- european user group leads meeting - sapsa european user group leads meeting ... sap merchandising...

Industry update- European user group leads meeting

Dani Khalaf, VP Industry Business Unit Retail

Agenda

2

Retail industry updateo Omni-channel retail landscapeo S/4HANA – the digital core

The new Retail merchandise management solution User experience with Fiori 2.0, launchpads, Fiori theme for classical GUI Fiori applications for the store manager and associate Apple, IoS, Fiori

o Omni-channel foundation – SAP Customer Activity Repository o S/HANA Supply Chain & IoT

IoT, robotics, artificial intelligence

SAP: Oliver Grob, IBU Retail – IoT, SCP, digizationDani Khalaf, IBU Retail – digital transformation, S/4HANA in RetailHeinrich Rohrer, Product Management – store operations, fioriGabriele Schraft, IBU Retail – SAP Customer Activity Repository

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP hasno obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments,products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Legal disclaimer

Customer touchpoints

Internet of Things

Business and

technological agility

Digitization of the

store, track and

trace, asset

management –

Internet of Things

Planning solutions,

Machine learning and

artificial intelligence

User experience

Mobility first

Buy, fulfill, return

anywhere, on shelve

availability, collaborative

and responsive

replenishment

Personalized products

and contextual experience

across all touchpoints

Single view of

customer, inventory,

prices and products

New business

models

Faster everything Advanced analytics

allowing deep insights

Run live – is when business meets technology

Business Networks - Ariba, Concur, Fieldglass

The HANA platform - predictive, geospatial, streaming analytics, forecasting

integration & quality services, application services, …

S/4HANA Retail

Fashion Management

S/4Hana Finance

SuccessFactors

F&R Supply Chain Execution

Platform

HA

NA

Clo

ud

Platfo

rm Io

TEd

ition

, co

nn

ecte

d sp

aces

CRM/C4C

Hybris

Reporting - Fiori, Lumira

Customer Activity Repository (CAR),

Hybris Marketing Data Management

• Merchandise Planning• Assortment Planning• Allocation Management• Promotion Management• Sales Insights

POS by GK

In-store Merchandising/

Clienteling

Concur

Ariba

SAP

JA

M

…

Applications

Platform

Network

WorkforceHybris Marketing• Segmentation• Recommendation• Campaigns

Act Decide Sense

SAP S/4HANA Retail for merchandise management… Running omni-channel end-to-end

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Customer

• One version of the truth

• Consistency & sharing across planning apps

• Omnichannel planning

• Customer-centric planning

• Integration

• Flexibility & customization

SAP CAR

SAP HANA

Master data

Attributes

Real-time inventory

Distribution / size curves

Pricing engine & repository

POS data transfer & audit

Unified Demand Forecast

Dynamic order sourcing

On-shelf availability algorithms

Sales & merchandising analytics

In-memory database

Planning engine

SAP Merchandising or SAP Fashion Management

or S/4HANA Retail for merchandise

mgmt

SAP Hybris

…

Predictive analytics

Big Data

SAP Merchandise

Planning

SAP Assortment

Planning

SAP Allocation

Management (planned Q4 2016)

SAP Promotion

ManagementFuture Partner

SAP’s planning suite on top of SAP Customer Activity Repository

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Customer

Strategic Planning

Merchandise Planning

Assortment Planning

Plan Demand & Supply

Execute & In-Season

Allocation Management

Define corporate strategy

Multiyear strategic plan

Plan corporate targets for sales, costs & margin

Plan headcounts, capital expenditures & expenses

Model financial statements

Plan sales, receipts, markdowns, margin, inventory, open-to-buy

Plan for:

Channels

Merchandise hierarchy

Locations

Plan product mix by category

Cluster stores

Plan demand

Reconcile to merchandise plans

Reconcile plans

Consensus demand

Capable-to-match

Plan supply

Listing

Make or buy to plan

Analyze actuals & trends

Recalculate OTB

In-season adjustments

Replenish

Initial allocation

In-season fill-in

End-of-season push

Partial shipments

SAP verticalizes business planningSAP’s planning suite on top of SAP Customer Activity Repository… vertical business planning

2016 SAP SE or an SAP affiliate company. All rights reserved.

THE VISION: ENABLE RETAIL COMPANIES TO TRANSFORM CUSTOMER ENGAGEMENT AND INSPIRE ASSOCIATES THROUGH DIGITAL TRANSFORMATION

SAP S/4HANA Retail for merchandise management… Focus on the Digital Core

SAP S/4HANA Retail for merchandise

Management 1610

Simple data modelSAP S/4HANA simplifies the underlying data model by removing aggregates and indexes.

