P SAP Runs Real Time Retailing
Agenda
SAP P Re Reta tail il Cu Cust stome omer r SA Best st Pra Pract ctic ices es in Ret Retai aill Be mySAP ERP
Enterp erpris rise e for for Ret Retail ail SAP R/3 Ent Evol olut utio ion n SAP SAP for Re Reta tail il Ev Deve velo lopm pmen entt Pr Proj oject ects s De Future Store Initiative
Outl tloo ook k – SD SDP P Fas Fashi hion on Ou
Agenda
SAP P Re Reta tail il Cu Cust stome omer r SA Best st Pra Pract ctic ices es in Ret Retai aill Be mySAP ERP
Enterp erpris rise e for for Ret Retail ail SAP R/3 Ent Evol olut utio ion n SAP SAP for Re Reta tail il Ev Deve velo lopm pmen entt Pr Proj oject ects s De Future Store Initiative
Outl tloo ook k – SD SDP P Fas Fashi hion on Ou
Agenda
SAP SA P Re Reta tail il Cus usto tome mer r
Retail Customers 2003 compared to Dec 2002
Retail Customers Worldwide
1.696 (1367)
Europe/Middle East/Africa Americas Asia Pacific
1.221 (1024) 268 (225) 207 (184)
M C13 Customers Installations Live Install. TOTAL 1.696 3.736 1.468 EM EA 1.221 2.438 1.003 AM ERICA 268 688 208 APA 207 593 256
Systems 7.427 5.018 1.351 1.058
Merchandise Management Customers**369 (269)
Europe/Middle East/Africa Americas Asia Pacific
222 (188) 100 (52) 47 (29)
*Source: ISP/CIS reporting, not incl. are the customer types SAP internal, -partner, -hardware partner and -logo partner. **Including Staffworks customers
Strong customer base worldwide Grocery
Health & Beauty
Convenience
Postal Services/ Telco
Strong customer base worldwide Fashion
General Merchandiser
Catalogue Mail Order/ Internet Selling
Strong customer base worldwide Misc. Speciality
Misc. Speciality
Strong customer base worldwide DIY/ Home Improvement
Home Furnishings
Wholesale/ Cash&Carry/ Franchise Business
Go Lives 2003
Live with SAP Enterprise 4.7 Incl. Purchasing, Master Data, Logistics (incl. VMI)
Live with mySAP Retail Implementation time: 6 months
Upgrade to R/3 Enterprise Further GoLive with mySAP Retail in Italy, Roll-out to US in preparation Upgrade to SAP R/3 4.6C Project time 9 months Live with IS-Retail (3 pilot stores), FI/CO, Rel. 4.6c, 110 stores, 80,000 SKUs Live with mySAP Retail and Retail AFS, SD, MM, WM, QM, FI, CO, HR
Live with SAP Retail Enterprise
Live in 800 pilot stores (out of 15.000 stores/ partner agencies ). Project time: approx. 12 months
Go Live 2003 Moebel Pfister and Migros Aare upgrade to R/3 Enterprise
On September 1, 2003, Moebel Pfister, a leading furniture retailer, went live with SAP Enterprise. The customer has reported back a seamless project without any major project challenges. Moebel Pfister’s operations were never impacted by the upgrade in any way. The fact that the project was completed six weeks ahead of schedule and 20% below budget while meeting all the project objectives was the icing on the cake. On October 12, Migros Aare, one of the ten cooperatives of the Migros GenossenschaftsBund, successfully went live with R/3 Enterprise (upgrade from 4.5B) for their "Fresh items/perishables platform" - dairy and agricultural products (vegetables, fruit and flowers) as well as meat. The scope included a total of 14,000 articles and 2,000 users. The project last just six months and despite challenges related to hardware replacement and the upgrade of the Oracle database as well as the operating system (Unix AIX), the project delivered tangible benefits: Generating the assortment list (HPR-Version) is now a matter of 30 minutes instead of 21 hours! The system is stable and the customer is happy. Planned next steps are the upgrade to R/3 Enterprise for the cooperatives Luzern and Zurich. After that, the bakery assortment will be included and the rollout of the fresh item/perishable assortment will continue to the French speaking region as well as to Migros' convenience stores.
