Sap Retail PDF

Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition
ǀ References
SAP Value Paper ǀ PUBLIC
Transform Retail Merchandise Management

with SAP® Solutions
Business Value of SAP S/4HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition ǀ References
Jacques’ Wein-Depot
The Need of an Intelligent ERP System • 360-degree view of the
customer across multiple touch
points anticipated
Support “Next Practices” with Intelligent Enterprise Resource Planning (ERP)
• 100% integration between
Radical change in the retail industry is occurring at a rapid pace. Changes in technologies, in business models, and in systems
standards and with the ever-evolving customers require constant adaptation. Retail companies must be able to
respond to rapidly changing conditions and offer targeted customer engagement at scale. How does a digital core • Complete digital
with a true single source of truth help? transformation of the enterprise in
the coming years
Stability and flexibility Embedded intelligence “Our ultimate goal is to be able to
A digital core is an IT architecture that offers stability and Innovative retailers leverage new technologies to support integrate data from all touch points to
long-term reliability for core enterprise processes, yet their digital transformation strategies and respond get a 360-degree view of the customer,
also provides the flexibility to adapt quickly to new effectively to both encroaching competitors and new which will enable us to deliver the very
opportunities, challenges, and regulations. This solid demands of the digitally empowered customer. Improved best service.”
foundation gives you a single source of truth with tailored processing power is making machine learning applicable Dirk Bungarz, General Manager,
real-time views delivering customer and business “SAP enabling
in more and more retail areas, S/4HANA affords a unique
further Accounting/HR/IT, Jacques’ Wein-Depot
insights and enables flexibility for innovation to opportunity – it is
optimization and automation of business processesa great as
accommodate new business models, new regulations, paradigm-busting opportunity
well as more impactful, personalized, and contextual
and business events, such as mergers or acquisitions. consumer experiences. for us to completely rethink Sharjah Cooperative
experiences, processes, and Society
Immediate response Integrated and connected thetoway
theweoutside
work.”world
To take advantage of new opportunities andIT better
CTO, meet
The ability to respond quickly is an essential part of Dave Carlisle, HPE
individual needs, retailersHewlett
must address end-to-end
• 9 months project duration –
managing a retail company. To do this, simulation, Packard Enterprise
from manual task to automation
prediction, and analytical capabilities are important (E2E) processes across departments
Company (HPE) and lines of
components. Data is critical for gaining the insight to business to deliver on new customer experiences, • 5 days annual stocktaking time
make decisions. This insight must be at a granular level, products, and services. The Internet of Things (IoT) lets from 3 weeks
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
so that decision-makers have the detail they need to them connect to the outside world, driving unprecedented
understand trends, opportunities, and risks and quickly efficiency and optimization as well as new levels of • 5 weeks for design and
carry out what-if analysis using predictive algorithms. customer connectivity and new retail business models. preassembly phases
Enhance and Extend Next-Generation Processes with Intelligent ERP “Project delivery is very efficient,
organized, and transparent. There is a
Bringing SAP S/4HANA® and the SAP® Leonardo technologies together as a digital core results in a more flexible and willingness to be flexible when needed.
intelligent enterprise. To achieve next-generation business processes, retailers need an intelligent ERP solution that can The project team has proven they are
be continuously enhanced and extended with innovative business services and applications built on emerging up to the task.”
technologies, including machine learning, block chain, and IoT. Intelligent ERP is immediate – empowering business Jasim Al Abdooli, IT Department Head,
users with insights to act in the moment; it is intelligent – going beyond automation to predictive suggestion; and it Sharjah Cooperative Society
is integrated – not only between your departments, but for consumers and suppliers alike.
2 / 18
Strategic Priorities in a Digital Economy
The digital economy is disruptive. Retailers need strategic priorities that drive transformation. SAP supports a reimagined set of end-to-end business scenarios to
support the strategic priorities of serving the digital consumer of today. These are some examples:
Customer centricity
New technology allows retailers to detect, predict, and anticipate unspoken needs. Understanding the profitability impact from start to finish – down to the
single article, and through integration of all process areas – is key to providing the right experience all the way from awareness, to the shopping journey,
delivery, and postpurchase engagement.
End-to-end scenario: Customer-centric assortment planning – Sell the products your consumers want
Service to the segment of one

