Digital Innovation Retail
SAP S/4 HANA Retail
Overview Core Merchandising, Fashion and Vertical Business and SAP’s Retail Complementary Solutions
Andreas Lueckler
SAP SE
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© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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2
Digital trends transforming the retail industry
Digitally armed customers who
expect new types of shopping
experiences
Deliver it in real time and free or
not at all
New competitors and innovative
business models that continually
emerge
86%
80%
€8.7 billion
of buyers will pay more for a better
customer experience1
of shoppers surveyed want
same-day shipping2
Amazon fresh grocery business3
Sources:
1. CEI Survey 2015.
2. Temando Survey: “State of Shipping in Commerce ,” 2016.
3. Bloomberg.com. “Cowen and Co. Says Amazon’s Grocery Bet Should Pay Off,” https://www.bloomberg.com/news/videos/2017-03-06/cowen-and-co-says-amazon-s-grocery-bet-should-pay-off, 2016.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
3
Technology trends enabling digital transformation
The Internet of Things
(IoT)
Artificial intelligence
and machine learning
Virtual and
augmented reality
Connecting the end-to-end
consumer value chain for new
levels of customer proximity and
new retail offerings
Optimized business processes and
more impactful personalized and
contextual consumer experiences
Adds real-time digital information to
shopping environment to drive
next-generation consumer
experiences
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
4
Digital transformation priorities
Priority 1: Customer centricity
Priority 4: Business expansion
The customer is at the center of every
decision.
Explore new markets, expand with
franchise models, extend private label
offering.
Priority 2: Business process
intelligence
Optimize business outcome with intelligent,
self-learning algorithms. Improve efficiency
through machine learning / AI.
Priority 5: Smart retail technology
Leverage new technologies to differentiate the
shopping experiences and drive new revenue
opportunities.
Priority 3: Digital consumer
supply chain
Connect the real-time supply chain for greater
efficiency and new levels of responsiveness.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
5
A Modern Architecture to Enable Digital Transformation
Consumer touch points
Agility
Highest availability
High elasticity
High flexibility, reusability
Customer Experience
Front-Office
Extensions – SAP, partner & customer
Innovation & differentiation
Business networks & collaboration
Insight & analytics
Innovation & Differentiation
Stability
Business roles support, user experience
Rich industry functionality
Intelligent and automated
Designed for the business, not the end
consumer
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Intelligent Enterprise
Back-Office
6
A Modern Architecture to Enable Digital Transformation
Customer experience
SAP C/4HANA
Agility
Integrated with back-office
Open, extensible
Consent driven
SAP Analytics Cloud
Analytics & visibility
SAP BW/4HANA
Extensions to front- and back-office
Partner and Customer Innovation
Machine Learning, IOT
Stability
Choice of deployment – OP and CLD
Fiori Launchpad, Fiori UIs, classic UIs
Business roles support
SAP HANA Data Mgmt
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
7
Reference Architecture Retail and Vertical Consumer Industries
SAP Analytics Cloud
Business Intelligence
Planning
Predictive Analytics
SAP BW/4HANA
Meta Data Manager
Data Warehousing
Analytical Engine
Digital Asset Mgt by OpenText
Omnichannel POS by GK
Mobl. Consumer Assist. by GK
Marketing Cloud
Commerce Cloud
Sales Cloud
SAP C/4HANA
Extensions
Solutions
Foundation
Workspaces
Keytree Instore Technology
…
Service Cloud
Customer Data Cloud
Business Services
Leonardo Technologies
Platform Services
Data & Storage Services
Extensions
Industry
Advanced
Standard
SAP HANA Data Mgmt
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Agreement Profitability & Negotiation by gicom
MDG RFM by Utopia
Retail Merchandising
Master Data Governance
R&D / Manufacturing
Sales
HANA Platform
Fashion and Vertical Business
Prod. Lifecycle Costing
Supply Chain (EWM/TM)
Sourcing & Procurement
Supply Chain
Commerce
Finance
Big Data Services
…
…
Customer Mgmt
Service
+
Customer Activity Repository
& Applications
Integrated Business Planning
SCM
HR
Data Hub
8
SAP CAR – Omnichannel, Real-time Consumer Insight Platform
Cloud version planned
* Optional (not required anymore)
SAC = SAP Analytics Cloud
SAP
Promotion
Management
POS
TLOG
SAP
Merchandise
Planning
Customer
Master
Sales Order
SAP
Allocation
Management
Partner Apps
Customer Activity Repository
SAP HANA Live Analytic Content *
Fiori / SAC
Tightly Integrated
Loosely Coupled
SAP
(Forecasting & )
Replenishment
SAP HANA -in-memory computing
S/4HANA
Product
Master
SAP
Assortment
Planning
POS Data
Transfer and
Audit (TLOG)
Omni Channel
Sales &
Merchandise
Analytics
Inventory
Visibility
Order Sourcing and
Product Availability
Promotional Offer
Management
Offer Repository
(ARTS like format)
Location Clustering
Omnichannel Price
and Promotion Offer
Execution
SAP
Commerce
Unified
Demand
Forecasting
SAP
Marketing
SAP
BW/4
Inventory
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
9
Where are Retailers Investing?
Digital Transformation Priorities for Retailers
Priority 1: Customer centricity
Priority 4: Smart retail technology
Putting the customers’ point of view at
the center of every decision
Differentiate your shopping experiences and
drive new revenue opportunities
Priority 2: Service to the
segment of one
Priority 5: Monetizing
new customer offers
Leverage customer insights to provide
targeted personalized offerings
Leverage understanding of customer
needs for new revenue-generating offers
Priority 3: Digital consumer
supply chain
Connect the real-time supply chain for greater
efficiency and new levels of responsiveness
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
10
SAP Leonardo Integrate
Infuse technology into business processes to achieve breakthrough results
Design Led Innovation
Rapid
Prototyping
Solution Ideation
& Vision
Integration
Blueprint
Business Case
Development
Data Intelligence
SAP Leonardo
Technologies
SAP Cloud Platform
Data Management
Multi-Cloud Infrastructure
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Internet of Things
Blockchain
Machine Learning
Big Data
Microservices
SAP HANA
Analytics
Open APIs
SAP Data Hub
Flexible Runtimes
SAP Vora
Other SAP
Integration
Open Source Storages
AWS S3
SWIFT
Hadoop
…
SAP
11
Reimagine New Generation Business Process | Circular Economy
FROM Linear Economy
Take – Make – Waste
Manufacturer
Suppliers
Cold Chain
Manufacturing
Distribution
Call Center
TO Circular Economy
Strategic collaboration
with suppliers
Machine Learning
Consumer /
Health Centric
Smart sensors
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Product information
transparency and
ongoing self service
12
Retail Industry Trends to Watch in 2018
Innovation
Consumer
•
Blockchain & digital currency
payments
• Personalization (beyond segment-based
targeting to true 1:1)
•
Augmented & virtual reality
• Mass-customization
•
IoT
• Empowered store associates
•
Voice as a platform (Alexa,
Google Home, Apple
HomePod)
• Subscription commerce
•
Physical store transformations
•
Artificial intelligence enabler of
building the customer
experience
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
• E-commerce continues rapid growth,
grocery and consumer products surge
• Customers expect greater speed and
convenience
Connectivity
• Chatbot commerce,
particularly for customer
service
• Share, buy, & connect on
social media
• Mobile commerce and
geo-location
• Data-driven decisionmaking
• Through AI customer journey will get
smarter
13
What are Key SAP Solutions to Position
Retailer Priorities and SAP Solutions
Customer
centricity
Service to the
segment of
one
Digital Core /
SAP S/4 HANA
• S/4HANA
• CAR
• CAR Omnichannel
Sales
• CAR OPP
• S/4HANA
• CAR
•
•
•
•
•
S/4HANA
S/4 embedded EWM
CAR Inventory Visibility
CAR UDF
CAR Product
Availability
• CAR Order Sourcing
• S/4HANA
• CAR
LOB Extensions
• Hybris Marketing
• Hybris Commerce
• Assortment Planning
• Hybris Marketing
• Promotion Management
• Connected Goods
• POS by GK
•
•
•
•
•
•
• Hybris Commerce
• Hybris Revenue
Cloud
Digital Innovation
/SAP Leonardo
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• Design Thinking
• Cloud Platform
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Design Thinking
Analytics
Cloud Platform
Machine Learning
Data Intelligence
Big Data
Analytics
Cloud Platform
Machine Learning
Data Intelligence
Smart retail
technology
Design Thinking
Cloud Platform
Machine Learning
IoT
Connected Goods
Digital
consumer
supply chain
Ariba
F&R
Assortment Planning
Allocation Management
IBP
Transportation Mgmt
Monetizing
new customer
offers
• Design Thinking
• Cloud Platform
• Data Intelligence
14
Digital business scenario: Connected fashion
Customer
experience
4. Marketing
promotion
kicks in
3. System
determines
product
recommendations
6. Customer
receives smart
value-add
cross-sell
offers
Supplier
collaboration
10. Customer
picks up
order in store
5. Customer
orders in Web
shop
1. Sensor sends
end-of-life signal
11. Store
staff is prepared
and makes
complementary
value-add offers
7. Customer
pays and
schedules store
pickup
2. Fashion
company’s
system
predicts optimal
reorder point
8. Retailer
sources any
required additional
parts
9. Retailer
fulfills order and
delivers for store
pickup
12. Store
employee
registers new
shoes to initiate
tracking
Workforce
enablement
Assets and
supply chain
Digital
core
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
View a demo
of this scenario
15
Enabling seamless customer experiences
SAP Cloud Platform allows retailers to:
Extend existing cloud and on-premise
applications to create customer
proximity
Integrate your supplier, consumer, and
point-of-sale data for personalized
engagement
SAP Cloud Platform
Differentiate your customer experience
with brand-new cloud innovations
Extend, integrate, build
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
16
Under Armour Inc.: The art of the possible in customer centricity
Maximize athlete engagement and drive loyalty and growth
Profile
Loyalty
Marketing
Microservices
SFA*
Social
engineering
Commerce
CAR**
* Sales force automation
** SAP Customer Activity Repository
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
17
Unmatched Retail Expertise – SAP Coverage across all Retail Sub-Segments
208 of the 250 top retailers in the world run SAP:
18 of the 25
24 of the 25
18 of the 20 top
fastest growing
retailers in the world
top food retailers in
the world
apparel and footwear
retailers in the world
13,400+ Retail
Deep,
Embedded,
preconfigured
best practices
customers in 121
End-to-end
retail processes
countries
on a real-time
industryspecific
platform
capabilities
Clear
Industry
road map
86% of the Retailers in the Forbes Global 2000
are SAP customers.
Source: SAP Performance Benchmarking 2017.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
18
SAP Coverage Across Retail Sub-Segments
Industry
SAP attacks Retail by segment
Segment
 Segment specific go to market teams
 Targeted messaging by segment
Sub-Segment
 Strong references in each segment
 Segment specific solutions
 Areas of focus:
▪ Demand Management
▪ Mid-Market retailing
▪ Custom Development
 Key Trends:
▪ Internationalization
▪ Recessionary spending
▪ Retailers expanding into new
business models
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
19
Why Should We Propose
a Retail Version of SAP?
“Standard version” of SAP isn’t designed to manage:
❖
POS interfaces
❖
POS receipts (i.e. not using sales orders)
❖
Retail pricing & promotion (e.g. buy any 3 items from this
category and get 10% off the lowest priced item)
❖
Vast combinations of articles & sites (i.e. stores and DCs)
❖
Assortments & listing
❖
Stores and DCs as master data
❖
And other retail specific operations (e.g. retail allocation)
❖
…
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
20
20
Why Aren’t SAP Financials + POS
Solution Enough for Retailers?
❖
POS solutions are designed for store operations. So how
about warehouse and corporate financial operations?
❖
How do you get 1 view of the logistics & financial supply
chain from vendor to DCs to stores? Can you trust the
financial numbers enough in a disjointed environment?
❖
How do you drive a true omni-channel strategy where you
need to leverage on all nodes of your retail supply chain &
where you need a consistent master data strategy?
❖
How do you drive E2E promotion campaigns (e.g. custom
promotions driving replenishment & allocation processes)
❖
How does such a proposal help retailers simplify the
landscape when more advanced promotion, merchandise
planning & assortment management capabilities are needed?
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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21
SAP Retail Solution Strategy
The Need for a New Digital Core
Recognizing New Demands on Retail Supply Chain
… to complex fulfillment networks
From a linear, simple(r) product flow…
Store to Store Transfers
Cross-Docking
Question: how do
you achieve this
with a POS based
solution alone?
Click and Collect
Ship from
Store
Dynamic Routing
Drop
Ship
Last Mile Delivery
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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23
Old Technology Does Not Work Anymore
Customer
touch
points
Channels
Supply Chain
Marketing
Supply Chain
Supply Chain
Marketing
Marketing
Merchandising
Manufacturing
Merchandising
Manufacturing
Merchandising
Manufacturing
Point Solutions
Product centric
Organizational, technology,
business process, and data silos
Multiple faces to customer
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Integration
Digital Core
Customer centric
Aligned planning & execution based on
real-time business and customer data
Common face to customer
24
24
SAP Leonardo Builds on SAP Digital Transformation Framework
Supplier
Collaboration
Customer
Experience
DIGITAL
CORE
Business
Transactions
Intelligent
Insights
Retail for Merchandise Management
Workforce
Engagement
for Fashion and Vertical Business
SAP Customer Activity Repository
SAP HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Assets &
Supply Chain
SAP Cloud Platform
ECOSYSTEM
25
25
