Upload
oscar-edgar-barrera
View
204
Download
6
Tags:
Embed Size (px)
Citation preview
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 1
SAP for RetailSAP Runs Real Time Retailing
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 2
Agenda
SAP Retail Customer
Best Practices in Retail
mySAP ERP
SAP R/3 Enterprise for Retail
Evolution SAP for Retail
Development Projects
Future Store Initiative
Outlook – SDP Fashion
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 3
Agenda
SAP Retail Customer
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 4
Retail Customers 2003 compared to Dec 2002
Retail Customers Worldwide 1.696 (1367)Europe/Middle East/Africa 1.221 (1024)Americas 268 (225)Asia Pacific 207 (184)
Merchandise Management Customers**369 (269)Europe/Middle East/Africa 222 (188)Americas 100 (52)Asia Pacific 47 (29)
MC13 Customers Installations Live Install. SystemsTOTAL 1.696 3.736 1.468 7.427EMEA 1.221 2.438 1.003 5.018AMERICAS 268 688 208 1.351APA 207 593 256 1.058
*Source: ISP/CIS reporting, not incl. are the customer types SAP internal, -partner, -hardware partner and -logo partner.**Including Staffworks customers
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 5
Strong customer base worldwide
Grocery Health & Beauty
Convenience
Postal Services/ Telco
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 6
Strong customer base worldwide
Fashion General Merchandiser
Catalogue Mail Order/ Internet Selling
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 7
Strong customer base worldwide
Misc. Speciality Misc. Speciality
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 8
Strong customer base worldwide
DIY/ Home Improvement Wholesale/ Cash&Carry/ Franchise Business
Home Furnishings
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 9
Go Lives 2003
Live with SAP Enterprise 4.7Incl. Purchasing, Master Data, Logistics (incl. VMI)
Live with mySAP RetailImplementation time: 6 months
Further GoLive with mySAP Retail in Italy, Roll-out to US in preparation
Upgrade to R/3 Enterprise
Upgrade to SAP R/3 4.6CProject 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 RetailAFS, SD, MM, WM, QM, FI, CO, HR
Live in 800 pilot stores (out of 15.000 stores/ partner agencies ). Project time: approx. 12 monthsLive with SAP Retail Enterprise
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 10
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 Genossenschafts-Bund, 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 AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 11
SAP R/3 Enterprise 2.0 Ramp-up customers
Ramp-up has started in December for Enterprise Extension Set 2.0
SPAR Management AG, SwitzerlandRamp-up has started last week for Enterprise Extension Set 2.0
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 12
Agenda
Best Practices in Retail
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 13
Segmentation of the Retail Industry
Best Practicesfor
‘SAP for Retail’
Preconfigured Systems
Best Practicesfor
‘SAP for Retail’
Preconfigured Systems
Standardization of Retail Enterprises
into four main segments
Standardization of Retail Enterprises
into four main segments
FashionFashion e.g. textiles, fashion, shoes
Hard GoodsHard Goods e.g. do-it-yourself, electrical,toys, sport equipment
FoodFoode.g. supermarket, discount store,convenience store, hypermarket, cash&carry
WholesaleWholesale e.g. supplying wholesale,Internet, mail-order
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 14
What are SAP Best Practices for Retail?