The ability to capture and anticipate customer needs in the moment is key to giving customers exactly what they want, when they want it. Sensors
monitor use, consumption, wear, and freshness, alerting consumers to replace, replenish, or repair, thus creating demand that can be met just in time
with the right corresponding personalized offer. Machine learning will drive more-impactful, personalized, and contextual consumer experiences.
End-to-end scenario: Connect to your customer’s lifestyle – Enable immersive customer experiences
Digital supply chains

Connecting the end-to-end supply chain from suppliers to consumers’ homes allows retailers to drive efficiency in material flows, better demand and
supply matching, and faster response, offering new opportunities for automated replenishment and new convenient delivery options.
End-to-end scenario: Connected supply chain – Reduce delays and provide superior customer value
Smart store
Virtual reality, the use of digital technology to create immersive simulations, and augmented reality, which let users interact with digital content that is
overlaid on real-world content, allow retailers to create new and differentiating shopping experiences. Customer identification, smart fitting, endless
aisles, gamification – the opportunities are endless – help drive loyalty as well as new revenue opportunities.
End-to-end scenario: Revitalize the store – Deliver brand-building store experiences
Monetizing new customer offers

A superior understanding of customer needs is now possible by leveraging data and predictive analytics, allowing new revenue-generating offers. The
ability to monitor use and consumption with sensors enables new business models, such as subscriptions, pay per use, or outcome-based models.
End-to-end scenario: Ingredient and recipe meal-kit service – Offer personalized meals
3 / 18
Customer Centricity
Customer-Centric Assortment Planning

What do my consumers really want? With this end-to-end integrated scenario, leverage the power of social insights, sentiment analysis, and search data to improve
your assortment planning and have in store today what your shoppers demand tomorrow.
Traditional scenario
• Central spreadsheet-based assortment • No integration with execution in • Sales data imported postevent • After-the-fact profitability
planning based on historic data held in back end • Demand review after the fact analysis with no opportunity
Microsoft Excel form • Items are purchased and listed in to respond to demand and
• Manual stock adjustments
• Error-prone manual work regions with no insight into regional shopper takeaway
• Markdowns and clearance sales
• No systematic inclusion of external or demand added to ERP
forward-looking data
A new world with SAP
• Demand signals, consumer • Intelligent store clustering • Predict sales and order • Integration into SAP S/4HANA • Radio frequency ID
sentiment, product search, and supporting the launch to establish quantities and support the to help enable flawless (RFID)-enabled store
social media data are collected into optimum mix of stores and planning of initial launch and execution of decisions in SAP process helping store
the SAP C/4HANA suite and the assortments based on multiple in-season replenishment to S/4HANA and to create push associates to control
SAP Customer Activity Repository attributes the stores using the unified orders for stores and inventory
application to represent real-time • Optimization of assortment mix by demand forecast component distribution centers • Automated stock
market demand revenue and margin of SAP Customer Activity • Continuous monitoring of transfer to rebalance
• Google search rankings overlaid Repository volumes and item profitability in supply across stores
with current portfolio to provide material ledger to allow instant and eliminate
additional product suggestions response markdowns
Top value drivers* Understand market demand Smart store clustering Plan launch Profitability monitoring Rapid response
40% higher revenues 46% fewer markdowns

* Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA, line-of-business or cloud capabilities, and SAP Leonardo technologies.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise. 4 / 18
Service to the Segment of One
Connect to Your Customer’s Lifestyle

With this integrated end-to-end scenario, you are able to create an immersive shopping experience for your consumers – one that earns lifetime loyalty and also
delivers significant efficiencies and new business opportunities to the retailer.
• Consumer recognizes • Consumer looks up information • Consumer chooses retail store • Consumer decides and pays • Lost opportunity to maintain
major defects in running about running shoes online • Associate advises unknown consumer, • Anonymous sales data consumer contact and build
shoe • No personalized offers are no connection to Web offers imported to ERP system consumer loyalty
• No sensor data is made made • Associate has no access to sales
available • Cumbersome execution history, sizes, functional needs of the
between channels exists shopper

Consumer Consumer
• Integrated sensors • Back-end system • Consumer orders desired shoes • Consumer picks up • Store staff completes the • Consumer enjoys
in shoes send end determines personalized in Web shop and receives order in store transaction and registers superior service and
of life signal to product recommendations relevant value-added up-sell • Associate recognizes new shoes to initiate can rely on timely
back-end system based on consumer offers based on customer data tracking again and relevant
consumer in store and