SAP R/3 Enterprise 2.0 Ramp-up customers
Ramp-up has started in December for Enterprise Extension Set 2.0
SPAR Management AG, Switzerland Ramp-up has started last week for Enterprise Extension Set 2.0
Agenda
Best Practices in Retail
Segmentation of the Retail Industry
Best Best Practices Practices for for ‘SAP ‘SAP for for Retail’ Retail’ Standardization Standardization of of Retail Retail Enterprises Enterprises into into four four main main segments segments
Preconfigured Preconfigured Systems Systems
Fashion Fashion
Hard Hard Goods Goods
Food Food
Wholesale Wholesale
e.g. textiles, fashion, shoes
e.g. do-it-yourself, electrical, toys, sport equipment
e.g. supermarket, discount store, convenience store, hypermarket, cash&carry
e.g. supplying wholesale, Internet, mail-order
What are SAP Best Practices for Retail? Traditional project
Enable fast Enable fast and and easy Working CRMeasy prototype implementation implementation of of SAP SAP for for Retail Retail With SAP Best Practices
Demonstration Demonstration of of aa solution solution that that is is easy easy to: to: identify with implement adapt to specific requirements
Time and effort savings
Get Get aa living living and and fully fully documented documented prototype prototype within within days days that that you you can can rapidly rapidly turn turn into into aa productive productive solution solution
Identification and anticipation of reusable business processes and project activities
Agenda
mySAP ERP
What is mySAP ERP?
mySAP ERP is the successor ERP offering to SAP R/3 Enterprise Functionality-wise mySAP ERP: Includes all the functionality of mySAP R/3
R/3 R/3 Enterprise Enterprise
Enterprise Plus a large number of additional business
processes (SAP SEM, ESS) Integrated and Personalized functionality
(Business Information Warehouse reporting, role based)
Technology-wise mySAP ERP: Is built on SAP NetWeaver (From 2004) further integration with
SAP NetWeaver (Enterprise Portal, Exchange Infrastructure and SAP BW)
mySAP ERP
SAP NetWeaver
Retail-wise mySAP ERP SAP R/3 Enterprise The Retail Solution is included in SAP R/3 Enterprise, additional
functionality has been developed in specific Retail Add-Ons (Enterprise Extension Set 1.10 and 2.0)
mySAP ERP 2004 The Retail Solution is included in mySAP ERP 2004, new functionality
has been developed in specific Retail Add-On (SAP ECC Extension Set 5.00)
mySAP ERP 2005 The Retail Solution will be included in mySAP ERP 2005, new Retail
functionality will be developed
General statement of direction The core Retail functionality (merchandising solution) will remain
part of ERP and will be further enhanced in the future (continuous improvement mainly) However, new Retail functionality will be developed also in other SAP components (SCM, MDM, CRM, etc.) and will be tightly integrated with ERP functionality
The Architecture of mySAP ERP mySAP ERP Edition 2004
n o i t a c i l p p A
up to 4.6C
Application SAP Basis
y g o l o n h c e T
Self-Service Procurement
Additional Components
Internet Sales
Self Services
… and more
Self-Service Procurement
SAP R/3 Enterprise SAP R/3
Additional Components
mySAP ERP Edition 2003
SAP Enterprise Extension Set SAP R/3 Enterprise Core SAP Web Application Server
Internet Sales
Composite Applications
Strategic Enterprise Management
SAP ERP Central Component 5.0
… and more
Self Services
SAP R/3 Enterprise
Strategic Enterprise Management
SAP Enterprise Extension Set