Working CRM prototype
Get a living and fully documentedprototype within days that you can rapidly turn into a productivesolution
Get a living and fully documentedprototype within days that you can rapidly turn into a productivesolution
Demonstration of a solution thatis easy to:Demonstration of a solution thatis easy to:
identify withimplementadapt to specificrequirements
Enable fast and easyimplementation of SAP for RetailEnable fast and easyimplementation of SAP for Retail
Traditional project
With SAP Best Practices
Time and effort savings
Identification and anticipation of reusable business processes and project activities
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 15
Agenda
mySAP ERP
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 16
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 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)
R/3Enterprise
R/3R/3EnterpriseEnterprise
SAP NetWeaver
mySAP ERP
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 17
Retail-wise mySAP ERP
SAP R/3 EnterpriseThe 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 2004The 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 2005The Retail Solution will be included in mySAP ERP 2005, new Retail functionality will be developed
General statement of directionThe 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.) andwill be tightly integrated with ERP functionality
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 18
The Architecture of mySAP ERP
SAP Web Application Server
Tec
hnol
ogy
App
licat
ion
SAP Basis
SAP R/3up to 4.6C
SAP R/3 Enterprise
mySAP ERP Edition 2003
Application
mySAP ERP Edition 2004
SAP R/3 Enterprise Core
SAP NetWeaver™ ‘2004
Com
posi
te A
pplic
atio
n Fr
amew
ork
APPLICATION PLATFORM
Life Cycle M
gmt
SAP Enterprise Extension Set
Composite Applications
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
Self-Service Procurement
SAP R/3 Enterprise
SAP R/3 Enterprise Core
SAP Enterprise Extension Set
Strategic Enterprise ManagementInternet Sales
Self Services
… and more
Additional Components
SAP ECC Core
SAP ECC Extension SetSwitch
Framework
Strategic Enterprise Management
Self Services
Additional ComponentsSelf-Service Procurement
Internet Sales
SAP ERP Central Component 5.0
SAP NetWeaver™
Com
posi
te A
pplic
atio
n Fr
amew
ork
APPLICATION PLATFORM
Life Cycle M
gmt
PEOPLE INTEGRATIONMulti Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATIONIntegration Broker
BusinessProcess Mgmt
J2EE ABAP
DB and OS Abstraction
… and more
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 19
Release Strategy – SAP R/3 and mySAP ERPA
vaila
ble
with
myS
AP
cont
ract
s on
ly(e
.g. m
ySA
P ER
P or
myS
AP
Bus
ines
s Su
ite)
2002 2003 2004 2005 2006 2007 2008 2009
Ava
ilabl
e w
ith
SAP
R/3
con
trac
t
SAP R/3 Enterprise
SAP R/3 Enterprise Extension Set 1.10SAP R/3 Enterprise Extension Set 2.00
SAP R/3 Enterprise Core 4.7
SAP R/3 4.6C
SAP ERP Central Component 5.0
SAP ECC Core 5.0SAP ECC Extension Set 5.00
mySAP ERP – Edition 2004
SAP NetWeaver’04
Other components (e.g. Self Service Procurement)
mySAP ERP – Edition 2003
SAP NetWeaver’03
Other components (e.g. Self Service Procurement)SAP R/3 Enterprise SAP R/3 Enterprise Extension Set 1.10
SAP R/3 Enterprise Extension Set 2.00
SAP R/3 Enterprise Core 4.7
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 20
The Architecture of SAP R/3 Enterprise
SAP Web AS 6.20 + 6.30
SAP R/3 EnterpriseCore 4.7
SAP R/3 EnterpriseExtension Set 1.10 + 2.00
SAP R/3 Enterprise
Optional new functional enhancements
(SAP R/3 Enterprise Extension Sets)
Tuned Core, optimized for Performance
(SAP R/3 Enterprise Core)
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 Technology &
infrastructure enhancements(SAP Web Application Server)
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 21
The Architecture of SAP ERP Central Component 5.0
SAP Web AS 6.40
SAP ECC Core 5.0
SAP ECC Extension Set 5.00
SAP BW 3.5*SAP ITS**
SAP ERP Central Component 5.0
Optional new functional enhancements(SAP ECC Extension Sets)
Ongoing consolidation of additional industry add-ons into
Extension Set layer
Traditional functionality as part of the SAP ECC Core(SAP ECC Core 5.0)
Optional enhancements on user interface for
SAP Enterprise Portal
Latest SAP Web AS synchronized with SAP NetWeaver ’04(SAP Web AS 6.40)
Integrated SAP BW 3.5 and Internet Transaction Server
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
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 22
Agenda
SAP R/3 Enterprise in Retail
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 23
Retailer´s Landscape
BI
Con
sum
er
Merchandise Management
Operativeplanning
Vendor SCM CRM
Sale
sProcurem
ent
StrategicPlanning
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 24
SAP Business Warehouse: Architecture
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 25
Knowledge Discovery / Data Mining
Promotion PlanningShelf optimizationAssortment planning
Direct marketingTarget group specificassortmentsMarketing controlling
Customer Groups
Subgroups e.g.Bargain huntersRegular customersStrategic customers
AB
C
Consumer‘s “ballot paper“
Buying Patterns
Companion Sales
e.g. “Beer and Tooth Paste“bought together on Thursday evenings shopping
Algorithms
When?
