SAP S/4Hana Retail - SaaS strategy, application

modernization and MOVE

Dani Khalaf, SAP
Feb 2022
INTERNAL - SAP and Customers only
 Intelligent, sustainable
enterprise

Enable every enterprise

to become an intelligent,
sustainable enterprise
Business network Industry cloud Experience management Planning

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 2

 Every retailer has
a unique starting point.
Digitally driven retail businesses
that need to scale with speed

Early adopters of retail cloud

solutions ready to go further

Edge innovators that need to

focus on their core

Established companies facing complex,

customized, on-premise systems

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 3

Cloud for Retail - Our Vision of the Future

Customer Challenges…
TODAY FUTURE
Integration &
Complexity Extensibility
of Business Simplification
Core Fragmented Transformation Agility
ERP IT- landscapes

Rapidly Time to Value

changing
Customer Business
Specific environment
Hybrid Landscape Modifications Modular
ERP/Composable
• Monolithic Core ERP Business
• Selected capabilities
in the Cloud • AI driven LoB Innovations
• Suite Qualities
• Commercial flexibility
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 4
The next evolution of the Intelligent Enterprise: Retail and Fashion

INTELLIGENT SUITE ON CLOUD

CLOUD FOR RETAIL NEW NATIVE CLOUD

SAP S/4HANA Cloud for Retail SAP Customer Activity Repository Predictive Planning & Order Management Retail Store
SAP Ext. Warehouse Management
SAP Integrated Business Planning

Applications Bundle (CARAB) Inventory Orchestration

Merchandise Buying Order Management foundation Inventory Management
SAP Customer Experience

Sales Order Management Unified Demand Forecast Order & Delivery Scheduling Order Management for Order Fulfilment
Sourcing and Availability
SAP S/4HANA

Pricing & Promotion POS Data Transfer & Audit Predictive Replenishment Task Management
• Central Inventory
[…..]

Material Req Planning Data Replication Framework Predictive Replenishment & Allocation • Dynamic Fulfillment Optimizer Task Execution

• Profitable Availability Model

Assortment Pricing Replenishment Planning Predictive Services Customer Care

Allocation Inventory Visibility Promotion Optimization Omnichannel Promotion Pricing Service Omnichannel Sales Transfer & Audit

Inventory Management Article Availability and Sourcing Lifecycle Pricing Intelligent Returns Management …

Retail Store Management Consuming Applications … … …

SAP DATA CENTER OR HYPERSCALER

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL | LAB PREVIEW: Subject to change 5
What is The Value of an Intelligent ERP
for Retail and Fashion?
For the enterprise of the twenty-first century

New Business Qualities

Traditional ERP SAP S/4HANA

Primarily transactions Transactions, planning, analysis, simulation, prediction

Basic business automation Intelligent business automation

Latency for limited information Immediate business insight at any level

Business function–based Business role–based

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 7

SAPs digital age user experience

Role-based Delightful Consistent Simple Adaptive

UX Launchpad as Domain-specific Enter details and

single point of entry information and actions explore in depth

SAP Launchpad Procurement Overview

Purchase Contract

Start from an individual home page Investigate and drill-down Carry out transactions

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 8

SAP S/4HANA Retail and Fashion to support your strategic priorities

Retail marketing and Retail souring and Omnichannel Retail and

Retail merchandising Retail supply chain
customer experience procurement store operations

Customer Omnichannel price and

Enhanced assortment Supplier agreement

Required business capabilities

promotional offer
centricity management planning and negotiation
execution
Stock protection for
Segment of one
individual customers
Distribution curves
Digital supply chain Production planning and
demand scheduling
Intuitive in-store SAP
Redefined stores Fiori apps for better
customer service
Advanced available to
Dashboards for the
promise;
store manager with key
Demand and supply
performance indicators
segmentation
Embedded warehouse
mgmt.; Advanced Omnichannel fulfillment
transportation mgmt. with click-and-collect
scenarios;
In-store production Claims, returns and
RFID-enabled store refund management
planning and demand
inventory transactions
scheduling

Omnichannel price and Vertical retailing on Purchase order and Vertical retailing incl. mill
Subscription contracts
New business models promotional offer harmonized process and invoice: Processing and products integration
and solution billing
execution data model collaboration for textile products

SAP S/4HANA

SAP Business Networks

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 9

Industry Capabilities in SAP S/4HANA
Retail and Fashion
 S/4HANA in Retail and fashion – innovation along the fashion value map
Contains
retail
specifics

generic
re-use

Retail Retail Sourcing Retail Supply Omnichannel

Business
Merchandising and Chain Retail and Store
Priorities
Procurement Operations

