Retail Merchandise Management Value Paper
SAP S/4HANA TransformRetail MerchandiseManagementwith SAP S/4HANAUpdate: 1709 Release
Table of ContentsSAP S/4HANA Retail for Merchandise Management Executive Summary3 Overview4 Examples5 Deep Dive7 End-to-End Solution9 Value Proposition10SAP Solutions for Retail with SAP S/4HANA11Accelerated Innovation for Retail with SAP Leonardo13Retail: SAP Portfolio with SAP S/4HANA and SAP Leonardo14Customers Are Achieving Value from SAP S/4HANA15 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2
SAP S/4HANA Retail for Merchandise ManagementExecutive summaryTransform retail merchandise management on SAP S/4HANA We have arrived in the age of digital transformation whereeverything is connected. Retailer CEOs need to keep up withinnovation cycles that are becoming 5 to 10 times faster1and answer tough questions: How do we build a customerexperience that new competitors cannot easily replicate? Howcan we conquer new segments or markets? How can wecreate new business models to outpace existing competitorsand to change the way we make money?There are three important aspects of driving your digitaltransformation.First, rethink your business model and try out new territories.Retailers are leveraging their customer proximity to addservices to products and to market banking and insuranceproducts. They are extending manufacturing of private-labelproducts, generating revenue from parking lots with fuelstations, or turning into network providers for consumer healthand lifestyle information. The opportunities are manifold yetare often blocked by prescriptive industry practices in ERPsystems.SAP S/4HANA , our new-generation ERP suite designedspecifically for in-memory computing, integrates historicallyseparate industry solutions on one platform. This allows newcapabilities and practices that extend the traditional value mapand process framework – the basis for running vertically andallowing business-model innovation across the value chain.Second, become more data driven to create insights thatimprove your business, for example, the ability to connect,record, and report live on your business.SAP S/4HANA allows real-time insight into operational dataand combines analytics with transactional capabilities. Itremoves the dichotomy of transactional versus analyticalsystems and allows for better decisions every time. 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICThird, reimagine your business processes with the powerof in-memory computing. Accelerate mission-criticaloperations, run simulations, and take advantage ofembedded science to gain better control over your coreprocesses. Move away from traditional batch processingto dialog processing, and eliminate decision cycle time totake action in the moment.Overcome siloed information and fragmented businessprocesses within the same system to stay on top of yourbusiness at all times. With finance, inventory management,and valuation harmonized in common journals of SAPS/4HANA, supply chain teams have real-time insightsinto inventory, and finance people control intercompanyprofitability with real-time inventory evaluation.The SAP S/4HANA Retail solution for merchandisemanagement is the industry-specific version of the SAPS/4HANA Enterprise Management solution. Providingpreviously unavailable agility and flexibility, it is the newmerchandise management platform that enables you toreinvent your business.SAP S/4HANA leverages the breakthrough technologies ofthe SAP Leonardo digital innovation system. By adding theInternet of Things (IoT) and machine learning capabilitiesto your key business processes, SAP Leonardo capabilitieshelp connect all elements of the enterprise and get youcloser to each one of your customers.Make SAP S/4HANA the digital core of your future valuenetwork. Start now to connect your workforce, suppliers,consumers, and assets in real time to capture every signaland turn it into a differentiating advantage.Mini King provides healthy leisurefood for customers throughoutChina. SAP S/4HANA Retail formerchandise management hashelped it increase efficiency, reducewarehousing costs, and improvedecision-making.“By enabling digital management,we have seen improvements thatstagger the imagination: frompaper to online, closings in anhour instead of a business week.It’s good we’re mobile now too.We’re rolling.”2Xianhao CaiCIOGuangzhou Mini King Food Co. Ltd.“SAP's considerable investmentin the digital core, the SAPHANA platform, fashion management capabilities, and the IoTbode well for SAP customers andprospects, and IDC recommendsthat retailers evaluate how SAP’sportfolio and road map havechanged to serve them into thefuture.”Achim SchneiderGlobal Head of Retail Business UnitSAP SE1. “The Pace of Technology Adoption is Speeding Up,” Harvard Business Review, November 2013, ption-is-speeding-up.2. “How Do You Turn Chestnuts into Pearls on the Crown of the Snack Industry?” Guangzhou Mini King Food Co. Ltd., SAP Business Transformation Study, 2017.3