Modern user experience SAP S/4HANA is delivered with a new and modern user experience that works across devices.

Innovative business solutionsSAP S/4HANA comes with innovative and feature rich features such as recommendations, predictions, and simulations.

Non-disruptive journeySAP S/4HANA can be deployed in a non-disruptive manner.

Choice of Deployment(Cloud, on-premise, hybrid)SAP S/4HANA offers best in class choice of deployment in form of HEC

Marketing & Merchandising Procurement & Private Label Supply chainOmnicommerce Customer

Experience

Master Data

40digit material number

Procurement

New Analytical Apps & Spend KPI’s,

Ariba Network Integration for PO Order and IV.

Real-time inventory management and one unified valuation method

Central replenishment to run multiple times faster

Inventory Management& Valuation

Available To Promise & Backorder processing accelerated

Order Management & Billing

Sales Order Fulfillment Monitor: collects all issues that can occur over the whole end-to-end process and visualize them in one dashboard

SAP S/4HANA Retail for merchandise management… Benefits from Core Innovation Across the Retail Value Chain

Finance

Embedded Analytics

10Disclaimer: This road map represents SAP’s current plan, but is subject to change without any prior notification.

Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines.

Marketing and Merchandising Procurement and Private Label Supply ChainOmnichannel Customer

Experience

Omnichannel Pricing and Promotions

• Markdown Management• Retail Price Management• Promotion Management• Promotion Procurement

Merchandise and Assortment Planning

• Assortment Management• Store Layouts and Space Man. Integration

Master Data Management for Merchandising

• Product Data Management• Product Taxonomy Man.• Global Data Synchronization• Season Management• Value Added Service Management• Location Management

Merchandise Buying

• Purchase Order Processing• Purchase Order Scheduling• Purchase Order Optimizing• Collective Purchase Order Management

Replenishment Collaboration

• Vendor Managed Inventory

Vendor Agreement Management

• Settlement Management

Omni Channel Inventory and Order Response

• Inventory Management• Stock Ledger• Goods Receipt• Merchandise Distribution

Allocation and Replenishment

• Replenishment Planning• Merchandise Allocation Execution• Demand Forecasting• Demand Maintenance• Distribution Curve

Omnichannel Order Management

• Sales Order Management and Processing

• Billing and Invoicing

Store Commerce

• Store Merchandise and Inventory• Store Connectivity

Business Opportunity

E2E Solution

Retail Value Map Content

(to be published)

• Solution Capability

SAP S/4HANA Retail for merchandise management… Solution scope

End

to

en

d

Accelerate execution and throughput Increase user productivityExtend business model and

run vertical processes

Responsive user experience

Role-based access to business transactions via Fiori Launchpad

Improved usability of key Retail transactions in SAP Fiori Themes for classical transactions

Simple design across business processes and devices

Simplified maintenance for single article and products in Fiori 2.0

Efficient and extended store merchandise and inventory processes with Fiori 2.0 Lookup retail products Adjust stock Transfer stock Order product Print Labels Count stock Receive stock Perform store walk through

Simplified data models & solutions

Elimination of aggregates

Unification of tables

Streamlined comprehensive Retail merchandise management scope in S/4HANA

Retail pricing and promotions

Assortment and listing (stores and customers)

MRP and PIR handling (plan-to-procure)

Operational buying (procure-to-pay)

Inventory management & valuation

Replenishment and allocation (stores and customers)

Merchandise distribution

Reverse logistics (store and customer)

Store operations and store connectivity

Sales order and billing (order-to-cash)

Simplified and flexible reclassification

Industry to core

Harmonized Retail and Fashion Foundation Season processes

Distribution curve

Value added services

Transportation chains

Characteristic value conversion

Harmonized screen sequences

Extended material number

Co-Existence of Retail with selected industries

Support of Material Ledger with valuation at Retail and value only articles

Harmonization of Site master and Business Partner

Harmonization of Retail article and material

SAP S/4HANA Retail for merchandise management… Solution Scope for 1610 on premise

Retail industry customers 26%

Outside Retail industry customers274%

Retail is one of the most widely

used industry solution within

SAP.