Merchandising Supplier Management Forecasting, Allocation Customer Service

Intelligence and Replenishment

Product Design Sourcing and Contract Omnichannel Inventory Retail Store Management
and Development Management and Order Response

Master Data Management Merchandise Buying Warehouse Management Omnichannel Sales

E2E for Merchandising Order Management
Solutions
Merchandise and Indirect Buying Transportation
Assortment Planning Management

Pricing and Invoice and Payables Yard Logistics

Promotion Management

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 11

 S/4HANA in Retail and fashion – functional highlights

Master Data Management

for Merchandising

Season,
Product Value Added
Global Data Product Data Product Data Collection, and Location
Taxonomy Distribution Curve Service
Synchronization Governance (by Management (S/4 Theme Management (S/4
Management (S/4 (S/4 OP) Management
(S/4 OP) partner Utopia) OP) Management OP)
OP) (S/4 OP)
(S/4 OP)

◼ Retail and Fashion Product

− Generic article with up to three dimensions (Retail data model and structure)
Retail
− New Fiori apps for unified product maintenance
Merchandising
◼ Characteristic Value Conversion:
− Display characteristics of a product variant according to different scales in different countries or
geographical regions
◼ Structured articles with full products

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 12

 S/4HANA in Retail and fashion – functional highlights

Merchandise and
Assortment Planning

Assortment Store Layout

Management (S/4 Management (S/4
OP) OP)

◼ Assortment module management

Retail − Fully automates generation of listing conditions and article master data segments
Merchandising − Equipped with a self-healing mechanism for better automation
◼ Integration to SAP Assortment Planning
− Listing of products from planned product/location lists
− Creation of planned independent requirements
− Consideration of store fixures’ capacities

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 13

 S/4HANA in Retail and fashion – functional highlights

Pricing and Promotions

Retail Price Markdown Promotional

Dynamic Pricing
Management (S/4 Management (S/4 Procurement (S/4
(by partner gk)
OP) OP) OP)

◼ Maintenance of retail sales prices in an omnichannel context

Retail − Integration into pricing repository and calculation engine in SAP Customer Activity Repository
Merchandising − Bonus buy in sales order
◼ Partner solution for ML-supported sales price optimization
− Definition of pricing strategies an rules
− Real-time optimization based on market data, competition, historical data

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 14

 S/4HANA in Retail and fashion – functional highlights

Merchandise Buying

Collective
Purchase Order Purchase Order Purchase Order
Purchase Order Spend Visibility Spend Reporting
Processing Scheduling Optimizing
Management (S/4 OP) (S/4 OP, SAC)
(S/4 OP) (S/4 OP) (S/4 OP)
(S/4 OP)

◼ Purchase Order Workbench

Retail Sourcing − Split/change purchase order, mass change purchase order
and ◼ Flexible Purchasing Commitments
Procurement − Enablement of fashion features, generic article concept
− Destination postponement
− Style/ color/ size postponement
− Multi-level purchase contract
− Prepack handling in purchase contracts
◼ Direct Ship Flexibility
− Cancellation, quantity reduction and re-alignment scenarios
◼ Integration into SAP Central procurement
− Centrally control, optimize and orchestrate procurement processes from a single-hub system
− Cockpit supervising demands and purchasing documents from various backends which allows them
to consolidate procurement for higher savings
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 15
 S/4HANA in Retail and fashion – functional highlights

Demand and Supply Forecasting, Allocation

Planning and Replenishment

Merchandise Materials
Demand
Allocation Requirements
Maintenance (S/4
Execution (S/4 Planning
OP)
OP) (S/4 OP)

◼ Demand and Supply Planning

Retail − Enhanced Stock/ Requirement List
Supply Chain − Fashion enablement for Planned Independent Requirements (generic article, segmentation)
− Enhancements to planning strategies to support segmentation
◼ Allocation table
− Execution of initial push and in-season push planning from SAP Allocation Management
− Processing of all necessary logistics documents
− Reverse allocation for clearance and call-backs

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 16

 S/4HANA in Retail and fashion – functional highlights

Omnichannel Inventory
and Order Response

Demand and
Inventory Available to Supply Advanced
Stock Ledger (S/4 Supply
Management (S/4 Promise Assignment (S/4 Available to
OP) Segmentation
OP) (S/4 OP) OP) Promise (S/4 OP)
(S/4 OP)

