dimensions of HU are calculated automatically using material master data values. It is possible to change them manually 04 Box type update SAP ECC Box type can be changed manually 05 AUDIT check SAP ECC Pop up that reminds to do this activity 06 Carrier change SAP ECC It is possible to change the carrier manually 07 Invoice creation SAP ECC Start of invoice activity that will trigger NFE approval flow. To be decided if it will be an automatical or manual activity 08 Invoice printing SAP ECC Printing of the invoice (if needed) 09 Delivery note printing SAP ECC Printing of delivery note 10 Others delivery’s document printing SAP ECC List to be defined 11 Rota Insertion SAP ECC Pop up that allow to put manually a value in the field “Rota” of the label “Etiqueta P2” 4.7.1 Outbound Process: Shipping Station Process Details (1/2) SS-D-010

118. 118 Step Description Responsible System Action 12 Bin to Bin to staging area SAP ECC The user, through the bin2bin functionality, moves the HU that is in waiting for NFE approval to the staging area. More details in slide GA-D-000 13 NFE Check SAP ECC Check if NF has been approved. If not, system doesn’t allow to go to the next step 14 Shipping labels printing SAP ECC Printing of the shipping labels and application on the boxes when the HU is shippable 15 RFID reading SAP ECC In case of the RFID reading during PGI fails, program will trigger again the RFID reading 4.7.1 Outbound Process: Shipping Station Process Details (2/2) SS-D-011

120. 120 4.8 Outbound Process: Nota Fiscal Approval Process Flow Nota Fiscal Approval Process Flow 1. Outbound Delivery creation NFe status 2. Picking process REJECTED APPROVED 3b. Goods Issue replica 1b. Outbound Delivery replica NF-F-010 ECC DWM SEFAZ FMS 3. Good Issue confirmation 4. Invoice creation 5. NFe creation 6. NFe approval 9. NFe rejection flow Detail Slide NF-F-030 7. NFe approved 8. Shipping Label printing IF IF IF IF IF Interface to be implemented Interface already used IF IF

121. 121 Step Description Responsible System Action 1 Outbound Delivery creation SAP ECC Creation of Outbound Delivery starting from Sales Order. 1b Outbound Delivery replica SAP DWM Replica of Outbound Delivery in DWM through Idoc /AFS/SHP_OBDLV_SAVEREPLICA and transformation of Outbound Delivery according to DWM logics. 2 Picking process SAP DWM User performs picking activities. 3 Good Issue confirmation SAP DWM Good Issue confirmation will be done automatically in SAP DWM System when last piece of the Delivery is picked. The Idoc SHP_OBDLV_CONFIRM_DECENTRAL will trigger Good Issue in SAP ECC System to allow following steps. 3b Good Issue replica SAP ECC Good Issue confirmation in SAP ECC System. 4 Invoice creation SAP ECC Creation of Invoice document (Billing document is 1:1 with the Delivery) in SAP ECC System. 5 NFe creation SAP ECC Creation of Nota Fiscal Eletrônica (NFe is 1:1 with the Billing document) in SAP ECC System. 6 NFe approval SEFAZ Nota Fiscal Eletrônica is sent to Sefaz in order to start the approval process. 4.8 Outbound Process: Nota Fiscal Approval Process Details (1/2) NF-D-010

122. 122 Step Description Responsible System Action 7 NFe approved SAP ECC After Sefaz has approved the Nota Fiscal Eletrônica, the approval is sent to SAP ECC. 8 Shipping Label printing SAP ECC User prints the Shipping Label. 9 NFe rejection flow SAP ECC In case Sefaz rejects the Nota Fiscal Eletrônica the process will proceed with the rejection flow. 4.8 Outbound Process: Nota Fiscal Approval Process Details (2/2) NF-D-011

124. 124 4.9 Outbound Process: Nota Fiscal Approval Process Flow – E-Commerce Nota Fiscal Approval Process Flow – E-Commerce 1. Outbound Delivery creation IC NFe status 2. Picking process REJECTED APPROVED 3b. Goods Issue replica 1b. Outbound Delivery replica NF-F-020 ECC DWM SEFAZ FMS 3. Good Issue confirmation 4. IC Invoice creation 6. IC NFe approval 14. NFe rejection flow Detail Slide NF-F-030 7. IC NFe approved 13. Shipping Label printing 5. IC NFe creation 9. Customer NFe creation REJECTED APPROVED 10. Customer NFe approval Customer NFe status 12. Customer NFe approved 11. Customer NFe approved IF IF IF IF IF 8. Customer Invoice creation IF IF Interface to be implemented Interface already used 8 7 12 11 IF IF