This solution is heavily used by

cross industry customers.

S/4HANA vision is to support

these processes end-to-end.

1 Early Watch Analysis (EWA) data 2014, customer industry assignment based on Master Code2 Ratio based article maintenance from previous slide

Total distribution of Retail usage inside and outside of Retail (CP, WSD, Automotive, High Tech, Oil & Gas, etc. )

957

Allocation Table

306

Customers

In total

Thereof

from Retail1

68% are non-Retail customers

2585

Retail Stock Overview


Customers

In total

Thereof

from Retail1


2229

Article Maintenance

569

Customers

In total

Thereof

from Retail1

1969

Site Maintenance


Customers

In total

Thereof

from Retail1

SAP S/4HANA Retail for merchandise management… Industry to Core


Customers shall be able to extend their business model and run vertical processes:

• Make it easier for other industries to use retail and fashion functionality

• Core Retail Functionality can be explicitly and non-exclusively switched on

• Selected functionality is available without switch

• Support verticalization of Retail companies

• Allow co-existence of Retail with selected industries on the same system

• Basis for support of selected cross-industry processes (roadmap)

WHY INDUSTRY TO CORE?

WHAT HAS CHANGED?

• Harmonization of data models: Retail article and material (for generic article / variants); Site master and business partner

• Retail Switches and Business functions are simplified. The exclusive Retail Business Function Set has been removed.

• Enterprise Extension and Industry Extension for Retail have been removed.

• Retail coding is in the SAP S/4HANA core software component.

WHAT DOES THIS MEAN FOR IS-RETAIL CUSTOMERS?

• Automatic migration of existing customers into simplified logic

SAP S/4HANA Retail for merchandise management… Industry to Core - Retail provides leading processes for cross-industry customers


Software Layering

For historical reasons Retail functionality is spread across software components SAP-APPL and EA-RETAIL. Parts of Functionality are encapsulated in Enterprise Extension EA-RET and Industry Extension ISR_RETAIL activated via switches.

Activation

SAP Retail is an Industry Extension and represented by Business Function Set ISR_RETAIL.Enterprise Extension Retail is activated in the SAP Customizing Implementation Guide. EhP Features are encapsulated in Business Functions.

Functions and Features

• ISR_RETAIL extends Core by Merchandise Categories, Stores, Articles and adds Retail Promotion, Allocation, POS Interface,…

• Enterprise Extension EA-RET extends Core e.g. in Sales Price Calculation,… and adds e.g. the Price Planning Workbench

• Added in EhP’s, e.g. Retail Method of Accounting, Fresh Item Procurement, … andFashion with an own software component with Retails as a prerequisite.

SAP ECC Core (6.0)

SAP Netweaver 7.0

EhP 1 EhP 2 EhP 3 …

Enterprise Extensions

like EA-RET

Industry Extensions

like ISR_RETAIL


EA-F

INSE

RV

SAP_LOG

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ST-PI 740


component stack - after

WHY HARMONIZE MASTER DATA – SITE MASTER AND BUSINESS PARTNER?

• Principle of One: Business Partner becomes the leading entity for all customer and vendor master records on S/4HANA, including customers / vendors as part of a Retail site.

• Leveraging synergies: Harmonized and simplified data model and processes.

• Efficiency: Usage of additional Business Partner features such as address data handling.

• Industry to Core: Enabling of site for future Business Partner enhancements.

WHAT HAS CHANGED?

• Maintenance of site master: The central Business Partner maintenance is integrated in the site maintenance dialog for maintenance of customer / vendor data of the site.

• Distribution of site master: Data Replication Framework (DRF) as common framework for data distribution (BP and site).

• Archiving of site master: Dependency on Business Partner.

WHAT DOES THIS MEAN FOR IS-RETAIL CUSTOMERS?• Automated migration of sites (creation of leading Business Partners) during conversion from SAP ERP to S/4HANA.

• Intelligent distribution scenarios support a regular data distribution not only between S/4HANA systems, but also between a Business Suite system and S/4HANA and vice versa.

• In case of custom enhancements in the customer / vendor maintenance, these need to be applied to the business partner maintenance and distribution on a project basis.