• Consumer receives history, peer groups, and trend signals can make additional • Personalized sales data is personal offers to
information on end trends, and social media • Consumer pays and can choose smart offers based on updated in SAP S/4HANA keep them running
of life of running inputs using machine convenient delivery options – the consumer’s profile and the entire cycle starts
shoe learning a 5% coupon is offered for store and documented over again
pickup preferences • Product recommendation
• Retailer fulfills order and further improves with
delivers for store pickup every cycle
Top value drivers* Flawless execution of service promises New levels of customer proximity and understanding Hyperpersonalization with IoT technology
revenue increase from real-time promotions

5% and predictive analytics 5% to 10% sales increase from cross-sell opportunities
based on a single view of the customer
Digital Supply Chains
Connected Supply Chain

With this integrated end-to-end scenario, you are able to create an automated, connected, hands-free supply chain that delivers new levels of speed and efficiency as
well as superior value to your shoppers and consumers.
• Manufacturer sends • Delays in • Often manual and • Issues align the supply • Goods can arrive • Customer faces empty
product to a retail traffic are not error-prone goods chain too late or shelves
distribution center accounted for receipt are with • There is no visibility on damaged without • Store associates have
• No inventory visibility on paper or scanner- status on the road warning no information on
the road is available based lists upcoming arrivals
• There is no chance to
• No information on delivery react
status is available
• Online order confirmation

• Smart rerouting • Goods receipt in • Real-time alerts on • Goods receipt in store • There are fully stocked
based on collaborative
in case of distribution center issues such as cold with RFID shelves
demand planning and
issues along with RFID chain violation, theft, • Customer can get
order forecast • Secure supply chains
the route and delays detailed information on
supported by block chain
transactions pedigree, ingredients,
cold chain compliance,
and so on
Top value drivers* Real-time supplier collaboration Real-time alerts and automated response Supply chain automation Consumer safety
30% reduced cost of supply planning 40% reduced damage and waste 25% reduced total logistics cost
Smart Store
Revitalize the Store

Create a smart store to deliver brand-building store experiences. With this integrated end-to-end scenario, you can manifest your brand, create new store experiences,
and capture changing needs by running your stores like an online business.
Traditional scenario ?
• Shopper enters story • The interaction is only • Store run by point-of-sale • Staff is without access • No personalized offers • No ability to differentiate
anonymously captured upon checkout transactions to real-time inventory • No convenience options customer experience or
• No history is available • No interaction is sensed • You only see what is sold information or offer service that drives
• No help when items are
incoming deliveries loyalty
• No insight into the shopper’s • Valuable interaction data is lost not available
needs, preferences, or • Customer preferences are not • Staff can’t guide • No ability to feedback • Stores exposed to price
buying behavior is available discovered customers competition from online
pure plays
• Decisions are made after the fact
• Shopper is recognized and • Interaction is from smart • Real-time response to • Real-time inventory and • Real-time inventory • Ability to drive
approached according to shelf heat maps relevant customer demand product information information and endless shopper and
signals aisles
their privacy settings • Sensor technology helps • Ability to use geospatial data consumer loyalty
• Smart “clienteling” is optimize store layouts, • Accelerated replenishment to identify nearby stock • Frictionless checkout and increase
enabled based on history assortments, and price • Triggered product transfer locations • Convenient service shopper share of
and known and predicted points and enables better with RFID enablement to options wallet
• Price differences eliminated
preferences understanding and balance stock between and shelf stock controlled
predicting shopper stores flexibly with advance scanner
preferences
technology
Top value drivers* Relevant offers and promotions Improved products and offerings Empowered staff Compelling shopping experience New customer loyalty
95% higher revenues and customer loyalty 25% fewer markdowns 30% increased inventory turnover
Monetizing New Customer Offers
Ingredient and Recipe Meal-Kit Service

