masterguide retail dec07

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Master Guide

SAP for RetailBusiness Suite 2007

Document Version 1.00 December 2007


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Copyright 2005 SAP AG. All rights reserved.

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http://www.sap.com/http://www.sap.com/


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Typographic Conventions

Type Style Represents

Example Text Words or characters that appearon the screen. These includefield names, screen titles,pushbuttons as well as menunames, paths and options.

Cross-references to otherdocumentation

Example text Emphasized words or phrases in

body text, titles of graphics andtables

EXAMPLE TEXT Names of elements in thesystem. These include reportnames, program names,transaction codes, table names,and individual key words of aprogramming language, whensurrounded by body text, forexample, SELECT andINCLUDE.

Example text Screen output. This includes file

and directory names and theirpaths, messages, names ofvariables and parameters,source code as well as names ofinstallation, upgrade anddatabase tools.

Exampl e t ext Exact user entry. These arewords or characters that youenter in the system exactly asthey appear in thedocumentation.

Variable user entry. Pointed

brackets indicate that youreplace these words andcharacters with appropriateentries.

EXAMPLE TEXT Keys on the keyboard, forexample, function keys (such as

F2) or the ENTER key.

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax


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Contents

Overview

4

ContentsSAP for Retail .......................................................................................................................5

Overview...........................................................................................................................5

History of Changes............................................................................................................7Getting Started......................................................................................................................8

The Main SAP Documentation Types ................................................................................9

Related Information .........................................................................................................11

Related Master Guides....................................................................................................12

SAP Solution Manager ....................................................................................................13

Important SAP Notes.......................................................................................................14

Business Scenarios of SAP for Retail..................................................................................15

Allocation .......................... .............. ........ .............. .............. ............... ....... .............. ........15

Assortment Management... ....... .............. ........ .............. .............. ........ ....... .............. ........16

Category Business Planning............................................................................................18

Chainwide Inventory Management...................................................................................20

Cross Channel Customer Order Management .................................................................22

Demand Forecasting .......................................................................................................25

In-Store Merchandise and Inventory Management ...........................................................27

In-Store Workforce and Task Management ......................................................................28

Item Management............................................................................................................30

Markdown Management ..................................................................................................32

Merchandise and Assortment Planning............................................................................35

Merchandise and Assortment Planning (Integrated).........................................................37

Multi Channel Loyalty Program Management...................................................................39

Multilevel Replenishment .................................................................................................41

Operational Buying..........................................................................................................43

Payment Order Processing..............................................................................................45

Point of Sale....................................................................................................................46

Enterprise Point of Sale...................................................................................................49

Promotion Management ..................................................................................................51

Requirements Planning and Replenishment.....................................................................54

Retail Price Management.................................................................................................56Returns Authorization......................................................................................................59

Store and POS Analytics .................................................................................................62

Store Connectivity ...........................................................................................................64

Warehouse and DC Management ....................................................................................66


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SAP for Retail

Overview

5

SAP for Retail

Overview

SAP for Retail creates a competitive advantage for retailers by enabling them to achievemaximum profitability by driving down their costs and increasing their revenues throughcollaborative processes tailored to their customers' needs. The processes are easy to useand deliver a quick ROI.

SAP for Retail provides web-enabled applications in a fully integrated system that createsvalue for retailers in important areas of their business. It helps retailers build their business ona solid transactional backbone, integrate different sales channels, better understandcustomer preferences, and manage their supply chain more efficiently.

SAP for Retail brings all the speed, efficiency, and flexibility of the Internet to every aspect ofyour enterprise. SAP for Retail focuses your entire value chain -- from the way you managecustomer contacts and fulfillment to how you maintain inventory and analyze performance --on your customers, generating measurable benefits in cost, revenue, and strategy.

Impact on CostBy seamlessly integrating merchandise planning, demand forecasting, allocation, andreplenishment functions, you ensure a more responsive, flexible supply chain, enhancingefficiencies and minimizing expenses.Our powerful, easy-to-use Web-based store portal gives you more accurate point-of-purchase data and helps increase employee efficiency, keeping down training andoperating costs.

Impact on RevenueMultichannel relationship and transaction management, coupled with automatedmarketing and customer self-service, helps you boost sales, increase shoppingfrequency, raise customer retention, and more effectively attract new customers.Assortment, shelf management, mass customization, and cross-selling functions let youcut stock levels and improve shelf space efficiencies, giving you extended product

lifecycles and greater profitability.

Impact on StrategySophisticated reporting and analysis capabilities -- plus integrated merchandising,customer, financial, and employee data -- give you deeper insights into your customersand your operations, allowing you to adapt faster to market changes.

This SAP for RetailMaster Guide provides a central starting point for the technicalimplementation of the following business scenarios ofSAP for Retail:

Allocation

Assortment Management

Category Business Planning

Chainwide Inventory Management

Cross Channel Customer Order Management

Demand Forecasting

In-Store Merchandise and Inventory Management

In-Store Workforce and Task Management

Item Management


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SAP for Retail

Overview

6

Markdown Management

Merchandise and Assortment Planning

Merchandise and Assortment Planning (Integrated)

Multi Channel Loyalty Program Management

Multilevel Replenishment

Operational Buying

Payment Card Processing

Point of Sale

Enterprise Point of Sale

Promotion Management

Requirements Planning and Replenishment

Retail Price Management

Returns Authorization

Store and POS Analytics

Store Connectivity

Warehouse and DC Management

You can find an overview about the whole functionality ofSAP for Retailin the

solution map:service.sap.com/bmet SAP Business Maps Industry-

Specific Maps Retail.

The business scenarios that are presented here serve as examples of how you

can use SAP software in your company. The business scenarios are onlyintended as models and do not necessarily run the way they are described herein your customer-specific system landscape. Ensure to check your requirementsand systems to determine whether these scenarios can be used productively atyour site. Furthermore, we recommend that you test these scenarios thoroughlyin your test systems to ensure they are complete and free of errors before goinglive.


