Professional Documents
Culture Documents
1 Introductions
2
Agenda
SBN Conference, Oslo
1 Introductions
3
Milestones Privately
Company History Owned
5
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
6
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
7
Publications
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
8
Customer Selection
Overview of some of the customers we are doing business with
9
Agenda
SBN Conference, Oslo
1 Introductions
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
Suppliers
Collaborative
Requirements
Planning, Demand Replenishment Multi-Echelon
Planning for Allocation
Forecasting & Forecasting for DC / Store Replenishment
DC/Store
Replens
asaasas
M
Pricing Campaign & & Predictive
Assortment, &
Mgmt Promotion Planning Analysis
Space Planning
Products & Customers
Suppliers Services
Returns Management
Real-Time
Master Data Value Added
Sentiment Analysis
Mobile B2B, B2C
Inventory
Management Services Order Orchestration Order Orchestration
Visibility
Manufacturing
Supply Chain
Chain-Wide Warehouse & Transportation Order/Backorder
Distributors Tracking & Fulfilment
Inventory Mgmt DC Management Management Management
Visibility
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
11
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
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
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
Suppliers
Collaborative
Requirements
Planning, Demand Replenishment Multi-Echelon
Planning for Allocation
Forecasting & Forecasting for DC / Store Replenishment
DC/Store
Replens
asaasas
M
Pricing Campaign & & Predictive
Assortment, &
Mgmt Promotion Planning Analysis
Space Planning
Products & Customers
Suppliers Services
Returns Management
Real-Time
Master Data Value Added
Sentiment Analysis
Mobile B2B, B2C
Inventory
Management Services Order Orchestration Order Orchestration
Visibility
Manufacturing
Supply Chain
Chain-Wide Warehouse & Transportation Order/Backorder
Distributors Tracking & Fulfilment
Inventory Mgmt DC Management Management Management
Visibility
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
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
Other SAP
SAP CRM components
(BW, ERP etc.)
15
Promotion & Pricing Challenges in Retail
Current Siutation
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
16
SAP Omnichannel Promotion Pricing
Functional Overview and Architecture
17
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management
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
Other SAP
SAP CRM components
(BW, ERP etc.)
18
Omnichannel Article Availability & Sourcing
How accurate is
this figure?
19
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.
21
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management
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
Other SAP
SAP CRM components
(BW, ERP etc.)
22
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.
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.
25
Agenda
SBN Conference, Oslo
1 Introductions
26
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management
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
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.
• 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
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
Other SAP
SAP CRM components
(BW, ERP etc.)
29
SAP CAR - POSDTA
Things to consider when implementing SAP CAR (1/3)
30
SAP CAR - POSDTA
Things to consider when implementing SAP CAR (2/3)
31
SAP CAR - POSDTA
Things to consider when implementing SAP CAR (3/3)
1 Introductions
33
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?
34
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?
35
Omnichannel Article Availability & Sourcing
Rough Stock Indicator (RSI) in more Detail
36
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
37
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.
38
Agenda
SBN Conference, Oslo
1 Introductions
39
Overview SAP CAR
Promotion Merchandise Assortment Allocation Fraud
Management Planning Planning Management Management
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
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
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)
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
41
SAP Promotion Management for Retail
Functions & Features Overview
42
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.
43
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
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.
44
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.
45
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.
46
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.
47
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
52