SAP ECC Extension Set Switch Framework
SAP R/3 Enterprise Core SAP NetWeaver™ k r PEOPLE INTEGRATION o Multi Channel Access w e Collaboration m Portal a r F INFORMATION INTEGRATION n Bus. Intelligence Knowledge Mgmt o i t a Master Data Mgmt c i l p PROCESS INTEGRATION p Business A Integration Process Mgmt e Broker t i s APPLICATION PLATFORM o p J2EE ABAP m o DB and OS Abstraction C
L i f e C y c l e M g m t
SAP ECC Core
SAP NetWeaver™ ‘2004 k r PEOPLE INTEGRATION o Multi Channel Access w e Collaboration m Portal a r F INFORMATION INTEGRATION n Bus. Intelligence Knowledge Mgmt o i t a Master Data Mgmt c i l p PROCESS INTEGRATION p Business A Integration Process Mgmt e Broker t i s APPLICATION PLATFORM o p J2EE ABAP m o DB and OS Abstraction C
L i f e C y c l e M g m t
Release Strategy – SAP R/3 and mySAP ERP
mySAP ERP – Edition 2004 ) e t i y u l n S o s s s e t n c i a r s t u n B o P c P A A S y S m y m r o h P t i R w E e P l b A a l i S a y v m A . g . e (
Other components (e.g. Self Service Procurement) SAP ERP Central Component 5.0 SAP ECC Extension Set 5.00 SAP ECC Core 5.0
SAP NetWeaver’04
mySAP ERP – Edition 2003 Other components (e.g. Self Service Procurement) SAP R/3 Enterprise SAP R/3 Enterprise Extension Set 2.00 SAP R/3 Enterprise Extension Set 1.10 SAP R/3 Enterprise Core 4.7
SAP NetWeaver’03 t c h a t SAP R/3 Enterprise r i t w n SAP R/3 Enterprise Extension Set 2.00 e o l c SAP R/3 Enterprise Extension Set 1.10 b 3 a / SAP R/3 Enterprise Core 4.7 l i R a v P A A SAP R/3 4.6C S
2002
2003
2004
2005
2006
2007
2008
2009
The Architecture of SAP R/3 Enterprise SAP R/3 Enterprise SAP R/3 Enterprise Extension Set 1.10 + 2.00
With SAP R/3 Enterprise, SAP has introduced a new development strategy. Primary focus: making deployment of new functionality optional. Plus: stability of existing processes
SAP R/3 Enterprise Core 4.7
SAP Web AS 6.20 + 6.30
Optional new functional enhancements (SAP R/3 Enterprise Extension Sets)
Tuned Core, optimized for Performance (SAP R/3 Enterprise Core)
Technology & infrastructure enhancements (SAP Web Application Server)
The Architecture of SAP ERP Central Component 5.0 SAP ERP Central Component 5.0 Optional new functional enhancements
SAP ECC Extension Set 5.00
(SAP ECC Extension Sets)
Traditional functionality as part of the SAP ECC Core
SAP ECC Core 5.0
(SAP ECC Core 5.0)
Latest SAP Web AS synchronized with SAP NetWeaver ’04
Ongoing consolidation of additional industry add-ons into Extension Set layer
Optional enhancements on user interface for SAP Enterprise Portal
SAP BW 3.5* SAP ITS**
SAP Web AS 6.40
Integrated SAP BW 3.5 and Internet Transaction Server
(SAP Web AS 6.40)
SAP ERP Central Component makes use of SAP NetWeaver capabilities (such as existing and new functionality with direct support of SAP Enterprise Portal, reporting through integrated SAP BW…) * SAP BW 3.5 can be optionally deployed within the same instance ** SAP ITS (Internet Transaction Server) will be partly integrated in SAP Web AS 6.40
Agenda
SAP R/3 Enterprise in Retail
Retailer´s Landscape
Strategic Planning
V e n d o r
P r o c u r e m e n t
SCM
BI
Operative planning Merchandise Management
CRM
s e l a S
r e m u s n o C
SAP Business Warehouse: Architecture
Know Knowle ledg dge e Disc Discov over ery y / Dat Data a Mini Mining ng
Customer Groups
Algorithms
Subgroups e.g. Bargain hunters Regular customers Strategic customers
Buying Patterns Compan Companion ion Sales Sales When? What? How?