What?
How?
POS dataConsumer data
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 26
BW Business Content for mySAP Retail Enterprise
MarketData
MAPIntegration
RMAIntegration
CustomerRelation
StoreControlling
POS DataManagement
Close theLoop
ArticleInfosystem
CampbellIntegration
Data MiningIntegration
CategoryManagement
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 27
Features of a flexible merchandise planning system I
Business Information Warehouse
Complex Processes
Easy to use Different Currencies
Document Management
Multiple Key figures to plan€
US $
SG $
£¥157 005
398
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 28
Temporal dimensions
A
B
40
50
60
70
80
90
Jan Febr. März April
Flexible Input templates
UMS WE UMS-WE1000 500 5002000 1400 6003000 2000 1000
UM 1000WE 800(UM-WE) / UM 0,2
010203040
Plan Ist
Features of a flexible merchandise planning system II
Planning versions
Complex Hierarchies
Value and unit planning
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 29
Features of a flexible merchandise planning system III
Interfaces
Store AStore A Store BStore B
Special buy-20 %
Special buy-20 %
Allocation table / Promotion
Workflow
Authorizations
New Article
Prepack Allocation Planning
Article and Characteristic
Planning
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 30
Store Management with Enterprise Portals
Workflow Internet SAP R/3 Retail
POSPOSThirdThird PartyParty
Mobile Mobile DataData
CaptureCapture
SAP R/3SAP R/3HRHR
BW Reporting
SAP SAP RetailRetailStoreStore
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 31
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 contactsMonitor Out-of-Stock situations & back orders
Roles:Retail BuyerStock Planner
Content systems:SAP R/3 & Business Information Warehouse
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 32
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 schedulesSupport pricing tasksSupport purchase order process Support goods receipt and controlling processes
Roles:Store Manager
Content systems:SAP R/3 Retail & Business Information Warehouse
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 33
SAP Retail Store - Architecture
R/3 Enterprise
BusinessConnector
ITS
BusinessConnector
SAP-XML
XML HTML
IDoc/RFC Dialog
SAP-XML
POSition
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 34
SAP Retail Store – Application Structure
Login-Screen
Main Menu
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 35
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 processes100 million line items POS sales data (100,000 IDocs, aggregation ratio 10%)*
Step 2: Replenishment Calculation with 130 parallel processes
Check 10,000 articles per store, results in requirements for 20% of all articles
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
Total Runtime: approx. 105 minutes
Runtime ca. 18 min ( more than 330 million line items / h)
Runtime ca. 30 minutes
Runtime ca. 58 minutes
*) 100 Idoc/store with1000 line items each
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 36
Planning Workbench - Process overview
Forecast
Automatic Load Building
Automatic CreationPurchase Order
PlanningWorkbench
Replenishment
Purchase OrderCreation manually
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 37
Merchandise Distribution
Synchronized procurement and issue achieved by means of a fixed assignmentPlanning, monitoring, and control of theaccelerated processing methods (cross-docking, flow-through) in the distribution center on the basis of this assignment
Two phases:Planning
• Push• Pull
Processing• Cross-Docking• Flow-through
Goods Issue
Goods Receipt
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 38
Returns in Retailing
External vendor
Store
Distribution center
Retail return
Return from customer
Return tovendor
Wholesale Customer
Return to vendor
Mail order return
Store return
Consumers(identifiable or non-identifiable customers)
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 39
Store and Assortment Management in SAP for Retail
Assortment„Beverages“
Local assortment
Automaticallygenerated Optional
Store A
Store
B C …D
Merchandise Category„Soft Drinks“
Cola, Sparkling Water etc.
Time Period
System Required
Store A
Store
B C …D
Assortment
Reference Storefor Assortment
Optional
Assortment„Beverages“ …02 03
Merchandise Category„Soft Drinks“
Cola, Sparkling Water etc.
Time Period
Local assortment
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 40
The Allocation Management Process
Head officeHead office
Merchandise is procured and allocated
StoreStore
StoreStore StoreWholesale
Distribution center
VendorVendor
plansplans monitorsmonitorscoordinatescoordinatesHead office
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 41
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 openorder 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.
