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15 October 2018

Implementing SAP CAR and its Applications


Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

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Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

3
Milestones Privately
Company History Owned

2005 Company founded in Zug, Switzerland


Switzerland SAP Services Partnership 120/30
FTE/Partners

2007 Expansion to Germany


Germany SAP Services Partnership
15%
Growth/annum

2015 Expansion to the UK & Nordics


United Kingdom Partnership with Neptune Software
Only SAP

2017 Expansion to Austria


Austria SAP Services Partnership UK
Only Retail

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What we provide…
SAP Service Offerings

Enterprise Architecture Services in and around SAP SAP S/4 HANA Retail Roadmapping and Program
1 in the retail industry 3 Planning services to define the IT future in retail

SAP S/4 HANA Retail transformation and


Productised add-on solutions to SAP Retail to
2 implementation services, project management, 4 close functional gaps in the solution portfolio
development and post go live production support

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Product Overview
Based on project experiences working with retail organisations worldwide, retailsolutions have released a range of products to
complement SAP functionality in a number of areas

Fraud Management Master Data Quality Promotion Planning Retail Instore


for Retail Cockpit and Calendar Mobility
Fraud Management for Retail (FMR) Through the setting of validation rules, The Promotion Planning and Calendar Mobile-enabled apps that allow store
Provides Loss Prevention functionality the Master Data Quality Cockpit solution gives retailers the ability to users to interact directly with SAP in
leveraging the SAP CAR platform to (MDQC) allows retailers to avoid plan and visualise campaigns, events realtime.
allow retailers to monitor and reduce master data inconsistencies and and offers through a user-friendly UI5 Based on either SAP Fiori or Neptune,
potential fraudulent behaviours. thereby avoid data quality issues. screen. retailsolutions provide a range of retail
The solution is based on SAP Fraud The solution is designed for end-users The solution works in conjunction with specific solutions to address common
Management and provides a range of of SAP and does not require IT SAP PMR but can also deployed on instore processes.
preconfigured detection strategies and involvement. SAP CAR standalone.
methods.

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Publications

retailsolutions publishes the new reference book for


SAP Retail, released June 2017

Content:
• Architecture of SAP Retail
• Master Data management and Exchange
• Procurement Processes
• SAP Forecasting and Replenishment (F&R)
• Logistics and Merchandise Distribution
• Sales Processes and Point of Sale (POS)
• Promotion Processes and Promotion Management
• Perishables Processing
• Fashion Management
• Omnichannel Retailing
• Management Information systems

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Customer Selection
Overview of some of the customers we are doing business with

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Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

10
Enterprise Content Business Intelligence Enterprise Performance Compliance & EHS
Management & Reporting Management Management
retailsolutions‘ Reference
Store Operations

Vendor Lifecycle

Supply Optimisation

Catalogue Mgt.
Loyalty Management

Point-of-Sale
Click and Inter Branch In-Store Workforce & In-Store Merchandise Customer POS Data
Warehouse Collect Transfer Task Mgmt & Inventory Mgmt Order Mgt Management

Integrated Demand & Replenishment Planning


Model for Retail

Suppliers
Collaborative
Requirements
Planning, Demand Replenishment Multi-Echelon
Planning for Allocation
Forecasting & Forecasting for DC / Store Replenishment
DC/Store
Replens

Merchandise, Marketing Customer Insight

asaasas

M
Pricing Campaign & & Predictive
Assortment, &
Mgmt Promotion Planning Analysis
Space Planning
Products & Customers
Suppliers Services

Insight & Personalisation

Returns Management
Real-Time
Master Data Value Added

Sentiment Analysis
Mobile B2B, B2C
Inventory
Management Services Order Orchestration Order Orchestration
Visibility
Manufacturing

Integrated Omni-Channel Services


Sourcing

Supply Chain
Chain-Wide Warehouse & Transportation Order/Backorder
Distributors Tracking & Fulfilment
Inventory Mgmt DC Management Management Management
Visibility

Optimised Logistics and Fulfilment Execution


Supply Chain Partners

G/L & Statutory Accounts Credit & Accounts Fixed Cash Project Investment
Treasury Consolidation
Reporting Receivable Dispute Mgmt. Payable Assets Accounting Accounting Management
Financial Accounting
Management Cost Centre Profit Centre Project Store Planning & Audit
Budgeting
Reporting Accounting Accounting Costing Accounting Forecasting Management
Management Accounting