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Site Master and Business Partner

WHAT HAS CHANGED?

• The way of storing the variant-creating data has changed for Retail variants: It is now stored within Configuration (IBase).

• Very small UI related changes for generic article in article maintenance transactions

WHAT DOES THIS MEAN FOR IS-RETAIL CUSTOMERS?

• Conversion reports support the automatic migration of the SAP Business Suite data into the new SAP S/4HANA data model concerning generic articles and variants

• Intelligent ALE scenarios support a regular data distribution not only between S/4HANA systems, but also between a Business suite system and S/4HANA and vice versa

• Adjustments in custom code are only necessary in exceptional cases (e.g. hard-coded accesses to classification data)

• Principle of One: Material + Retail Article shall be harmonized over time as “Product”

• Leveraging synergies: One common new Fiori app for Retail article and material (in 1610 restricted to single articles)

• Industry to Core: Features of generic article (matrix UI, variant masscreation) shall be made available for standard materials (roadmap).

• Efficiency: Applications shall work with one harmonized business object, not two (roadmap)

• Flexibility: Bundling of variant-creating characteristics independent from the merchandise category hierarchy easier reclassification

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Retail article and material

WHY HARMONIZE MASTER DATA – RETAIL ARTICLE AND MATERIAL?

MAT_001

SAP Business Suite ERP

ART_001

Material Master Data

MATNR MATKL ATTYP

MAT_001

ART_001 MC_001 00, 01, ….

MATNR WERKS

MAT_001 0001

MAT_001 0002

ART_001 R300

ART_001 R301MARA

MARC Article Master Data

SAP Business Suite ERP for Retail

Stateful SAPGUI Transactions


PRD_001

SAP S/4HANA

MATNR MATKL ATTYP

PRD_001 MC_001 00, 01, ….

MATNR WERKS

PRD_001 0001

PRD_001 0002

PRD_001 R300

PRD_001 R301

MARA

MARCStateless Fiori Smart Template UI Application(s)

Draft

Draft Storage


Search by various criteria

The screen shows the search result for products whose product number starts with “TST”.

StoryMaster data specialist needs to maintain production related attributes in the same app which he uses to add information for retail processes later. So he can first focus on the production process and later enrich the same products ‘upgrading’ them to retail articles

Highlights

He has the choice between creating from scratch or using an existing article for copying with parameters or copying everything beside the attachments.

Class Type 026

VariantVariant Generic Article

Shirts for MenMerchandise Category Class

Fancy ShirtGen. Article Class

Colors (variant-creating)

Sizes (variant-creating)

Qualities (informative)

VariantVariant

Generic Article

Color / Size ProfileConfiguration Class

Colors (variant-creating)

Sizes (variant-creating)

Class Type 300

IBase Storage

Business Suite

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Retail article and material (data model changes)

Fancy Shirt

Gen. Article Class


Season Workbench

Season Type

Season Determin.

Season determination** in documents

&

Sales

ordervalid for Order Typevalid for Sales Area

Order Date from/toDelivery Date from/to

Warning Error

Article

*Similar in purchase documents, e.g. stock transport order

*

Seas

on

Re

-Det

erm

inat

ion

** Customizing activity

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Retail and Fashion concepts (season, collection, theme)

Purpose and Usage: Distribute quantities at generic article

level to individual variants Used in sales orders, purchase orders,

stock transport orders, PIR, prepack creation

Maintenance: Maintained in master data with regular updates Quantity ratio can be maintained for valuation class or for individual characteristics

140 pc

40 pc

25 pc

75 pc

Distribution curves in Fashion Management describe quantity distribution ratios across different variant-creating characteristics

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Retail and Fashion concepts (distribution curve)


Latin America:

Size: S, M, L, XL

Color: blue, crème, red

Base Values

ArticleSize: p, m, g, xg


Converted Values

US:

Size: 8, 10, 12, 14


Converted Values

EU:

Size: 36, 38, 40, 42


Converted Values

APAJ:

Size: 11, 13, 15, 17


Converted Values

SAP S/4HANA Retail for merchandise management… Industry to Core – Harmonization of Retail and Fashion concepts (characteristic value con.)