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 42
The Promotion Management Process
Promotionplanning
Promotionsubsequentprocessing
Carryingout thepromotion
Promotionfinal processing
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 43
Mark-Down Planning – End of Season Process
→
Markdown rule
• •80% 50%
•30%
Rel. price
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
⇒ Compare planned /actual sales⇒ Remaining stock⇒ Range of coverage
Analysis of sales activity
Price activation⇒ Generate condition records ⇒ Update calculation
Sale of articles⇒ Feedback from POS
Adapt markdown planning (where necessary)
⇒ Move price phases⇒ Increase markdown in %
100%•
Time
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 44
Agenda
Evolution SAP for Retail
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 45
Evolution SAP for Retail from 1.2B to R/3 Enterprise 2.0
General availabilitySAP Retail integrated in R/3 Standard Release 4.0Worldwide Rollout
Mass Maintenance Value & Quota ScalesCompetitor PricingPricing – enhanced functionLayout & Space Management interfacesAdditionals integration Allocation – enhanced functionPromotion – enhanced functionSAP Retail Store (SRS)Load BuildingMerchandise Distribution (Cross Docking & Flow Through)Vendor Managed Inventory (VMI)Store ReturnsPerishablesSAP Online StoreWM integrationAgency BusinessRIS enhancements
Open mySAP.com integrationWeb Application Server 6.20BADI (Business Add-Inn)Business Configuration SetsHPR fully integratedHPR Assortment List Store and Assortment Mgmt.New Mass Maintenance ToolStyle (Variant) MatrixMAP – enhanced functionPrepack Allocation PlanningStore Manager PortalSAP Retail Store – PDC XMLSAP Retail Store – POS XML Markdown Pl.-enhanced functionAllocation - enhanced functionAllocation StrategyPromotion - enhanced functionReplenishment Workbench enhancementsMulti-Step ReplenishmentAHD / PDF in ReplenishmentPlanned Delivery TimeOrder CancellationSpace Management - enhanced functionLayout WorkbenchMerchandise Distribution -enhanced functionLogistics Execution System –enhanced functionTRM in LESPerishables – enhanced functionGlobal TradeRetail Method of AccountingConsumer Decision Tree
Easy Access, Screen redesignFast EntryHigh Performance Retail (HPR)Promotion–enhanced functionBonus BuyAllocation – enhanced functionMarkdown – enhanced functionLogistical VariantsProduct Catalog enhancementCompetitor Pricing enhancem.Market Basket PricingReplenishment WorkbenchAdditionals improvementsMerchandise Distribution –enhanced functionPerishables–enhanced functionMAP (Merchandise & Assortment Planning)MAP integration to Promotions & AllocationsBW Retail TemplatesSales Order OptimizationLayout & Space Management interface OptimizationVMI enhancementsLogistics Invoice VerificationSubs.Settlem.– enhan. functionPOS Inbound & Outbound OptimizationLogistics Execution System –enhanced functionHandling UnitsMulti Channel Retailing
Retail 1.2B
Overlapping PromotionsPromotion Delivery PhasesFamily PricingRetail Revenue Mgmt. – InterfaceCross-Docking (considering DC Stock at Delivery Creation)Cross-Docking (Automatic Handling of Structured Articles)Stock Transfer for ConsignmentAuthorities for Layout WorkbenchAllocation based on ShelvesCommunication of Placement Changes to the StoresConsistency Check of the Replenishment Master DataPRICAT Data Exchange with user specific fields & planned changesComplaints Processing in BillingIDoc Copy ManagementModifications to Store Order BAPIAutomatic Vendor Item Determination in Store GRPlanned Delivery Time in WorkdaysVMI for Wholesale CustomersAssign Invoice Items to PO and SiteBADI for Rounding in Sales OrdersPhysical Inventory for Open StoresSRS – Purchase Order & ReturnsSRS – Ruling PricesSRS – Order Rhythms
First Customer Shipment Retail Release 1.2B
SAP R/3 SAP R/3 Enterprise Enterprise
1.101.10 SAP NetWeaver
mySAPERP
SAP MAP (SEM)SAP Forecasting & ReplenishmentSAP POS Data ManagementSAP Profit Center AnalyticsSAP Customer Loyalty MarketingPortal – Retail Business PackagesFuture Store Initiative
1997 1998 1999 2000 2001 2002 2003 2004
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 46
Agenda
Development Projects
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 47
Development Projects 2003 / 2004 / 2005
40 %
SAP Forecasting & Replenishment (SCM)SAP Merchandise and Assortment Planning (SEM)SAP Profit Center Analytics (BW)SAP POS Data Management (BW)SAP Customer Loyalty Marketing (BW)SAP Enterprise Portals (Store Portal, Buyers Portal)Future Store Initiative
New Development Projects:Point Solutions, Portals
Customer Projects:SDP Karstadt
SCP EDEKA and COOP CH
Fashion Processes SAP Retail StorePromotions Planning
40 %
Continuous Improvement:SAP R/3 Enterprise EE2.00
Master DataSAP Retail StorePromotionsPricingMerchandise Distributionetc.