◼ Demand and Supply Segmentation

− Categorize demand and inventory in distribution centers based on certain criteria
Retail
− Decide which demand should be covered by which supply
Supply Chain
◼ Supply Assignment
− Ensures optimal assignment of supply to open requirements
− Integrated into and thus leveraging aATP backorder processing features
− Proportional distribution as assignment strategy possible
− Applies release process to make sure only meaningful quantities are delivered
− Supply and Demand Cockpit (including detailed & flexible analysis and situation handling)
− Simulation and comparison of different supply assignment runs
◼ Supply Protection (horizontal and vertical protection)
− Ensures that defined quantities of supply are “kept aside” without physically separating warehouse
stock or labelling incoming supply explicitly for specific use like channel
◼ SAP Analytics Cloud Fashion Content for demand/ supply situation visibility
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17
 S/4HANA in Retail and fashion – functional highlights

Retail Store Management

Store Store
Management with Merchandise and
RFID (S/4 Inventory (S/4
OP) OP)

◼ Store apps for store associates and store managers – online and in real-time
Omnichannel − Stock adjustment
Retail and Store − Counting and stock taking
Operations − Goods receipt
− Transfer and stock rebalancing
− Order proposal review
− Look-up products
− Label printing
− Goods movements
− Move products with RFID
− Click & Collect
− Role-based launchpad
− Store manager dashboard

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 18

 S/4HANA in Retail and fashion – functional highlights

Omnichannel Sales Order

Management

Advanced Sales Order Claims, Returns Receivables Credit and

Available to Management and Sales Billing and Refund Management and Collection
Promise Processing (S/4 OP) Management Payment Handling Management
(S/4 OP) (S/4 OP) (S/4 OP) (S/4 OP) (S/4 OP)

◼ Sales Order Management and Processing

Omnichannel − Multi Ship-to Order (MSO)
Retail and Store − Pack Separately, Ship Together (PSST)
Operations − Sales Document Overview
− Manage Sales Order Fashion (mass maintenance)
− Manage Excess Requirements
◼ Omnichannel pricing in S/4 sales orders
− Call of pricing calculation service in SAP Customer Activity
Repository for consistent end consumer prices across channels

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 19

S/4HANA – roadmap for private cloud
Q1 2021 Q4 2021 Q1 2022 Q4 2022

SAP S/4HANA 2020 FPS01 Retail for Merchandise SAP S/4HANA 2021 Retail for Merchandise SAP S/4HANA 2021 FPS01 Retail for Merchandise SAP S/4HANA 2022 Retail for Merchandise
Management Management Management Management
• Increase store operations through a Fiori app for • Increase store operations through a Fiori app for • Assortment list with multiple languages • App variant for consumer maintenance
mass stock adjustments mass count stock • POS Outbound via services – Round-offs • Promotion integration with Omnichannel Promotion
• Count mass stock – automatic posting of Pricing Service
New Assortment Module Management: New Assortment Management Enhancements: documents • Migration object for articles and assortments
• Manage assortment modules Fiori App • Assign user to assort. modules Fiori App • New APIs for merchandise categories, etc. • Article mass maintenance via MDG
• Assign products to distribution centers App • Enhancements of existing apps
• Assign products to assortment modules App SAP S/4HANA 2021 FPS01 for Fashion and SAP S/4HANA 2022 for Fashion and Vertical
• Monitor assortment postprocessing errors App SAP S/4HANA 2021 for Fashion and Vertical Vertical Businesses Businesses
Businesses • Manage Purchase Order – Consolidation PO • Manage Master Planned Order
• Provisional Sales Contract enhancements1) • Capacity planning – PP/DS integration
SAP S/4HANA 2020 FPS01 for Fashion and
Vertical Businesses • Progress Monitor for Sales Orders supporting special • Mass Changes for Fashion fields through • Rule based Feasibility Analysis
business processes Purchase Order Fiori App1)
• Supply / Demand Situation within • Demand and Supply Segmentation - enhancements
SAP Analytics Cloud • Purchase Order Consolidation • Manage Master Production Order -
• Segmentation in Process Manufacturing
enhancements1)
• Supporting of additional documents like • Integration with Product Lifecycle Costing (Pre-Order • Supply selection rule flexibility in Supply Assignment
subcontracting components in Supply Demand Costing) • Demand and Supply Segmentation - additional
Overview App flexibility1)
• Integration with Digital Manufacturing Cloud for
• Fashion Enhancements for Sales Order and Insights
Purchase Order OData API • Manage Master Production Order
• Situation handling in Manage Excess • Feature enhancements in Production Control
Requirements App Workbench
• Improvements for segmentation to provide a • Enhancements for production processes (Discrete
flexible segmentation maintenance, supporting Manufacturing)
variants of a configurable article
• Production Processing enhancements
• MTO/MTS Enhancements for Fashion and Vertical
Business
• ODATA API for Segmentation structure and
strategy