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SAP for Retail

History of Changes

7

History of Changes

The Master Guide is updated on a regular basis in SAP Service Marketplace at:service.sap.com/instguides

Make sure you have the latest version of the Master Guide by checking SAPService Marketplace right before the installation.

The following table provides an overview on the most important changes that were madewithin the latest versions.

Master Guide Version Important Changes

1.00 (December 2007)


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Getting Started

History of Changes

8

Getting StartedThis Master Guide provides the information about which components and which guides arerequired during this process.

Getting Started [page 7]contains valuable information about using this document andrelated information (documentation and SAP Notes) crucial to the installation andupgrade.

Business Scenarios of SAP for Retail [page 15]contains the following information foreach business scenario:

A short overview about the business scenario

Minimal system landscape

A software component matrix for each business scenario that provides theinformation which components the business scenario uses and if the correspondingcomponent is mandatory or optional

Where you can find further information about the business scenario

You can find the most current information about the technical implementation ofSAP for Retailand the latest installation and configuration guides on the SAPService Marketplace under:


We strongly recommend that you use the documents available here. The guidesare regularly updated.


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Getting Started

The Main SAP Documentation Types

9


Several documents have been created to assist you in installing, implementing, operating andupgrading your SAP solutions. The Solution Master Guide (this document) is the firstdocument you obtain. Although strongly related to each other, the different documentationtypes should help you solve problems on different levels at different solution phases. Thefollowing figure shows an overview of the most importantdocumentation types that youneed in the various phases in the life cycle of an SAP solution.

Documentation types in the software life cycle

ImplementationImplementation

Master Guide

Configuration

DocumentationRelease Notes

Component

Installation Guide

Component

Upgrade Guide

Upgrade Master Guide

OperationOperation UpgradeUpgrade

Solution Management

Guide

Implementation Guide (IMG) Delta and Upgrade IMG

Security Guide

SAP Library

SAPterm

Cross-Phase Documentation

SAPtermis SAPs terminology database. It contains SAP-specific vocabulary in over 30languages, as well as many definitions and glossary entries in English and German.

To use SAPterm, visit SAP Service Marketplace atservice.sap.com/sapterm.

The SAP Libraryis a collection of function- and process-oriented documentation for SAPcomponents. It is located on SAP Help Portal athelp.sap.com. SAP Library also contains

Business Scenario Descriptions. These are found on SAP Service Marketplace atservice.sap.com/ibc.

The Implementation Guide (IMG)is a tool for configuring the SAP system to meet customerrequirements. Its structure and documentation are component-oriented. It is located in the

SAP Easy Accessmenu of the SAP system underTools Customizing IMG.

The Security Guidedescribes the settings for a medium security level and offerssuggestions for raising security levels. A collective security guide is available for the SAPNetWeaver technologies like SAP Web Application Server (SAP Web AS). This documentcontains general guidelines and suggestions about system security. Other technologies andindividual applications have a Security Guide of their own.


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Getting Started


10

The current version of the Security Guide is located on SAP Service Marketplace atservice.sap.com/securityguide.

Implementation

The Component Installation Guidedescribes the technical implementation of an SAP

component, taking into account the combinations of operating systems and databases. Itdoes not describe any business-related configuration. The Component Installation Guides forthe different components can be found on SAP Service Marketplace atservice.sap.com/instguides.

The Configuration Documentationis contained in the SAP Solution Manager. SAP SolutionManager is a tool with various functions, one of its main functions being the configuration ofSAP solutions and Business Scenarios. It contains IMG activities, transactions, and so on, aswell as documentation.

Product ion Operation

The Solution Operations Guideis the starting point for operating an SAP solution. Theguide refers users to the tools and documentation that are needed to carry out various tasks,such as monitoring, backup/restore, master data maintenance, transports, and tests. It also

refers users to other documents, for example the SAP Library, the Master Guide, and theComponent Management Guides. The current version is located on SAP ServiceMarketplace atservice.sap.com/instguides.

Upgrade

The Upgrade Master Guideis the starting point for upgrading the Business Scenarios of anSAP solution. It provides scenario-specific descriptions of preparation, execution, and follow-up of an upgrade. It also refers to other documents, such as the Component Upgrade Guidesand SAP Notes. Instead of an Upgrade Master Guide, there may be several BusinessScenario Upgrade Guides or a Solution Upgrade Guide for earlier shipments of the BusinessScenarios of an SAP solution. The current Version is located on SAP Service Marketplace atservice.sap.com/instguides.

The Component Upgrade Guidedescribes the technical upgrade of an SAP component,taking into account the combinations of operating systems and databases. It does notdescribe any business-related configuration. The current version is located in the SAPService Marketplace atservice.sap.com/instguides.

Release notesare documents that contain short descriptions of new features or changes inan SAP component since the previous release. Release notes about ABAP developmentsenable the SAP system to generate delta and upgrade IMGs. The current version is located

on SAP Service Marketplace atservice.sap.com/releasenotesor in the SAP menu of

the SAP system underHelp Release information.

Upon reviewing this description of the supplementary information sources at your disposal,you will be ready to get started.


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Getting Started

Related Information

11

Related Information

The following list contains links to crucial information for implementing this solution.