SAP CAR, the platform for omnichannel and digital transformation
A real-time hub of information and predictive intelligence about the business, the customer & inventory.
A unified platform for an integrated, omnichannel planning process and one version of the truth.
SAP S4 HANA Retail
for Merchandise
Management
Analytics
SAP
F&R
or
SAP S4 HANA for
Fashion and Vertical
Business
SAP
Merchandise
Planning
SAP
Assortment
Planning
SAP
Allocation
Management
SAP
Promotion
Management
(Fiori,
Lumira,
Dashboar
ds, etc.)
Custom
Apps or
Partner
Apps
or
SAP
Hybris
SAP ERP Retail
POS
In-memory database
Planning engine
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
TLOG
Master data
Attributes
Real-time inventory
Distribution / size curves
Pricing engine & repository
SAP CAR
POS data transfer & audit
Unified Demand Forecast
Dynamic order sourcing
On-shelf availability algorithms
Sales & merchandising analytics
SAP HANA
Get FREE trial of SAP Customer Activity Repository: www.sap.com/carcloudtrial
(Marketing,
Commerce, …)
…
Predictive analytics
Big Data
26
26
Key SAP Solutions and Investments deliver today on Retail Strategy
▪ Fiori for In-store Merchandising and Inventory
Management (Fiori MIM)
▪ SAP hybris Commerce
▪ SAP hybris Marketing
▪ SAP SuccessFactors
▪ Supply Chain Execution Platform (eWM, TM, EM)
▪ SAP Ariba
▪ IoT for Retail
▪ S/4 HANA for Retail
▪ S/4 HANA Finance
▪ S/4 HANA Retail for Merchandise Management
▪ S/4 HANA Fashion and Vertical Business
▪ Customer Activity Repository (CAR)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
▪
▪
▪
▪
▪
Promotions Management for Retail (PMR)
Assortment Planning for Retail (APR)
Merchandise Planning for Retail (MPR)
Allocation Management for Retail (AMR)
Forecasting and Replenishment (F&R)
27
SAP Solutions for Retail
Omni Commerce Customer Experience
hybris Commerce Suite, SAP CRM, SAP POS by GK
Marketing &
Merchandise Planning
SAP CAR Applications,
hybris Marketing
Sourcing, Buying
& Private Label
Ariba, gicom, Vistex
Supply
Chain
SAP F&R,
SAP EWM / TM / EM
Master Data
SAP MDG, hybris Product Content Management, SAP DAM by OpenText
Real-Time Customer & Business Insight
SAP CAR, hybris Marketing Data Management, SAP BI
Core Merchandising & Finance & HR
SAP S/4 HANA Retail for Merchandise Management, SAP S/4 HANA for Fashion and Vertical Business,
SAP S/4 HANA Finance, SAP CFM, Success Factors
Powered by SAP HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
28
SAP Solutions for Retail
Key Capabilities SAP S/4 HANA for Fashion
and Vertical Business:
•
•
•
•
•
•
•
Master Data
Demand and Supply Planning
Procurement and Logistics
Inventory Management
Sales and Distribution
Manufacturing
Finance
Key Capabilities SAP S/4 HANA Retail for
Merchandise Management:
•
•
•
•
•
•
•
Master Data, Pricing and Promotions
Replenishment, Allocation
Operational Buying
Inventory Management & Logistics
Order Management
Store Operations and POS Inbound/ Outbound
3rd party OpenText can be integrated for
Invoice Verification
SAP hybris Commerce Suite
SAP CRM Interaction Center
SAP POS by GK
Marketplaces
Omni Commerce Customer Experience
SAP
Merchandise
Planning
for Retail
SAP
Assortment
Planning
for Retail
SAP
Promotion
Planning for
Retail
SAP
CRM Loyalty
Management
SAP hybris
Marketing
3rd Party PLM
SAP
Forecasting &
Replenishment
SAP
Allocation
Management
SAP Extended
Warehouse
Management
SAP
Transportation
Management
Sourcing, Buying & Private Label
Marketing & Merchandise Planning
Global Data Pool
SAP Vendor
Funds
Management
(gicom/Vistex)
Ariba
SAP Master Data Governance &
Consolidation
SAP Event
Management
Supply Chain
SAP hybris Product Content
Management
SAP
Digital Asset Management by
OpenText
Master Data
SAP
Customer Activity
Repository
SAP
hybris Marketing Data
Management
SAP Business Intelligence
SAP Enterprise Performance
Management
SAP Governance, Risk &
Compliance
Real-Time Customer & Business Insight
SAP S/4 HANA for Fashion
and Vertical Business
SAP S/4 HANA Retail for
Merchandise Management
3rd Party Tax
Calculation
Integration (e.g.
Vertex)
3rd Party Payment
Mgmt Integration
(e.g. Alipay)
SAP S/4
HANA
Finance
SAP Integrated
Business
Planning –
Finance
SAP Customer
Financials
Management
SuccessFactors
Core Merchandising & Finance & HR
Key Capabilities SAP S/4 HANA Finance
•
SAP Accounting powered by SAP HANA
• SAP Cash Management powered by SAP
HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
29
SAP S/4HANA 1709 Release in Retail
- General Information
SAP S/4HANA On Premise 1709
GTM – general information
SAP S/4HANA OP 1709 comes with significant extensions of functionality and scope for
retailers as well as for fashion companies and companies with vertical business
Industry to core and support of vertical business models starting with wholesale enablement
are main objectives for S/4HANA OP 1709
For better and more flexible targeting of our customers, the GTM is with 2 solutions
corresponding to 2 price list items:
➢ SAP S/4HANA Retail for merchandise management
▪ Targeting typical retail companies operating stores and B2C channels (see also GTM documents
for 2016)
➢ SAP S/4HANA for fashion and vertical business
▪ Targeting fashion companies or companies with wholesale operations for products that are
seasonal, with constraints regarding availability etc.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
31
SAP S/4HANA On-Premise
Roadmap for retail for merchandise management & for fashion and vertical business
1610 – Recent innovations*
1709 – New innovations*
Retail
Retail and Fashion
•
•
Streamlined comprehensive retail merchandise
management scope in S/4HANA to support End-toEnd 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
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Wholesale Fashion Enablement :
• Supply Assignment (Order Allocation Run)
• Demand and Supply 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 – Logistics
 Structured articles with full products
– Master data maintenance
– Support in logistical processes
 Support MRP areas for special processes
•
•
Merchandise management - In-Store Merchandising
• Transfer Products app
• Fiori app enhancements for
• Order Products
• Lookup Retail Products
Merchandise management – User interface
• Improved usability of selected key transactions in Fiori for
classical GUI
• Object Pages for product, site, allocation table
* Feature highlights for SAP S/4HANA 1610 and 1709. See Feature Scope Description
of SAP S/4HANA 1610 and 1709 for full scope. (http://help.sap.com/s4hana)
2018 – Product direction**
Retail and Fashion Foundation
• New object page for promotions and enhanced object
pages for article and allocation
• Extended Fiori App ‘Lookup products’: Map for near-by
stores
• Enable Fiori Apps ‘Transfer products’ for mobile RFID
antennas
• Fiori App to manage single listings
• EWM integration enhancements for tied empties
• Cross-docking with single-recipient purchase order
• Machine learning GDS integration
Wholesale Fashion enhancements
• Enhanced Stock Segmentation strategies
• Enhance Supply Assignment capabilities
• Flexible Purchasing Commitments
• Collection Execution Management
• Fashion logistic capabilities enhancements
Enable Manufacturing Functionality for Vertical Retail &
Wholesale
• Stock Segmentation within manufacturing
• Master production/planned order & workbench
• Intelligent Services: Feasibility analysis
• Markers and bundles
• Smart Products: Made to measure
• Enhanced planning features
** This is the current state of planning and may
be changed by SAP at any time without notice.
32
SAP S/4HANA On Premise
Roadmap for retail for merchandise management & for fashion and vertical business (2)
2019 – Product direction**
Retail and Fashion Foundation
• Digitally assisted user experience for selected processes, e.g. for
store associates
• ‘Lean’ listing procedure
• BW/4HANA content foundation (phased)
• Further extend selected generic apps to support retail processes
Wholesale Fashion enhancements:
• Advanced Supply Demand Optimization using supply assignment
(‘ARun’) capabilities
• Advanced Flexible Purchasing Commitments
• Advanced Collection Execution Management
2020 – Product vision**
Retail and Fashion Foundation
• Digitally assisted listing workbench
• Smart sales price calculation
• Digitally assisted user experience for additional retail processes
in key roles
• BW/4HANA content foundation (phased)
Wholesale Fashion & Manufacturing
• Integrated Planning scenario with IBP & Fashion
• Enable Industry 4.0 manufacturing platform for fashion
Enhance Manufacturing Functionality for Vertical Retail &
Wholesale
• Process manufacturing for retail
• IoT: Automated production of individual products
• Digitally assisted shop floor processes
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
** This is the current state of planning and may
be changed by SAP at any time without notice.
33
SAP S/4HANA OP 1610
Retail for merchandise management – a look back
Simplified data models & solutions
Responsive user experience
Industry to core
 Elimination of aggregates
 Role-based access to business
transactions via Fiori Launchpad
 Harmonization of Retail article and material
 Unification of tables
End-to-end
 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
Accelerate execution and
throughput
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
 Improved usability of 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
Increase user productivity
 Generic articles, variant-creating
characteristics using configuration class
 Extended material number
 Harmonization of Site master and Business
Partner
 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
 Support of Material Ledger with valuation at
Retail and value only articles
Extend business model and
run vertical processes
34
SAP S/4 HANA Retail for
Merchandise Management
CORE
MERCHANDISING
35
SAP S/4 HANA Retail for Merchandise Management
SAP S/4 HANA for Fashion and Vertical Business
recent innovation
Retail specific functionality
Retail & Wholesale functionality
Wholesale & Manufacturing functionality
Product
Master
Customer
Master
Vendor
Master
Site
Master
Seasons &
Collections
Value Added
Services
Product
Taxonomy
Listing,
Assortment
& Layout
Pricing
Retail
Promotions
Retail
Markdowns
In-Store MIM /
Fiori
Planning
Planned
Independent
Requirements
Distribution
Curve
MRP
Retail
Allocation
Replenishment
VMI
Procurement
Vendor Funds
Management
Purchase
Requisition
Purchase
Order
Subcontracting
Advanced
Shipping
Notification
Invoice
Verification
Manufacturing
Bill of Material
Planned
Order
Production
Order
Production
Control
Workbench
Make to
Measure
Markers and
Bundles
Inventory
Management
Segmentation
Merchandise
Distribution
Goods
Receipt
Inventory
Mgmt.
Cross Docking
Warehouse
Mgmt
Sales
Order
ATP, ReScheduling
Demand/Supply
Matching
(ARUN)
Shipping
Billing
POS
Outbound
Master Data
Merchandising
Sales
36
SAP Retail Processes – example
Cross topics and Master Data
Organization
structure
Hierarchies
Business partner
and sites
Article
master
Season
Assortments
Retail
allocation
Supply
planning
(MRP)
Purchasing
Inbound
processing
Invoice
verification
Inventory
management
Segmentation
Price
management
Store
operations
Store
replenishment
Promotion
Mark downs
Outbound
processing
Billing
ATP
Sales Orders
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
37
Retail Core Merchandising (some examples)
Master Data Maintenance
•
SKUs: Single, Generic, Set, Prepack
•
Warehouse/ Distribution Center,
Stores, Department Stores, Shops
•
Vendor, Customer
•
Hierarchies (Merchandise
Categories, Article HierarchyCategory Mgmt)
•
New Product Introduction
•
Price Catalogue/ GDS/ MDG
•
End-of-Life Management
•
Labeling
•
Layout Handling (Space
Management Integration)
•
Mass Maintenance
Category Business Planning
•
Assortment Management
•
Retail Direct-Store-Delivery
Retail Price Management
•
Retail Price Mgmt & Execution
•
Competitor Pricing
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Markdown Management
•
Markdown Mgmt & Execution
•
Time-based Markdowns
•
Rule-based Markdowns
•
Slow-seller Management
Operational Buying
•
Purchase Order Processing
•
Collective Purchase Orders
•
Requirements Planning
•
Order Optimization
•
Enhanced Article Search
•
Allocation
•
Invoicing & Consignment
Chain Wide Inventory Management
•
Inventory Management
•
Inventory Valuation
•
Extended Retail Method of Accounting
(eRMA)
Promotion Management
•
Promotion Mgmt & Execution
•
Deal Management
•
Bonus Buy Management
Vendor Relationship Mgmt
•
Vendor Evaluation, Monitoring &
Scorecard
•
Vendor Collaboration
Cost Management
•
Total Landed Cost Management
•
Rebate Management
Contract Management
•
Contract Settlement (Condition Contract)
•
Vendor Funds
Sales Ordering
•
Sales Orders
•
Billing
Store Operations
•
Fiori In-store Merchandise & Inventory
Management (In-Store MIM)
 In-store Price and Promotion Mgmt
 In-store Inventory Mgmt
 In-Store Order Mgmt
•
POS Integration (POS Download, POS
Upload, POS & IDOC Monitoring)
38
SAP Retail ERP – Core Merchandising on HANA
(ERP 6.0 EhP 7 Sp02)*
> 220%
> 330%
> 60%
Faster promotion
change maintenance
Faster retail stock overview
Faster assortment assignment
> 320%
> 50x
> 540%
Faster mass listing
and listing reorganization
Faster display of listing
conditions change docs
Faster
assortment list
initialization
> 30%
> 200x
Faster allocation table creation
Faster search of
articles in IDoc
segments
> 60%
*) SAP lab results
Faster processing of
condition contract
SAP Fashion Management
from AFS and FMS to the new SAP S/4 HANA for Fashion and Vertical Business
SAP Fashion Management
Traditional business models are changing...
…and system landscape, too
SAP Retail
Retailer
SAP Fashion Management
Retailer
Retailer
SAP AFS
Consumer focus
Wholesaler
Expanding sales channels
SAP S/4 HANA for
Fashion and Vertical
Business
Wholesaler
Wholesaler
Success of strong brands
Private label growth
Manufacturer
Manufacturer *
Manufacturer
*) Manufacturing planned for 1809
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
41
SAP Fashion Management – Overview
What is SAP Fashion Management?
SAP Fashion Management is a multichannel, vertically integrated solution covering wholesale, retail and
manufacturing processes on one backend system based on SAP Merchandising for Retail running on SAP HANA.
Key capabilities:
ECC
S/4 HANA
SAP Fashion
Management
SAP Merchandising
for Retail
SAP S/4 HANA
Fashion and Vertical
Business