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL Native Cloud 20
1) Planned for S/4HANA 2021 FPS01
* Joint roadmap items with other LOB
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 21
 Expand business innovation in the retail industry

Drive More Business Value

Rise to every new business opportunity
Leverage industry best and next practices that
On top of the RISE with SAP offering, you can always create new revenue streams and maximize existing
extend business innovation with industry-specific solutions ones, improve assets efficiency, enhance
as new business opportunities and requirements appear. productivity, and allow for running sustainably

Cloud ERP
SAP S/4HANA
Cloud
Business process
intelligence
Business process
intelligence starter
pack
Business platform
and analytics
SAP Business
Technology
Platform (CPEA
Business networks

SAP Business
Network Starter
Pack
Outcome-driven
services and tools
From partners +
credits)
Mitigate Risk, Reduce IT Cost, and Accelerate
Time to Value with Cloud Delivery Capabilities

Gain capabilities that maximize transformation

+ Cloud solutions for retailers readiness, simplify consumption through

from SAP and partners “as-a-service experience,” help ensure operational
resilience, and reduce overall TCO – from SAP and
partners

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 22

RISE with SAP S/4HANA private cloud
SAP S/4HANA, Private Cloud Edition:
Traditional flexibility & scope + cloud value
Cloud Value Innovation
• Full S/4HANA scope including LOB
and industry processes, supporting
25 industries
• Code enhancements & code
modifications supported
SAP S/4HANA Private Cloud • Expert configuration via full
Designed to provide innovation and IMG access
cloud value while allowing customers
• Operating Expense via subscription-
to retain their investments by converting
based commercial model
their existing systems
• IaaS Provider infrastructure to scale
up or down quickly
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL
Simplicity
 One SLA, One hand to shake
 Rapid conversion of your existing
ERP/ECC environments to a modern,
cloud-based architecture
 Prior ECC and partner solution
investments safeguarded
 CapEX to OpEx with
a subscription-based commercial
model
 Transformation to a pure SaaS-
based landscape at your pace
 Partner add-ons allowed to enhance
competitive differentiation
24
One Commercial Construct: ERP, Infrastructure, and Technical Services

Advisory & Application

Implementation Management
Services Services
Advisory & Application
Implementation Management
Services Services

SAP S/4HANA
Technical
Software Traditional Private Cloud
+ Support Managed
Services

Software Technical
+ Support Managed
Services
Infrastructure Infrastructure
Management + Management +

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 25

SAP S/4HANA Private Cloud Edition delivers considerable benefits
in comparison to the existing ERP Central Component (ECC) environment

20% 87% 2+ Months

reduction in TCO reduction in sticky costs due to potential acceleration in deploy-
including one time migration more flexible operational ment speed as operational
costs. environment. lead times fall.

Lower Total Cost Reduced Infrastructure Faster

of Ownership and Staffing Deployment

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 26

 Expand business innovation in the retail industry

Transformation package
Rise to every new business opportunity
On top of the RISE with SAP offering, you can always
extend business innovation with industry-specific solutions RISE with SAP –
as new business opportunities and requirements appear. Journey towards an
Intelligent Retail
Enterprise
Business process Business platform Business networks Outcome-driven
▪ RISE with SAP S/4HANA
Cloud ERP
intelligence and analytics services and tools ▪ SAP S/4HANA Cloud Retail merchandise mgmt,
SAP S/4HANA Business process SAP Business SAP Business From partners
Cloud intelligence starter Technology Network Starter
private edition
pack Platform (CPEA Pack ▪ SAP S/4HANA Cloud for fashion and vertical
credits)
business, private cloud
▪ SAP Customer Activity Repository Cloud, private
edition
▪ SAP Commerce Cloud
▪ SAP Omnichannel POS by GK, cloud edition

+ Cloud solutions for retailers

from SAP and partners
▪ All classical retail-specific solutions are available as
cloud offering

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 27

COOP’s journey
COOP Cloud Transformation Ansatz
Own Datacenter Google Cloud Platform

SAP HANA HANA Enterprise Cloud

BW/4 S/4 CAR ECC S/4 CRM
ECC CAR 7.0
Retail
BW CRM
F&R 7.0 … S/4
7.5 ~160 SAP Systems BW/4 SLT SRM
~50 Prod Systems Std.
S/4 BW
GTS …
CFIN 7.5
SAP non-HANA
HANA
ECC SLT APO IS-OIL Migr.