C A
B Consumer‘s “bal “ballo lott pape paper“ r“
Direct marketing Target group specific
assortments Marketing controlling
POS data Consumer data
e.g. “Beer and Tooth Paste“ bought bought together together on Thursday Thursday eveni evenings ngs shoppi shopping ng
Promotion Planning Shelf optimization Assortment planning
BW Business Content for mySAP Retail Enterprise
Data Mining Integration Category Management
Article Infosystem
Store Controlling Market Data
POS Data Management Campbell Integration
Close the Loop RMA Integration
Customer Relation MAP Integration
Features of a flexible merchandise planning system I
Business Information Warehouse Document Management Complex Processes
Easy to use
Different Currencies Multiple Key figures to plan €
398 157
005
US $ £
SG $
¥
Features of a flexible merchandise planning system II Planning versions
B
Complex Hierarchies
A
Value and unit planning
Flexible Input templates
Temporal dimensions
UM WE (UM-WE) / UM
1000 800 0,2
UMS 90 80 70 60 50 40
WE 1000 2000 3000
40 30 20 10 0
Pl
500 1400 2000
UMS-WE 500 600 1000
I t
Features of a flexible merchandise planning system III Interfaces Authorizations
Workflow
Allocation table / Promotion
Store Store A A New Article Special Special buy buy -20 -20 % %
Article and Characteristic Planning
Prepack Allocation Planning
Store Store B B
Store Management with Enterprise Portals
BW Reporting AP Retail etail SAP tore Store
Workflow
Internet
OS POS hird Party arty Third
AP R/3 SAP HR
SAP R/3 Retail
obile Mobile ata Data apture Capture
Retail portal content: BP for Retail – Retail Buyers
Business benefit: Provides single interface for data and information retrieved from several systems to support the buying process in a Retail company. The application focus of the first version is on the daily/yearly negotiation with suppliers. Future development phases plan to cover promotion planning, assortment control and additional procurement processes. Also suppliers should be allowed to access their data from outside.
Users can: Define myEntities (Vendor, Sites) Manage daily vendor contacts Monitor Out-of-Stock situations & back orders
Roles: Retail Buyer Stock Planner
Content systems: SAP R/3 & Business Information Warehouse
Retail portal content: BP for Retail – Store Manager
Business benefit: Provides single interface for data from several systems to support retail processes, personnel management, and store controlling
Users can: Support in-store promotions Manage staff and staff schedules Support pricing tasks Support purchase order process Support goods receipt and controlling processes
Roles: Store Manager
Content systems: SAP R/3 Retail & Business Information Warehouse
SAP Retail Store - Architecture R/3 Enterprise
IDoc/RFC
Business Connector
Dialog
ITS HTML
XML
Business Connector POSition
SAP-XML SAP-XML
SAP Retail Store – Application Structure LoginScreen
Main Menu
Example: POS Inbound / Store Replenishment Runtime Test: Data Volumes: 10,000 articles, 1,000 stores, 10 DCs System: 16 CPU Database server + 6 application servers (8 CPUs each)
Step 1: POS Inbound (1) with 130 parallel processes 100 million line items POS sales data (100,000 IDocs, aggregation ratio 10%)* Runtime ca. 18 min (
Step 2:
more than 330 million line items / h)
*) 100 Idoc/store with 1000 line items each
Replenishment Calculation with 130 parallel processes
Check 10,000 articles per store, results in requirements for 20% of all articles Runtime ca. 30 minutes
Step 3:
Creation of Follow-On documents with 100 parallel processes
Create 1 million order pos + 1 million delivery pos + 1 million transfer order positons Runtime ca. 58 minutes
Total Runtime: approx. 105 minutes
Planning Workbench - Process overview
Forecast
Replenishment
Automatic Load Building
Automatic Creation Purchase Order
Planning Workbench
Purchase Order Creation manually
Merchandise Distribution
Synchronized procurement and issue achieved by means of a fixed assignment Planning, monitoring, and control of the accelerated processing methods (crossdocking, flow-through) in the distribution center on the basis of this assignment Two phases:
Planning
Goods Receipt
• Push • Pull
Processing • Cross-Docking • Flow-through
Goods Issue
Returns in Retailing Mail order return Return to vendor
Retail return
Consumers (identifiable or nonidentifiable customers)
External vendor
Store Return to vendor
Store return
Return from customer Distribution center
Wholesale Customer
Store and Assortment Management in SAP for Retail Merchandise Category „Soft Drinks“ Cola, Sparkling Water etc.