Single set of master data

Global inventory visibility

Common sourcing, buying and manufacturing

Capabilities for stock segmentation and stock
pooling across channels

Multi-channel Material Requirements Planning
(MRP Live)

Production Control Workbench

Order allocation run for optimized demand /
supply match

End-to-end processes with capabilities for
style/colors/sizes

Benefits from SAP HANA
SAP ERP 6.0
SAP HANA Platform
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP HANA Platform
42
Core concepts in SAP Fashion Management (1/4)
Fashion product
▪ Generic articles with up to three dimensions, can be structured (set, display, prepack, customer
assortment  Non-Production BOM)
▪ Usage along all processes
▪ Characteristic value conversion
▪ Bill-of-materials and routing for fashion products
blue
Inseam
30
gree
n
Waist
31
31
x
32
x
red
32
33
x
x
x
x
Season, collection, theme
▪
▪
▪
▪
Multiple seasons / collection / themes can be assigned to a product
Season master data can be used to determine the purchasing and sales period of the product
Manufacturing, purchasing and sales documents carry season information
2018 / summer /
men casual /
sailing
Season handling in production order
Value added services (VAS)
▪ Additional services attached to a product prior to delivery, such as ironing, labeling, special packaging
▪ Typically, separate costs for such services will be charged
▪ Automated determination by standard condition technique
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
43
Core concepts in SAP Fashion Management (2/4)
Segmentation
▪ Categorize demand and supply elements by logical
and/or physical aspects of a product
• For example: Quality, dye lot, country of origin 
physical segmentation
• For example: Sales channel (e.g. Retail,
Wholesale, Web shop)  logical segmentation
▪ Segmentation information is carried along the E2E
process chain, such as:
▪ Material Requirements Planning (MRP)
▪ Available to Promise (ATP)
▪ Order allocation
▪ Inventory visibility
▪ Pricing at segmentation level (wholesale)
▪ Production order (1809 Edition)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Reduce overstocking
by sourcing decisions that
match customer demand
Reduce out of stock by
optimal flow of existing
supply
Avoid
customer
returns
due to not
matching
deliveries
44
Core concepts in SAP Fashion Management (3/4)
Material Requirements Planning (MRP)
▪ Ensure material availability in requested quantity and time
▪ Match demand and supply on distribution center/plant level
▪ Create proposals for procurement or manufacturing
▪ Create one joined document across all channels by using grouping
functionality
▪ Consider segmentation
Stock on hand
Supply Assignment (Order Allocation)
▪ Assign stock elements to customer or store orders and fix these
assignments
▪ Ensure optimized stock usage and improved customer service
▪ Consider stock on hand and future receipts from procurement and
manufacturing
▪ Consider segmentation
▪ Supply Assignment and Back Order Processing (BOP) are merged into
one common solution based on advanced ATP
▪ Fiori based apps to execute, view the results and compare between
simulations
▪ Insight to Action Tool
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Future receipts
45
Core concepts in SAP Fashion Management (4/4)
Fashion Wholesale Common Foundation:
▪ New Purchase Order Workbench
▪ Multi Ship-to Order
▪ Pack separately, ship together (PSST) – bundling of sales order
items for common delivery/shipment
Example of Multi Ship-to Order
Delivery
Ship-to A
Stock Protection with Product Allocation
▪ Multi-level and horizontal Stock Protection
▪ Product Allocation
▪ Back Order Processing
Sales Order
Invoice
Manufacturer
Head office
Ship-to B
Ship-to C
Delivery
Delivery
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
46
SAP S/4HANA Retail for merchandise management OP 1610:
What is already in for Fashion?
Harmonization of Retail and Fashion on S/4HANA
Principle-of-one for cases with overlapping functionality.
Season concept from SAP Fashion Management has replaced the season concept of SAP Merchandising. Now, an article
can be assigned to several seasons, offering better support for multiple and much shorter seasons. See note # 2365665
Generic articles, provide more flexibility in the bundling of variant-creating characteristics independent from the
merchandise category hierarchy by using the new Configuration Class (Class type 300)
Distribution Curves from SAP Fashion Management have replaced Quota Scales from SAP Merchandising. See note #
2330577
Value Added Services from SAP Fashion Management have been added. Additionals from SAP Merchandising are still
available, but innovation will be carried out on VAS. See note # 2371631.
Transportation Chain/ Dateline from SAP Fashion Management. Transportation chain was an existing functionality from
seasonal procurement. Seasonal procurement is not supported in S/4HANA anymore
Planned Independent Requirements (FSH_PIR) from SAP Fashion Management. PIRs were existing in standard and got
extended to allow the user to enter PIR quanties at generic articel level and requirements get created at variant level
MRP Live from SAP Fashion Management. MRP Live is an MRP run already opimized for SAP HANA
Characteristic Value Conversion, EAN Recycling …
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
47
Fashion Common Use Cases
Channel protection
Important customers place orders late,
protect stock for them
Market segmentation
Equally important markets – e.g. countries
– are served from stock pool
Plan-based confirmations
Orders are confirmed only up to the plan
of the respective market segment
„Force” accurate planning by confirming
only up to plan
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
49
Stock Protection
Step 1: plan your protected quantities
10
PAL
10
30
30
20
20
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
50
Stock Protection
Step 2: protect stock based on plans and product availability
ok
30
ok
PAC
ok
PAL
10
0
☺
20?
30
50?
0
30
20
10
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
51
S/4 HANA advanced ATP – Overview
Product Availability
Check (PAC)
Product Allocations
(PAL)
Back Order
Processing (BOP)
Release For
Delivery
Online Order Promising • Mass Order Processing • Manage Business Priorities • Manage Shortages •
Supply Assignment • Fast Re-plan
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
52
Supply Assignment (ARun)
Advanced ATP (aATP) and Supply Assignment (ARun)
▪
PAC - Product Availability Check
▪
PAL – Product Allocation
▪
BOP – Backorder Processing
▪
ITA – Insight to Action
Release for
Delivery
STO
SO
OBD
BOP
reATP
PAC
Supply
Assignment
ITA
Release
Check
OBD
Manual
Actions
PAL
Warehouse Stock
Future Stock
Confirmed
date
Re-confirmed
date
Confirmed
quantity
Re-confirmed
quantity
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Assignment of
supply to
demand. Link
in database
Perform rule based release
checks
Change, create and delete
supply assignment results
Update and
release orders
for delivery
53
Back Order Processing – Details
The Five Confirmation Strategies
Win
Confirm
as requested
Shall be fully
confirmed in time
e.g. the most
important customer
orders
Gain
Improve if
possible
Shall keep the
confirmations and
should gain if possible.
e.g. orders that cannot
lose the earlier
confirmations
Redistribute
Redistribute
and Reconfirm
Might gain, might lose.
e.g. orders that can
lose confirmations

© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Fill
Delete
confirmation,
if required
Shall not gain anything,
should keep confirmation,
but may also lose.
e.g. non-priority customer
orders

Lose
Delete
confirmation
Shall lose all
confirmations
e.g. orders under credit
block
54
Back Order Processing – Details
The Confirmation Strategy Examples
Win
Web Channel
Gain
Retail
Wholesale
Redistribute
PO
SO
SO
STO
STO
SO
400
200
150
50
50
50
ATP during order entry
200
150
50
0
0
200
50
50
50
50
150
50
50
50
BOP
PAL
B Cust:
100 max
100
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
55
Evolution of SAP Architecture
...
Supplier Relationship Management
Self-Services
Internet Sales
Composite Applications
Self-Services
Internet Sales
Composite Applications
Strategic Enterprise Management
and more …
Strategic Enterprise Management
and more …
Industry Solutions
Switch Framework
Enterprise Extensions
SAP R/3
Industry Sol.
Industry Solutions
Enterprise Extension Set
Application
SAP R/3
Enterprise Core (4.70)
Technology
Multi Channel Access
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION SERVER (6.40)
J2EE
ABAP
DB and OS Abstraction
© SAP 2009 / Page 56 / SAP Retail Technology Facts
SAP NetWeaver 7.5
PEOPLE INTEGRATION
ITS
PEOPLE INTEGRATION
Multi Channel Access
Portal
Collaboration
Life Cycle Mgmt
SAP Web Application
Server 6.20
SAP ECC Core (6.0)
Life Cycle Mgmt
SAP Basis
Industry Extensions
SAP
SAPNetWeaver
NetWeaver2004
2004
Composite Application Framework
up to 4.6C
Enterprise Extensions
SAP ECC Core (5.0)
Composite Application Framework
Application
EHP 8
SAP ERP 6.0
mySAP ERP 2004
SAP R/3 Enterprise
EHP 7
...
EHP 2
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Mgmt
PROCESS INTEGRATION
Integration
Broker
Business
Process Mgmt
APPLICATION SERVER (7.00)
J2EE
ABAP
ITS
DB and OS Abstraction
56
SAP Retail – Specific Master Data
Example: Material versus Article
SAP ERP
SAP S4 HANA
Common DB tables
Material Master
Article Master
MARA
MAKT
MARC
MARD
MEAN
MLGN
MBEW
…
and specific DB tables for Retail
MKAL
Material Maintenance View
MAPE
MARA-ATTYP = blank
…
MAW1
MALG
…
MARA-ATTYP ≠ blank
00 = Single, 01 = Generic, …
Article Maintenance View
Structured Articles
Facts
 In the Retail terminology, you use the term Article instead of Material.
 Both a material and an article master record are represented by a set of database tables. Most of them are common for a
material and an article master record.
 An article uses additional DB tables to store data specific for SAP Retail functionality.
 You can distinguish materials and articles semantically by field MARA-ATTYP (Material Category).
 In SAP Retail, a specific Article Master Maintenance functionality has been implemented both to focus on data relevant for
Retail and to enable mass maintenance, for example with the reference handling or copy logic for store specific data.
 SAP Retail allows you to create specific structured articles as generic articles or sales sets.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
57
SAP S/4HANA 1709
Retail for merchandise management – overview
 Functional extensions



Extension of app “Product Master”
Structured articles with full products
Omni-channel promotion pricing
 Responsive user experience



New Fiori apps for the store manager and
store associate and new roles
Fiori Object pages for Product/Article, Site,
Allocation
Further visual harmonization (Fiori Theme
classical GUI)
 Industry to core