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SAP Retail Reference Architecture
Recipes/
shopping
Self Checkout Self In Store Clienteling list Beacon
Mobile POS
Smart
Web shop
Data
Scanning Carts
Social Data

Consumer
apps
IoT
POS Store Backoffice Experience Management Product Content Loyalty Mgmt Personell IoT
apps Platform
POS Transaction Personalization Commerce Mgmt Interaction Center
SAP Cloud Platform
Mobile POS Order Orchestration In-Store Clienteling Customer Master
Identity Management

SAP Omni Channel Data Management | Application | Analytical | Experience Services


SAP C/4 Commerce SAP CRM Mobile Services | Design & Development | Security | Management
POS by GK

SAP PMR SAP APR SAP MAP

Omnichannel Article Availability Customer Profiling Planning


Product
Sales Audit Real-time Inventory Recommendation Acquisition
Supplier Learning/Talent
Customer
Omnichannel Pricing & Promotions Orchestration Segmentation Store Workforce

MDG (optional) SAP CAR SAP C/4 Marketing IBP jam


SAP AMR Fraud Mgt. SCM planning Collaboration/
content

Order Lifecycle In-Store Warehouse


Transportation Store Repl
Management Fulfillment Fulfillment Import/
Management
Execution Execution Export Non-SAP
Financial Track&Trace (Event Management) DC Repl Space tool
Master Data SAP Global
Execution
SAP F&R Trade Solution
SAP ERP Retail (S/4) SCM (EWM/TMS/EM)
GS1 Data Pool (GTS) 12
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

13
Enterprise Content Business Intelligence Enterprise Performance Compliance & EHS
Management & Reporting Management Management
retailsolutions‘ Reference
Store Operations

Vendor Lifecycle

Supply Optimisation

Catalogue Mgt.
Loyalty Management

Point-of-Sale
Click and Inter Branch In-Store Workforce & In-Store Merchandise Customer POS Data
Warehouse Collect Transfer Task Mgmt & Inventory Mgmt Order Mgt Management

Integrated Demand & Replenishment Planning


Model for Retail

Suppliers
Collaborative
Requirements
Planning, Demand Replenishment Multi-Echelon
Planning for Allocation
Forecasting & Forecasting for DC / Store Replenishment
DC/Store
Replens

Merchandise, Marketing Customer Insight

asaasas

M
Pricing Campaign & & Predictive
Assortment, &
Mgmt Promotion Planning Analysis
Space Planning
Products & Customers
Suppliers Services

Insight & Personalisation

Returns Management
Real-Time
Master Data Value Added

Sentiment Analysis
Mobile B2B, B2C
Inventory
Management Services Order Orchestration Order Orchestration
Visibility
Manufacturing

Integrated Omni-Channel Services


Sourcing

Supply Chain
Chain-Wide Warehouse & Transportation Order/Backorder
Distributors Tracking & Fulfilment
Inventory Mgmt DC Management Management Management
Visibility

Optimised Logistics and Fulfilment Execution


Supply Chain Partners

G/L & Statutory Accounts Credit & Accounts Fixed Cash Project Investment
Treasury Consolidation Impact SAP CAR has on the
Reporting Receivable Dispute Mgmt. Payable Assets Accounting Accounting Management
Financial Accounting Retail Value Chain Elements
Management Cost Centre Profit Centre Project Store Planning & Audit
Budgeting
Reporting Accounting Accounting Costing Accounting Forecasting Management
Management Accounting

14
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

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Promotion & Pricing Challenges in Retail
Current Siutation

• Price & Promotions maintained in SAP ERP as


Condition Records
• Each channel execution system is supplied with relevant
price information (i.e. Condition Records)
• Each channel execution system has ist own logic as to POS System E-Commerce CRM System

how price conditions are applied to a transaction (e.g. Pricing Logic Pricing Logic Pricing Logic
Data Retention Data Retention Data Retention
Header vs. Line item discounts, overlapping promotions,
best-price-logic, etc.)
• This can lead to inconsistencies in how totals are being
calculated dependent on the channel execution
system‘s capabilities
Price Calculation
SAP PMR SAP ERP
Data Retention

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SAP Omnichannel Promotion Pricing
Functional Overview and Architecture

• Central Price & Promotion Data


Repository that stores all relevant price
information details

• Central Price Determination Service that


contains the logic how different prices,
discounts, etc. are to be applied

• Pricing information and corresponding


logic can be communicated to channel
execution systems via IDoc‘s or via API

17
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

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Omnichannel Article Availability & Sourcing

How accurate is
this figure?