SAP S/4HANA Retail for Merchandise ManagementOverviewSAP S/4HANA Retail for merchandise management: sources of valueSAP S/4HANA Retail for merchandise management is at the core of a comprehensive suite of retail offerings designed to help retailers meet the demands of adigital 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 networksto form a digital ecosystem and collaboratively drive business model improvements. Equipped with a simple and intuitive user experience, the solution offers bettersupport for headquarters users as well as store associates to drive compelling customer experiences.Key capabilities for SAP S/4HANA Retail for merchandise managementResponsive merchandise management Redesign with highly simplified data models and processes in key areas such as inventory management and stock valuation, and even closer integration withthe SAP S/4HANA Finance solution, leading to high throughput and fast reporting in key processes Consistent user experience and launch pad access across all functional areas, allowing new ways of working for business users Empowerment of store associates and store managers with everything they need for better customer service and store operations Omnichannel order execution and fulfillment based on real-time sales and inventory information to keep up with customers’ expectations of world-classshopping experiences “Industry to core” with one platform that unites various industry solutions using harmonized data models and objects, thus opening up potential for synergies andcross-industry scenarios Use of the breakthrough technologies in the SAP Leonardo digital innovation system by adding IoT and machine learning capabilities to key businessprocesses, thereby connecting all elements of the enterprise and getting you closer to each one of your customers 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC4
SAP S/4HANA Retail for Merchandise ManagementExampleExample: Simplification of the store employee user experienceThe store has moved from being a pure selling location to a brand ambassador and omnichannel fulfillment hub. It now needs to unify the customer’s experience andbe instrumental in supporting today’s anything, anywhere consumer supply chain. And it requires a smart and empowered workforce to provide expectation-beatingcustomer service.?Store staffStore staffTraditional ERP means: Use of slow, tedious processes andguesswork to make stock available onstore shelvesSystems that do not guide staff orreflect realityRisk of shelf gaps that impact thecustomer shopping experience andlead to missed revenue despitemanual, expedited replenishmentStaff moves around the storewithout system guidance todetermine if store shelf stockis adequate.Staff uses mixed applicationsand interfaces to sort out stocksituations and make corrections.Manual corrections andexpensive expediteddeliveries are madeusing “best guesses.”SAP S/4HANARole-based in-store processes An exception-driven guided processenables precise stock assessmentsand immediate corrections, therebyincreasing staff productivity. Accelerated replenishment andaccurate inventory help ensureoptimum on-shelf product availability. Store staff is freed up from noncustomer-facing tasks and can focuson serving the customer.Required stock ismade availableon store shelves.Up to 10%reduction instock-outs3Store staff?System guides staff through store, and staffmakes real-time, exception-driven stockcorrections using an intuitive mobile appRequired stock ismade available onstore shelves.Up to 30%improved userproductivity4Up to 5%higher revenueby employee53.–5. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise isat a different level of maturity, we recommend working with you to determine the value proposition for your enterprise. 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5
SAP S/4HANA Retail for Merchandise ManagementExampleExample: Simplification of inventory control processInventory is the greatest asset of retailers but it is also the most costly. Therefore, controlling must strike a balance between being in stock but not tying up too muchcapital. It is essential to look not only at stock value but also at how product profitability evolves across the entire value chain. To do this, controllers need continuousvisibility into inventory and value at both the highest and the lowest level of granularity, as well as the flexibility to react in real time.Traditional ERP means: Obstacles in understanding total stockposition and upward and downwardtrends between reporting milestones Difficulty in steering overall tied-up capitaland driving profitability proactively Permanent latency in inventory turnoverreporting Inflated capital investment and by controllerPosting od-endreconciliationand costallocationExtractionto datawarehouseReview andcorrection ofgoods movementpostings andintercompanyproduct flowsProfitabilityreportsSAP S/4HANAInventory management Inventory quantities and values arestored in general journal tables thatallow insights into stock positions andvalues in real time. Logistics and controlling share thesame base of data, which enablescourse corrections and revaluationswhenever needed.Product profitabilityassessment by controllerGranular review of product flows acrossthe entire value chain using one centraljournal for finance and controlling dataUp to 20%Improvement in inventory turnover6ProfitabilityanalysisUp to 0.5 percentage pointsIncrease in profitability76., 7. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise isat a different level of maturity, we recommend working with you to determine the value proposition for your enterprise. 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6