Further harmonization of site information to
business partner
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
58
Fiori – Product Master App
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
59
Details – Organizational Structures
800
Client
Client
800
0001
Company Code
Business Area
Purchasing organization
0001
Purchasing group
002
0001
1000
…
1000
1000
r
001
003
100
800
Sales organization
1000
channel
Division
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
10
Store Sales
20
Wholesale
30
Distribution
10
10
10
Sales area
Distribution
Distribution chain
Client
60
Hierarchies in SAP Retail
Customers want to group their articles for several reasons to enable, as an
example, a sufficient selection, reporting and maintenance.
All Merchandise
The following options are available in SAP Retail:
Food
Non-Food
Merchandise Category Hierarchy
Merchandise categories represent a thematic goods-related structure,
which is portrayed in SAP Retail by the merchandise category hierarchy.
Articles can therefore be grouped, for example, from procurement points
of view according to merchandise categories and displayed as a
merchandise category hierarchy.
Hardware
Apparel
Article Hierarchy
In the article hierarchy, you group your articles in a consumer-oriented
structure with as many hierarchies as you want. You can use this
hierarchy to display very clearly how, and according to what requirements
the consumer makes his purchasing decisions.
Menswear
Jacket
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Ladieswear
Blouse
Trousers
61
Site Assignment
Company code
1000
Purchasing organization
1000
Sales organization
1000
10
20
30
Store Sales
Wholesale
Distribution
Distribution channel
Site
Store ST00
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store ST01
Distribution Center
DC00
62
Article Master Data
Structured articles
Single Article
Standard article as
sold to the customer
Generic Article
2x
4x
3x
Display
Set
Prepack
Articles in display
packaging
Group of articles
with an
individual retail
price
Packs of
variants of an
article
Basic Data
Logistics DC
• Units of measure
• Weights and Volumes
• General data
• Validity
• Shelf-life expiration
• MRP parameters
• Forecast parameters
• General Control
parameters
• Batch management
• General control
parameters
• Scheduling
• Lot-size Data
• BOM Explosion
• Segmentation
Listing
• Listing procedure
• Periods
Purchasing
• General Data
• Purchase Prices
• Conditions
Variants
Sales
Blue/6
Blue/8
Green/6 Green/8
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Variants are articles that differ
only in certain characteristics
such as color, size. They are
grouped together as a Generic
• Logistics data
• Control data
• Price Calculation
• D-Chain spec.-article
status
Logistics Store
• MRP parameters
• Forecast parameters
• General Control
parameters
POS
• Control data for the
POS server
• POS receipt texts
63
Assortments (Clustering) and Listing
Assortment (Cluster)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Listing
64
Sales Price Calculation – Example
Vendor
Distribution chain
€ 10,16
Distribution chain
€ 10,16
Stores
Customers/ Wholesale
€ 14,54
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Distribution
chain plus
price list
€ 16,90
Distribution center
€ 10,16
Purch. Price
Stores
€ 15,90
Sales Price
65
Process Flow for Promotion Creation
Create
promotion
Promotion
type
Promotion
data
Higher-level?
Planning
data
Quantity planning
Assign site
groups
Additional
assignments
Subsequent
processing
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Reference
promotion
Article
Promotion periods
Price planning
Promotion-specific
Discounts
Currency
Classification system
Bonus buys
Supply Source Det.
Coupons
Price Activation
…
…
…
Announcement
POS-Download
…
66
Article Requirements Planning (MRP)
Planning procedure
MRP
Article
shortage
Requirements
Fixed Receipts
- Purchase Orders
Sales Orders
Stock Transfer Orders
Reservations
Firmed Proposals
- Firmed Purchase
Requisitions
RP Types
Forecast Data
Replenishment Data
Available Stock
Safety Stock
Maximum Stock
Target Stock
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
67
Purchase Order Processing
Purch. req.
Purchase
Order
Vendor
Vendor
MRP
Purchase
requisition
Purchase order
If necessary:
If necessary:
 Supply source
determination
 Release Procedure
 Quantity
optimizing
 Release Procedure
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
68
SAP Forecasting and Replenishment integrated with SAP Retail
Principle
SAP Retail
SAP F&R
Article for
Replenishment
RP-Type
example:
Transfer all relevant data: article,
site, supply chain info, stock etc.
Article for
Replenishment
11 with “No replenishment
in SAP Retail”
Causal Based Forecasting
F&R relevancy
RP-Type
SAP Retail
RP-Type
SAP F&R
11
11
Requirement Calculation
Requirement Quantity
Optimization
Purchase Order
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Order Proposal
69
Process Overview – View Procurement DC
STO from store
DC stocking
Demand-Driven
Push-Driven
Requirements Planning
Flow Through
Returns
Pull-Driven
Allocation (incl. Promo)
Roundings
Collective PO
Allocation Reply
from store
Planning Workbench
Vendor
Restrictions
Return PO
Purchase Order
with or w/o contract management
Inbound Logistics DC
Delivery based
on STO
Store
Merchandise Supply
Store
Invoice Verification / Subsequent Settlement (HQ)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
70
Process Overview – View Procurement Store
Procurement via DC
Demand-Driven
Store Replenishment
Store
Replenishment
Allocation table
Direct Procurement
Manual
Store Order
Returns
Vendor Managed
Inventory
Vendor
consignment
Allocation Reply
from store
For perishables
and nonperishables
Review of
quantities
Direct Store
Delivery
Push-Driven
Manual Store Order
Purchase Requisition
Returns
IDOC orders
Optional:
Substitution
Stock Transport Order
External
procurement
Alternative:
Allocation
Recall
DC stock
reduction
PO / Collective PO
Return STO
Vendor PO
Return
PO
Inbound Logistics DC
Merchandise Supply
Goods Receipt Store
Invoice Verification / Subsequent Settlement (HQ)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
71
Store Replenishment
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
72
Source of Supply Determination
Demand for
Article Jeans
1.000 EA
in DC01
Check quota arrangement
Quota arrangement
70%
30%
Source list
Article _JEANS
Site
DC01
Source list
DC01
01/01 31/12
01/01 31/12
Which source
of supply?
Vendor XYZ
Quantity contract
Valid from 01.01 to 31.12
Article Jeans
DC02
Outline agreement
100.000 EA
70%
Contract for
vendor exist
30%
Supply source indicator
 Extern 70%
 Extern before intern
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
 Intern
30%
 Intern before extern
73
Price Determination in Purchasing Documents
Vendor A
Vendor B
Head Office
Purchase Order 2
Purchase Order 1
Article
Pur.-Org.
Vendor
Site
Net Price
Quantity
Freight 3%
Toothpaste
1000
A
DC1
1.00 EUR
1000 PC
30 USD
Order Value 1030,00 EUR
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Purchasing
Org 1000
Condition Type: FR01
Vendor Freight for
Vendor A: 3 %
Article
Pur.-Org.
Vendor
Site
Net price
Quantity
Toothpaste
1000
B
DC1
1.14 EUR
1000 PC
Order value 1140,00 EUR
74
Central Procurement and Distribution of Goods
Head Office
Head Office
Allocation
Vendor
Collective
PO
table
Pull
Push
DC
Stores
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
75
Store Distribution Supply Chain Scenarios
One-time items or new products
Re-orderable merchandise
Procurement
Procurement
prior to push
process
roll-up (predictive or
reactive)
Push:
Pull:
Inventory (or supply)
of the DC is
allocated to stores
based on rules or
store performance
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store demand is
predicted for stores
and ordered at the
DC
76
Retail Allocation – Business Process
Head office
Vendor
Main Task:
Plan, control and manage the
distribution of merchandise
among a number of recipients
(mainly stores)
DC
Store A
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store B
Customer Z
77
Allocation Table in Retail
Detailed Features
Put
away
Weeks
of
supply
Planned
data
DC
Store A
Current
stock
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Sales
data
Vendor
Sales
history
Quota
scales
Rounding
Store
groups
Store B
Onhands
Customer Z
Trend
muliplier
Open
orders
78
Receiving and Paying
Inbound Processing – Integration Scenarios
Purchase
Order
ASN
Invoice
Invoice
Verification
Accounting
Inbound
Delivery
Goods
Receipt
Stock
Warehouse Management System
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
79
Receiving and Paying
Logistics Invoice Verification – Process Overview
1 Create invoice and assign it to purchase orders or goods receipts
L
O
G
I
S
T
I
C
S
*) if S4 HANA Retail
and S4 HANA Finance,
no RFC needed
Purchase
order
Accounting
document
Manual creation
and assignment
Allocation
using EDI
2 Verify and correct the invoice, if necessary
Purchase
order
Target invoice = actual invoice
Accounting
document
RFC*
3 Transfer and post the approved invoice
FI
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Accounting
document
Update accounts in
company code
A
100
B
100
80
Outbound Processing
Warehouse Management
The outbound delivery is a document containing all the data required for triggering and
monitoring the complete outbound delivery process.
The following actions are executed in outbound delivery:
•
Create outbound delivery
•
Picking outbound delivery
•
Packing outbound delivery
•
Posting goods issue
SAP supports the usage of:
•
Deliveries without WMS
•
Full WM
•
Lean WM
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
81
Sales Order Handling
Sales Order in a Nutshell
Previous
…
 Inquiry
 Quotation
 (Fashion-)
Contract *
Header
Item
Schedule line
Schedule line
Item
Related
 ATP
 Credit check
Org. data





Sales organization
Distribution channel
(Division)
Sales office
Sales group
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Next…
Sales order structure
Schedule line
Typical types








Standard order
In-season order
Rush order
Free-of-charge
Consignment
Purchase to order
Make to order
Third party order
 Return order
 Credit memo
requests
 Supply Assignment
(ARun) *
 Outbound delivery
 Order related billing
(e.g. pro forma)
 MRP / Procurement
Master data





Business Partner
Article
Price conditions
Season
Value added
services (VAS)
 Routes
 Order reasons
*) part of SAP S4 HANA Fashion and Vertical Business
82
Fiori for In-Store Merchandising and Inventory Management
Headquarter
S4 HANA
Store
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
83
Fiori Apps for In-Store Merchandising
S/4 HANA 1709 Overview
Transfer Products
Look Up Product
Issue stock transfer orders
Real-time access to product information
to answer customer questions
Print Labels
Adjust Stock
Count Product / Manager View
Real-time stock adjustments
and ad-hoc counting
Perform cycle counting, physical inventory, monitor
counting process
Transfer Stock
Receive Product
Post receiving (trusted or detailed)
from internal and external vendors.
Order Product
Store Associate
Store Manager
Transfer stock from one location to another
Perform Store Walk-Through
Task list for stock keeping tasks like immediate stock corrections
Order product by reviewing the
order proposal on shelf or ad hoc
➢ 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
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
84
Fiori Launchpad
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
85
SAP S/4HANA 1709
Retail for merchandise management – functional extensions
Omni-channel promotion pricing
 Scope: Integration of omni-channel pricing with sales order
in S/4HANA
 Key capabilities


Sales order to call “Promotion Pricing Service” in SAP CAR*
Applying of calculated discounts to sales order line items