List of Related Documentation

Content Location

Information about technical and releaseplanning issues on SAP components

service.sap.com/pam

Information about the latest version ofinstallation and upgrade guides for SAPcomponents


Information about SAP Notes service.sap.com/notes

Information about released platforms service.sap.com/platforms

Information about sizing, calculation ofhardware requirements (such as CPU, diskand memory resource) with the Quick Sizertool

service.sap.com/sizing

Information about network security SAPSecurity Guide

service.sap.com/securityguide

Information about network integration service.sap.com/network

Information about high availability service.sap.com/ha

Information about creating error messages service.sap.com/message

Performance Map service.sap.com/performancemap

Documentation on SAP Help Portal help.sap.com/


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Getting Started

Related Master Guides

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Related Master Guides

This Master Guide is based on Component Master Guides. You will find detailed informationabout the relevant components in the following documents:

Lis t of Related Master Guides

Content Location

mySAPTM

ERP 2005 service.sap.com/erp-inst mySAP

ERP 2005

SAP NetWeaverTM

2004s service.sap.com/installNW2004s

mySAPTM

Supply Chain Management service.sap.com/instguides mySAP

Business Suite Solutions mySAP SCMUsing SAP SCM 4.1 Server

mySAPTM

Customer RelationshipManagement

service.sap.com/instguides mySAPBusiness Suite SolutionsmySAP CRMSAP CRM 5.0

mySAPTM

Supplier RelationshipManagement t

service.sap.com/instguides mySAP

Business Suite SolutionsmySAP SRMUsing SAP SRM Server 5.0

eSOA MasterGuide service.sap.com/instguidesSAP

Business Suite Applications SAP ERP SAP ERP 6.0 SAP enhancement packagesfor SAP ERP 6.0 SAP enhancementpackage 3 for SAP ERP 6.0


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Getting Started

Important SAP Notes

14

Important SAP Notes

This section contains important SAP Notes forSAP for Retail.

Read the installation SAP Notes before beginning the installation. These containthe most recent information regarding the installation, as well as corrections tothe installation documentation.

Make sure that you have the most recent version of each SAP Note. They arelocated on the SAP Service Marketplace (service.sap.com/notes) or in

SAPNet - R/3 Frontend.

Lis t of Related SAP Notes

SAPNote

Title Description

General

852235 Release Limitations for mySAPERP 2005

This note provides information aboutlimitations in mySAP ERP 2005.

874967 Release Limitations for mySAPRetail

This note provides information aboutlimitations in mySAP Retail.


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Business Scenarios of SAP for Retail

Al locat ion

15


Al location

Overview

You can use this business scenario to distribute a centrally planned quantity of goods to alarge number of stores on specific delivery dates. This quantity distribution can occurdynamically by means of allocation strategies (with optional access to SAP BI, for example).

The flow of products is then triggered by follow-on processing; that is, procurement and issuedocuments are automatically created by the system.

If vendor orders are generated as follow-on documents, contract determination can beperformed.

Alternatively, you can also generate allocation tables automatically with reference to standardpurchase orders or vendor orders that have been generated or created based on detailedassortment planning (in particular, purchasing lists). This way, the system distributes the

quantities for the planned assortment in the purchase list to the recipients.

Allocation tablesare used, for example, to allocate seasonal merchandise, eliminatewarehouse stocks, initially distribute new products and distribute promotional goods. You canuse payment advices to control communication between the head office and recipients.

Technical System Landscape

The following diagram provides an overview of a possible system landscape forAllocation.

Retail Server

RDBMS

SAP ERP ENHANCEPACKAGE 2005.2

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofAllocation.

Component Mandatory Optional

SAP ERP ENHANCE PACKAGE2005.2

X

SAP NetWeaver 2004s usagetype BI

X

BI CONT 7.03 (SP08) X


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Assor tment Management

16

Assortment Management

Overview

You can use this business scenario to define assortments and, using a certified spacemanagement program, optimize these assortments so that the best possible use is made ofthe available fixtures.

This scenario is aimed at retailers who use Category Managementor part of this component.In particular, this scenario is a solution for implementing the standard Category Tactics ECRstep.


The following diagram provides an overview of a possible system landscape forAssortmentManagement.

Retail Server

RDBMS

SAP ERP ENHANCE

PACKAGE 2005.2

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofAssortment Management.



X


X


Further Information

The following documents provide more information about Assortment Management.

Further Scenario Documentation

Scenario Description The scenario description is part of SAP Solution Manager. Formore information about SAP Solution Manager, seeservice.sap.com/solutionmanager.

ConfigurationDocumentation

The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For more


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Assor tment Management

17

information about SAP Solution Manager, seeservice.sap.com/solutionmanager.

Security Guide For more information, see

service.sap.com/securityguide Industry Scenario

Security Guides.


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18


Overview

You can use this business scenario to manage your categories as strategic business units inorder to achieve improved results by increasing the benefit to the customer. Producers andretailers work closely on the development, implementation, and monitoring of a categorybusiness plan.

The entire scenario is based on the standardized, eight-step process ofefficient consumerresponse (ECR). You can choose the steps of relevance to you from these and implementand use them individually or as a package. You can also change the sequence of the processsteps.


The following diagram provides an overview of a possible system landscape forCategoryBusiness Planning.

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofCategory Business Planning.



X


Further Information

The following documents provide more information about Category Business Planning.




The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For moreinformation about SAP Solution Manager, see


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19

service.sap.com/solutionmanager.



Security Guides.


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20


Overview

You use this business scenario to manage multiple units of measure for buying, tracking, andselling in both distribution centers and stores.

Different inventory valuation methods can be chosen. Depending on the method, the systemcalculates the results (ending or current inventory and cost of goods sold). If required, thesystem posts the result to the general ledger. The system supports both cost and retailmethods of inventory accounting. It can also perform RMA and ERMA inventory valuation.

Shrink management allows users to make inventory adjustments at any location. Shrinkagecan be posted to respective general ledger accounts, depending on the reason (such asbreakage, spoilage, theft, depreciation, withdrawal for own use, and so on). You can performstatistical analyses to track and improve shrinkage rates. A number of physical inventorymethods, such as periodic and continuous inventory, are available. For value-based inventorymanagement, physical inventory is based on the retail value of inventory.

Inventory analytics enable a retailer to make the right business decision based on inventorysituations at the store or in the distribution center. Reduce out-of-stock situations, improvesell-through, rationalize holdings, achieve higher customer satisfaction and increased turns.Reporting is available for ERMA and RMA inventory methods


The following diagram provides an overview of a possible system landscape forChainwideInventory Management.

Retail Server

RDBMS

SAP ERP ENHANCEPACKAGE 2005.2

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofChainwide Inventory Management.



X


X



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21

Further Information

The following documents provide more information about Chainwide Inventory Management.