Merchandise Category „Soft Drinks“ Cola, Sparkling Water etc.
Time Period
Time Period
Assortment Local assortment
Assortment „Beverages“
Local assortment
Assortment „Beverages“
02 03 …
Reference Store for Assortment Automatically generated
Optional
Store
Store A
System Required
Optional
Store
B C D …
Store A
B
C D …
The Allocation Management Process
Head Head office office Head office
plans plans
coordinates coordinates
Merchandise is procured and allocated
monitors monitors
Vendor
Distribution center
Store Store Store Store
Wholesale Store
Allocation Strategies: e.g. Bottom-up Strategy (BW access) Example:
I need to buy and allocate a basic article for three stores to support a 4 week merchandise roll-out. I expect the article will sell at about 110% the volume of a two week period (07/01/2003 – 07/14/2003) last year. I want to forecast the sales of this article leading up to the roll-out and subtract that quantity from the current stock level and open order quantities (by store). The stores must display a minimum of 100 pc at the beginning of the roll-out, but their maximum capacity is only 350 pc. Finally, I need to distribute the article to stores in multiples of 5 pc.
The Promotion Management Process
Promotion final processing
Promotion planning
Carrying out the promotion Promotion subsequent processing
Mark-Down Planning – End of Season Process Planning of markdowns Select articles and sites Article (also based on characteristic value) ⇒ Price phases → ⇒ Sales prices ⇒ Markdown in % ⇒ Quantities (planned sales quantity, stock remaining at end of season, ...) ⇒ Calculate margins ⇒ ⇒
Rel. price
100% •
80%
•
50%
•
Markdown rule
30%
• Time
Price activation Generate condition records ⇒ Update calculation ⇒
Sale of articles ⇒
Adapt markdown planning (where necessary) ⇒ ⇒
Move price phases Increase markdown in %
Feedback from POS
Analysis of sales activity ⇒ ⇒ ⇒
Compare planned /actual sales Remaining stock Range of coverage
Agenda
Evolution SAP for Retail
Agenda
Development Projects
Development Projects 2003 / 2004 / 2005 SAP Forecasting & Replenishment (SCM) SAP Merchandise and Assortment Planning (SEM)
New Development Projects: Point Solutions, Portals
SAP Profit Center Analytics (BW) SAP POS Data Management (BW)
40 %
SAP Customer Loyalty Marketing (BW)
SAP Enterprise Portals (Store Portal, Buyers Portal) Future Store Initiative
Customer Projects: SDP Karstadt SCP EDEKA and COOP CH
Fashion Processes SAP Retail Store Promotions Planning
40 %
Master Data SAP Retail Store
Continuous Improvement: SAP R/3 Enterprise EE2.00
Promotions Pricing Merchandise Distribution etc.
20 %
SAP Forecasting and Replenishment SAP Forecasting and Replenishment Master data
Sales
DIF's
Stock
Automatic Replenishment Quantity Calculation
Open Orders
Transfer Sales Data, Stock, DIF's, Open Orders, Master Data
Manual Replenishment Net Requirem.
R/3 Retail / ERP Replenishment Quantity Optimization Order Proposals
Exceptions
Exception Handling / Manual Release
OP f. manual proc.