article related discounts (e.g. 10% on article/merchandise
category/article hierarchy)
bonus buy discounts (buy product A and product B => 10% on
product C)
transactional discounts & time-dependent discounts
BAdIs to provide customers with options to develop own use
cases e.g. Sales orders to process incentives (coupons,
loyalty points, functional triggers)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
*CAR = SAP Customer Activity Repository
86
Omnichannel Promotion Pricing
“Local deployment”
“Central deployment”
SAP
Commerce
SAP Promotion Management on CAR
local service and repository
SAP
Omnichannel
POS by GK
Promotional Offer Maintenance
Price and Offer Repository &
Omnichannel Price and Promotional
Offer Execution
local service and repository
SAP Customer Activity Repository
Cloud
Service
Planned for 2018
Base Price Maintenance
SAP S/4HANA OP
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
cloud service and repository
87
Integrated Offer/Coupon Management Process
Create offer
w/wo coupon
The integrated scenario will leverage:
•
CAR/PMR to create offer/coupon
•
SAP Marketing to publish the offer
•
SAP Commerce, SAP Omnichannel
POS by GK, SAP MCA by GK to
present personalized offer (based on
context using offer recommendation in
SAP Marketing)
•
Coupon Management Service by GK
to validate and redeem offer in any
channel
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Verify coupon code
and check-out
Customer accepts
and uses offer /
coupon
Present
personalized offer /
coupon to customer
Enrich offer and
release for
publishing
Customer
engagement (web,
mobile, etc)
Calculate
Recommend offer
(using context)
88
SAP S/4HANA 1709 – Omnichannel Promotion Pricing
Offer Examples
▪
▪
The sales price of product SHIRT in this
store is 15 €.
▪
Today 20% off on merchandise category
MILK
▪
Buy 3 from a specific merchandise
category, then get the cheapest item for
free (Mix’n Match)
▪
▪
Get 2% off on total value of shopping cart,
if shopping cart has a value of >100 €
▪
Get 100 extra points, if shopping cart has
a value of >50 €
On Monday October 2nd between
6pm and 8pm, get any pizza for
3,99 €
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Gold card members get extra
loyalty points today
▪
Show coupon and get 2 € off
▪
Get a 10 € coupon which you can
use for your next purchase when
shopping cart value is >100 €
▪
In all stores in Bavaria the
customers get 10% discount on their
purchase during the “Oktoberfest”
▪
Get 10% off if you buy 2 pair of
jeans ONLINE.
Sales person manually grants to the
customer an additional discount of 3 €
at POS on the book, as it has a stain
on it.
89
How SAP Retail Interacts with POS
Top POS Capabilities
POS Server
Master Data
Store User
▪
Goods receipt,
transfers, issue,
scrap, etc.
▪
Stock take
▪
Raise orders
▪
Reports
POS Sales Data
Customer Activity
Repository
SAP S/4 HANA
Warehouse User
▪
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
▪ Proven capabilities to
integrate real time w/ SAP
(e.g. pricing, promotion
data)
Warehouse functions
HQ User
▪
Category Mgmt
▪
Pricing
▪
Marketing
▪
Procurement
▪
Allocations
▪
Financials
▪
Master Data
▪
Reports
▪ Capability to interface w/
Loyalty Management
Solution
Key Business Benefits
▪ E2E store inventory
visibility
▪ Swift central planning and
merchandise distribution.
▪ Single source of operations
data for stores, agents &
warehouses
90
Digital strategies are disruptive and changing the rules of retail
Retail is faced with new
challenges and opportunities:
Retail must be reimagined to:
 Hyperconnectivity of devices, sensors, and
physical assets
 Fundamentally rethink business models
using technology to create and capture new
sources of value
 Rising consumer expectations for
personalized, just-in-time products and
services
 New competitors with digitally led strategies
and simplicity at the core of value
proposition
 Availability of new technologies such as inmemory and cloud computing providing
ability to deliver experiences not possible
before
© ©2018
SAP
SE SE
or an
affiliate
company.
All rights
2016
SAP
orSAP
an SAP
affiliate
company.
Allreserved.
rights reserved.
 Engage shoppers across all touch points
along the shopping journey, incorporating
technology in a meaningful way
 Equip store associates with new tools and
training to live up to heightened shopper
expectations
 Transform business processes based on
real-time and complete customer and
business data
This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. 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
9191
SAP S/4HANA Retail for merchandise management
… Focus on the Digital Core
The vision: Enable retail companies to transform customer engagement
and inspire associates through digital transformation
Simple data model
SAP 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 solutions
SAP S/4HANA comes with innovative and
feature rich features such as
recommendations, predictions, and
simulations.
Non-disruptive journey
SAP S/4HANA can be deployed in a nondisruptive manner.
SAP S/4HANA
- Retail for Merchandise Management
- For Fashion and Vertical Business
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Choice of Deployment
(Cloud, on-premise, hybrid)
SAP S/4HANA offers best in class choice
of deployment in form of HEC
92
SAP S/4HANA Retail for merchandise management
… Industry to Core
Retail Stock Overview
Site Maintenance
In total
In total
2585
Total distribution of Retail usage inside and outside of Retail
(CP, WSD, Automotive, High Tech, Oil & Gas, etc. )
1969
Customers
Customers
Thereof
Thereof
508
535
from Retail1
from Retail1
80% are non-Retail customers
73% are non-Retail customers
Allocation Table
Article Maintenance
In total
In total
2229
957
Customers
Customers
Thereof
306
from Retail1
68% are non-Retail customers
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Thereof
569
from Retail1
74% are non-Retail customers
Retail is one of the most widely
used industry solution within
SAP.
74%
26%
Outside Retail
industry
customers2
This solution is heavily used by
cross industry customers.
S/4HANA vision is to support
these processes end-to-end.
Retail industry
customers
1 Early
Watch Analysis (EWA) data 2014, customer industry
assignment based on Master Code
2 Ratio based article maintenance from previous slide
93
SAP S/4HANA Retail for merchandise management
… Solution Scope for 1610 on premise
Simplified data models &
solutions
Elimination of aggregates
Unification of tables
End to end
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
Accelerate execution and throughput
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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
Increase user productivity
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
Extend business model and
run vertical processes
94
SAP S/4HANA Retail for merchandise management
… Industry to Core - Retail provides leading processes for cross-industry customers
WHY 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)
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
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
95
SAP S/4HANA Retail for merchandise management
… Guiding principles for development
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
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
RENOVATE
•
Simplify data models
•
Remove aggregates and indices
•
Provide FIORI 2.0 based UIs
•
Re-design transactions and processes (roadmap)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
96
SAP S/4HANA Retail for merchandise management
… Deprecation
Topic
Replaced by
Remark
Article 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
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Note 2371618 - S4WTL - Retail Functionality not available anymore
97
SAP S/4HANA Retail for merchandise management
… Compatibility packs
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
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Note 2371605 - S4TWL - Retail Functionality not strategic anymore
98
SAP S/4HANA Retail for merchandise management
… Complementary Solutions
SAP Forecasting and
Replenishment
(on SCM) 5.2
master data, stock information, open orders, promotions ->
<- Order proposals ,
master data -product, prices ->,
<- orders, customer data
Commerce platform 6.2
SAP S/4HANA
Retail for
merchandise
management
aggregated sales and
inventory data from
stores
master Data, locations,
inventory, sales
transactions, article &
merchandise category
hierarchies, ATP
information,
POS outbound –
assortment list (price
information)
SAP
Allocation
Management
for Retail
SAP
Promotion
Management
Retail
SAP Customer Activity Repository (CARAB 2.0)
POS Data
Transfer &
Audit
Multichannel
sales
transactions
On Shelf
Availability
Algorithms
Unified
Demand
Forecast
PCM
Data Hub
S/4HANA Finance
SAP
Assortment
Planning for
Retail
Inventory
Visibility
Omni-channel
Availability
Omni-channel
Pricing
Product
Catalog
Grouping into
Product
Catalogs
Storage in a
staged model
Commerce Suite
Data Hub
SAP
Merchandise
Planning for
Retail
Article data integrated in
e-commerce processes:
Order
Web content / marketing
Pricing
In-Store Clienteling
…
Sales transactions,
goods movements in
store
Point of Sale
Point of Sale
Point of Sale
Point of Sale
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
99
Digital business framework for retail companies
SAP has innovated its portfolio to provide both a stable digital core and flexible line-of-business extensions.
MARKETING AND MERCHANDISING
• SAP Merchandise Planning for Retail
• SAP Assortment Planning for Retail
• SAP Promotion Management for Retail
PROCUREMENT AND PRIVATE LABEL
SUPPLY CHAIN
• Supplier collaboration
• Business network
•
•
•
•
OMNICHANNEL CUSTOMER EXPERIENCE
SAP Forecasting and Replenishment for Retail
SAP Allocation Management for Retail
SAP Extended Warehouse Management
SAP Transportation Management
•
•
•
•
•
• SAP Hybris Marketing
Suite
SAP Hybris Commerce solution
SAP Hybris Commerce, Assisted Service Module
SAP Hybris Sales Cloud portfolio
SAP Hybris Sales Cloud portfolio
SAP Omnichannel Point-of-Sale by GK
SAP Customer Activity Repository application
Products
The Digital Core for Retail
•
•
•
•
Master data management
Assortment management
Promotion management
Retail price & markdown management
• SAP S/4HANA Supply Chain for Extended Warehouse
Management
• SAP S/4HANA Advanced Available-to-Promise
•
•
•
•
•
•
•
•
Supplier information and master data
Operational contract management
Merchandise buying
Private label development
Retail for Merchandise Management – retail end-to-end
Fashion and Vertical Business – retail-fashion end-to-end
• Time capturing
• SAP Success Factors Employee Central solution
connectivity
• Accounting and entity close
• Accounting
• Cost management and profitability analysis
•
Products
•
•
• SAP Workforce Forecasting and Scheduling by
WorkForce Software
Suite
•
•
•
•
Core human resources and payroll
Talent management
Time and attendance management
Human capital analytics
HUMAN RESOURCES
SAP HANA
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Merchandise allocation execution
Distribution curve
Basic warehouse management
Inventory management and valuation
Financial planning and
analysis
Accounting & financial close
Treasury management
•
•
•
•
•
•
Sales order management
Billing and invoicing
Store merchandise and inventory management
Store connectivity
SAP Leonardo
Enterprise
Management
• SAP Master Data Governance
• SAP Exchange Media
Receivables
management
Invoice
management and
accounts payable
SAP S/4HANA Finance
• Integrated business planning
• Accounting and financial close
• Treasury and financial risk management
• Receivables management
• Integrated business planning
FINANCE
|
SAP Cloud Platform
100
Front office
SAP Retail – Reference Architecture
MD & Insight
Back office
Self Checkout
Mobile POS
Self
Scanning
Web shop
Recipes/s
hopping
list
In Store Clienteling
Smart
Carts
Beacon
Data
Social Data
IoT
Consumer
apps
Store Backoffice
Mgmt
Experience Mgmt
Product Content
Loyalty Mgmt
POS Transaction
Mgmt
Personalization
Commerce Mgmt
Interaction Center
Mobile POS
Order Orchestration
In-Store Clienteling
Customer Master
POS
SAP Omnichannel
POS by GK
MPR / APR
Product
PMR
Real-time Inventory
Omnichannel Price Execution
CAR
MDG (optional)
SAP Cloud Platform
Identity Management
Data Management | Application | Analytical | Experience Services
Mobile Services | Design & Development | Security | Management
Comp.
Pricing
Omnichannel Article Availability & Sourcing
Sales Audit
Customer
SAP CRM
Hybris Commerce Platform
IoT
Platform
Personell
apps
Customer Profiling
Planning
Recommendation
Acquisition
Orchestration
Segmentation
hybris Marketing
DAM by
Open Text
(optional)
Learning/Talent
Supplier
Store Workforce
SCM planning
Order Lifecycle
Management
Master Data
GS1 Data Pool
In-Store
Fulfillment
Execution
Financial
Execution
SAP S/4 HANA Retail
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Warehouse
Transportation
Fulfillment
Management
Execution
Track&Trace (Event Management)
SCM (EWM/TMS/EM)
Store Repl
DC Repl
SAP F&R
jam
IBP
Collaboration/
content
Import/
Export
SAP Global
Trade Solution
(GTS)
Non-SAP
Space
tool
101
SAP Retail Complementary Solutions
SAP CAR, the platform for omnichannel and digital transformation
A real-time hub of information and predictive intelligence about the business, the customer & inventory.
A unified platform for an integrated, omnichannel planning process and one version of the truth.
Analytics
SAP S4 HANA Retail
for Merchandise
Management
SAP
F&R
SAP
Merchandise
Planning
SAP
Assortment
Planning
SAP
Allocation
Management
SAP
Promotion
Management
(Fiori,
Lumira,
Dashboar
ds, etc.)
Custom
Apps or
Partner
Apps
or
SAP S4 HANA for
Fashion and Vertical
Business
or
SAP ERP Retail
In-memory database
Planning engine
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP
Hybris
Master data
Attributes
Real-time inventory
Distribution / size curves
Pricing engine & repository
SAP CAR
SAP HANA
POS data transfer & audit
Unified Demand Forecast
Dynamic order sourcing
On-shelf availability algorithms
Sales & merchandising analytics
(Marketing,
Commerce, …)
…
Predictive analytics
Big Data
103
SAP Customer Activity Repository 3.0
…
SAP ERP Retail
SAP S/4 HANA Retail
for Merchandise
Management
SAP S/4 HANA for
Fashion and Vertical
Business