20 %
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 48
SAP Forecasting and Replenishment
Autom. Transfer Order Proposals
into Orders
Transfer Sales Data,Stock, DIF's, OpenOrders, Master Data
ReleasedOrders
Sales Stock Open OrdersDIF's
Replenishment QuantityOptimization
Order ProposalRelease Management
Exception Handling/ Manual Release
Masterdata
NetRequirem.
Automatic ReplenishmentQuantity Calculation
Order Pro-posalsExceptions
ReleasedOP's
R/3 Retail / ERP
SAP Forecasting and Replenishment
Manual Replenishment
OP f. man-ual proc.
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 49
SAP Merchandise and Assortment Planning (SAP MAP)
Strategic Plan
Merchandise PlanStore Plan
Assortment Plan
SAP MAP
Open Interfaces(XML)
Total Planning IntegrationStrategic planningStore planningMerchandise planningAssortment planning
Total Execution IntegrationBuying / OTBAllocationsAssortmentsSpace OptimizationMaster Data ManagementMarkdowns
Fulfillment
Assortment
Master Data
AllocationShelf Optimization
Purchase Order
Price Reduction
Business ScenariosFashionBasics / Lean Category Management
Out of ScopePromotion PlanningCampaign Management
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 50
SAP MAP – Slow Seller Management
MinimizeMinimize MarkdownsMarkdowns whilewhile EnsuringEnsuring Optimal Optimal InventoryInventory
Pre-season: Markdown Planning (Simulation)
In-season: Slow Seller Controlling
Execution in the Merchandising System
Assign markdown profiles and sales patternsto products to simulate:
When will the merchandise be sold?How large should each markdown be?What gross margin can I expect?
$3529.99 System evaluates pre-season plans versus
actual performance to automaticallypropose price reductions based on themarkdown profile.
Automatically update retail prices
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 51
SAP POS Data Management
SAP
BW
POS InboundProcessing Engine
Sales Analyses of POS Data
Store Contr.
PromoAnalysis
Loss Prevent
BW
-Rep
ortin
g Te
mpl
ates
Outbound Interfaces
mySAPLandscape
3rd PartyLandscape
Upload of POS Data to SAP BWvia POS Inbound Processing Engine
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 52
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 forstore 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.
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 53
Customer Loyalty Marketing
Measure Results in BWMeasure Results in BWCustomer applies for loyalty card (store, phone, internet)Customer applies for loyalty card (store, phone, internet)
Upload of POS sales transactions into BW Data warehouse
Upload of POS sales transactions into BW Data warehouse
Segment builder accesses sales data and creates target groups in CRM
Segment builder accesses sales data and creates target groups in CRM
Target groups are assigned to campaigns in CRM and executed
Target groups are assigned to campaigns in CRM and executed
Once customer master data is available in CRM system , matching of customers’ sales transactions to master data is possible.
Once customer master data is available in CRM system , matching of customers’ sales transactions to master data is possible.
Shopper buys at POS with his/her preliminary card (usually a paper version of the genuine card )
Shopper buys at POS with his/her preliminary card (usually a paper version of the genuine card )
Execute Campaigns
Segement &Build target group
Submit cardapplication
MaintainCustomer Master Data
Sales at POS
Upload of POS dataTo BW
Identify POS customer
MeasureResults
Maintenance of Master data in CRM and replication into BW(Application template with customer attributes delivers basis)
Maintenance of Master data in CRM and replication into BW(Application template with customer attributes delivers basis)
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 54
Agenda
Future Store Initiative
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 55
Intention of SAP within the FSI
Research project on learning how to use RFID technology
Target: Get a pilot store live with leading edge technologyRFID 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 comingfrom RFID in a live environment
SAP to achieve leadership position for RFID related software inRetail and Consumer Products
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 56
RFID - Radio Frequency Identification
Key enabling technology for Smart ItemsRFID 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.