Order Proposal Release Management Released OP's
Autom. Transfer Order Proposals into Orders
Released Orders
SAP Merchandise and Assortment Planning (SAP MAP) SAP MAP
Total Planning Integration
Strategic Plan
Store Plan
Merchandise Plan
Strategic planning Store planning Merchandise planning Assortment planning
Assortment Plan Open Interfaces (XML)
Fulfillment
Total Execution Integration Master Data
Assortment
Purchase Order Allocation
Price Reduction
Fashion Basics / Lean Category Management
Shelf Optimization
Business Scenarios
Out of Scope
Buying / OTB Allocations Assortments Space Optimization Master Data Management Markdowns
Promotion Planning Campaign Management
SAP MAP – Slow Seller Management
Minimize Markdowns while Ensuring Optimal Inventory Pre-season: Markdown Planning (Simulation) Assign markdown profiles and sales patterns
to products to simulate: When will the merchandise be sold? How large should each markdown be? What gross margin can I expect?
In-season: Slow Seller Controlling $35
29.99
System evaluates pre-season plans versus actual performance to automatically propose price reductions based on the markdown profile.
Execution in the Merchandising System Automatically update retail prices
SAP POS Data Management
Sales Analyses of POS Data Store Contr.
Loss Prevent
W B P A S
Promo Analysis
g n s i t e r t a o l p p e m R - e W T B
mySAP Landscape POS Inbound
Processing Engine
Outbound Interfaces
3rd Party Landscape
Upload of POS Data to SAP BW via POS Inbound Processing Engine
Profit Center Analytics
It is one Scenario which enhances and improves existing functionality by integrating SAP R/3 Enterprise, SAP BW and SEM. It is based on the store as a profit center and the cost center that is assigned to it
Retail ledger in R/3, to replace the data storage for transaction data
in EC-PCA. It guarantees efficient handling of big data volume, which is absolutely needed by storebased retailers. Content in SAP BW to increase the reporting functionalities for
store managers as well as for management reporting Content in BW for SEM as well as planning layouts and reports in
SEM to increase planning functionalities for managers.
Customer Loyalty Marketing
Customer Customer applies applies for for loyalty loyalty card card (store, phone, internet) (store, phone, internet)
Measure Measure Results Results in in BW BW
Measure Results Target Target groups groups are are assigned assigned to to campaigns campaigns in in CRM CRM and and executed executed
Submit card application
Execute Campaigns
Maintain Customer Master Data
Segement & Build target group Segment Segment builder builder accesses accesses sales data and creates sales data and creates target target groups groups in in CRM CRM
Identify POS customer
Once Once customer customer master master data data is is available available in in CRM CRM system system ,, matching matching of of customers’ customers’ sales sales transactions transactions to to master master data data is is possible. possible.
Sales at POS Upload of POS data To BW
Maintenance Maintenance of of Master data in Master data in CRM CRM and and replication replication into into BW BW (Application (Application template template with with customer customer attributes attributes delivers delivers basis) basis)
Shopper Shopper buys buys at at POS POS with his/her preliminary with his/her preliminary card card (usually (usually aa paper paper version version of of the the genuine genuine card card ))
Upload Upload of of POS POS sales sales transactions transactions into into BW BW Data Data warehouse warehouse
Agenda
Future Store Initiative
Intention of SAP within the FSI
Research project on learning how to use RFID technology
Target: Get a pilot store live with leading edge technology RFID on pallet level, case level, for all dry goods RFID on item level for selected articles (CD´s, DVD´s [theft protection],
smart-shelf)
Learn about requirements, benefits and process scenarios coming from RFID in a live environment
SAP to achieve leadership position for RFID related software in Retail and Consumer Products
RFID - Radio Frequency Identification
Key enabling technology for Smart Items
RFID is an automated identification and data collection technology, leading to accelerated business processes and more accurate and timely data entry.