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Omnichannel Article Availability & Sourcing
Architecture Overview
Temporary Cart Reservation
Precision Requirements
Commerce
#Availability Requests
hybris

Shopping Submit
Catalogue Checkout
Cart Order
Store
Locator

Full / Aggregated
(Locations / Availability
Delta Temporary
Time)
Order
Rough Reservation
Stock Omnichannel
Sourcing
Indicator Availability
SAP CAR

Calc.

Inventory Store DC Vendor Reservation Order


Visibility Av. Av. Stock

Full / Vendors SLT


Delta
SAP ECC

Parallelisation ATP Order

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Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

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Fraud in Retail
A 2017 survey* by the National Retail Federation has found that retail return fraud losses will cost companies as
much as $15 billion this year. This type of crime often involves an individual first stealing merchandise, and then trying to
return those items for a gift card or other currency.

“Financially, however, the largest single element of the overall cost


of crime to retailers remains “customer theft” – or shoplifting – which Common Fraud Scenarios
accounts for £500m per year, an increase of 15 per cent.” • Cash Fraud – Differing amounts collected from
Cash register to Deposits in Bank
Average Inventory Shrinkage 1.44% of Revenue • Returnable Packaging – falsely returning
packaging without the physical receipt of goods
Admin Errors Vendor • Discounts granted outside of regular hours
21% Fraud/Error • GILT – Goods Lost in Transit
Fraud 5%
committed by • Wardrobing - Purchasing products for short-term
Employees use with the intent to return the item
30%
• Skimming – sale without recording the sale
Fraud • Sweethearting & Reverse Sweethearting – a sale
committed by
Customers to contribute to a sales person’s targets but
37%
returned in another store
Unknown • Other Inventory Fraud Patterns
Loss
7%

* NATIONAL RETAIL SECURITY SURVEY 2017


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Fraud Management for Retail
Architecture

Fraud Management for Retail leverages standard SAP software solutions and CAR-based applications to
assist with the detection of fraudulent behaviours amongst the volumes of sales, inventory and purchasing
data that is being generated on a daily basis within a retail organisation.

The cashier/operator (number


313490) voided 56 line items across
6 transactions for one customer and
44 line items for another customer
across 4 transactions.

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Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

26
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

27
System Landscape Transformation (SLT)
Replicate Data from one SAP system to another

SLT is the standard real-time replication tool for big data for SAP ABAP-based
source systems to SAP HANA.

For POSDTA to perform its checks and validations, it requires a number of master
data and other data elements from the ECC system.

Points to consider when setting up SLT:


• SLT should be set up on separate HW platform – at least for PRD environment
• The SAP CAR Admin guide requires the replication of 150 (208*) tables
• Not all customers require all tables
• Does not include Z-Tables
• Consider system performance during the initial loads
• Think about reducing the data volumes in SAP ECC before setting up SLT
• Think about Transformation Rules (e.g. CLIENT vs. MANDT)
• Separation of duties – identify who in the project team is responsible for the setup
of SLT
• Functional vs. Technical skillsets * If FMS, CRM, yMKT, AMR, MPR and APR are in use. Also condier

• If table definitions change (e.g. Z-Tables or Appends in SAP tables) the SLT SAP Note 2385706 - SLT Tables Used in CAR RETAIL APPL
BUNDLE 2.0

replication stops and will need to be restarted again.


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Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

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SAP CAR - POSDTA
Things to consider when implementing SAP CAR (1/3)

• SAP POSDTA is typically the first step to align an


organisation‘s SAP landscape with the SAP
Omnichannel Retailing roadmap.

• Consider the value drivers when implementing SAP


CAR – without implementing or planning to implement
PMR, OAA, OPP etc. the benefits are somewhat
limited.

• Data Redundancy – when leveraging all applications


within the CAR Application Bundle, the same master
data elements can be replicated twice, e.g. SLT vs.
DRF which leads to data redundancy which in turn
leads to increased costs for SAP HANA.