SAP S/4HANA Retail for Merchandise ManagementDeep diveTypical ChallengesEnhancements with SAP S/4HANA Traditional ERPBenefits8Fast fashion, consumer electronics: anyretailer dealing with highly seasonalmerchandise needs to manage an increasingnumber of products with rapid changes in theproduct lifecycle.Master data management and retail transactions provided little support for seasonhandling or decision-making to steermerchandise flows accordingly in orderto procure and deliver goods on time.New seasonality concepts are a main driver for all 5%–10% reduced markdownsprocesses of a product along its complete lifecycle,from master data creation to procurement andsales, price calculation, and stock management.On-top distribution curves help merchandiserscome up with the right mix of sizes.Inefficient, manual processes for product datamaintenance with no clear data ownershipand little to no transparency in the process aswell as high costs through incorrect masterdata across the value chain impact not onlythe retailer’s bottom line but also present arisk to consumers if data is not correctlydisplayed in all sales channels.Master data management for retail productswas very different from master data management of other industries in terms of datamodels and tables. In addition, maintenance ofproduct data was complex and not intuitive.New SAP Fiori apps provide a state-of-the-artuser experience for the creation and maintenanceof retail products as well as standard materials.Tight integration into the SAP Hybris Commercesolution supports flawless display of product datato the consumer.Reduction in cost associated withdata errorsSlow collaboration and complex supplychains for products with fast lifecycles make itdifficult to bring in the merchandise in timeand in the right shape to launch the season.Tracking the journey of products from remotesupplying locations into the stores was difficultand implemented across separate systems(event management system) that were notentirely built into a unified procurementprocess.Collaboration between suppliers and agents andclose tracking of the merchandise journey withworkbenches allow course corrections in anautomated manner as well as through manualinteraction. Information and process support forspecial handling, such as labeling, ticketing, andpackaging, are embedded.3%–5% decrease in revenue lossdue to reduction of stock-outsGrocery retailers define their brands moreand more by their range of fresh products.Meat and cheese counters are points ofattraction for consumers, but managingcatch-weight products is a major challengefor inventory management and valuation.Conversion of the number of pieces of catchweight article into the right weight is based onrigid conversion factors and ends in incorrectstock values, requiring permanent inventorycorrections.Ability to hold different weight factors (catchweight management) is a key functionality inmeat production facilities, for instance. WithSAP S/4HANA , industry capabilities areintegrated and can be accessed and leveraged toimprove functional fit.95%–10% higher inventoryaccuracy10%–20% lower overall supplychain planning cost5%–10% less waste8. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is ata different level of maturity, we recommend working with you to determine the value proposition for your enterprise.9. Planned item on solution road map 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC-7-7
SAP S/4HANA Retail for Merchandise ManagementDeep diveTypical ChallengesEnhancements with SAP S/4HANA Traditional ERPBenefits10Legal regulations, the daily reality in theData structures and data models especially insupply chain of goods, and, last but not least, the area of product data are often rigid andvery difficult to change.consumer demand: these all representchallenges to enterprise software, as theyrequire not only flexibility in the creation ofproduct data and logistical units to come upwith attractive product combinations but alsocapabilities for better tracking and inventorymanagement of deposits.A new article type allows the creation andmanagement of structured articles that include fullproducts and products that are subject to deposit,such as mixed pallets, generic articles with fullproducts, and sales sets with full products. Thisallows category managers to not only comply withlegal and economic regulations but also createattractive product offerings for the consumer.Having the right product in the right quantityat the right time is key in retail. The massivenumber of products and locations within aretail company puts pressure on supplychain planning and omnichannel fulfillmentprocesses.Core mission-critical retail processes, such asreplenishment processes or calculation ofavailable-to-promise (ATP) quantities, can berun only in nightly batch windows.Replenishment for distribution centers and stores3%–5% reduction in revenue lossdue to stock-outsand ATP runs are accelerated by multiple factors,practically allowing users to work in dialog by using10% lower total logistics costin-memory technology (code pushdown andembedded algorithms).Higher inventory turnsLimited insight into stock levels preventscourse corrections