Business Content

Fiori UIs

Pyramid Approachfor most important business roles

Fiori+

Classic UIs

Fiori Launchpad as single access point(via Browser or SAP BC)

Fiori Launchpad enabled UIs

incl. App Finder to access

• User Menu (PFCG roles)

• SAP Easy Access Menu

Classic UIs (GUI, WDA)

• App Descriptors

• SAP Fiori Themes for classical transactions

+

Fiori 2.0 Launchpad

RolesCatalogsAuthorizations

Reuse existing content

Note:Runtime only –not available in FLPD for content creationby admin

SAP S/4HANA Retail for merchandise management… Responsive User Experience - Fiori Coverage : The Big Picture

Retail roles and fiori business catalogues• Store associate• Store manager• Assortment specialist• Category manager• Demand planner• Promotion specialist• Master data specialist• Store design manager

Lookup Product –Real-time access to product information to answer customer questions

Receive Product –Post receivings (trusted or detailed) from internal and external vendors.

Order Product* -Order product by reviewing the order proposal on shelf or ad hoc

Print Label –Ad hoc Label printing

Adjust Stock-Real-time stock adjustments

and ad-hoc counting

Transfer Stock –Transfer stock from one

location to another

Count Product /Manager View –Perform cycle counting, physical inventory, monitor counting process

Perform Store Walk-Through*-Task list for stock keeping tasks like immediate

stock corrections

Store Associate / Store Manager

*) Enhanced or new in S/4HANA and ECC)

Support of different devices, operating systems and form factors: desktop, tablets, mobile phones…

Scanner / Mobile Support

Camera Scanner with SAP Fiori Client

Hardware / Laser Scanner on project base

Limited offline capability for count stock app

SAP S/4HANA Retail for merchandise management… Responsive User Experience – Store Commerce with Fiori 2.0



SMOOTH TRANSITION FROM OLD TO SAP S/4HANA – COMPATIBILITY PACKS

• Carry over transactions and functionality with high usage in installed base

• Co-existence of classical transactions next to new transactions

• Grant lead time until 2025 to move to new transactions

• De-risk development by allowing phased approach

TIDY UP – DEPRECATION

• Apply the “principle of one” and keep the better variant of a transaction

• Remove code that is based on outdated technology

• Remove code unutilized for long time

• Remove code that was replaced by a better option

• Remove code that will undergo renovation in SAP S/4HANA

RENOVATE

• Simplify data models

• Remove aggregates and indices

• Provide FIORI 2.0 based UIs

• Re-design transactions and processes (roadmap)

SAP S/4HANA Retail for merchandise management… Guiding principles for development



Topic Replaced by RemarkArticle discontinuation (old via transactions WSE*) Article discontinuation (transactions WRF_DIS_*) (existing) Redundant functionality

Article hierarchy (old via transactions MATGRP*) Article hierarchy (transactions WMATGRP*) (existing) Redundant functionality

ERP based MAP SAP Merchandise/Assortment Planning for Retail (existing) Redundant functionality

Online Store with Product Catalog SAP Hybris Commerce (existing) Redundant functionality

Labeling Fiori app for store associate (existing) Redundant functionality

Assortment List (old) High Performance Assortment List (existing) Redundant functionality

In-store food production integration Other interfaces (existing) Redundant functionality

PRICAT Outbound Potential future renovation (CP)/other integr. scenarios (exist.) Redundant functionality

Replenishment Rapid Replenishment (existing) Redundant functionality

Value and Quota Scales Distribution Curve (existing) Redundant functionality

Obsolete Transactions Alternative transactions (existing) Redundant functionality

RMA (Retail Method of Accounting) Material Ledger / ERMA (existing) Low usage (< 5 customers)

GR capacity check EWM (existing) Low usage (< 5 customers)

Retail Revenue Management Integration Other integration objects (DRF) (existing) Low usage (< 5 customers)

AIN (India Margin Protection) n/a Low usage (< 5 customers)

Perishables procurement/Fresh Item Procurement Potential future solution Low usage (< 5 customers)

Prepack Allocation Planning Potential future renovation topic Low usage (< 5 customers)

SAP Retail Store, iViews Fiori/in-store MIM apps (existing) Technology not supported anymore

Logistical variants Potential future renovation topic Technology of generic article changed

RIS (incl. Category Man.) New analytics (planned) Technology not supported anymore

Retail Ledger / Profit Center Analytics Material Ledger / new analytics (existing/planned) Technology not supported anymore