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SAP CAR - POSDTA
Things to consider when implementing SAP CAR (2/3)

• More frequent upgrades required (e.g. HANA


revisions are being released every 2-3 weeks)

• Ensure your ERP release levels (EhP and SP


levels) are up to date.

• The complexity of a new implementation of


POSDTA increases if multiple different POS
systems require connecting to SAP CAR. The
same applies for currencies, countries (legal
requirements, tax rates, etc.) and recipient
systems from POSDTA/CAR.

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SAP CAR - POSDTA
Things to consider when implementing SAP CAR (3/3)

• A migration project from POSDM to POSDTA is


relatively straight forward (i.e. more cutover than
implementation, some customising adjustments,
developments and HANA partitioning) and should not
take longer than 12 weeks.

• Interaction with the SAP F&R System – when supplying


F&R with consumption data from POSDTA, ensure that
the ERP system does not overwrite those, i.e. switch
off supply of consumption data from ERP as part of the
Cutover Plan.

• Involve SAP HANA skillsets in the implementation team


(partitioning HANA tables, change HANA parameters,
HANA sizing) as the application partially extends into
the database.

• Do not mistake SAP CAR as a datawarehouse!


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Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

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Omnichannel Article Availability & Sourcing
Typical Questions & Challenges when integrating an eCommerce platform with SAP

• Hierarchies
• Structure online product catalogue according to Article Hierarchy, Merchandise
Hierarchy, alternative hierarchies? What about Multi-Placements of articles?
• Articles
• All articles listed for eComm or only a subset?
• In Click&Collect – what happens to articles that are not listed for a particular store?
• Process to eliminate archived/deleted articles from
eComm assortment?
• Only communicate articles to eComm that have an image
and a price > £0.00?
• Discontinued articles (stock rundown) – how to represent
online?
• Customer specific orders
• Assortments
• Long Tail/Endless Aisle assortment extensions?
• Communication of article details to POS systems? (In
case of pick up & pay in store?)
• Regional sssortments or assortments limited to certain
stores only?
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Omnichannel Article Availability & Sourcing
Typical Questions & Challenges when integrating an eCommerce platform with SAP

• Click & Collect – at what point in time do you want to show article availability?
• From Store Stock – upon nomination of Click & Collect store location?
• From DC Stock – from nearest (?) DC upon nomination of Click & Collect
store location
• Split Deliveries – not allowed/allowed and if so how many splits? Who will
be consolidating the order?
• Home Delivery – article availability to be derived from closest fulfilment centre
(store/DC?)?
• Split Deliveries – allowed and if so, how many and additional costs
incurred?
• Delivery Cost Calculation – pass on to consumer and of so, how to
calculate?
• Dropship
• Availability Information
• Show as always in stock or integrate vendors‘ stock information?
• Returns
• Online, in store, to DC
• No availability – do we want to commit to a delivery date for backorders?
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Omnichannel Article Availability & Sourcing
Rough Stock Indicator (RSI) in more Detail

• The RSI calculation is executed per „Consumer“ (i.e.


store and/or DC)
• The RSI calculation can be a Full or a Delta Run
• Functionality is provided through a BAdI, i.e. it produces
consumer/article level inventory values – there is no
standard implementation for this.
• i.e. you have to enhance this as part of a project.
• It stores a snapshot of the last RSI transmission for each
consumer/article – this is used for comparisons during
the delta runs.
• It sends an IDoc of type OAA_RSI_IDOCTYPE to the
eCommerce platform for each “consumer”.
• The IDoc has a warehouse name in the header. The
warehouse name is equivalent to the consumer ID
(in table /OAA/CONSUMER)

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Omnichannel Article Availability
Rough Stock Indicator (RSI) in more Detail

• The BadI generates the content of the line items of the IDoc
• The logic of how it generates the content is per individual
implementation of the BAdI
• Typically, the RSI would be at consumer (i.e. store & DC) and
article level with the rough stock value and aggregated availability
quantity
• Typically, the BAdI gets the data from the standard SAP CAR
Inventory Query view at store/DC & article level

• Depending on the number of article & store combinations, a „Wrapper“ program may need to be
established to perform the RSI calculation for a list of stores/DC‘s
• The ROUGH_STOCK_VALUE in the IDoc is a text field, hence it could be used to provide R/A/G stock
information if the exact quantities are not to be communicated
• Definitions to derive R/A/G from inventory quantity will need to be included in the BAdI
• The Delta run will only send information that has changed, e.g. from Green to Amber
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Omnichannel Article Availability & Sourcing
Implementation Considerations (TLOGUS Table)

• TLOGUS is the central table that OAA interrogates, OAA uses views
to check TLOGUS relevant ERP business functions have been
activated. In addition, the worklists 1 & 3 need to be included in the
customizing profiles.