in time to react to stockouts or changes in customer demand.Stock information is spread across manytables, while aggregates prevent quick accessto information on inventory positions.Inventory information is stored in general journaltables for simple reporting in real time on stockposition and stock values. Users responsible forthe supply chain can react to critical stocksituations, and controllers are able to track andassess profitability.Higher inventory turnsVisual harmonization of all user interfaces presentidentical look and feel and navigation schemes acrossall areas – access through role-based launch padsthat empower employee with contextual information,insight to action, collaboration, and real-time accessto information they need for their daily work.15%–20% improvement in retailstore FTE productivityA wild mix of user interfaces based ondifferent technologies, using differentnavigation schemes, hampers the userexperience and employee efficiency,particularly in the store where mobility andcontextual information is key for betterservice.User interfaces are transaction oriented versusrole oriented and not based on the user’s workprocess; therefore, they are not telling theusers what they need to do.5% higher inventory accuracyBetter quality of data10%–15% lower inventorycarrying cost30%–40% higher inventoryaccuracy30% less time needed fordecision-making10. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise isat a different level of maturity, we recommend working with you to determine the value proposition for your enterprise. 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC-7-8
SAP S/4HANA Retail for Merchandise ManagementEnd-to-end solution powered by the digital coreRetail is a unique industry that requires flawless execution. The end-to-end lifecycle of delivering products and services while providing outstanding customerexperiences is a challenge that requires precision and accuracy to win every time. Retailers must be ready to service their customers at any given moment with theright information, the right product, in the right location, and at the right price.The capabilities delivered with SAP S/4HANA Retail for merchandise management and its many integration points into the complementing retail solutions help ensureprocesses run smoothly and efficiently across the entire customer engagement lifecycle.In the reference architecture for SAP for Retail, the SAP S/4HANA Retail for merchandise management solution is the enterprise management solution for stable backend operations and flawless omnichannel execution. The solution works in conjunction with the SAP Customer Activity Repository application, which is the single,unified data platform for retail planning, forecasting, and analytics. Together they form the digital core for Retail that serves t
SAP S/4HANA Retail for merchandise management: sources of value SAP S/4HANA Retail for merchandise management is at the core of a comprehensive suite of retail offerings designed to help retai lers meet the demands of a digital economy. It supports retail core processes, starting with master data down to point -of-sales connectivity.
their merchandise inventory—how they organize the merchandise planning process, evaluate their performance, forecast sales, establish an assortment plan, determine the appropriate service levels, allocate merchandise to stores, and monitor the performance of the merchandise inventory control activities.
planning process. Product planning is also supported with an in-season planning process. The diagram below illustrates the business process supported by Oracle Retail Predictive Planning. Merchandise Financial Planning Retail Components and Key Processes This section introduces Merchandise Financial Planning Retail key components and features.
5 Netaji Subhas Open University PG Diploma in Retail Management Paper - 4B (Retail Strategy) Unit 1 Basic Concepts : Marketing Mix & Product Mix 1-11 Unit 2 Product & Merchandise Management 12-26 Unit 3 Retail Market Strategy 27-59 Unit 4 Financial Strategy 60-82 Unit 5 Retail Communication Strategy 83-105 Unit 6 Retail Pricing Str
Pre-Need Cemetery and Funeral Merchandise § 75-63-5. Cemeteries not required to accept property or perform services contrary to law. . Such insurance shall be subject to the insurance laws of the state. The insured shall be furnished the following: (a) A list of the merchandise, including a description of the merchandise quality, and services
Oracle Retail Merchandise Financial Planning Retail User Guide for the RPAS Classic Client Release 14.0 E50572-01 December 2013
Sales Assistant § Retail Manager § Business Development Manager § Visual Merchandiser Retail Buyer . Sales Executive § Retail Supervisor. Example pathway to a quality career Certificate III . in Retail (SIR30216) Frontline Sales Assistant, Customer Service Representative, Shop Assistant, Retail Supervisor, Merchandise Coordinator, or Sales .
Core-Retail Sales: n/a Number of Stores: 182 Jobs in Retail: 3,345 YUKON Total Retail Sales: 799.8 million Core-Retail Sales: 508.8 million Number of Stores: 186 Jobs in Retail: 3,630 BRITISH COLUMBIA Total Retail Sales: 84.3 billion Core-Retail Sales: 54.0 billion Number of Stores: 20,398
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