SAP for Retail

Development Projects
Part 1 of 3
Duration of the eBook: 11 minutes
 Agenda

„ SAP Merchandise and Assortment Planning

„ SAP POS Data Management

„ SAP Forecasting and Replenishment

„ SAP Enterprise Portal Business Package Retail

„ SAP Profit Center Analytics

„ SAP Customer Loyalty Marketing

© SAP AG 2003
 Agenda

SAP Merchandise and Assortment

Planning

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 Pain Areas

I need to execute my Can I rely on

plan in the How can I standardize
my data?
merchandising and control the
system! Which products planning process?
drive profit?
How do I combine
How can I strategic, merchandise,
handle multiple and assortment plans?
dimensions and
levels of
planning? Do I have the
right product
mix for my
customers?
Can my business
support the plan?
What is the
best way to
I need an
I want to be analyze my
intuitive
alerted only when data?
planning
an exception
system!
appears!
© SAP AG 2003
 Overview MAP Solution
SAP MAP
Strategic Plan Total Planning Integration
„ Strategic planning
Store Plan Merchandise Plan „ Store planning
„ Merchandise planning
„ Assortment planning
Assortment Plan
Open Interfaces
(XML)

Fulfillment Total Execution Integration

Master Data „ Buying / OTB
Assortment Purchase Order „ Allocations
Shelf Optimization „ Assortments
Allocation „ Space Optimization
Price Reduction
„ Master Data Management
„ Markdowns
Business Scenarios Out of Scope
„ Fashion „ Promotion Planning
„ Basics / Lean Category „ Campaign Management
Management

© SAP AG 2003
 Merchandise and Assortment Planning
Solution

SAP MAP
Planning, Simulations,
Calculations
Planning with

SAP SEM-BPS
SAP MAP
Reports
Reporting with

SAP BW

© SAP AG 2003
 Planning Process

Strategic Planning Controlling

Operative Planning
Define Business Plan Monitor the plans

Review
Store Clustering Operative
Planning Slow Seller
Store Planning
Controlling
Markdown Planning

Merchandise
Planning Assortment Planning

Strategic Planning
Strategic Planning

January December
Review

© SAP AG 2003
 Differentiation: Fashion and Basics

Fashion characteristics Basics characteristics

„ High share of new products „ Low share of new products

„ Short life cycle „ long life cycle

„ Normally not replenishable on short „ Normally replenishable on short term

term basis basis

„ Push oriented „ Procured and reordered based on

real customer demand (Pull-oriented)

„ Importance of OTB, markdowns „ Importance of shelf optimization,

Category Management

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 Open-To-Buy (OTB)

The calculation of OTB is based on the planned budgets,

open purchase orders, forecast data, and actual data.

Initial Purchasing Budget Budget Expenditure

Total Budget
Update
Plan Actual Actual
ActualData
Data
Data
Merchandise Data

Plan

OTB Reduce
Plan

Purchase
Error Order Creation
Warning
Release

© SAP AG 2003
 Markdown Profile

It is week 5 and the sell-thru ratio is 63 %

Weeks 1 2 3 4 5 6
Target Sell-Thru Ratio 6% 26% 45% 65% 85% 97%
Actual Sell-Thru 0% - 10% 40 60 60 60 60
Ratio
11% - 20% 20 60 60 60 60
21% - 30% 40 60 60 60
31% - 40% 20 60 60 60
41% - 50% 40 60 60
51% - 60% 20 60 60
61% - 70% 40 60
71% - 80% 20 40
81% - 90% 20
91% - 100%

© SAP AG 2003
 Agenda

POS Data Management

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 Challenges in POS Data Management

„ Understand consumer behavior in a better way

„ Ensure an effective store measurement

„Increase profitability by utilizing POS data for near real-time

controlling of retail processes

„Realize the vision of an effective ‘consumer centric’ supply chain

through real time POS data

© SAP AG 2003
 A central repository for POS data serves all
areas

Analytics

Category
Manager
Replenishment
Planner CRM Manager

POS Data
Merchandising

Management Store
Retail Buyer
Manager

© SAP AG 2003
 Solution approach – POS Data Management

Sales Analyses of POS Data

Store Loss Promo

BW-Reporting
Contr. Prevent Analysis

Templates
SAP BW

mySAP
Landscape
POS Inbound
Outbound Interfaces
Processing Engine
3rd Party
Landscape

Upload of POS Data to SAP BW

via POS Inbound Processing Engine

© SAP AG 2003
 Multi dimensional analysis based on POS data

Customer Views

Store Views

By month
By week Product Views
By day
By hour

© SAP AG 2003
 New reporting enhancements of POS
Analytics

„ Event reporting allows long-term comparison of short scale

sales-events (e.g. promotions, themes, campaigns, Xmas, back-
to-school, etc..) over time

„ Price and margin information even when used as standalone

solution (moving average concept)

„ Retail calendar provides the ability to report using fiscal year

variants

„ Reason Code reporting, e.g. for returns reasons

© SAP AG 2003