• If POSDTA is also processing store goods movements, make sure


that the correct debit or credit settings are made despite what the F1
Help says.

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Agenda
SBN Conference, Oslo

1 Introductions

2 Overview SAP CAR and CARAB

3 Implementing CAR – how & where to start

4 Implementing SAP OAA

5 Implementing SAP PMR & UDF

39
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management

SAP Customer Activity Repository (CAR) Fiori/ Bobj

POS
SAP HANA – In-Memory Computing

Replenishment
Unified Engine (F&R)
POS Data Demand Data
Demand
Transfer & Audit Foundation
Forecast
SAP Retail (POSDTA) (DDF)
(UDF)
ERP SAP Marketing

SAP S/4 HANA


Retail Omnichannel Omnichannel
On Shelf
Inventory Pricing & SAP Commerce
Availability
Availability & Promotions
(OSA)
Sourcing (OAA) (OPP)

Other SAP
SAP CRM components
(BW, ERP etc.)

40
Promotion Planning & Execution Process in Retail
The typical promotion process within a retail organisation is divided into multiple phases

Promotion Planning & Execution

1 2 3 4 55 65 75
Promotional Overview, Finalisation
Prerequisite/ Create & maintain Corrections/changes: Evaluate, analysis,
Last year’s Framework analysis, offers
- Create, edit/process,
- Create, edit/process,
Building Blocks approve offers reporting and entry
Actuals “Skeleton” Reporting move offers

Yearly
Budget/Plan Yearly / half-yearly / quartely planning (diff. starting points: some start months before YB, some after YB) MB Purchase deadline
(W-20) Promo live (W-0)
(Aug./Sept.) (W-18)

Promotion Pre-Planning Promotion Planning Promotion Execution Promotion Analytics

Typical tasks performed during pre- Typical tasks performed during planning: Typical tasks performed during promo execution: Typical tasks performed during
planning: • Review Last Year‘s Actuals • Flesh out Promo Framework & Placeholders analytics:
• Internal (Finance) Budgets • Detailed Planning per MerchCat & with real SKU‘s • Compare actual performance against
• Category Performance Plans Week • Create Campaigns, Offers & Events forecast and plan
• Marketing Strategies • Build Promo Plan Framework incl. • Determine Offer Types
• Annual Vendor Agreements Placeholders • Forecast Promo Sales Quantity
• Review consolidated Promo-Plans • Determine Tactics & Tactic Types
across MerchCat‘s • Review Promotion Performance Forecast vs.
• Conduct Vendor Negotiations & Plan
Create Vendor Funds • Last Minute Changes
• Go Live
• React to promo performance and competitor
activity

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SAP Promotion Management for Retail
Functions & Features Overview

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Implementation Considerations
The following points may be relevant when thinking about implementing SAP PMR

• Master Data – consolidate, cleanup & archive master data. It is replicated to the DDF component of SAP CAR in
addition to the SLT replication for POSDTA.
• Enhancements – although SAP PMR has a good coverage of the Campaign & Promotion processes, there are areas
where custom enhancements are necessary, e.g.
• Calendar functionality
• Mass maintenance
• Vendor funds & promotion cost prices in foreign currencies
• Custom fields (during replication as well as offer maintenance, etc.)
• Master Data & Price change Notifications
• Usability - SAP UI5 Enhancements
• Unified Demand Forecast – start planning early for the use of UDF, do not switch it on and expect it to produce stellar
results immediately and unsupervised.
• Consider two years‘ history and the mapping of past promotional activities to DIF‘s.
• PIM/DAM Integration – it is trickier than you would think and most often, the integration efforts & timeline are
underestimated.
• Personalised Targeted Offers – leaflets are going to be a thing of the past. Think about how you would create &
communicate personalised targeted offers to a target group or individual consumers going forward.

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Promotion Planning & Calendar (PPC) Overview
Whilst SAP PMR supports most aspects of the end-to-end promotion planning & execution processes, it does
not provide any native capabilties for the common planning & budgeting process requirements.