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
104
SAP Customer Activity Repository (CAR) Trial
CAR Trial Description
In this (free) trial various consuming applications and scenarios are showcased and accessed
using SAP Fiori Homescreen:
•
5 SAP Fiori Multichannel Key Performance Indicators
•
Examples SAP Lumira Simplified UX accessing SAP CAR
•
SAP Sales Insigths for Retail accessing SAP CAR
•
Example: SAP Hybris Marketing Customer Segmentation integrated with SAP CAR data
•
Example: Consumer Mobile App accessing SAP CAR
Link to the trial
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
105
SAP Promotion Management for Retail on CAR
Process Flow - PMR on CAR with hybris Marketing
Driving Marketing and Merchandising Collaboration
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
106
SAP Planning: High Level Retail Planning Process
Push
Allocation
Management
(Seasonal / Fashion)
Strategic
Planning
Define corporate
strategy
Multiyear strategic
plan
Merchandise
Planning
Assortment
Planning
Plan sales, receipts,
Cluster stores
markdowns, margin,
inventory, open-to-buy Plan assortment
strategy (# of
Plan for:
customer choices)
 Regions
Plan corporate targets
 Channels
for sales, costs &
 Merchandise hierarchy
margin
 Locations
Plan headcounts,
capital expenditures &
expenses
Model financial
statements
Execute &
In-Season
Listing
Buy to plan
Analyze actuals &
trends
Plan optimal product
mix by category
Recalculate OTB
Plan demand
In-season
adjustments
Initial allocation
In-season fill-in
End-of-season push
Pull
Replenishment
(Basics / Consumer
Goods)
Forecast demand
Consider demand
influencing factors
Plan new products
Replenishment
Reconcile to
merchandise plans
Inventory optimization
Multi-echelon
Exception handling
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
107
Omnichannel Planning on CAR
recent innovation
Market Hierarchy Example
Total
Company
Region 1
Region 2
Country 1
Store
Channel
Data available on CAR
•
Master data (products, DCs, stores, customers / accounts, customer
DCs, customer stores, suppliers)
•
Product Hierarchy
•
Market hierarchy
•
Location clusters (own stores or customer stores)
•
Product & location attributes
•
Sales orders & rejections history (customer, customer group)
•
Shipments & returns history (customer, customer group)
•
Inventory (by segment)
•
Sales history (retail, digital, and wholesale)
•
Prices (retail price, promotion price, cost, wholesale sales price, MSRP)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store
Group 1
Country 2
Web
Channel
Store
Group 2
Wholesale
Channel
Key
Account 1
Store
Group 1
Key
Account 2
Account
Group
Store
Group 2
108
SAP Offers 2 Deployment Options. Each Begins with Planning Templates.
Month (rolling)
OTB Reconciliation
Channel Mix
1. Retail Merchandise Planning*
compare planning versions; release
budgets; release final plans
plan distribution channels
Month (rolling)
Week (rolling)
Channel Plan - Comparability
Merchandise Plan - Division
plan overall comparable & non-comparable stores
Month (rolling)
Store
Area Plan
(m2 or f2)
plan all divisions
Week (rolling)
Channel Plan - Multi-Store
Merchandise Plan - Department
plan multiple stores
plan multiple departments of a division
Week (rolling)
Single Store Plan
plan division, department, class, subclass per store
2. Omnichannel Merchandise Planning
Week (rolling)
Week (rolling)
Merchandise Plan - Class
plan multiple classes of a department
Omnichannel
Regional
Targets
(Month)
Top-Down,
Bottom-Up
Top-Down,
Bottom-Up
Omnichannel
Regional
Targets
Top-Down,
Bottom-Up
(Week)
Top-Down,
Bottom-Up
Omnichannel
Regional
Targets
(Season)
Top-Down,
Bott0m-Up
Retail
E-commerce
Wholesale
(Month)
(Month)
(Month)
Week (rolling)
Merchandise Plan - Subclass
plan multiple subclasses of a class
OTB
Reconciliation
Release to
Assortment
Planning
Stores
Stores
Vertical
Business
Retailer
Digital
Digital
Stores
Wholesale
* Two variants of Retail Merchandise Planning:
(1) Use of fashion season & (2) Do not use
fashion season.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Retailer
Digital
111
The SAP Assortment Planning Process
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
112
Allocation Management
recent innovation
• SAP Allocation Management manages the distribution of
products from distribution centres to stores with a focus on
seasonal or fashion-type merchandise.
• The solution supports the allocation by offering three
predefined business scenarios:
• Plan-, target, or KPI-driven initial allocation
• Automatic forecast-driven in-season fill-in and
• In-Season Manual push
• It gives full transparency into both, upcoming workloads and
planned allocations across the market and down to store
and size, if required.
• Powered by UDF
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
114
SAP Allocation Management for Retail – Definition
Retail allocation is the process of assigning individual product quantities to eligible
stores based on their sales performance and their potential in the different stores.
SAP Allocation Management for Retail supports
▪ the selection of stores that have to receive merchandise and
▪ the determination of appropriate allocation quantities for these stores
▪ to cover the consumer demand for a given time period.
SAP Allocation Management for Retail provides
▪ automatic and
▪ manual allocation triggering.
SAP Allocation Management for Retail allows the allocator
▪ to review the upcoming allocation workload
▪ to investigate exceptional situations, like undersupply.
▪ to review, adjust and release allocation plans
▪ to let the system calculate and create allocation plans in the background.
Maximize sales and
margin by having the right
product in the right store
Based on SAP Customer Activity Repository
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
115
Allocation Processes as part of the seasonal lifecycle process
Pre-season
Allocation Plan
Allocation Management
Strategic
Planning
Merchandise
Planning
Plan targets
like sales
revenue
Initial
allocation
Assortment
Planning
In-season
manual push
define product mix,
define buying
instruction
Assortment
Planner
Allocator
Purchase
Order
(ERP)
Ordering
Purchase Order
settled
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
In-season
fill-In
Assign individual product quantities to eligible
stores
Store
Transfer
Order
(ERP)
Production
Distribution to stores
Delivery
Time
of Arrival
t [weeks/months]
116
SAP Retail Omnichannel Commerce
Inventory Visibility Across Sales Channels
Online Shopping scenarios
Fulfill
Order
Handover
Collect
In Store
Order
Webshop
Logistics
&
Click
Stock
Ship
Availability and Sourcing
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Logistics
117
Omnichannel Availability and Sourcing
SAP Hybris Commerce, integration package for SAP for Retail
Search and Browse
SAP Hybris
Commerce &
Store
Locator
Integration package
for SAP for Retail
Total
Stock
Basket
+
Checkout
Availability
Omnichannel Availability Check
Place Order
Sourcing
Sourcing
SAP CAR
Store Inventory
Visibility
SAP Retail
SAP S/4HANA 1709
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store
Stock
DS ATP
Stock
Vendor
Stock
Temporary
Reservations
Vendor
Stock
ATP CHECK
118
Inventory Visibility Across Sales Channels
Omnichannel Article Availability and Sourcing (OAA)
▪ True Omnichannel Article
Availability across all
sales channels
▪ Central repository for available
omnichannel stock in SAP CAR
▪ Quasi real time – as precise as
possible – for maximum
performance
Search and Browse
Basket
SAP Hybris
Commerce
Search
Index
Total
Stock
Availability
+
▪ Designed for high volume retail
businesses
Omnichannel Availability
SAP CAR
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Store
Stock
DC ATP
Stock
3rd Party
Stock
119
Integration of SAP Hybris Commerce with SAP Retail Solutions
Architecture and Technology
Assisted
Service
Mode
PunchOut
Integration
(Buying)
SAP Hybris
Commerce
with Extension
Asynchronous
yData Hub
Asynchronous
Order Integration
Synchronous
Synchronous
Find more details
about the
SAP for Retail
Integration
Package
in the
Omnichannel
Customer Wiki.
plus
SAP Hybris Commerce Integration Package
for SAP for Retail
SAP CAR
SAP Hybris Marketing
Cloud
Asynchronous
SAP Hybris C4C
EDI
S/4 HANA Retail
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
3rd Party
120
SAP Forecasting & Replenishment – Core aspects
Minimize inventories
to reduce cost and optimize
margins
Maximize product availability
to increase turnover and meet
customer demand
What we offer ....
... and how we do it
SAP F&R
▪ Sophisticated causal-based forecast
▪ Increased forecast accuracy
▪ Cost reductions in ordering and
logistics; reduction of carbon
footprint
Auto-Replenishment
Quantity Optimization
▪ Increase of turnover and customer
loyalty
▪ Transparency
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
▪ Demand-driven replenishment
Forecasting
Order Proposal Management
Exception Monitoring
▪ Automated replenishment
processes
▪ Dynamic service levels
▪ Streamline inventories along the supply
chain
▪ High degree of automation
▪ Alert-driven manual interventions
▪ Analytical services
▪ Optimized for high data volumes
121
SAP F&R - Demand driven multi-level replenishment
Respond quickly to changes in consumer demand through multi-level consumer demand driven replenishment plans
Replenishment
Calculation
■ Causal based
forecast
■ Based on demand
forecast/plan
■ Advanced safety
stock concept
■ Right mix of
advanced
science and
robustness
■ Store and DC
replenishment
■ Consideration of
multiple supplier
restrictions
■ Adopted to retail
volumes
■ Add-on for Fresh
products
■ Add-on for Fresh
products
■ Multi-level
capabilities
Order Proposal
Management
Inventory
Optimization
Demand
Forecast
■ Inventory
balancing
methods
■ Order
consolidation/
splitting
■ Flexible order
review and
release
management
■ Order transfer to
SAP
Merchandising or
other ERP
systems
Business
Analytics
Reports on
■ Forecasting
quality
■ Inventory
evolution
■ Out-of-stock and
lost sales
Built-in Integration to SAP Retail
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
122
Example architecture of SAP F&R 5.2
SAP F&R within SCM
(SAP) ERP Retail
Transfer of
relevant data
Master
data
DIFs
Open
Orders
Sales
SAP CAR (POS)
Stock
POS Sales Audit
& Transfer
Real-time
inventory
Forecasting
Replenishment
Inventory Optimization
UDF Forecast new
March 2017
Exception
Handling
Automatic Transfer
of Order Proposals
into Orders
Vendor
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Order Proposal Release
Management
Manual
Replenishment
SAP BW
Analytics
Provision of forecast (and other) data for collaborative scenarios
123
Summary & Overview – Forecasting, DIF examples and data sources
Data Source
DIF
Forecasting
Promotion
Management
System
External System
Calibration
Season
Trend
Sales price
Number stores
Significant for item?
ERP
Automated
Promotion
Cannibalization
Related Sales
Related Item
Configuration
once per year
Weather data
provider
Correction DIF
Calendar effects
Weather
Adaptivity
Parameter
e.g. Exception:
DIF not observed
in history
Model
For a
specific Item
Forecast
calculation
Weather DIF
Correction DIF
Option I
Specific Safety
Amount
Weather
correction DIF
Weather service provider
Complex weather models
Demand
calculation
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Option II
124
Replenishment powered by UDF
recent innovation
• Leverage UDF as forecast engine for replenishment
• Store ordering (Fiori) with order proposals form F&R
Fresh
Product
Add-On
Unified Demand
Forecast
CAR
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Replenishment
for stores and
DC
(F&)R
Store Order
Review & Order
Grouping
S/4HANA
125
SAP S/4HANA Finance and S/4 HANA Retail for merchandise management
… posting into Finance “new world”
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
126
SAP S/4HANA Finance and S/4 HANA Retail for merchandise management
… posting into Finance “new world”
S/4HANA Finance with SOH and S/4
Aggregation in RWIN
Interface
Entry in BSEG table:
Billing Document
Entry in Universal Journal table
Granular postings to
ACDOCA in RWIN
Interface
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
127
SAP S/4HANA Finance and S/4 HANA Retail for merchandise management
… posting example - into Finance from CAR
SAP Forecasting and
Replenishment
(on SCM) 5.2
master data, stock information, open orders, promotions ->
<- Order proposals ,
master data -product, prices ->,
<- orders, customer data
master Data, locations,
inventory, sales
transactions, article &
merchandise category
hierarchies, ATP
information,
POS outbound –
assortment list (price
information)
SAP
Promotion
Management
Retail
SAP Customer Activity Repository (CARAB 2.0)
POS Data
Transfer & Audit
SAP S/4HANA Retail
for merchandise
management
SAP
Allocation
Management
for Retail
Multichannel
sales
transactions
On Shelf
Availability
Algorithms
Unified Demand
Forecast
Product
Catalog
PCM
Grouping into
Product Catalogs
Storage in a
staged model
Inventory Visibility
Commerce Suite
Omni-channel
Availability
Omni-channel
Pricing
Data Hub
aggregated sales and
inventory data from stores
SAP
Assortment
Planning for
Retail
Data Hub
Commerce platform 6.2
SAP
Merchandise
Planning for
Retail
Article data integrated in ecommerce processes:
Order
Web content / marketing
Pricing
In-Store Clienteling
…
Sales transactions, goods
movements in store
Point of Sale
Point of Sale
Point of Sale
Point of Sale
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
128
SAP S/4HANA Finance and S/4 HANA Retail for merchandise management
… POS upload - posting into Finance
S/4 and S/4HANA Finance (SOH)
ACDOCA/ Universal Journal
Entries OL:
0) Store Customer
SD Document:
2) Winter Rebate
-1,6 Eur
3) Tax Ritter Wild Berry
-0,4 Eur
3 x 4712 Ritter
Hot Dog
4) Sales Ritter Hot Dog
-1,5 Eur
5) Bad taste Rebate
-1,3 Eur
5 x 8909 Coca
Cola
6) Tax Ritter Hot Dog
-0,3 Eur
4 x 4711 Ritter
Wild Berry
4 x 4711
Ritter Wild Berry
3 x 4712
Ritter Hot Dog
5 x 8909
Coca Cola
13.- Eur
1) Sales Ritter Wild Berry -2.- Eur
7) Sales Coca Cola
-5.- Eur
8) Tax Coca Cola
- 0,9 Eur
MM
Document:
Entries PL:
4 x 4711 Ritter
Wild Berry
1) Sales Ritter Wild Berry -2.- Eur
Entries OL:
3 x 4712 Ritter
Hot Dog
5 x 8909 Coca
Cola
ACDOCA/13.Universal
Journal
0) Store Customer
Eur
………………..
1) COGS
1.- Eur
2) Stock - 1.- Eur
3) COGS
0,6 Eur
4) Stock - 0,6 Eur