Market basket calculation Potential future solution/renovation topic Technology not supported anymore

Seasonal procurement MRP and PIR / fashion processes (planned) OTB potential candidate for renovation

Note 2371618 - S4WTL - Retail Functionality not available anymore

SAP S/4HANA Retail for merchandise management… Deprecation

http://service.sap.com/sap/support/notes/2371618



Topic Replaced by Remark

POS Outbound (IDoc WP_PLU) Assortment list (HPR) / enterprise service (existing) Redundant functionality

Retail Demand Man. Integration Other interfaces (existing) Redundant functionality

Sales forecasting for stores SAP CAR (UDF) (existing) Redundant functionality

Import of external forecast data SAP CAR (UDF) (existing) Redundant functionality

Extended Forecast (AHD) SAP CAR (UDF) (existing) Redundant functionality

Subsequent settlement Condition contract (existing) Redundant functionality

Markdown plan Markdown profile, Price Planning Workb. (existing) Relates to pricing renovation

Bonus buy (old via transactions VBK*) Bonus buy (transactions RDMBB*) (existing) Redundant functionality

Additionals Value Added Services (existing) Redundant functionality

SAP F&R Integration Potential future replenishment solution on SAP CAR Redundant functionality

Rapid Replenishment SAP F&R (existing)/potential future solution on SAP CAR Redundant functionality

Load build / investment buy Potential future renovation topic Relates to replenishment renovation

AFS Integration Integrated fashion processes (planned) SAP AFS not strategic anymore

Closed loop BW access New analytics (planned) Technology not strategic anymore

Note 2371605 - S4TWL - Retail Functionality not strategic anymore

SAP S/4HANA Retail for merchandise management… Compatibility packs

http://service.sap.com/sap/support/notes/2371605

SAP S/4HANA Retail for

merchandise management

SAP Customer Activity Repository (CARAB 2.0)

POS Data Transfer &

Audit

Multichannel sales

transactions

Inventory Visibility

On Shelf Availability Algorithms

Point of Sale

Unified Demand Forecast

Omni-channel Availability

Omni-channel Pricing

master Data, locations, inventory, sales transactions, article & merchandise category hierarchies, ATP information,

Sales transactions, goods movements in store

aggregated sales and inventory data from stores

POS outbound –assortment list (price information)

ProductCatalog

Dat

a H

ub

Grouping into Product Catalogs

Storage in a staged model

Article data integrated in e-commerce processes:

OrderWeb content / marketingPricingIn-Store Clienteling…

Dat

a H

ub

PCM

Commerce Suite

Commerce platform 6.2

master data -product, prices ->,

<- orders, customer data

S/4HANA Finance

Point of SalePoint of Sale

Point of Sale

SAP Forecasting and Replenishment (on SCM) 5.2

SAP Merchandise Planning for

Retail

SAP Assortment Planning for

Retail

SAP AllocationManagement

for Retail

SAP Promotion

Management Retail

master data, stock information, open orders, promotions ->

<- Order proposals ,

SAP S/4HANA Retail for merchandise management… Complementary Solutions

Business Networks - Ariba, Concur, Fieldglass

The HANA platform - predictive, geospatial, streaming analytics, forecasting

integration & quality services, application services, …

S/4HANA Retail

Fashion Management

S/4Hana Finance

SuccessFactors

F&R Supply Chain Execution

Platform

HA

NA

Clo

ud

Platfo

rm Io

TEd

ition

, co

nn

ecte

d sp

aces

CRM/C4C

Hybris

Reporting - Fiori, Lumira

Customer Activity Repository (CAR),

Hybris Marketing Data Management

• Merchandise Planning• Assortment Planning• Allocation Management• Promotion Management• Sales Insights

POS by GK

In-store Merchandising/

Clienteling

Concur

Ariba

SAP

JA

M

…

Applications

Platform

Network

WorkforceHybris Marketing• Segmentation• Recommendation• Campaigns

Act Decide Sense

SAP S/4HANA Retail for merchandise management… Running omni-channel end-to-end

SAP S/4HANA Retail for merchandise management… Within the S/4HANA Suite

*Benefits express potentials and 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 + LoB/cloud capabilities. As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.