The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For moreinformation about SAP Solution Manager, seeservice.sap.com/solutionmanager.



Security Guides.


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22


Overview

Supporting SAP ECC-based customer order management at the store level, this businessscenario offers an integrated and easy-to-use solution enabling in-store associates (cashiers)to perform all order-related and customer-related business functions.

The back-office solution, using a browser-based user interface tailored specifically to theneeds of the in-store user, combines the intuitive usability of a web browser with the special,store-based transactions required by centralized retailing. The result even recently trainedpart-time staff can start working with the system quickly and efficiently.

From a business point-of-view, the customer order management function typically startseither with:

Customer Lookup, which is focused on finding and verifying the customer.

Product Lookup, which is focused on finding the product and determining theinventory and the location for supplying the product.

Depending upon your business requirements, both of these use cases is supported.


The following diagram provides an overview of a possible system landscape forCrossChannel Customer OrderManagement.

Retail Server

RDBMS

SAP ENH PACK 3 FORSAP ERP 6.0

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofCross Channel Customer Order Management.


SAP ENH PACK 3 FOR SAPERP 6.0 (Retail)

X

The following diagram provides an overview of a possible system landscape forCrossChannel Customer Order Management(Integrated).


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23

Retail Server

RDBMS

SAP ENH PACK 3 FOR SAP

ERP 6.0

BI Server

RDBMS

SAP NetWeaver 2004susage type BI

BI CONT 7.03 (SP08)

Xpress POS Terminal

RDBMS

SAP POS 2.0

Store Server

SAP POS 2.0

Central Server

XI Server

RDBMS

SAP NetWeaver 2004s usage

type PI and SA P POS 2.0

RDBMS

SAP POS 2.0 (Centralized

File Transfer Server)

SAP POS 2.0 (Confi gurator

Server)

SAP POS 2.0 (Centralized

EFT Server)

RDBMS

The following software components are either mandatory or optional, as indicated below, for

the technical implementation ofCross Channel Customer Order Management (Integrated).


SAP POS 2.0 (ConfiguratorServer)

X

SAP POS 2.0 (Store Server) X


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Demand Forecasting

25

Demand Forecasting

Overview

You use this business scenario to perform all data modeling required for forecasting, as wellas price optimization, promotion optimization and markdown optimization.

The result is a demand-based understanding of customer purchasing behavior, which youcan leverage to help attain business goals. Since you can use the data in many businessdecisions, it helps move you toward one central understanding of your demand and oneversion of the truth as it relates to forecasting and optimization.


The following diagram provides an overview of a possible system landscape forDemandForecasting.

Retail Server

RDBMS

SAP ERP 2005

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

Demand Management Server

RDBMS

DM Web Applic ation

DM Job Processing

PI/XI ServerSAP NetWeaver 2004s

usage type PI/XI

XI Content Demand

Management

XI Content SAP ERPENHANCE PACKAGE 2005.1

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofDemand Forecasting.


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Demand Forecasting

26


SAP DEMAND Management 6.4 X

SAP ERP 2005 X

SAP NETWEAVER 7.0 (2004S)usage type BI

X


SAP NETWEAVER 7.0 (2004S)usage type PI/XI

X

XI Content SAP ERP ENHANCEPACKAGE 2005.1

X

XI Content SAP DEMANDFORECASTING 7.0

X

Further Information

The following documents provide more information about Demand Forecasting.




The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For more

information about SAP Solution Manager, seeservice.sap.com/solutionmanager.



Security Guides.


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27


Overview

You can use this business scenario to map all the retailing processes in a retail store. Thisincludes the processes required for the majority of a store's transactions, such asprocurement, goods movement and sales postings, as well as processes for vendor,assortment and price management. There are also processes for physical inventory, productlookup, promotions and food services/catering.

The existing tools for handling store-oriented processes use an Internet-based user interfacethat is tailored specifically to meet the needs of stores. The interface combines the intuitiveusability of a Web browser with the special store-based transactions of centralized retailing.As a result, even semi-skilled part-time staff can start working with the system quickly andeffectively.

Further Information

The following documents provide more information about In-Store Merchandise and InventoryManagement.





Security Guide For more information, seeservice.sap.com/securityguide Industry Scenario

Security Guides.


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In-Store Work force and Task Management

28

In-Store Workforce and Task Management

Overview

You use this business scenario to manage all aspects of staffing within the retailenvironment:

Recruiting, hiring, and managing all phases of the talent management process.

Recording, updating, and reporting employee data as a basis for making informedpersonnel decisions.

Recording, managing, and evaluating internal and external employees timemanagement data.

Planning, creating, and maintaining employee schedules.


The following diagram provides an overview of a possible system landscape for In-Store

Workforce and Task Management.

Retail Server

RDBMS

SAP ERP 2005

BI Server

RDBMS

BI CONT 7.03 (SP08)

SAP NetWeaver 2004susage type BI

Workforce Management Server

RDBMS

SAP WorkforceManagement 3.0

Portal Server

RDBMS

Business Package for

Retail 2.0

SAP NetWeaver 2004susage type EP

E-Recruting Server

RDBMS

SAP E-Recruting 6.0

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofIn-Store Workforce and Task Management.


SAP NetWeaver 2004s - EP Corewith Portal Content (SAPNetWeaver - Enterprise PortalCore)

X

SAP Workforce Management 3.0(WFM Java)

X


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In-Store Work force and Task Management

29

SAP WORKFORCEMANAGEMENT 3.0 (SAPWorkforce Management ABAP)

X

SAP ERP 2005 X

SAP NetWeaver 2004s X


Further Information

The following documents provide more information about In-Store Workforce and TaskManagement.







Security Guides.


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Item Management

30

Item Management

Overview

This business scenario supports various functions for creating and maintaining items with allbusiness related attributes needed in your company. It includes also all discontinuation-related functions to remove items from assortments.