RFID tags consist of a chip for holding data and an antenna for communicating the data through radio waves. Controller
Interrogator (aka Reader/Scanner)
Tag/Transponder
k r o w t e N
Tag Antenna
Reader API
Air Interface
Many types of tags and readers exist today, i.e. active and passive, read / write, various frequencies etc
RFID – Advantages and Business Benefits Advantages: Uniquely identifies every physical object Unsupervised identification
Business Benefits:
Transparency along the Supply Chain within tracking of all objects
Optimized visibility of the goods flow
Minimizing the human resource factor within automatically identification of all goods movements
Any orientation No line of sight required
Multiple read Anti-collision
Harsh environments Read & Write capability
Dynamic Information Reuse
Amount of data
RFID increases quality, timeliness and depth of information
RFID Processes in Goods Transport and Delivery
RFID Processes in Warehousing and Frontstore
Agenda
Outlook - Strategic Development Project Fashion
Product Fit for 2004 / 2005 - Case Study SAP R/3 R/3 Enterprise Enterprise 4.70 4.70 SAP Transactions, controlling, master data management Store group definition
Level/capacity type Fixture
Purchase order
Allocation table
POS analyses
OTB
Retraction
Analyses for ERP
Sales info
Capacity planning
Relevant data
Fixture
A matrix Planned articles, OTB, listing information
Allocation strategy
Articles, merchandise categories, SGs, assortments, promos, conditions, theme structure, fixtures, article list
Theme structure
OTB
Extraction
Addons
SEM BPS Retail planning
Capacity data maintenance
Markdown control
POS Inbound Processing Engine
POS data
SAP BW BW 4.0 4.0 SAP
Planning, reporting, analytical applications
PIPE
Master data, transactions Exceptions
Analyses for F&R Relevant data
Planned article
Assortment planning
Markdown matrix application A matrix
Theme structure
Actual/ plan data (multidim)
Transaction data
Master data Master data
SCEM
Order proposals
Allocation proposals
F&R Engine replenishment process
SAP SCM SCM 4.0 4.0 SAP
SAP CRM CRM >> 4.0 4.0 SAP Campaigns, promotion planning
Primarily Requirements Master Master data data Article Article maintenance maintenance and and selection selection on on
characteristic characteristic level level
Purchasing Purchasing
D r a f t V e r s i o n
Order Order entry entry (fast (fast order order entry) entry) Delivery Delivery period period (tracking (tracking))
Article Article work work list list for for all all processes processes Prepacks Prepacks Handling Handling of of approx. approx. 6.5 6.5 million million sku’s sku’s Handling Handling of of 200 200 Department Department Stores Stores Handling Handling of of more more than than 20.000 20.000 departments
Planning Planning & & Analysis Analysis Assortment Assortment planning planning Rack Rack and and shelf shelf planning planning Closed Closed loop loop Analysis Analysis and and reporting reporting
Bestseller-/Slow Bestseller-/Slow seller seller management management Mark-down Mark-down management management
Allocation Allocation Flexible Flexible and and short short dated dated allocation allocation
Invoice Invoice verification verification Mass Mass maintenance maintenance Payment Payment before before shipment shipment
OTB OTB
Vendor-Management Vendor-Management Replenishment Replenishment Never-out-of-stock Never-out-of-stock (NOS) (NOS) Integration Integration of of events events Capacity Capacity check check (on (on shelf shelf level) level) End-of-season End-of-season monitoring monitoring
Vendor Vendor score score card card
Processes and challenges for SAP Top-Down Planning order Splitting / Open-To-Buy
(OTB) Planning
Assortment Planning fashion basics theme structure store grouping capacity planning assortment planning
Order Generation fast-order entry simplified Master Data
Maintenance OTB generation order controlling (tracking)
D r a f t V e r Subsequent settlement s i o n
Vendor management
vendor sanctioning vendor evaluation
Master data article hierarchy store concept article list substitute & replacement styles
Allocation pre-allocation (long term view) new-allocation (near goods receipt)
Auto replenishment (NOS) Best / Slow seller management mark-down planning
Outlook - Collaborative Master Data Management (cMDM)
collaborative Master Data Management
Enterprise Portal cMDM – Advanced Technology Architecture
Master Data Server
Object Layer
mySAP ...
R/3 Enterprise
non SAP System
non SAP System
cMDM Adapter
cMDM Adapter
cMDM Adapter
cMDM Adapter
Service Layer
Provisioning Layer
Content Integrator
Exchange Infrastructure
B u s i n e s s I n f o r m a t i o n W a r e h o u s e
Outlook - MDM for Retail development topics Data Model Preparation 1.