Typical challenges Traditional ERP SAP S/4HANA enhancements Benefits*

Fast fashion, consumer electronics –

any retailer dealing with highly seasonal

merchandise needs to manage

increasing number of products with

rapid changes the product life cycle

Master data management provided little

support for season handling or decision

support which styles run best

New seasonality concepts are a main driver for

all processes of a product along its complete

life cycle from master data creation to

procurement and sales, price calculation and

stock management – distribution curves help

merchandisers to come up with the right mix of

styles

• 5-10% Reduced markdowns

Slow collaboration: Complex supply

chains for products with fast life cycles

make it difficult to bring in the

merchandise in time and in the right

shape to launch the season

Tracking the journey of products from

remote supplying locations into the stores

was difficult and implemented across

separate systems (event management

system) - not entirely built into a unified

procurement process

Collaboration between suppliers and agents,

close tracking of the merchandise journey with

workbenches that allow course corrections in

an automated manner as well as via manual

interaction; information and process support

for special handling such as labelling, ticketing,

and packaging are embedded

• 3-5% reduced revenue loss due to

reduction of stock-outs

• 10-20% Reduced overall supply

chain planning cost

Grocery retailers define their brand

more and more by their range of fresh

products – meat and cheese counters

are points of attraction for consumers

but managing catch-weight products is

a major challenge for inventory and

management and valuation

Conversion of the number of pieces catch

weight articles into the right weight is

based on rigid conversion factors and

ends in incorrect stock values and

requires permanent inventory corrections

Ability to hold different weight factors (Catch

weight management) as a key functionality in

meat production facilities for instance – on the

new S/4HANA platform, industry capabilities

are united and can be accessed and leveraged

to improve functional fit*

* Roadmap

• 5-10% higher inventory accuracy

• 5-10% reduced waste

SAP S/4HANA Retail for merchandise management… A shot at a value proposition

Transform Retail

Merchandise Management

with SAP S/4HANA

Transform Retail Merchandise Management with SAP S/4HANA

Typical challenges Traditional ERP SAP S/4HANA enhancements Benefits*

The right product at the right quantity at

the right time is key in retail - the massive

number of products and locations within

a retail company puts pressure on supply

chain planning but also on omnichannel

fulfillment processes

Mission critical core retail processes such

as replenishment processes or calculation

of available-to-promise (ATP) quantities

can only be run in nightly batch windows

Replenishment for distribution centers and

stores and Available-to-Promise runs are

accelerated by multiple factors almost allowing

to work in dialogue by using in-memory

technology (code push down and embedded

algorithms)

• 3-5% Reduced revenue loss due

to stock-outs

• 10% Reduced total logistics cost

• Higher inventory turns

Limited insight into stock levels prevents

course corrections in time in order to

react to stock outs or changes in

customer demand

Stock information is spread across many

tables, aggregates that prevents quick

access to information on inventory

positions

Inventory information is stored in general journal

tables for simple reporting in real-time on stock

position and stock values – supply chain

responsible can react to critical stock situations

while controllers are able to track & assess

profitability

• Higher inventory turns

• 10-15% Lower inventory carrying

cost

• 30-40% Higher inventory

accuracy

Wild mix of user interfaces based on

different technologies, using different

navigation schemes hampering the user

experience and employee efficiency

particularly in the store where mobility

and contextual information is key for

better service

User interfaces are transaction oriented

versus role-oriented and not based on the

user’s work process, therefore not telling

the users what they need to do.

Visual harmonization of all user interfaces

presenting identical look & feel, navigation

schemes across all areas – access via role-

based launch pads that empower employee with

contextual information, insight to action,

collaboration and real-time access to

information they need for their daily work

• 15-20% improved Retail Store

FTE Productivity

• 30% time reduction in decision

making

*Benefits express potentials and 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 + LoB/cloud capabilities. As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.

SAP S/4HANA Retail for merchandise management… A shot at a value proposition

Transform Retail

Merchandise Management

with SAP S/4HANA

Transform Retail Merchandise Management with SAP S/4HANA

* Feature highlights for SAP S/4HANA 1610. See Feature Scope Description of SAP S/4HANA 1610 for full scope.