The following processes contribute to the Item Management Scenario:

Global Data Synchronization (PRICAT Inbound)

The item inbound process offers import functionality and mass adoption of item datawhere the item data comes from external data pools or from suppliers (peer-to-peerscenario). Efficient maintenance is of major importance for retailers because of highdata volumes.

Item Introduction

This process contains various functions for creating items with all business-related

attributes needed in your company. This includes functions to create and change itemdata.


The following diagram provides an overview of a possible system landscape forItemManagement

Retail Server

RDBMS

SAP ENH PACK 3 FOR SAPERP 6.0

PI Server

RDBMS

SAP NetWeaver 7.0 PI withSAP ERP Enh Pack 2005.3

XI CONTENT EA-RETAIL

603

XI CONTENT GS1 1.0

XI CONT UN/CEFACT 1.0

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofItem Management.



X

SAP NetWeaver 7.0 PI withSAP ERP Enh Pack 2005.3

X


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Markdown Management

32

Markdown Management

Overview

You use this business scenario to plan, optimize, and manage markdown events. Markdownscan be used for a variety of reasons, including: discontinued products, seasonal products,new models and store closings.

The result is a recommended markdown schedule for all product-locations, as well as reportinformation that allows users to drill down into low level detail about all aspects of themarkdowns.

In Slow Seller Management you plan markdowns (price reductions) for seasonal products.Using rule-based markdown controls, SAP BI automatically creates markdown proposals thatprovide analysis of sales data. Markdowns are proposed, and once accepted, are processedin the Price Planning Workbench in SAP Retail. If the retailer uses markdowns based on apredefined markdown schedule, the dates for the markdowns are defined beforehand andexecuted on those dates.


The following diagram provides an overview of a possible system landscape forMarkdownManagement.


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Markdown Management

33

Retail Server

RDBMS

SAP ERP 2005

BI Server

RDBMS

SAP NetWeaver 2004s

usage typeBI

BI CONT 7.03 (SP08)


RDBMS

DM Web Applic ation

DM Job Processing

PI/XI Server

SAP NetWeaver 2004s

usage type PI

XI Content DemandManagement

XI Content SAP ERP

ENHANCE PACKAGE 2005.1

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofMarkdown Management.


SAP DM 6.4 X

SAP ERP 2005 X

SAP NetWeaver 2004s usagetype PI/XI

X


X

Further Information

The following documents provide more information about Markdown Management.


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Markdown Management

34







Security Guides.


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35


Overview

You can use this business scenario to implement integrated and complete planning withinyour company. You perform planning and reporting for all your business activities that involveassortments and merchandise. You can define sales, quantities, areas, stores and budgets,which are then transferred to an executing system for operational purposes and processedfurther.

Merchandise and assortment planning primarily deals with four main planning areas strategic planning, merchandise planning, store planning, and assortment planning. Thisdemonstrates that you can start on a high planning level and then move down to lower levels(top-down) or the other way round (bottom-up).

When you integrate merchandise and assortment planning in SAP NetWeaver 2004s, usagetype Business Intelligence with BI Content 7.03 (SP08), the system accesses various datafrom different areas. This has the advantage that you can optimize future developments foryour company by comparing planning, actual, and historical data. In addition, you can

continuously monitor defined objectives, and adapt to given developments and influencingfactors.


The following diagram provides an overview of a possible system landscape forMerchandiseand Assortment Planning.

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofMerchandise and Assortment Planning.



X


Further Information

The following documents provide more information about Merchandise and AssortmentPlanning.



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36


Configuration

Documentation

The configuration documentation is part of SAP Solution

Manager implementation content ST-ICO 150. For moreinformation about SAP Solution Manager, seeservice.sap.com/solutionmanager.



Security Guides.


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Overview

38







Security Guides.


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39


Overview

You use this business scenario to enhance the point of sale (POS) and assist retailers inmeeting their unique business requirements. Allegiance 1 to 1 offers real-time CRMfunctionality for any integrated customer point of interaction, providing the following benefits:

Cross-chain recognition that allows customers to take advantage of promotions andoffers across all channels while the retailer is able to implement and enforcepromotion limits.

Ability to directly target information in a real-time, on-line environment. To accomplishthis, pertinent data from your CRM analytical solution is synchronized with theAllegiance 1 to 1 database. This information is held centrally and provides thatinformation to the customer point of interaction including POS systems, customerservice desks, kiosks, and e-commerce applications.


The following diagram provides an overview of a possible system landscape forMultiChannel Loyalty Program Management.

All egiance Server

RDBMS

ALL EGIANCE DB Server

ALLEGIANCE Server

Loyalty Solutions Server

Transnet Server

Transnet Client

Transnet Monitor Server

The following product is mandatory for the technical implementation ofMulti Channel LoyaltyProgram Management.


SAP Allegiance 6.0 X


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40

Further Information

The following documents provide more information about Multi Channel Loyalty ProgramManagement.







Security Guides.


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41


Overview

Using the Forecasting & Replenishment business scenario, retail companies can optimizetheir internal logistics by improving the replenishment process. Forecasting & Replenishmenthelps you avoid stockout situations whilst also enabling you to reduce high reserves of stock.This equates to a significant potential for saving, since stockouts in distribution centers andstores lead to huge loss of sales and overstocks cause high capital lockup for retailcompanies. The highly automated replenishment planning in stores and distribution centersreduces the large amount of manual processing that is currently required. You increasetransparency in the supply chain using effective analyses.


The following diagram provides an overview of a possible system landscape forMultilevelReplenishment.

Retail Server

RDBMS

ERP 6.0

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP06)

XI Server

RDBMS

SAP NetWeaver 2004s

usage type PI/XI

XI CONTENT SAP_APPL

600

SCM Server

RDBMS

SAP F&R 5.1

SAP F&R - Store UI5.1

XI CONTENT SCM 5.1

XI CONTENT SCM BASIS

5.1

EHP 2

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofMultilevel Replenishment.