CRM ASE SaaS - PaaS

BW7.x HR 7.0 IS-Ret
Industry
Cloud BTP … …
yEcom SRM GTS …

Coop own Projects on GCP

SAP DataHub
Non-SAP OP
Kubernetes Lab …

GK PCS ERGO WANKO

Other Hyperscaler Azure / AWS
T&T Rabit JAZZ WAMAS
SaaS – PaaS
JDA … … WINFO
CCV2 CDC SF SAC SCPI yMKT

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 29

Key Factors for Success

• Customer internal connections to accelerate • Strategic Partnership re-established

• Customer insights • SAP as concierge with responsibilities for

the full stack.
• Onsite Meetings with Management
• Hyperscaler migrations fonds
• Early Executive Involvement

• Trusted Advisors (C-Level, SAP Retail Dev.,

Business Architect)

• Team Play

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 30

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 31
Scale with cloud for Retail – private and
public
 Optimize and transform: SAP’s Intelligent Enterprise architecture
Optimize with Best Practices Transform with Next Practices
A stable and reliable business An agile and flexible platform for
foundation to run end-to-end Intelligent, sustainable innovating quickly in the areas
processes as effectively where differentiation
and efficiently as possible. enterprise drives competitive advantage.

Private cloud Retail Portfolio New retail solution on native cloud

• RISE with SAP S/4HANA • SAP Order Management
• SAP S/4HANA Retail for foundation
merchandise management • SAP Intelligent Returns
• SAP for Fashion and Vertical Management
business • SAP Omnichannel Transfer and
• SAP Customer Activity Repository Audit
• SAP Merchandise Planning • SAP Order and Delivery
Scheduling
• SAP Assortment Planning
Business network Industry cloud Experience management Planning • SAP Order Management Sourcing
• SAP Promotion Management and Availability
• SAP Allocation Management • SAP Intelligent Store
• SAP Replenishment Planning • Many more to come …

SAP apps Partner apps

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 33

SAP S/4HANA Retail and Fashion, private
cloud
S/4HANA Retail for merchandise management private cloud
Q1 2021 Q4 2021 Q1 2022 Q4 2022

SAP S/4HANA 2020 FPS01 Retail for Merchandise SAP S/4HANA 2021 Retail for Merchandise SAP S/4HANA 2021 FPS01 Retail for Merchandise SAP S/4HANA 2022 Retail for Merchandise
Management Management Management Management
• Increase store operations through a Fiori app for • Increase store operations through a Fiori app for • Assortment list with multiple languages • App variant for consumer maintenance
mass stock adjustments mass count stock • POS Outbound via services – Round-offs • Promotion integration with Omnichannel Promotion
• Count mass stock – automatic posting of Pricing Service
New Assortment Module Management: New Assortment Management Enhancements: documents • Migration object for articles and assortments
• Manage assortment modules Fiori App • Assign user to assort. modules Fiori App • New APIs for merchandise categories, etc. • Article mass maintenance via MDG
• Assign products to distribution centers App • Enhancements of existing apps
• Assign products to assortment modules App SAP S/4HANA 2021 FPS01 for Fashion and SAP S/4HANA 2022 for Fashion and Vertical
• Monitor assortment postprocessing errors App SAP S/4HANA 2021 for Fashion and Vertical Vertical Businesses Businesses
Businesses • Manage Purchase Order – Consolidation PO • Manage Master Planned Order
• Provisional Sales Contract enhancements1) • Capacity planning – PP/DS integration
SAP S/4HANA 2020 FPS01 for Fashion and
Vertical Businesses • Progress Monitor for Sales Orders supporting special • Mass Changes for Fashion fields through • Rule based Feasibility Analysis
business processes Purchase Order Fiori App1)
• Supply / Demand Situation within • Demand and Supply Segmentation - enhancements
SAP Analytics Cloud • Purchase Order Consolidation • Manage Master Production Order -
• Segmentation in Process Manufacturing
enhancements1)
• Supporting of additional documents like • Integration with Product Lifecycle Costing (Pre-Order • Supply selection rule flexibility in Supply Assignment
subcontracting components in Supply Demand Costing) • Demand and Supply Segmentation - additional
Overview App flexibility1)
• Integration with Digital Manufacturing Cloud for
• Fashion Enhancements for Sales Order and Insights
Purchase Order OData API • Manage Master Production Order
• Situation handling in Manage Excess • Feature enhancements in Production Control
Requirements App Workbench
• Improvements for segmentation to provide a • Enhancements for production processes (Discrete
flexible segmentation maintenance, supporting Manufacturing)
variants of a configurable article
• Production Processing enhancements
• MTO/MTS Enhancements for Fashion and Vertical
Business
• ODATA API for Segmentation structure and
strategy