With this integrated end-to-end scenario, use superior understanding of your customers’ needs to create new revenue-generating offers and services, such as
personalized meals.
? ? ? ?
? ?
• Consumer shops for groceries with • Lack information for store staff to make • Items for a meal can be • No added consumer value
a few meals in mind, at best recommendations incomplete • No way to differentiate retail
equipped with a shopping list • No customer history, no insight on preferences • Key items can be forgotten or out services
• No recipes, no information on nutritional values, of stock
no way to match with consumer lifestyle • Leftovers, excess packaging can
result
A new world with SAP Nutrition expert Food and nutrition experts help consumers
Consumer discover matching items based on their personal
Consumer subscribes to meal-kit service preferences and buying history
Provides cooking and taste preferences,
physical and exercise information per Through machine learning, back-end system determines
their individual preferences and goals recipe recommendations based on consumer data,
preferences, and history, including data from social media
Trend analysis from Web searches helps make
Feedback and machine learning Home recommendations that drive demand
can be used to improve recipes, Meal kits are assembled and shipped directly to consumers
recommendations, and the
based on shipping preferences

overall offering, and kick- off the
next delivery cycle
Home delivery or pickup of selected meal kits are
according to specs, in the right size, amount, and
Consumer profile and preferences nutritional values, and with reduced sustainable packaging
are enhanced based on structured
and nonstructured feedback Consumer prepares meals and provides feedback
Top value drivers* New levels of customer proximity and understanding Flawless execution of service promises Hyperpersonalization by machine learning
and predictive analytics
Up to 3x larger size of shopping baskets 30% reduced markdowns 40% reduced logistics cost per item Improved customer loyalty
Deep Dives Along the Retail Value Chain
This section examines primary capabilities where value can be achieved through SAP S/4HANA, SAP C/4HANA, line-of-business (LoB solutions), and SAP Leonardo.
Marketing and Procurement and Supply Omnichannel customer

merchandising private label chain experience
• Marketing and • Procurement insights • Supply chain insights • Customer insights and
merchandising insights personalization
• Supplier management • Forecasting, allocation,
• Product design and and replenishment • Store commerce
• Sourcing and contract
development
management • Omnichannel inventory • Digital commerce
• Master data management and order response
• Merchandise buying • Mobile commerce
for merchandising
• Warehouse management
• Invoice management • Omnichannel order
• Omnichannel merchandise
• Transportation management
and assortment planning • Private label manufacturing
management
• Omnichannel customer
• Omnichannel marketing
• Logistics networks service
• Omnichannel pricing and
promotions
9 / 18
Marketing and Merchandising
Capabilities of
Current state Capabilities of SAP C/4HANA
Typical challenges with ERP SAP S/4HANA and SAP Leonardo Business Benefits
• Volatile market within • Master data management • New seasonality concepts as • Strong integration with SAP • Increased revenue
fashion and consumer and retail transactions a main driver for product C/4HANA and execution • Reduced markdowns
electronics – any retailer provided little support for processes along its complete based on SAP S/4HANA • Reduction in cost
dealing with highly seasonal season handling or decision- lifecycle, from master data • Enhanced customer
associated with data
merchandise needs to making to steer merchandise creation to procurement and experience with
manage an increasing flows accordingly in order sales, price calculation, and personalization to the
errors
number of products with to procure and deliver goods stock management segment of one • Increased return on
rapid changes in the product on time • On-top distribution curves • Contextualized marketing promotions
lifecycle • Master data management for helping merchandisers come capabilities offering touch • Improved customer
• Inefficient, manual processes retail products differed from up with the right mix of sizes points that serve customers loyalty
for product data maintenance master data management of • SAP Fiori® apps providing a in what they need
with no clear data ownership other industries in terms of single friendly interface for independently and on
and little to no transparency data models and tables, and the creation and location
in the process, as well as maintenance of product data maintenance of retail • Social listening and
high costs through incorrect was complex and not products and standard predictive insights enabling
master data across the value intuitive materials smart decision-making
chain – impacting not only • Decentralized maintenance • Tight integration into the SAP • Machine-learning algorithms
the retailer’s bottom line but of sales prices and Commerce Cloud solution for enriching and completing
also presenting a risk to promotional prices in displaying product data to master data from data pools
consumers if data is not marketing for online the consumer and supporting the customer
correctly displayed in all channels and category • Centralized storage of pricing experience
sales channels management or and promotion offers, with • Cloud-based service for
• Inconsistent product prices merchandising for the brick- services for retrieval and consistent calculation of
and promotion offers, not and-mortar store resulted in calculation to achieve consumer sales prices and
distributed properly across all high efforts for distribution consistent values in all promotion offers in a
channels, leading to across systems and channels shopping basket across all
dissatisfied customers consolidation channels*
*Planned innovation 10 / 18
Procurement and Private Label
Capabilities of
Current state Capabilities of SAP Ariba
• Difficulty in identifying the • Instead of conducting one • SAP Fiori apps for managing • Creation of “request for” • Higher sourcing savings
best sources of supply, with search for contract documents, and performing mass updates documents (RFx), sourcing from unit-price reduction
data spread across disparate changes in search parameters on sourcing documents events, management, • Improved supplier
sources require users to return from • RFQ and supplier quotation collaboration, and analysis
compliance
• Lack of a robust sourcing contract list to search screen management, and enabling • Supplier collaboration for
every time • More flexible pricing
execution process, reducing direct execution of requests contract creation, signing,
(rebates), enabling more
realized savings • There is a lack of visibility into or • Native integration to the SAP management, and syndications
information about contract targeted business models
• Poor contract management, Ariba Sourcing solution to • Supplier and end-user
resulting in negotiated utilization initiate sourcing events out of collaborative workspaces and
• Increased discount
savings leakages and • Identifying supply source SAP S/4HANA and receive workflow capture – net-new
compliance issues requires separate searches by back-sourcing award, with • Support for material master, discounts
• Manual processes, extending user in purchase information follow-on documents updated or services, and bill of material • Reduced procurement
transaction cycle times and records (PIR), contracts, created automatically (BOM) integration for sourcing function costs
inhibiting the ability to take scheduling agreements, and • Embedded and predictive and contracts • Improved invoice
advantage of opportunities other records analytics for contract processing efficiency
• Sourcing award and contract
for discounts • There is an inability to get an consumption integration using material
• Paper-based supplier aggregated and enriched view of • Enhanced and automated master data to create purchase
invoices and delayed invoice spend data across multiple invoice management and orders and outline agreements
updates systems collaboration • Visibility about preferred and
• To identify erroneous invoices, a qualified suppliers
user must go back and forth to • Invoice verification based on