Many types of tags and readers exist today, i.e. active and passive, read / write, various frequencies etc
Reader API Air Interface
Controller
Net
wor
k
Tag/Transponder
Tag Antenna
Interrogator (aka Reader/Scanner)
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 57
RFID – Advantages and Business Benefits
Advantages:Uniquely identifies every physical objectUnsupervised identification
Any orientationNo line of sight required
Multiple readAnti-collision
Harsh environmentsRead & Write capability
Dynamic InformationReuse
Amount of data
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
RFID increases quality, timeliness and depth of information
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 58
RFID Processes in Goods Transport and Delivery
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 59
RFID Processes in Warehousing and Frontstore
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 60
Agenda
Outlook - Strategic Development
Project Fashion
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 61
Product Fit for 2004 / 2005 - Case Study
SAP R/3 Enterprise 4.70Transactions,
SAP R/3 Enterprise 4.70 SAP BW 4.0
Extraction
Master data
Articles, merchandisecategories, SGs,
assortments, promos, conditions, themestructure, fixtures,
article list
SAP CRM > 4.0SAP CRM > 4.0Campaigns,
promotion planning
Master data
Actual/plan data(multidim)
F&R Enginereplenishment
process
Order proposals Allocation proposals
Master data, transactions
SAP SCM 4.0SAP SCM 4.0
POS data
Add-ons
Allocation table
Markdowncontrol A matrix
Allocation strategy
Store groupdefinition
Purchase orderOTB
Capacity datamaintenance Fixture
Level/capacity type
controlling, master datamanagement
Sales info
Retraction
SAP BW 4.0 Planning, reporting, analytical applicationsPIPE
POS InboundProcessing
Engine SEM BPS
Retail planning
Capacityplanning
Assortmentplanning
OTB
Markdown matrixapplication
A matrix
Plannedarticle
Fixture
Themestructure
Themestructure
Analyses for F&R
Relevant data
Exceptions Transaction data
POS analyses
Analyses forERP
Relevant data
Planned articles, OTB, listinginformation
SCEM
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 62
Primarily Requirements
PurchasingOrder entry (fast order entry)
Delivery period (tracking)
Bestseller-/Slow seller managementMark-down management
Allocation Flexible and short dated allocation
Invoice verificationMass maintenance
Payment before shipment
Vendor-ManagementVendor score card
PurchasingOrder entry (fast order entry)
Delivery period (tracking)
Bestseller-/Slow seller managementMark-down management
Allocation Flexible and short dated allocation
Invoice verificationMass maintenance
Payment before shipment
Vendor-ManagementVendor score card
Master dataArticle maintenance and selection on characteristic level
Article work list for all processes
Prepacks
Handling of approx. 6.5 million sku’s
Handling of 200 Department Stores
Handling of more than 20.000 departments
Planning & AnalysisAssortment planning
Rack and shelf planning
Closed loop
Analysis and reporting
OTB
ReplenishmentNever-out-of-stock (NOS)
Integration of events
Capacity check (on shelf level)
End-of-season monitoring
Master dataArticle maintenance and selection on characteristic level
Article work list for all processes
Prepacks
Handling of approx. 6.5 million sku’s
Handling of 200 Department Stores
Handling of more than 20.000 departments
Planning & AnalysisAssortment planning
Rack and shelf planning
Closed loop
Analysis and reporting
OTB
ReplenishmentNever-out-of-stock (NOS)
Integration of events
Capacity check (on shelf level)
End-of-season monitoring
Draft Version
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 63
Processes and challenges for SAP
Top-Down Planningorder Splitting / Open-To-Buy (OTB) Planning
Assortment Planningfashion
basics
theme structure
store grouping
capacity planning
assortment planning
Order Generation fast-order entry
simplified Master Data Maintenance
OTB generation
order controlling (tracking)
Subsequent settlement
Vendor managementvendor sanctioning
vendor evaluation
Master dataarticle hierarchy
store concept
article list
substitute & replacement styles
Allocationpre-allocation (long term view)
new-allocation (near goods receipt)
Auto replenishment (NOS)
Best / Slow seller managementmark-down planning
Draft Version
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 64
Outlook - Collaborative Master Data Management (cMDM)
mySAP...