5) COGS
2,5 Eur
6) Stock - 2,5 Eur
Entries PL:
1) COGS
1.- Eur
2) Stock - 1.- Eur
………………..
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
129
SAP S/4HANA Finance and S/4 HANA Retail for merchandise management
… and the effect of Material Ledger
• It is obligatory to use the Material Ledger in all SAP S/4HANA systems. When a system is converted to SAP
S/4HANA the Material Ledger will be activated if not active already.
• It is very important to distinguish between Material Ledger, in its role as an
inventory subledger in Accounting and business feature “Actual Costing”.
Material Ledger, as the inventory subledger, valuates material inventories in
multiple currencies and GAAPs in parallel.
• With S/4HANA inventory valuation is located in Finance; Inventory
valuation data are stored together with finance data in central finance
tables ACDOCA or relating (extract-) tables.
• With S/4HANA, the old inventory valuation tables do still exist as DDIC
definition as well as database object. However, they will only be used to
store material master data attributes.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
130
130
SAP S/4HANA for Agreement Profitability and Negotiation
by gicom
Purchasing
Marketing
Category Management
Master
Data
PIM /
Content
Contract
Sales
Marketing
Negotiation
$9.95
Retail
Wholesale
Association
Pricing
Rebates
“Our best”
Halloween
Promotion
3%
Private Label
Vendor
(Example: FMCG
Distributor)
$5,000
Vendor Funds
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
131
gicom – Unique solution portfolio along the negotiation process
Agreement Negotiation Workbench
Agreement Documentation
Negotiation
▪ Preparation of negotiation scenarios
▪ Full transparency on all agreements
and negotiations
▪ Differentiated target definition
▪ Real-time simulation of condition earnings
at all levels
Simulation
Agreement Planning and Controlling*
▪ Simplified preparation and tracking of
negotiation rounds
Planning
Documentation
SAP S/4HANA for
Agreement
Profitability and
Negotiation by
gicom
▪ Flexibility through various conditions
and agreement types
Settlement
▪ Management of all conditioned and
non-monetary services
Distribution
Automated settlement with SAP software
Pure Innovation:
SAP S/4HANA
Qualified!
Promotion Funds and Revenue
Management
▪ Full exhaustion and refinancing of
promotions
▪ Control during rounds of negotiations
▪ Decision support
▪ Mapping of all monetary and
non-monetary agreements
▪ Allocation of promotion budgets
▪ Flexible and accurate condition contract
settlement
▪ Fully automated posting in SAP FI
▪ New combinable settlement options
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
* Release Date tbd
132
gicom–– End-to-End
Negotiation
Process
gicom
End-to-end
negotiation
process
Agreement Planning and Controlling
Corporate Target
(CEO)
Agreement Negotiation Workbench
Agreement Documentation
Global Target
(CPO)
Negotiation Controlling
Department Target
(Head of Department)
Personal Target
(Buyer)
Goal Achievement
Negotiation
Preparation
(Buyer)
Negotiation
(Buyer)
Documentation &
Maintenance
(Buyer/ Assistant)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Closing of
Negotiations
(Assistant)
Settlement
133
Retail for Merchandise Management
for Fashion and Vertical Business
OP 1709 Release
- Further Information
Retail – SAP Portfolio with SAP S/4HANA and SAP Leonardo
MARKETING AND MERCHANDISING
Digital Innovation
SAP Leonardo
•
•
•
•
Merchandise planning
Assortment planning
Promotion management
Marketing
• Contract consumption
• Global track and trace
• Vehicle insights
• Connected goods
• Supplier collaboration
• Business network
• Agreement profitability and negotiation
•
•
•
•
• Master data governance
• Exchange media
Digital
core
Forecasting and replenishment
Allocation management
Extended warehouse management
Transportation management
OMNICHANNEL CUSTOMER EXPERIENCE
• Predictive maintenance and service
• Asset intelligence network
•
•
•
•
Commerce solution
Commerce, assisted service module
Sales cloud portfolio
Omnichannel point-of-sale
•
•
•
•
Sales order management
Billing and invoicing
Store merchandise and inventory mgmt
Store connectivity
• Supply chain for extended warehouse
management
• Advanced available-to-promise
Master data management
Assortment management
Promotion management
Retail price & markdown management
•
•
•
•
Supplier information and master data
• Merchandise allocation execution
Operational contract management
• Distribution curve
Merchandise buying
• Basic warehouse management
Private label development
• Inventory management and valuation
SAP® Customer Activity Repository
SAP S/4HANA Retail for merchandise management – retail end-to-end
• Time recording
• Employee central solution connectivity
• Core Accounting
• Basic financial operations
• Profitability analysis and cost mgmt
•
•
•
•
Core human resources and payroll
Talent management
Time and attendance management
Human capital analytics
Workforce forecasting and scheduling
Extensions
•
•
•
•
•
Digital Innovation
SAP Leonardo
• Resume matching
• Job matching
• Job Standardization
• Cash Application
• Accounts payable
• Digital Boardroom
HUMAN RESOURCES
Dark Blue:
Light Blue:
White:
Gray:
Digital core:
Digital Core:
Extensions:
Leonardo:
(17/09) © 2017 SAP SE or an SAP affiliate company. All rights reserved
•
•
•
•
Financial planning and analysis
Accounting and financial close
Treasury and receivables management
Enhanced invoice management and accounts
payable
Business planning and consolidation
Governance, risk, and compliance
Shared service framework
Digital payment
SAP Cloud Platform
•
•
•
•
SUPPLY CHAIN
Customize applications | Integrate apps, data and processes | Build new apps
Extensions
• Brand impact
PROCUREMENT AND PRIVATE LABEL
FINANCE
Core solution capabilities delivered as part of SAP S/4HANA Retail Merchandise Management.
Solution capabilities that are also part of SAP S/4HANA Retail Merchandise Management, but added/purchased as needed.
Industry / LOB / Cloud Solutions that are integrated with SAP S/4HANA Retail Merchandise Management, but added/purchased as needed.
Solution capabilities that are powered by a Leonardo technology and included in the Leonardo suite.
135
Fashion and vertical business – SAP Portfolio with SAP S/4HANA and SAP Leonardo
BRAND MANAGEMENT AND MERCHANDISING
Digital Innovation
SAP Leonardo
• Brand impact
• Contract consumption
• Merchandise planning
• Assortment planning
• Marketing
• Supplier collaboration
• Business network
• Agreement profitability and negotiation
• Master data governance
• Exchange media
Digital
core
Master data management
Assortment management
Promotion management
Retail price & markdown management
Digital Innovation
SAP Leonardo
• Global track and trace
• Vehicle insights
• Connected goods
• Predictive maintenance and service
• Asset intelligence network
•
•
•
•
•
•
•
•
Commerce solution
Commerce, assisted service module
Sales cloud portfolio
Omnichannel point-of-sale
•
•
•
•
Sales order management
Billing and invoicing
Store merchandise and inventory management
Store connectivity
Sales and operations planning
Allocation management
Extended warehouse management
Transportation management
• Supply chain for extended warehouse management
•
•
•
•
Supplier information and master data
Operational contract management
Merchandise buying
Private label development and management
•
•
•
•
•
Demand and supply planning
Demand and supply segmentation
Demand and supply assignment
Stock protection
Basic warehouse and transportation management
SAP® Customer Activity Repository
SAP S/4HANA for fashion and vertical business
SAP S/4HANA Retail for merchandise management
• Time recording
• Employee central solution connectivity
Extensions
OMNICHANNEL CUSTOMER EXPERIENCE
•
•
•
•
•
Core human resources and payroll
Talent management
Time and attendance management
Human capital analytics
Workforce forecasting and scheduling
• Resume matching
• Job matching
• Job standardization
HUMAN RESOURCES
Digital core: Core solution capabilities
delivered as part of SAP S/4HANA
Enterprise Management
Studio SAP 55379enUS (17/11) © 2017 SAP SE or an SAP affiliate company. All rights reserved
• Core Accounting
• Basic financial operations
• Profitability analysis and cost mgmt
•
•
•
•
Financial planning and analysis
Accounting and financial close
Treasury and receivables management
Enhanced Invoice management and accounts payable
•
•
•
•
Business planning and consolidation
Governance, risk, and compliance
Shared service framework
Digital payment
SAP Cloud Platform
•
•
•
•
SUPPLY CHAIN
Customize applications | Integrate apps, data and processes | Build new apps
Extensions
PROCUREMENT AND MANUFACTURING
• Cash application
• Accounts payable
• Digital boardroom
FINANCE
Digital core: Solution capabilities that are also
part of SAP S/4HANA Enterprise Management,
but added or purchased as needed.
Extensions: Cloud-based (LoB) solution
extensions that are fully integrated with
SAP S/4HANA Enterprise Management,
but added or purchased as needed.
SAP Leonardo: Solution capabilities that are powered
by SAP Leonardo and included in the SAP Leonardo
system, and how to add or purchase is not shown on
this diagram.
136
SAP S/4HANA 1610 & 1709
Where to go for further information
Digital white paper - White Paper Registration
Page 2017 via Hubs (for customers & prospects)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
S/4HANA Retail value paper (external)
137
SAP S/4HANA 1610 & 1709
Where to go for further information
Innovation Discovery
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP S/4HANA Road Maps
138
SAP S/4HANA 1610 & 1709
Where to go for further information
Try it yourself
Discover SAP S/4HANA
Explore the scope
SAP S/4HANA, cloud edition trial
SAP S/4HANA Roadmap
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Community on SCN
Cookbook on SCN
SAP S/4HANA, on-premise edition trial
Learn more: SAP Learning Hub
139
Omnichannel Availability and Sourcing
More Information
SAP Help Portal
SAP Community Wiki
SAP Internal
OAA - Application Help
Customer Wiki > SAP CAR > OAA
Omnichannel JAM folder on Planet Retail Community
OAA - What’s New
Omnichannel Article Availablility
at a Glance
SAP Hybris Commerce, integration
package for SAP for Retail
How to integrate OAA with 3rd party
commerce platforms
Omnichannel Commerce – That was 2017 (blog)
Omnichannel Quarterly Demo Dec 2017– webinar
recording
Omnichannel – Golden Decks
One Stop Shop – for PreSales
One Stop Shop – Demos in SAP Demo Cloud
OAA – Topic in Detail
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
140
Transformation to SAP S/4HANA
for fashion and vertical business
SAP S/4HANA
The 3 transition scenarios
New Implementation
System Conversion
Landscape Transformation
New to SAP or Ready for a Fresh Start
Convert Your SAP ERP System
Consolidate your Landscape
 If you are new to SAP or if the design of your
current SAP Landscape is from the 90`s, it´s
probably time to consider a fresh start …
 If your current SAP landscape has been highly
maintained (SAP ERP 6.0 any Enhancement
Package) you most likely can convert to SAP
S/4HANA in a one-step procedure.
 If you want to consolidate your current system
landscape or to selectively transform data into
a SAP S/4HANA system.
 Bring the data from your old system to SAP
S/4HANA or SAP S/4HANA Cloud.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
 Take over the business processes and the
custom code.
 Ideal for large enterprises with many instances
of SAP and non-SAP ERP systems
142
SAP S/4HANA
System Conversion: Sequence
Prepare Phase
t1
System
Requirements
t2
t4
t3
Maintenance
Planner
Realize Phase
Pre-Checks
Custom Code
Migration Worklist
t5
t6
Software Update
Manager (SUM)
t
Application
specific follow-on
activities
Database Migration
Transition Database
SAP S/4HANA, on-premise edition
Software Update
Data Conversion
Additional Information
•
Maintenance Planner see SAP Help: http://help.sap.com/maintenanceplanner
•
Pre-checks are shipped as SAP Notes to customers that want to convert to SAP S/4HANA. SAP Note 2182725, and all the related notes
attached to it.
•
Custom Code Migration Worklist  see SAP Help Portal: Link and the following SCN blog: Custom Code within SAP S/4HANA OnPremise.
Conversion Guide for SAP
S/4HANA 1511: Link
(newer ones on the next slide)
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
143
Overview of the conversion process
All the steps and related tools/additional information are described in detail within the
‚Conversion Guide‘ which will be available for all relevant S/4 HANA releases.
For illustration purposes: Conversion Guide for SAP S/4HANA 1610, FPS2
and the Installation Guide for SAP S/4 HANA 1709
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
144
FMS to S/4 HANA for fashion and vertical business
SAP FMS starting EhP7, SP04
incl. SoH Financials
SAP NetWeaver 7.0x
SAP HANA
SoH-S4 HANA
Conversion
SAP S/4HANA, on-premise edition 1709
and beyond
SAP S/4HANA Core
(SAP S/4HANA Enterprise Management)
SAP HANA
Direct conversion from Fashion Management Solution (starting with EhP7,
SP04 aka FMS 1.0) supported as for conversion of standard ERP systems to
S/4 HANA.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
145
SAP S/4HANA Finance and in S/4 HANA Retail for merchandise management
… answers of frequently asked questions
1.
Do we have to use the new finance?
• Yes because it is integrative part of the S/4 core and Inventory valuation is donne in Finance table
2.
Do we safe....?
• Sure, you safe a lot of effort when you already went through the FIN-Teil part of S/4 Conversion. SD and MM
(Retail/ Fashion) still open, there is no difference (to conversion without S/4HANA Finance add on). In
Finance, only ML needs to be migrated. BSEG (+ NewG/L) + COEP + Asset accounitng is not touched again.
So one could say:
• Business Suite to S/4 = FI, CO, AA, SD, MM (Retail/ Fashion) and ML conversion
• S/4HANA Finance to S/4 = Only SD, MM (Retail/ Fashion) und ML conversion
But you don´t have to do this extra step!
3. Differences S/4 HANA Finance and S/4 in terms of Finance
• Yes, Inventory valuation included in ACDOCA in S/4 but not in S/4 HANA Finance; all new Finance
developments available in S/4 but not necessarily in S/4HANA Finance e.g. Dynamic Cached Views from
1709 or part of Fiori Apps
4.