1610 – Recent Innovations* 2018 – Product Direction**2017 – Planned innovations** 2019 – Product Vision**

** This is the current state of planning and may be changed by SAP at any time without notice.

• Retail

• Streamlined comprehensive retail merchandise management scope in S/4HANA to support End-to-End processes

• Harmonized Retail and Fashion Foundation

• Season processes

• Distribution curve

• Value added services

• Transportation chains

• Characteristic value conversion

• Harmonized screen sequences

• Co-Existence of Retail with selected industries (“ Industry to Core”)

• Support of Material Ledger with valuation at Retail and value only articles

• Harmonization of Site master and Business Partner, and of Retail article and material

• Efficient and extended store merchandise and inventory processes with Fiori 2.0

• Simplified maintenance for single article and products in Fiori 2.0

• Role-based access to business transactions via Fiori Launchpad

• Improved usability of key Retail transactions in SAP Fiori Themes for classical transactions

• Retail and Fashion Foundation

• Merchandise management – renovate structured articles and empties

• Digitally assisted listing workbench

• Improve Advanced Returns Management for Retail and Fashion

• Digitally assisted user experience for additional retail processes in key roles

• Wholesale Fashion Management enhancements: • Improved Order allocation capabilities for

Demand/Supply Match across locations• Improved flexibility in Purchase Order

Management• Improved Collection /Delivery Program

Management• Advanced Logistic enhancements (Multi-Ship

to Order with Collective Shipment)

• Enable Manufacturing Functionality for Vertical Retail & Wholesale

• Segmentation within the manufacturing process

• Master production/planned order

• Production control workbench

• Intelligent Services: Feasibility analysis

• Markers and bundles

• Smart Products: Made to measure

• Retail and Fashion Foundation

• Smart sales price calculation

• Digitally assisted user experience for additional retail processes in key roles

• Digitally assisted flexible product categorization

• Wholesale Fashion Management enhancements:

• Advanced Order allocation capabilities for Demand/Supply Match across locations

• Advanced flexibility in Purchase Order Management

• Advanced Collection /Delivery Program Management

• Enhance Manufacturing Functionality for Vertical Retail & Wholesale

• Process manufacturing for retail

• IoT: Automated production of individual products

• Digitally assisted shop floor processes

• Retail and Fashion

• Fashion Management: Enablement of Wholesale Fashion Functionality including

• Order allocation (Order Allocation Run)

• Stock Segmentation

• Logistic enhancements (Multi-Ship to Order with Collective Shipment)

• Merchandise management – master data

• enhance material / article harmonization

• enhanced distribution scenarios for generic article and site master

• Merchandise management - In-Store Merchandising

• Transfer stock app

• Fiori app enhancements

• Merchandise management - improved listing support

• Improved usability of selected key transactions in Fiori for classical GUI

SAP S/4HANA Retail for merchandise management & Fashion… Roadmap

http://help.sap.com/s4hana

• SAP S/4HANA 1610: Learning Map for Retail (EKT_S4HANA1610INDRETAIL)

• Learning Hub – external access• https://performancemanager.successfactors.eu/sf/learning?destUrl=https%3a%2f%2fsaplearninghub%2eplateau%2e

com%2flearning%2fuser%2fdeeplink%5fredirect%2ejsp%3flinkId%3dPROGRAM%5fDETAILS%26programID%3dEKT%5fS4HANA1610INDRETAIL%26fromSF%3dY&company=learninghub

• Success Map Learning – internal access• https://performancemanager5.successfactors.eu/sf/learning?destUrl=https%3a%2f%2fsap%2eplateau%2ecom%2flea

rning%2fuser%2fdeeplink%5fredirect%2ejsp%3flinkId%3dPROGRAM%5fDETAILS%26programID%3dEKT%5fS4HANA1610INDRETAIL%26fromSF%3dY&company=SAP

SAP S/4HANA Retail for merchandise management … Where to go

https://performancemanager.successfactors.eu/sf/learning?destUrl=https://saplearninghub.plateau.com/learning/user/deeplink_redirect.jsp?linkId%3dPROGRAM_DETAILS%26programID%3dEKT_S4HANA1610INDRETAIL%26fromSF%3dY&company=learninghub

https://performancemanager5.successfactors.eu/sf/learning?destUrl=https://sap.plateau.com/learning/user/deeplink_redirect.jsp?linkId%3dPROGRAM_DETAILS%26programID%3dEKT_S4HANA1610INDRETAIL%26fromSF%3dY&company=SAP

Questions?

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