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42

SAP SCM 2007 SCM Server5.1 (SP03)

X

SAP ERP 6.0 (SAP Retail withSAP ECC 6.0 Server) with EHP2

up to EHP3

X

SAP NetWeaver 2004s usagetype BI with BI CONT 7.03(SP06)

X

FRP 4.1.0 X

SUI 5.1 X


X

Further Information

The following documents provide more information about Mulitlevel Replenishment.







Security Guides.


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Operational Buying

43

Operational Buying

Overview

This business scenario supports you in the area of ordering. In addition to general operationalorder processing, in which requirements determined automatically or manually for yourstores, distribution centers, and customers are converted into vendor orders, this includesorder optimizing, such as simple quantity rounding. Through investment buying, materials canbe procured beyond the standard stock or current requirement when you expect a priceincrease from the vendor. Load building is an option for better utilization of transportcapacities.

In addition to the described order processing functions, this business scenario also featurestwo procurement processes that are primarily motivated from the push approach:

The seasonal procurement process gives you a fast, simple way to enter orders. An OTBcheck is also integrated, along with a monitor of existing schedules.

The push approach is also followed in the process of plan-driven seasonal procurement. In

this process, the generated purchase orders result from the planning results in operationalassortment planning (see Operational Assortment Planning and Control). The OTB check,scheduling, and subsequent monitoring of the calculated dates are integrated in this processas well.

Several workbenches are available to simplify the use of these two push processes:Procurement Controlling Workbench, Order Manager, OTB Controlling Workbench, and OTBProcurement Workbench.

A separate process is available to assist in the procurement of perishables (fruits andvegetables).

The cross-docking process can be used for optimized logistical processing of merchandisedistribution. Collective purchase orders are used here. If you want to utilize the full functionalscope, you can define vendor prepacking before the collective purchase order.

Operational order processing is concluded by the invoice verification process.Allocation management distributes merchandise centrally among a large number of recipients(for example, stores). It plans the distribution of the merchandise and triggers the necessarydocuments and goods movements. It uses notifications to coordinate communicationbetween headquarters and the recipients, Fair Share Rules to distribute insufficient quantitiesamong different recipients, and sophisticated strategies and/or decisions from operationalplanning to support the allocation process.

There is an integrated OTB check for external purchase orders as follow-on documents thatcan be generated from the allocation table, as well as scheduling functionality and automaticcontract determination.


The following diagram provides an overview of a possible system landscape forOperational

Buying


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Operational Buying

44

Retail Server

RDBMS

SAP ERP ENHANCE

PACKAGE 2005.2

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofOperational Buying.


SAP ERP ENHANCE PACKAGE

2005.2

X


X


SAP SRM 5.0 X

SAP SCM 5.0 X

Further Information

The following documents provide more information about Operational Buying.






service.sap.com/securityguide Industry ScenarioSecurity Guides.


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Payment Order Processing

45

Payment Order Processing

Overview

The Payment Card Processing scenario enables retailers to effectively control and managethe authorization requests and responses for financial transactions at the customer point ofinteraction. In addition to providing a very high throughput, low latency switch forauthorizations, this scenario provides metrics and reporting capabilities.

The modular architecture provides the utmost in flexibility allowing a change of serviceproviders with no impact to the store systems. The solution includes a published interfaceallowing other points of interaction to leverage the capabilities provided.

Benefits include reduced operating costs and increased speed and efficiency.

Further Information

The following documents provide more information about Payment Order Processing.







Security Guides.


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Point of Sale

46

Point of Sale

Overview

You use this business scenario to handle the various steps involved with selling products andservices to customers in a retail store environment. SAP Transactionware GM is aclient/server point-of-sale (POS) solution and has long defined the standard of excellence inthe POS industry. SAP Transactionware GM meets the needs of a wide variety of retailers,with extensive POS functionality and flexible definition and management of POS businessrules and processes via a simple, table-driven configuration process. Retailers includedepartment, c-store, liquor, gas, specialty, apparel, big box, and a number of other retailverticals. Additionally, the solution is offered with powerful in-store back office capabilities toenable store-level environment management and reporting.

SAP Transactionware GM provides numerous benefits to retailers including:

Improving Service Delivery

Add 24x7 customer service

Provide personalized customer interaction

Improving Customer Service

Ensure customers are treated based on predefined business rules

Improve customer retention and loyalty

Reducing Operating Costs and Increasing Efficiency

Ensure more effective sales execution

Reduce training costs


The following diagram provides an overview of a possible system landscape forPoint of Sale.


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Point of Sale

48

Further Information

The following documents provide more information about Point of Sale.







Security Guides.


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Enterprise Point of Sale

49

Enterpr ise Point of Sale

Overview

You use this business scenario to handle the various steps involved with selling products andservices to customers in a retail store environment. SAP Transactionware Enterprise is aJava 2 Enterprise Edition-based application that can be deployed across multiple operatingsystems, application servers and databases, allowing retailers to realize benefits that cantransform the internal economics of retailing. SAP Transactionware Enterprise can meet theneeds of a wide variety of retailers, with extensive POS functionality and flexible definitionand management of POS business rules and processes by using a simple table-drivenconfiguration process.

Point of Sale TE provides the following benefits:

Improved Customer Service

Ensures that customers are treated in accordance with predefined businessrules

Improves customer retention and loyalty

Reduced Operating Costs and Increased Efficiency

Ensures more effective sales execution

Reduces training costs

Improved Service Delivery

Adds 24x7 customer service

Personalizes the customer interaction


The following diagram provides an overview of a possible system landscape forEnterprise

Point of Sale.


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51/67


Promot ion Management

51

Promotion Management

Overview

You use this business scenario to plan retail promotions, create promotion layouts andrelease planning data for logistics and operations processing.

You plan retail promotions in SAP Retail or SAP Demand Management. You can create retailpromotions either using a dedicated application or in the Price Planning Workbench withinPromotion Management.

In the planning stage, you:

Specify the articles that you want to include in the promotion and the stores orcustomers participating in the promotion.

Specify distribution chains, price lists, or site groups and optionally define specialpromotional prices for the articles, or group conditions, such as discounts formerchandise categories.