change search parameters, and machine learning
requires an administrator to
resolve business issues with • Cloud-based exchange of
suppliers master data between suppliers
and retailers
• Manual capture and upload of
invoices in any form is utilized
11 / 18
Supply Chain
Capabilities of
cloud-based Supply
Current state Capabilities of Chain Solutions
• IT complexity and data • Visibility on overall progress • A single platform for all warehouse • High-volume and highly • Reduced total logistics cost
duplication due to separate across system boundaries; get and transportation management automated warehouses with • Higher inventory turns
warehousing systems overview on material flows embedded in the SAP S/4HANA the SAP Extended • Reduced days in inventory
• Lack of accurate up-to-date messaging interface between core, including optimization, Warehouse Management
• Increased inventory
inventory data, lead times, ERP and extended warehouse automation, and labor manage- application
management application ment, basic and advanced shipping
accuracy
and procurement timings for • Complex transportation
capabilities, and real-time analytics • Reduced supply and
planning, leading to late and • No standard UI capabilities for requirements met with the
inefficient planning and end-to-end user experience • Live inventory management SAP Transportation
inventory planning cost
preventing fast response through redesigned data model, Management application • Reduced warehouse
• Live inventory updates not
• Complexity in valuating available; inventory status is allowing unlimited simultaneous • Insights into transportation operating cost
inventories in multiple reflected in the system with time material movements and execution, timely execution of • Increased visibility in actual
currencies and for different offset transparency on inventory and critical business processes, profitability, allowing for
valuation methods (for legal, • Limited material ledger valuation material flows and fast course and tracking of goods and margin optimization
profit center, and reporting capabilities available correction assets in transit using the • Reduced transportation
purposes) • Ability to change lot size to “1” for SAP Global Track and Trace management costs
• Inventory analysis enabled using
• Lack of end-to-end visibility the lowest level of granularity in solution • Decrease in revenue loss
a separate analytical system with
with electronic track and trace inventory stock keeping • Collecting, mapping, storing,
data integration issues and data due to reduction of stock-
capabilities latency • Material ledger valuation for faster and analyzing vehicle and
outs
• Inability to track and manage actual costing, and multiple sensor data in real time,
• Tracking the journey of products • Lower inventory carrying
deposits and value-added valuation methods in multiple optimizing logistics and
from remote supply locations into
currencies improving services with the cost