125. 125 Step Description Responsible System Action 1 Outbound Delivery creation SAP ECC Creation of Outbound Delivery starting from Sales Order. 1b Outbound Delivery replica SAP DWM Replica of Outbound Delivery in DWM through Idoc /AFS/SHP_OBDLV_SAVEREPLICA and transformation of Outbound Delivery according to DWM logics. 2 Picking process SAP DWM User performs picking activities. 3 Good Issue confirmation SAP DWM Good Issue confirmation will be done automatically in SAP DWM System when last piece of the Delivery is picked. The Idoc SHP_OBDLV_CONFIRM_DECENTRAL will trigger Good Issue in SAP ECC System to allow following steps. 3b Good Issue replica SAP ECC Good Issue confirmation in SAP ECC System. 4 IC Invoice creation SAP ECC Creation of Intercompany Invoice document (Billing document is 1:1 with the Delivery) in SAP ECC System. 5 IC NFe creation SAP ECC Creation of Intercompany Nota Fiscal Eletrônica (NFe is 1:1 with the Billing document) in SAP ECC System. 6 IC NFe approval SEFAZ Intercompany Nota Fiscal Eletrônica is sent to Sefaz in order to start the approval process. 4.9 Outbound Process: Nota Fiscal Approval Process Details – E-Commerce (1/2) NF-D-020

126. 126 Step Description Responsible System Action 7 IC NFe approved SAP ECC After Sefaz has approved the Intercompany Nota Fiscal Eletrônica, the approval is sent to SAP ECC. 8 Customer Invoice creation SAP FMS Creation of Customer Invoice in FMS System. 9 Customer NFe creation SAP FMS After Sefaz has approved the Intercompany Nota Fiscal Eletrônica, the Customer NFe is created in FMS System. 10 Customer NFe approval SEFAZ Customer Nota Fiscal Eletrônica is sent to Sefaz in order to start the approval process. 11 Customer NFe approved SAP FMS After Sefaz has approved the Customer Nota Fiscal Eletrônica, the approval is sent to SAP FMS. 12 Customer NFe approved SAP FMS/ECC FMS will send to ECC (new interface to be developed) the Customer NFe number and status (rejected or approved) once the approval process is completed. 13 Shipping Label printing SAP ECC User prints the Shipping Label. 14 NFe rejection flow SAP FMS/ECC In case Sefaz rejects the Nota Fiscal Eletrônica the process will proceed with the rejection flow. 4.9 Outbound Process: Nota Fiscal Approval Process Details – E-Commerce (2/2) NF-D-021

128. 128 4.10 Outbound Process: Nota Fiscal Rejection Process The rejection process is triggered when the SEFAZ System rejects the NFe because of different causes (the list of rejection causes will be added when the Business will provide them). It is possible to divide the rejection causes in two different families: 1. Relevant for the Perfect Returns process  the issue can be solved following these steps: a. NFe cancellation b. Invoice cancellation c. Inbound Delivery creation, with the same quantity of the Outbound Delivery, and Goods Receipt to the Perfect Returns Storage Location d. Inbound process (for more details see slide Inbound Process Flow) e. Outbound Delivery creation and Outbound process. (for more details see slide Outbound Delivery Process Flow) f. New Invoice creation g. New NFe creation 2. Not relevant for the Perfect Returns process  the issue can be solved following these steps: a. NFe cancellation b. Invoice cancellation c. Modification of data in ECC e.g.: price – customer data etc... d. New Invoice creation e. New NFe creation The Reverse of Goods Issue can’t be executed (SAP standard constraint) due to DWM System because the Delivery has been distributed. NF-F-030

129. 129 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 4.1 GUIDELINES 4.2 OUTBOUND PROCESS 4.3 PICKING PROCESS OVERVIEW 4.4 VAS ACTIVITIES OVERVIEW 4.5 CARRIER CHANGE 4.6 GREY AREA OVERVIEW 4.7 SHIPPING VAS STATION OVERVIEW 4.8 NOTA FISCAL APPROVAL PROCESS 4.9 NOTA FISCAL APPROVAL PROCESS – E-COMMERCE 4.10 NOTA FISCAL REJECTION PROCESS 4.11 SHIPMENT PROCESS 4.11.1 HU CONFIRMATION TO SHIPMENT 4.11.2 HU CONFIRMATION TO GAYLORD 4.11.3 HU QUEING TO SHIPMENT 4.11.4 SHIPMENT STATUS UPDATE