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL Native Cloud 35
1) Planned for S/4HANA 2021 FPS01
* Joint roadmap items with other LOB
SAP S/4HANA Retail and Fashion, public
cloud
The future of SAP S/4HANA Cloud for retail, fashion & vertical business
Vision: Retail as part of S/4HANA Cloud shall offer customers deployment flexibility for core retail and fashion merchandise management
processes based on Retail best practices with fastest time-to value and lowest TCO

Retail Best Practices with pre-configuration
on top of generic Best Practices are leveraging
business process experience from many
customer projects.
• Pre-configured and ready-to-run Best
Practice Business Processes
• Pre-configured integrations
• Demo master data
• Managed Content Lifecycle
Innovations can immediately be used, e.g.
Store Manager Overview cockpit or new user
friendly Assortment Module Management
• Agile with rapid innovation cycles
• The latest capabilities & best practices
• Keep up with regulatory changes
Cloud qualities at the center ensure safe, consistent, scalable
and simplified cloud operations
• Complete data security & protection
• Standard APIs and integration scenarios
• Self Service Configuration UIs
• Dynamic extensibility
• Reduced need of IT admin tasks
• On demand resources

• Rapid implementation projects and • Fast Time to Innovation • Lowest TCO

go-live • • Easy to configure, use, operate and extend
• Fastest Time to Value • No infrastructure investment
• Pay as you go
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 37
SAP S/4HANA Cloud for retail, fashion & vertical business
2022 2023 2024
(First Release 2208) (Releases 2302, 2308 and Continuous Improvements) (Releases 2402, 2408 and Continuous Improvements)
Retail Merchandise Management Retail Merchandise Management Retail Merchandise Management
• Merchandise distribution • Enhancements for out-of-the box integrations, self-
Master Data Management for Merchandising Warehouse Management • Collective Purchase Order Management service configuration, extensibility, automation and
• Article Master Management* incl. Mass • Inbound processing Distribution Center* migration
• Empties management and processing
Maintenance • Outbound processing Distribution Center* • Layout listing
• Article hierarchy management
• Site Master Management* • Return from store* • Order and delivery schedule integration
• Customer order management in store (extended)
• Merchandise Category Management* • Intercompany stock transfers • Vendor consignment, Retail consignment
• Retail Price Management* Fashion Production
• Support of two-tier scenarios with master data
• Assortment Management and Listing* Retail Store Management integration • Fashion Bill of Material
• Business Partner Management* • POS Inbound and POS Outbound* • Manage Third party Orders • Routing maintenance supporting generic article
• Promotion management • In-store Merchandise and Inventory* Management • Sales Performance Management • Prod. version maintenance supporting generic
article
Merchandise Procurement • Manage master production order
Omnichannel Retailing Fashion Wholesale
• Direct procurement* • Manage master planned order
• Sale from Distribution Center • Supply Assignment
• Invoice verification* • Make-to-order
• Customer order management in store (basic) • Advanced management of sales orders
• Return to supplier* • Segmentation in production processes
• Customer consignment • Sales contract management
• Multi Ship-to-order
Demand and Supply Planning Cross processes and capabilities • Management Excess Requirements
• Store Replenishment (Rapid Replenishment)* • Data migration and data integration* • Third Party and Purchase-to Order Diversion
• Distribution Center Replenishment* • CAR integration • Alignment of Purchase Requisitions
• Merchandise Allocation Execution* • Endorsed generic scope items for Retail with Purchase Orders
• Stock transport order • Segmentation Management
Fashion Retail Foundation • Subcontracting
Retail Inventory Management and Valuation • Season • PIR Management and Material requirement
• Retail Inventory Management* planning
• Value Added Services
• Physical Inventory Distribution Center* • Characteristic value conversion
• Sales Price Valuation*

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL * Already available as ⍺ version for external testing in SAP sandbox system upon request for customers / partners 38
Thank you.
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