1 2 3 4 55 65 75
Prerequisite/ Approve & Promotion
Last year’s Promotional Analysis & Offer Creation & Change Management
Building Blocks Framework Detailed Planning Finalise Offers & Effectiveness
Plan/Actuals Maintenance
Vendor Funds

Yearly / half-yearly / quartely planning Procurement Deadline


Annual Detailed Plan Promotion Go-Live (W-0)
(W-12)
Budget/Plan (W-18)

Promotion Pre-Planning Promotion Planning Promotion Execution Promotion Analytics

Functional Capabilities of the


Promotion Planning Calendar
(PPC) Functional Capabilities of SAP
PMR

The PPC Add-On to SAP PMR aims to complement the functionality of SAP PMR and provides retailers with
the ability to plan and execute their promotional campaign initiatives.
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SAP Unified Demand Forecast - Background
Current situation of forecasts within SAP Retail

• The forecast engine within SAP Forecast & Replenishment is now 20 years old and its technology
is not considered to be „state of the art“ anymore.
• The forecasting within SAP F&R is performed in C++ programs leveraging flat file „technology“.
• The programming and database technology as well as the data storage options at the time ony
allowed a forecast on weekly level. Daily demands were derived from weekday profiles. As such,
SAP F&R was not suitable for a number of categories, e.g. Fresh, Apparel, etc.
• In 2012, SAP developed a solution to address the requirments within the Fresh categories and
catered for daily forecasts within its „Fresh Item Forecast“ or „Ultra Fresh“ solution add-on to SAP
F&R.
• No significant further enhancements on the forecast capabilities of SAP F&R have been made
since then.

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SAP Unified Demand Forecast
• The Unified Demand Forecast is a new generation forecast for SAP
Retail applications, including Promotions Management, Assortment,
Merchandise Planning, Allocation Management and future
applications.

• UDF combines the strengths of the forecast algorithms of SAP F&R


and PMR in a single platform

• SAP UDF supports What-if Forecasting for ad-hoc simulation


scenrarios as well as Production Forecasting for analytical purposes.
• Visualisation of the forecast via the Analyse Forecast app.

• UDF learns the impact of various demand influencing factors


(holidays, promotions,vacation, back to school, price changes, sport
events, weather) on historical sales

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Implementing SAP UDF
Things to consider when implementing UDF

• In order for UDF to produce the best results, two years history will be
required at Product/Store/Day/Offer level.
• Where possible, promotional history and outliers should be
explained via manual Demand Influencing Factors (DIF‘s).
• UI Development - The current solution does not provide a user-
friendly way to create manual DIF‘s (e.g. Local events, store
renovation, etc.), i.e. the maintenance of manual DIF‘s requires the
development of a user interface.
• Performance – ensure the system is sized appropriately and set the
correct expectations with the business users.
• Health & Hygiene - SAP UDF requires ongoing maintenance, it is not
a fire & forget solution and it is not owned by IT
• This may potentially require the establishment of a Demand
Planning department.

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Integration of SAP PMR & UDF
Allocation & Order Proposals
PO/STO F&R Processor
Promotion Quantities (optional) Correction
DIF/ Open PO Preprocessing
ERP Promotion
Execution Process SAP PMR Forecasting
Promotion
Planning Forecast
Demand Calculation
Process (UDF)

Order Optimisation
Released Offer
incl. Quantity
SAP F&R
Offer What-
if Forecast
Products
Locations
Prices
Article
Hierarchy
Listing Interface for
Unified Demand Forecast Analyse additional
DRF Out Forecast Fiori influencing
(UDF) factores, e.g.
App
weather

SAP Retail
Offer Attributes Sales & Offer External Influencing
Master Data
History History Factors
Execute DDF
Promotion
/ Offer Indicates where
PMR Offer-
Sales & Offer relevant
TLOG Aggregation
Sales, Offer, information
49 is
Price POSDTA SAP CAR used in the
process
Questions?

50
Contact Details
Michael Niestroy – Managing Partner retailsolutions UK

Email LinkedIn
1 Michael.Niestroy@retailsolutions.uk linkedin.com/company/17938263/

Phone Website
2 +44 78 2451 6659 4 www.retailsolutions.uk
Thank You
Monday, 15th October 2018

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