131. 131 4.11.1 Outbound Process: HU confirmation to Shipment SH-D-020 User scans HU. If the HU is ok, it is added in “HU READ” list. Will be substituted the HU with the BIN code to minimize the scanning. The system retrieves all the HU Number from the Bin. User inserts the Shipment number and press “F1 SAVE” in order to link all HUs previously scanned to the Shipment, writing records in the custom table ZTLE_SHIPMENT. User is able to continue scanning other Hus in order to add them to the list. This is possible only if the Logistic Agent is the same of the previous HU scanned. When all HU are scanned, User press “F1 SHIP” in order to add all the HUs scanned to a Shipment. To be designed

133. 133 4.11.2 Outbound Process: HU confirmation to Gaylord (1/2) SH-D-025 User scans HU. If the HU is ok, it is added in “HU READ” list. Will be substituted the HU with the BIN code to minimize the scanning. The system retrieves all the HU Number from the Bin. User inserts the Gaylord number and press “F1 SAVE” in order to link all HUs previously scanned to the Gaylord. User is able to continue scanning other Hus in order to add them to the list. This is possible only if the Logistic Agent is the same of the previous HU scanned. When all HU are scanned, User press “F2 SHIP” in order to add all the HUs scanned to a Gaylord (that is a container that in a second time will be linked to a Shipment). To be designed

134. 134 4.12.2 Outbound Process: HU confirmation to Gaylord (2/2) SH-D-026 When the Gaylord is full or User needs to close it, User scans the Gaylord number and press “F1 CLOSE”. After the Gaylord is closed, User can manage it as a HU, so User can follow the same procedure of the HU to link the Gaylord to a Shipment. User inserts the Gaylord number and press “F1 SHIP” in order to link all HUs previously scanned to the Gaylord. User inserts the Shipment number and press “F1 SAVE” in order to link the Gaylord previously scanned to the Shipment, writing records in the custom table ZTLE_SHIPMENT. To be designed

136. 136 4.11.3 Outbound Process: HU queuing to Shipment In case of error will be shown a log indicating the reason. SH-D-030 A Job that runs periodically will take into consideration every record of the table ZTLE_SHIPMENT trying to create the real link between HU and Shipment and writing standard VEKP and VEPO tables.

138. 138 The Shipment will be managed through standard transaction: 4.11.4 Outbound Process: Shipment status update SH-D-035

139. 139 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 5.1 GUIDELINES 5.2 THRESHOLD 5.3 THRESHOLD CART CREATION 5.4 THRESHOLD REPLENISHMENT STEPS

140. 140 5.1 Replenishment Process: Guidelines Replenishment Threshold. This flow has the role of moving pieces from Reserve Area to the Fixed Bin in order to have enough quantity of Loose Pieces for the Deliveries. Replenishment based on Max-Min Threshold aims to move a number of pieces to Picking Area sufficient to fill all Bins for which quantity is lower than the Min of the Fixed Bin set in Bin Master Data (custom table). Picking / Putaway path is optimized based on the Bin naming (the same rules applied to Inbound / Outbound processes). Manual Replenishment Up To Need The Replenishment Up To Need has the aim to move the products from a source Bin of Reserve Area to a destination Bin of the Picking Face Area. This process will be driven by the user who will run a simulation of the ARUN before the delivery creation. Based on the result of the simulation, he will manually run the Replenishment Up to need using an Excel uploader in DWM. The System based on the file uploaded will create a Replenishment Cart which is able to move products from a Source Bin (Reserve) to a destination Bin (dynamic bin). No Picking / Putaway path optimization because this process is forced by the User. Automatic Replenishment Up To Need ( Not available for the go live) When the deliveries are effectively created in the system, the quantities between the deliveries and the User’s simulation can be different. In this case the system should compare the quantities of the deliveries and the ones available in the bin to run the automatic Replenishment, fulfilling the bin at maximum capacity. REP-D-000

141. 141 MAIN FLOW: INDEX 1. INTRODUCTION 2. LOGISTIC STRUCTURE 3. INBOUND PROCESS 4. OUTBOUND PROCESS 5. REPLENISHMENT PROCESS 6. INVENTORY PROCESS 5.1 GUIDELINES 5.2 THRESHOLD 5.3 THRESHOLD CART CREATION 5.4 THRESHOLD REPLENISHMENT STEPS

142. 142 5.2 Replenishment Process: Threshold Flow DWM REP-F-010 A Automatic activity M Manual activity Threshold Flow 2. Cart Monitor 1. Replenishment Cart creation Detail Slide REP-F-020 3. Replenishment activities Cart Label Printing, Cells Printing Input Parameters (filter Deliveries) • Scheduled / Manual • Material • Storage Section • BIN • Threshold • N° Cart / n° Cells per Cart / pcs per Cell • Print Labels A M M M Input Parameters (Carts) • Creation Date • Cart Status • … • Print Labels

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