R/3Enterprise
non SAPSystem
non SAPSystem
collaborative Master Data Management
cMDM – Advanced Technology Architecture
Master Data Server
Object Layer
Service Layer
Provisioning Layer
Content Integrator
cMDMAdapter
cMDMAdapter
cMDMAdapter
cMDMAdapter
Business Inform
ation Warehouse
Enterprise Portal
Exchange Infrastructure
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 65
Outlook - MDM for Retail development topics
1.Data Model Preparation Ensuring of Retail Data Model. Protection of a future Retail project.
2.Single Article/ SKUCentral maintenance and single distribution
3.
Generic Article/SKU, Set Lot DisplayCentral Maintenance and distribution
4.Col. Scenarios, Duplicate checkCentral Maintenance and distribution
Retail Sites, Organizational depended MD Central Maintenance and distribution5.
Purchasing/ Customer Info recordCentral Maintenance and distribution6.
Assortment, Listing Central Maintenance and distribution7.
Scop
efo
rMD
M 3
.1
Ram
pup
ispl
anne
din
A
ugus
t 200
5
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 66
SAP for RetailSAP Runs Real Time Retailing
Thank You
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 67
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 new release and delivery strategy of mySAP.com:
http://service.sap.com/releasestrategy
SAP Help Portal: http://help.sap.com
SAP Enterprise Portal: http://help.sap.com SAP NetWeaver mySAP Enterprise Portal
SAP NetWeaver (Technology): (SAP Service Marketplace)http://service.sap.com/netweaver orhttp://help.sap.com SAP NetWeaver
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 68
Sources of Information on SAP for Retail (II)
Retail Performance Map: http://service.sap.com/performancemap
Information on the ramp-up process for bringing SAP solutions to market:
http://service.sap.com/rampup
SAP System Landscape Directory, description of mySAP.com system landscapes:
http://service.sap.com/landscape
Platform and Technology Information Center:http://service.sap.com/platforms
Information on upgrade, e.g. upgrade services, toolsand technology:
http://service.sap.com/upgrade
Global Trade: http://www.service.sap.com/globaltrade
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 69
Sources of Information on SAP for Retail (III)
Information on the changed maintenance strategy, e.g. extensions:
http://service.sap.com/MaintenanceStrategy
Information on SAP R/3 Interfaces:http://service.sap.com/r3-plug-in
Category Management: http://service.sap.com/retail SAP for Retail in
Detail Category Management
Education: http://www.sap-retail.de/education
SAP Retail Homepage: http://www.sap.com/retail
SAP Retail Solutions: http://www.sap-retail.de
Accessibility: http://www.saplabs.com/accessibility
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 70
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
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 71
Momentum
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 72
SAP and Karstadt / Quelle AG
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 73
Success Story – Metro Cash & Carry
METRO CASH & CARRY INTERNATIONAL GMBHmySAP™ 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 implementingmySAP™ 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 RiemannHead of Benchmark Project for MCC.
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 74
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 intomySAP Retail every evening. This enables Swiss Post to replenish stock and analyze sales todetermine what is selling, how much inventoryneeds to be replenished, and how profitable its operations are.
“With mySAP Retail, we are gettinginformation much faster and at a higherlevel 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
SAP AG 2004 - Andreas Lueckler, Industry Business Unit Retail & Wholesale 75
Copyright 2004 SAP AG. All Rights Reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation.
IBM®, DB2®, DB2 Universal Database, OS/2®, Parallel Sysplex®, MVS/ESA, AIX®, S/390®, AS/400®, OS/390®, OS/400®, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere®, Netfinity®, Tivoli®, Informix and Informix® Dynamic ServerTM are trademarks of IBM Corporation in USA and/or other countries.
ORACLE® is a registered trademark of ORACLE Corporation.
UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group.
Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®, VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc.
HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
JAVA® is a registered trademark of Sun Microsystems, Inc.
JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One.
SAP, SAP Logo, R/2, R/3, mySAP, mySAP.com and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are trademarks of their respective companies.