Plan the procurement of promotional goods by determining the vendors, definingpurchase prices and procurement quantities.

You can also plan promotions via optimization which allows the system to determine whichproducts and/or offers to promote based on historical sales data.

In the layout stage, you specify:

The graphic layout of the promotion including placement in an advertisement (suchas, top right corner of the front page).

The picture to display for the article.

Any additional text to include in the advertisement.

When releasing promotions, you create the sales and purchasing conditions and purchaseorders for the promotional goods using the allocation function in SAP Retail. You can inform

the stores about upcoming promotions using the announcement function.

When planning promotions using the Price Planning Workbench, you can use the budgetfunction to monitor sales deductions. To do so, you need to create special budgets in SAP BI,which you send to SAP Retail using the Release Workbench.


The following diagram provides an overview of a possible system landscape forPromotionManagement.


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52

Retail Server

RDBMS

SAP ERP 2005

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

PML Server

RDBMS

Visual Compos.

Framework Server

Visual Compos.

Framework Client.

PI/XI Server

SAP NetWeaver 2004s

usage type PI

XI Content Demand

Management

XI Content SAP ERPENHANCE PACKAGE 2005.1


RDBMS

DM Web Ap plication

DM Job Processing

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofPromotion Management.


SAP DM 6.4 X

SAP PML 6.7 X

SAP ERP 2005 X


X


X



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53

Further Information

The following documents provide more information about Promotion Management.







Security Guides.


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Requi rements Planning and Replenish ment

54


Overview

You can use this business scenario to ensure that goods are available when recipients(stores or customers) and consumers require them. To do this, you must procure requirementquantities on time. This involves the following activities:

Monitoring stocks

Taking account of recipients sales and purchase orders

Creating forecasts

Calculating requirement quantities

Creating follow-on documents for procurement

The stock planner defines the suitable forecast, requirements planning, and lot-sizingprocedures for each article.

You can use the scenario to map the following processes:

Direct delivery

The vendor delivers the goods direct to the recipient. The purchase order can beplaced either by the recipient or the distribution center in this case.

Delivery via a distribution center

You can use this process to plan the supply of merchandise to stores via a distributioncenter. Your vendor delivers to a distribution center that in turn supplies themerchandise to the stores.


The following diagram provides an overview of a possible system landscape for


Retail Server

RDBMS

SAP ERP 2005

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofRequirements Planning and Replenishment.


SAP ERP 2005 X


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Requi rements Planning and Replenish ment

55

Further Information

The following documents provide more information about Requirements Planning andReplenishment.







Security Guides.


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56


Overview

You use this business scenario to perform all retail price optimization price file creation,product and zone selection, strategy definition, and optimization and forecasting. Within thisscenario, users can perform what-if analysis on the results, at a summary and detail leveland make user overrides to further refine the pricing strategy.

The result is a pricing event with optimized prices at a product and zone level that can besent to the customers ERP or pricing system to be implemented in the stores.

In this business scenario, you can model all the processes for managing sales prices withinyour value chain. In particular, this involves calculating the sales prices for the articles yousell in the sales-related organizational units, such as distribution chain and store.

You calculate the sales prices in SAP Retail. Depending on which pricing procedure you use,you first define pricing-relevant parameters such as planned markups, competitor prices, orprice families. The three different applications that are available sales price calculation,

market basket calculation, and Price Planning Workbench are each focused on differentrequirements in retailing. The sales prices calculated during costing are saved as conditionsin SAP Retail.

The Retail Price Planning application in the Price Planning Workbench is designed as anindependent process due to its release procedure and automatic follow-on processing stepsfor price plans. From a functional perspective, this process represents an enhancement ofsales price calculation.

In Slow Seller Managementyou plan markdowns (price reductions) for seasonal articles orfashion merchandise. In rule-based markdown control, you define planning parameters inSAP BI to automatically create markdown proposals, which the system uses during analysisof the sales data. You process these markdown proposals further in the Price PlanningWorkbench in SAP Retail. When you plan based on a markdown plan, you define the datesfor the markdowns beforehand.


The following diagram provides an overview of a possible system landscape forRetail PriceManagement.


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57

Retail Server

RDBMS

SAP ERP 2005

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)


RDBMS

DM Web Applicati on

DM Job Processing

PI/XI Server

SAP NetWeaver 2004s

usage type PI

XI Content DemandManagement

XI Content SAP ERP

ENHANCE PACKAGE 2005.1

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofRetail Price Management.


SAP DM 6.4 X

SAP ERP 2005 X


X


X



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58

Further Information

The following documents provide more information about Retail Price Management







Security Guides.


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59


Overview

Returns Authorization and Management is critical to improving margins, reducing fraud, andimproving customer service. This module quickly and effectively links returns or exchanges tooriginal purchases and validates the authenticity of the transaction. Express Returns is acentralized returns authorization application. At the heart of the application is the ExpressReturns database containing sale and return transactions, pricing history, and underlyingbusiness rules. The Express Returns authorization engine verifies return requests initiated atpoint of sale (POS) terminals in real time and generates return approvals or referrals.Express Returns can provide significant benefit to retailers including

Reducing Operating Costs & Increasing Efficiency

o Reduce of error rate by use of automated processes

o Reduce transaction costs

Increase Speed & Efficiency

o Better decisions with accurate and up-to-date information

o Improved quality and accuracy


The following diagram provides an overview of a possible system landscape forReturnsAuthorization.


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60

POS Xpress Server

Transnet MT Client

POS Xpress 9.5

Configurator

Configurator 9.5

Database Tools 9.5

EJV 9.5

Software Dev. Kit

SDK 9.5

Xpress Server

Xpress Server 9.5

EFT

Databse Tools 9.5

Store Manager 9.5

EJV 9.5

RDBMS

RDBMS

Express Returns Server

Common Dataload

Express Returns

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofReturns Authorization.