services stores enabled across separate
• Fully integrated management of SAP Vehicle Insights
systems
value-added services and deposit application
• Core mission-critical retail
processes, such as articles
replenishment processes or • Accelerated replenishment and
calculation of available-to- available-to-promise calculation
promise (ATP) quantities, can be
run only in nightly batch windows
12 / 18
Omnichannel Customer Experience
Capabilities of
Current state Capabilities of SAP C/4HANA
• A wild mix of user interfaces • User interfaces are • Digital age user interfaces with • Personalized shopper • Improved customer
based on different transaction-oriented versus role-based launch pads, engagement through real-time satisfaction
technologies, using different role-oriented and not based empowering employees with customer identification and • Reduced cost of sales
navigation schemes, on the user’s work process; contextual information, insight localization, with smart devices
• Increased sales
hampering the user therefore, they are not telling to action, collaboration, and based on consent and profile
experience and employee the users what they need to real-time access to information productivity and on-time
• Individualized product and
efficiency, particularly in the do delivery
• Hands-free ERP using offer recommendations
store • Inventory information is kept chatbots and voice command • More business model
• Clienteling and “endless aisle”
• Little to no decision support at level of location or in • Integration into IoT and capabilities based on a 360-
flexibility
for store employees with decentralized store analytical services for degree customer view and • Improved compliance
regard to where the inventory merchandise management capturing shopper interaction real-time omnichannel • Reduced revenue loss
is, what placements are the systems, with no real-time during store time and inventory due to underbilling
best, and which products to insight into store inventory eliminating friction • Frictionless shopping with fully • 15% to 20% improvement
keep in the range or not • Sales transactions are the • True omnichannel inventory automated checkout in retail store FTE
• Little information on what only source of information of and product availability productivity
• Nutrition and lifestyle advice
shoppers like and need what shoppers want, like, or orchestration including using based on individual profiles • 30% less time needed for
• Inability of store to act as a need the store as a fulfillment and machine learning decision-making
fulfillment location for • Omnichannel fulfillment location
• Improved insight and visibility
omnichannel scenarios, such as buy online • Ability to monitor fulfillment into the physical store
• Lack of visibility into or pick up in store, are difficult status of all sales orders environment for better in-store
omnichannel inventory and to support across the whole order-to- replenishment and
order fulfilment that results in • Responsible employee has to cash cycle management of assets
slow resolution of order check multiple reports to get a • Digital receipt in the cloud for
fulfillment issues, with risk of holistic view of all order shoppers and consumers*
delayed delivery process-related issues with
limited to no monitoring • Support for subscriptions and
capabilities usage-based services
*Planned innovation 13 / 18
SAP Strategy – Deliver the Intelligent Enterprise
Intelligent ERP is the

digital core of an
Intelligent Enterprise
An intelligent
Manufacturing Digital People enterprise can be
& Supply Chain Core Engagement continuously enhanced
and extending with
Customer Network & Spend
Experience Management business services and
applications built on a
digital platform to
Intelligent create transformative
Suite
business value.
Intelligent Technologies Retailers that innovate
for their customers and
prefer to be early
adopters have already
AI/ML | IoT | Analytics begun this journey.
Digital
Platform
Data Cloud
Management Platform
14 / 18
Intelligent Suite – SAP Portfolio of Solutions for Retail

An end-to-end intelligent enterprise for retail
The SAP S/4HANA Retail solution for merchandise management is at the core of a comprehensive suite of retail offerings designed to help retailers meet the
demands of a digital economy. It supports retail core processes, starting with master data down to point-of-sales connectivity. It allows insight into operational retail
data, empowering users with contextual, real-time information for faster and better decision-making. Processes can be extended easily to connect to business
networks to form a digital ecosystem and collaboratively drive business model improvements. Equipped with a simple and intuitive user experience, the merchandise
management capability offers better support for headquarters users as well as store associates to drive compelling customer experiences. Flexible deployment
options as private and public cloud support the overall value proposition of SAP S/4HANA.
SAP S/4HANA is at the center of the SAP for Retail solution portfolio, spanning the entire value chain and helping to create compelling next-generation shopping
experiences while simplifying and automating processes to achieve significant bottom-line cost savings.
Customer Manufacturing People Network and spend

experience & Supply Chain engagement management
SAP® Ariba® SAP solutions for omnichannel planning SAP C/4HANA