Ensuring of Retail Data Model. Protection of a future Retail project.
Single Article/ SKU 2.
Central maintenance and single distribution
Generic Article/SKU, Set Lot Display Central Maintenance and distribution
3.
Col. Scenarios, Duplicate check 4.
Central Maintenance and distribution
Retail Sites, Organizational depended MD 5.
Central Maintenance and distribution
Purchasing/ Customer Info record 6.
Central Maintenance and distribution
Assortment, Listing 7.
Central Maintenance and distribution
n i 1 . d 3 e 5 M n n 0 D l a 0 M p 2 r s t s i o u f p e u g u p A o p c S m a R
P SAP Runs Real Time Retailing
Sources of Information on SAP for Retail (I)
SAP R/3 Enterprise and ERP Information Center: http://service.sap.com/enterprise
Information on SAP for Retail: (Retail Service Marketplace) http://service.sap.com/retail
Information on the ne releas and delivery strateg of mySAP.com: http://service.sap.com/releasestrategy
SAP Help Portal http://help.sap.com
SAP Enterprise Portal: Enterprise Portal
SAP NetWeaver (Technology): (SAP Service Marketplace) http://service.sap.com/netweaver or http://help.sap.com SAP NetWeaver
Sources of Information on SAP for Retail (II)
Retail Performance Map http://service.sap.com/performancemap
Information on th amp-up proces fo bringing SA solutions to market http://service.sap.com/rampup
SAP System Landscape Directory, description of mySAP.co system landscapes: http://service.sap.com/landscape
Platform and Technology Information Center: http://service.sap.com/platforms
http://service.sap.com/upgrade
Global Trade: http://www.service.sap.com/globaltrade
Sources of Information on SAP for Retail (III)
Information on th change maintenanc strategy e.g. extensions: http://service.sap.com/MaintenanceStrategy
Information on SAP R/3 Interfaces: http://service.sap.com/r3-plug-in
Categor Management: http://service.sap.com/retail Detail Categor Managemen
Pf
Education: http://www.sap-retail.de/education
SAP Retai Solutions http://www.sap-retail.de
Accessibility:
Sources of Information on SAP for Retail (IV)
Information on Space Management Integration: http://www.sap-si.com services industry solutions retail category_management
Information on mySAP ERP http://service.sap.com/erp
Information on Ramp-up Knowledge Transfer (RKT) http://service.sap.com/rkt
Momentum
SAP and Karstadt / Quelle AG
Success Story – Metro Cash & Carry METRO CASH & CARRY INTERNATIONAL GMBH mySAP™ HUMAN RESOURCES IMPLEMENTATION HELPS METRO MANAGE RETAIL ACTIVITIES WORLDWIDE With its Metro Cash & Carry stores, which are managed under the brand names Metro and Makro, the Metro Group remains the international market leader in selfservice wholesaling. A benchmark analysis performed by SAP Business Consulting showed that, by implementing mySAP™ Human Resources throughout its network of stores, the group would experience significant savings and benefits.
“Once consolidated and processed, the quantitative and qualitative key figures provided a transparent picture of the operative and strategic potential per application area and for the company overall.” Ute Riemann Head of Benchmark Project for MCC .
Success Story – Swiss Post SCHWEIZERISCHE POST (SWISS POST) IMPLEMENTS mySAP™ RETAIL TO TRANSFORM 3,300 POST OFFICES INTO RETAIL OUTLETS Swiss Post turned to mySAP™ Retail to manage the sales of 4,000 articles across 3,300 post offices. Sales information like article, post office code, quantity sold, and sales price flows from the individual POS systems into mySAP Retail every evening. This enables Swiss Post to replenish stock and analyze sales to determine what is selling, how much inventory needs to be replenished, and how profitable its operations are. “With mySAP Retail, we are getting information much faster and at a higher level of detail.” “The successful implementation will enable us to have a high level of transparency with our sales data. This will help us to quickly react to new customer requirements.” Christian Oberschartner, Project Manager, Swiss Post