SAP Returns Authorization 2.5(also referred to as ExpressReturns)

X


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61

SAP Transactionware GM 9.5configured to process returns withcentralized connection toExpressReturns

SAP Common Data Loadconfigured to load POStransaction logs intoExpressReturns

X

Further Information

The following documents provide more information about Returns Authorization.







Security Guides.


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62

Store and POS Analyt ics

Overview

You can use this business scenario to perform numerous analyses for controlling andmonitoring the retailing processes in your store. Evaluations are available for the area ofmerchandise analysis, starting with evaluations for store controlling to analyze the cost andrevenue situation of your store. In addition to stock analyses, these also include evaluationson the flow of goods and markdowns. You can create analyses of warehouse stocks on amonthly basis, taking account of goods movements, price changes and markdowns.

As part of customer sales analysis (consisting of customer analysis, sales analysis and Top100 analysis), you can systematically prepare the sales promoting area and support sales ina targeted way for improved revenue and sales control. You can evaluate the logisticalprocessing and sale of promotional merchandise using the promotion analysis, identify thebenefit of a promotion and cover the sales margins of specific promotional articles (promotionanalysis). POS data analysis can be used for prompt sales evaluation of cash register data atstore and article level. POS data analysis includes the following components:

Analysis of customer needs and behavior (for example, customer returns/complaints)

Effective evaluation of key store figures

High data quality and performance when processing mass data using the latesttechnology

Increase in profitability through near-time controlling of retail processes

This package is extended to include analyses for fraud detection. It provides tips to internalreviewers on introducing countermeasures to reduce or prevent any instances of fraud in thecash register area.


The following diagram provides an overview of a possible system landscape forStore and

POS Analytics.

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofStore and POS Analytics.



X


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63

BI CONT 7.03 (SP08)

Further Information

The following documents provide more information about Store and POS Analytics.






service.sap.com/securityguide

Industry ScenarioSecurity Guides.


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Store Connectivity

64

Store Connectivity

Overview

You can use this business scenario to connect and integrate point of sale (POS) systems toSAP for Retail merchandise applications.

The POS data download provides outbound messages for initial and delta download to thepoint of sale. These messages are created as IDocs in the POS interface to cover variousbusiness processes. Updated data includes:

Master data (item and price information)

Movement data (for example, count lists for physical inventory)

During the data upload, SAP for Retail receives the following transaction data from thestores:

Sales flows

Goods movements

Financial transactions

Totals records

Cancellation transactions

Control transactions

The transaction data from the POS systems forms the basis for the main sales processes,such as store replenishment, sales analyses, promotion analyses, and profit and lossstatement. Due to its volume and high level of detail, this data is one of the major challengesto a retailer's IT landscape. You can use POS Data Management for systematic and demand-driven processing of the data.


The following diagram provides an overview of a possible system landscape forStoreConnectivity.

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.03 (SP08)

Retail Server

RDBMS

SAP ERP 2005

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofStore Connectivity.



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Store Connectivity

65

SAP ERP 2005 X


X


Further Information

The following documents provide more information about Store Connectivity.




The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For moreinformation about SAP Solution Manager, see

service.sap.com/solutionmanager.



Security Guides.


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66


Overview

Warehouse Management and Distribution Center operations in Retail vary among segmentsbased on such product characteristics as, product flows, velocity, goods handling equipmentused, picking strategies, and required value added services.

Grocery and hard goods facilities tend to deal more with products in pallets and cases.Grocery adds the complexity of operations requiring multiple temperature zones and shortshelf life products.

Fashion or soft goods introduce garments on hangers (GOH) and a higher amount of valueadded services; specialty, health and beauty care (HBC) segments tend to have more brokencase or piece picking operations.

SAP SCM EWM 5.1 offers increased flexibility and capabilities beyond standard ERPwarehouse management functionality. Typically, SCM is tailored to organizations with highSKU and line item volumes; very fast moving products; complex cross-docking or picking

requirements; detailed packaging and shipping processes; and third party logistic services(3PL) on the inbound side, outbound side, or both.

Inherently, SAP SCM Extended Warehouse Management (EWM) should operate asdecentralized system architecture. This design offers maximum performance and flexibility,which is necessary within the Retail industry. From the SAP EWM 5.1 release, Retailers willreceive increased retail-specific functionality; beginning with the deployment of article masterdata and setup of different article types (for example, generic articles) to enable fashionscenarios with SKU/articles in color/size variants within SAP EWM.

Primary SCM EWM 5.1 capabilities include the following functions for Retailers:

Setup and flexible adoption of complex warehouse structures

Inbound Yard Management, inbound processing, deconsolidation and dynamicslotting

Quality assurance and control

Incorporated Task and Resource Management and Handling Unit Management

Warehousing and storage according to Placement and Removal strategies andRearrangement

Physical inventory procedures

Advanced picking procedures and Picking Wave Management

Outbound processing, value added services and outbound Yard Management

Labor management

Cross-docking procedures (multi-step Transportation Cross-Docking

Operational execution monitoring and business analytics (for example, service levelKPIs and vendor scoring)

Integration of Transportation Management, Environment, Health & Safety(Hazardous Goods), Global Trade Services (Import/Export/Bonded Warehouse) andSupply Chain Collaboration (Trade Partner & Logistic Service Provider collaboration,SC Event Management)

Process guidance and post processing framework to trigger real-time, follow-onprocesses


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Support for different warehouse technologies (connecting Warehouse Controlsystems, RF scanning, voice- and RFID-enabled processes)


The following diagram provides an overview of a possible system landscape forStoreWarehouse and DC Management.

Retail Server

RDBMS

SAP ENH PACK 3 FOR SAP

ERP 6.0

SCM Server

RDBMS

SAP SCM 2007

The following software components are either mandatory or optional, as indicated below, forthe technical implementation ofWarehouse and DC Management.



X

SAP SCM 2007 X

Further Information

The following documents provide more information about Warehouse and DC Management.




The configuration documentation is part of SAP SolutionManager implementation content ST-ICO 150. For moreinformation about SAP

masterguide retail dec07

Documents