Digital supplier Real-time, integrated Digital customer
collaboration vertical planning engagement
SAP C/4HANA
Real-time and predictive SAP SuccessFactors®
consumer trend insights solutions
Procurement and Omnichannel
Marketing and Supply chain
private label customer Talent management
merchandising
experience
Master data, Merchandise buying, Demand and replenishment Omnichannel order
Big Data and the Internet
assortment, price, and replenishment collaboration planning, allocation response, point of sale
of Things execution, omnichannel connectivity, store management SAP Concur® solutions
promotion management contracts
inventory management
Travel management
SAP S/4HANA® Retail for merchandise management
SAP Customer Activity Repository
SAP Fieldglass® solutions
Finance Human
resources Third-party labor
Allow for visibility into the state of the
Simplify HR processes management
business at any time
Digital core 15 / 18
The Value of SAP S/4HANA for Retail Companies
SAP S/4HANA provides retailers with a proven framework to adopt industry next practices while attaining operational excellence across the full value chain.
Strategy enablement Business benefits*

• Accelerate new business-model innovation and new revenue- • 15% to 30% higher inventory turns
generating opportunities • 10% to 30% lower inventory carrying cost
• Understand every aspect of your business and adjust to • 90% decrease in revenue loss due to stock-outs
rapidly changing business requirements: report in real time • 10% to 25% reduction in total logistics cost
by function, region, category, channel, and product • 5% to 10% reduction in markdowns and waste
• Enable faster domestic and international expansion Strategy • 25% to 40% increased retail store FTE productivity
enablement
• Accelerate M&A synergy • Higher customer satisfaction
• Reorganize on the fly Business
• 25% to 50% reduction in cycle time for financial
• Achieve greater speed and agility benefits forecasting and reporting
• Manage risk and ensure compliance • 10% to 40% improvement in invoice processing
productivity
• 40% to 50% reduction in days to close annual books
Empowered
Empowered employees employees IT benefits and TCO
• Higher productivity with a new, role-based way of working IT benefits
• Fast performance by up to a factor of 10
with a responsive, intuitive user experience on all devices and TCO • Memory footprint reduction by up to a factor of 5
• Improved user experience with access to data from • Merger of OLAP and OLTP
anywhere on any device, with interactive graphics and • Elimination of many desktop clients
analytics on a single copy of data • Simplified software landscapes
• Greater ability of store associates and store managers to • Native integration
serve their customers effectively when equipped with the • Reduced total cost of ownership (TCO) through
right information landscape simplification
• Actionable insights on unified, real-time data and processes
with built-in system suggestions for decision support
* Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA, line-of-business or cloud capabilities, and SAP Leonardo technologies. As each
enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise. 16 / 18
Customers are Achieving Value with SAP Solutions

Jacques’ Wein-Depot Guangzhou Mini King Food
Industry Jacques’ Wein-Depot wants to capture and Industry Guangzhou Mini King Food Co. Ltd. (Mini King)
Retail Retail
retain demand from in-store wine tastings by is a vertical enterprise that integrates R&D,
SAP Solution making buying wine a simple, connected, and SAP Solution refined processing, and retail sales of “green”
SAP S/4HANA Retail
SAP® for Retail solutions, enjoyable shopping experience across all its solution for merchandise leisure food across mainland China.
SAP S/4HANA® Finance stores, channels, and devices. management and SAP
solution, SAP Omnichannel Customer Activity With SAP solutions, Mini King integrated its
Point-of-Sale application by It is transforming its IT landscape to support Repository application finance, procurement, and business processes
GK, SAP Customer truly omnichannel retail operations, including Customer Web site in a central source, enabling live decision-
Experience solutions, and click-and-collect, frictionless returns of online www.gzln.cn/en making made possible based on real-time
SAP HANA® Enterprise Cloud purchases between stores, and more – helping /foodEnterpriseGroup.html insights. This allows the retailer to collect
the company deliver sparkling customer Click here to read information on customer behavior and product
Customer Web site service. the business transformation favorites and make recommendations based on
www.jacques.de study.
customer preferences – resulting in increased
Click here to read the business customer satisfaction and loyalty.
transformation study.
“Our ultimate goal is to be able to integrate data from all touch “By enabling digital management, we have seen improvements
points to get a 360-degree view of the customer, which will that stagger the imagination: from paper to online, closings in
enable us to deliver the very best service.” an hour instead of a business week. It’s good we’re mobile
Dirk Bungarz, General Manager Accounting/HR/IT Management, Jacques’ Wein- now, too. We’re rolling.”
Depot Wein-Einzelhandel GmbH Xianhao Cai, CIO, Guangzhou Mini King Food Co. Ltd.
17 / 18
Customers are Achieving Value from SAP Solutions

Sharjah Cooperative Society Snow Peak
Industry As the first cooperative society in the United Arab Industry Snow Peak is a retail network with more than
Retail Retail 100 stores selling products designed to meet the
Emirates, Sharjah Co-op-Society (SCS) has
SAP Solution thrived in a rapidly growing economy despite fierce SAP Solution needs of campers and backpackers. Snow Peak
SAP S/4HANA® Retail competition. To perfect its business, it imple- SAP S/4HANA Enterprise wanted to serve its customers better by tracking
solution for merchandise Management, SAP and analyzing their buying histories to offer the
management, SAP® Model
mented scenarios supporting automatic order
support, meat processing, and in-store production C/4HANA, and SAP most relevant and compelling products.
Company service for Core
Retail, and the operations. Predictive Analytics
SAP HANA® Enterprise
The retailer has deployed SAP solutions to
Customer Web site manage its customer points program, analyze
Cloud service With help from SAP, SCS went from manual tasks www.snowpeak.com
to automation in 9 months, reduced annual stock- customer behavior in real time, and make
Customer Web site product suggestions while optimizing inventories
taking time from 3 weeks to 5 days, and automated Click here to read
www.arabic.shjcoop.ae/en/
its inventory replenishment processes. With the the business and getting more productivity out of its staff.
Click here to read the SAP Model Company service for Core Retail, transformation study.
business transformation preconfiguration services allowed SCS to complete
study.
implementation in the record time of 9 months.
“Project delivery is very efficient, organized, and transparent. “A huge digital transformation is occurring within Snow Peak
There is a willingness to be flexible when needed. The project since we introduced SAP software. The knowledge that our
team has proven they are up to the task.” staff members have accumulated has been made visible and
Jasim Al Abdooli, IT Department Head, Sharjah Cooperative Society can be shared.”
Tohru Yamai, President, Snow Peak.
18 / 18
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Overview ǀ Strategic Priorities ǀ E2E Scenario ǀ Deep Dives ǀ SAP Strategy ǀ SAP Solution Portfolio ǀ SAP Value Proposition

SAP Value Paper ǀ PUBLIC

Transform Retail Merchandise Management

Strategic Priorities in a Digital Economy

Service to the segment of one

Digital supply chains

Monetizing new customer offers

Customer-Centric Assortment Planning

A new world with SAP

40% higher revenues 46% fewer markdowns

Service to the Segment of One

Connect to Your Customer’s Lifestyle

A new world with SAP

consumer in store and

revenue increase from real-time promotions

Digital Supply Chains

Connected Supply Chain

A new world with SAP

• Online order confirmation

Revitalize the Store

A new world with SAP

Monetizing New Customer Offers

Ingredient and Recipe Meal-Kit Service

based on shipping preferences

Deep Dives Along the Retail Value Chain

Marketing and Procurement and Supply Omnichannel customer

Marketing and Merchandising

Procurement and Private Label

user must go back and forth to • Invoice verification based on

currencies improving services with the cost

Omnichannel Customer Experience

SAP Strategy – Deliver the Intelligent Enterprise

Intelligent ERP is the

Intelligent Suite – SAP Portfolio of Solutions for Retail

Customer Manufacturing People Network and spend

SAP® Ariba® SAP solutions for omnichannel planning SAP C/4HANA

The Value of SAP S/4HANA for Retail Companies

Strategy enablement Business benefits*

Customers are Achieving Value with SAP Solutions

Customers are Achieving Value from SAP Solutions

Studio SAP | 48048enUS (18/09)

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

See https://www.sap.com/copyright for additional trademark information and notices.

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