Do we still need BSEG and what are the limitations?
• Yes, and 999 limitation persist. Nevertheless since the existence of granular data in ACDOCA it is highly
recommended to aggressively aggregate data into BSEG (OBCY).
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
146
146
Thank you.
NTUC FairPrice Co-Operative: Gaining Agility from
Real-Time Retailer-Supplier Collaboration
Company
NTUC FairPrice
Co-Operative Ltd.
Headquarters
Singapore
Industry
Retail
Products and Services
Supermarkets, hypermarkets,
and convenience stores
Employees
9,500
Revenue
US$2.3 billion
Web Site
www.fairprice.com.sg
Objectives
• Develop a new portal for supplier collaboration
• Communicate with suppliers more quickly and with greater ease
• Launch new products more quickly and ease maintenance of articles
• Enhance storage of diverse document formats
Increased
Why SAP
• Real-time SAP® Cloud Platform Portal service
• SAP Fiori® launchpad for improved access for the mobile workforce
• Existing SAP software landscape and familiarity with SAP solutions
• Expertise in retail industry
• Global 24x7 support with platform availability
Visibility of process and time to
market
Productivity and efficiency
Better
Higher
Level of supplier satisfaction and
effective collaboration
Resolution
• Rapidly developed and deployed a supplier portal on SAP Cloud Platform
• Automated manual forms and processes to facilitate effective collaboration with suppliers
• Provided mobility to the workforce and thus improved productivity
• Improved process efficiency and faster time to market
• Implemented additional SAP software, such as SAP Web IDE and the SAP Cloud Platform Document service
Future plans
• Connect to on-premise workflows running on SAP software
• Integrate with existing business process management software
• Use SAP BusinessObjects™ Lumira software to help users explore and analyze data better
"SAP Cloud Platform enables our huge supplier network to collaborate in real time and helps us drive revenue. With the SAP Cloud Platform Portal
service and the SAP Fiori user experience, we transformed the user experience, improved accessibility, and accelerated application development."
Zhang Yan, Deputy Director, NTUC FairPrice Co-Operative Ltd.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
149
dm-drogeriemarkt: Optimizing the Customer Experience with
Real-Time Sales and Inventory Data
Company
dm-drogerie markt (dm),
FILIADATA GmbH
Headquarters
Karlsruhe, German
Industry
Retail
Products and Services
Cosmetics, healthcare
and household products,
and health food
Employees
52,587
Revenue
€8.32 billion
(FY 2013/2014)
Web Site
www.dm.de
OBJECTIVES
▪ Centralize and streamline retail merchandise management
▪ Simplify service and support processes
▪ Simplify new store openings with central system blueprint
▪ Accelerate the launch of new functionality to further optimize the customer experience
RESOLUTION
▪ Integration of the SAP® Customer Activity Repository application as a real-time platform with SAP for
Retail solutions
▪ Real-time access to comprehensive, inventory and sales data for planning and forecasting
▪ Automated replenishment planning that provides order proposals to stores
BENEFITS
▪ Faster response through a more agile supply chain based on real-time store sales and inventory data centrally maintained in
one system
▪ Simplified IT infrastructure resulting from significant reduction in interfaces
▪ Reduced support requests and service effort with the elimination of in-store database operations
FUTURE PLANS
▪ Deliver new innovations and processes such as unified demand forecasting and other complex forecasting methods
▪ Simplify use of solution on mobile devices with larger displays, more functionality, and enhanced user interface
70%
Fewer interfaces
2.6 million
Receipts processed daily
during peak periods
3 minutes
Instead of hours to transfer
data from
200 stores
Faster
Rollout of innovations
Lower
IT support and maintenance
costs
Stronger
“The introduction of SAP Customer Activity Repository, powered by SAP HANA®, was strategically significant for us.
Future-proof foundation for
As our central technology platform, SAP HANA is an investment in our future.”
Roman Melcher, Managing Director of Information Technology, dm-drogerie markt GmbH + Co. KG
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
next-generation retailing
150
Foodstuffs: Improving the Customer Experience
with SAP Forecasting and Replenishment
Company
Foodstuffs South Island
Limited
Headquarters
Christchurch,
New Zealand
Industry
Retail
Products and Services
Full-service supermarkets
and retail food
warehouses
Employees
>1,200
OBJECTIVES
▪ Improve forecast quality during promotions
▪ Reduce the number of out-of-stock occurrences
▪ Ensure the right stock is in the right place
▪ Enable supply chain planning with calculations for future orders
▪ Reduce inventory days at the store
▪ Simplify the ordering process
▪ Improve supply chain efficiency
WHY SAP
▪ Proven success of the SAP Forecasting and Replenishment application among industry peers
▪ Open integration for a simplified and independent implementation
▪ Automation of the replenishment process and accurate forecasting and ordering during promotional and seasonal periods
▪ Ability to include future display stock quantities in order forecasts
BENEFITS
▪ Faster processing through automation
▪ More efficient stock placement
▪ Accurate and automated ordering, resulting in fewer than 5% of orders requiring adaptation
▪ Better promotions through more-accurate forecasting
▪ Lower operating costs through reduced inventory
Efficient
The right stock in the
right place
Exact
Accurate and automated
ordering, resulting in fewer
than 5% of orders requiring
adaptation
Effective
Better promotions through
more-accurate forecasting
Economical
Lower operating costs
through reduced inventory
Web Site
www.foodstuffs-si.co.nz
“Deploying SAP Forecasting and Replenishment using open integration has been tremendous and has
exceeded our business expectations. It is one of the best software solutions we have implemented.”
Phil Wright , General Manager, Information Technology, Foodstuffs South Island Limited
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
151
ULTA Beauty: Providing “All Things Beauty, All in One Place”
with Help from SAP® Solutions​
Company
ULTA Salon, Cosmetics
& Fragrance Inc.
(ULTA Beauty)
Headquarters
Bolingbrook, Illinois
Industry
Retail
Products and Services
Beauty products; salon
and skin care services
Employees
19,000
Web Site
www.ulta.com
Partner
Service & Support
organization
OBJECTIVES
▪ Simple shopping experience grounded in trust and product expertise
▪ Fulfilling work environment for associates
▪ Community support through job growth and charitable initiatives
WHY SAP
▪ Long-term relationship with SAP
▪ Scalable solutions that keep up with growth
▪ Cloud and on-premise options for fast, flexible deployments
RESOLUTION
▪ SAP® Business Warehouse application powered by SAP HANA® for real-time data access and analytics
▪ SAP Point-of-Sale application for real-time inventory visibility
▪ SAP Mobile Platform to support custom-built mobile apps that enhance the shopping experience
▪ Procurement solutions from Ariba, an SAP company
▪ HR solutions from SuccessFactors, an SAP company, to support a rapidly growing network of stores
▪ Travel and expense management solutions from Concur, now part of SAP
FUTURE PLANS
▪ Increase personalization with the SAP Customer Activity Repository application
▪ Further connect stores and salons for even greater convenience and consistency
300%
Increase in revenue since the
first deployment of the SAP
ERP application
Simple
Presentation of information to
help customers choose what
products are best for them
Consistent
Customer experience, whether
online, via mobile app, or in
the store
Personalized
Interactions with associates to
meet every customer’s needs
made possible by automating
backroom activities
Connected
“The term ‘connected beauty’ means a consistent view of information for our guests, whether via mobile
app, our Web site, or in the store. It's difficult to know which brand or product to choose. Our SAP solutions
make it simple for our customers and associates to navigate all that data.”
Touch points to maintain the
customer relationship through
every step of the shopping
process
Diane Randolph; Senior Vice President and Chief Information Officer; ULTA Salon, Cosmetics & Fragrance Inc.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
152
Discount Tire: Making Life Simpler for Customers
by Running Simply with SAP® Solutions
Company
Discount Tire Company
Headquarters
Scottsdale, Arizona
Industry
Automotive and retail
Products and Services
Automotive tires
and wheels retailer
Employees
16,000
OBJECTIVES
▪ Use technology to actively build an omnichannel experience with customers
▪ Build an IT foundation on the back end to grow positive customer experiences at the front end
▪ Move from a multiplatform system built over two decades to one comprehensive solution that connects disparate data with
ease
WHY SAP
▪ Offers a foundation of the SAP® Business Warehouse and SAP ERP applications as well as SAP Master Data Services
software to grow and stay relevant within the marketplace
▪ Enables a contextual and engaging omnichannel customer experience through the SAP hybris® Commerce solution
▪ Improves business responsiveness with the SAP Customer Activity Repository application and other solutions based on the
SAP HANA® platform
BENEFITS
▪ Will enable a consistent online and in-store experience to drive frictionless sales and service interactions
▪ Will enable revenue growth through uniform selling and fulfillment by providing relevant and up-to-date information
▪ Will provide a foundation to “drive” the customer to their closest location
>20%
Growth as a goal for
organic traffic through
improved customer
search functionality
85%
Of customers go online
before making a
purchase
>900
Neighborhood stores in
the United States, each
serving customers within
a 5-mile radius
Web Site
www.discounttire.com
“We know hybris software will let us consolidate information throughout our company and create the ultimate
customer experience. Customers will get unbiased and transparent data in an easy manner and their
experience will be the same whether online or in the store. SAP helps us Run Simple.”
Steve Fournier, Chief Customer Officer, Discount Tire Company
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
153
Brookshire Grocery Company: Personalizing the Customer
Shopping Experience in Real Time with SAP® Solutions
Company
Brookshire Grocery
Company
Headquarters
Tyler, Texas
Industry
Retail
Products and Services
Regional grocery chain
with 155 stores in Texas,
Arkansas, and Louisiana
Employees
14,000
Web Site
www.brookshires.com
OBJECTIVES
▪ Build upon Brookshire’s reputation for legendary customer service by optimizing the shopping experience
▪ Communicate with customers in real time based on an in-depth knowledge of their shopping history
▪ Increase the number of digitally engaged customers who shop more frequently and spend more
WHY SAP
▪ SAP® Promotion Management for Retail application for managing and analyzing personalized promotions
▪ SAP Customer Relationship Management application for consolidating valuable customer master data
▪ SAP Audience Discovery and Targeting analytic application for customer segmentation
▪ SAP POS Data Management application for deep insight into customer buying patterns and behaviors
▪ SAP Customer Activity Repository application for a 360-degree view of each customer
▪ SAP HANA® platform for real-time computing and decision making
BENEFITS
▪ Know everything there is to know about customers in real time
▪ Empower category managers to see what customers are buying (and what they’re not buying)
▪ Offer real-time promotions to customers that build loyalty and incent them to buy more
▪ Improve the effectiveness and lower the cost of promotions
FUTURE PLANS
▪ Utilize the current SAP software landscape as a growth platform to expand from 155 stores to 400 stores
▪ Migrate all transactional, reporting, and analytical needs to SAP Customer Activity Repository and SAP HANA
Real-Time
Promotions and
communications with
customers based on their
shopping history
Optimized
In-store shopping
experience to drive sales
Greater
Insight to get the right
product on the shelf at
the right time and at the
right price
1
Version of the truth for
sound decision making
“In the last four years, we’ve had record profits year over year. A lot of that has to do with our people, who are
the best in the industry. But a big part is because SAP software provides them with the right information at the
right time so they can get the right product on the shelf at the right price for our customers.”
John D’Anna, Senior Vice President and Chief Information Officer, Brookshire Grocery Company
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
154
HSE24: Cutting Lead Time for Campaigns from Weeks to
Hours with SAP® Hybris® Marketing and SAP HANA®
Company
Home Shopping Europe
GmbH (HSE24)
Headquarters
Munich
Industry
Retail – omnichannel
home shopping
Products and Services
Fashion, beauty, wellness,
jewelry, home and living,
household, and do-ityourself
BUSINESS CHALLENGES
▪ Increase sales by running more highly focused marketing campaigns aimed at specific customer segments
▪ Equip marketers to plan and run campaigns without dependence on business intelligence experts
TECHNICAL IMPLEMENTATION
▪ Implemented the SAP® Hybris® Marketing solution, which is powered by the SAP HANA® platform, for self-service target
group selections
▪ Integrated with the existing SAP Customer Relationship Management application and a third-party data warehouse
▪ Received honorable mention for the SAP HANA Innovation Award
KEY BENEFITS
▪ Ramped up sales through more frequent and focused campaigns
▪ Empowered marketers to design and run their own campaigns
▪ Learned behavior patterns that can help improve target group selections
20x
Faster campaign
execution
4%
Increase in repeat
purchasers
30%
More net sales to
these customers
Employees
810, supported by
2,500 external staff
Revenue
€626 million
Web Site
www.hse24.de
“Our marketing staff can now drill down into millions of customer records in seconds, using current data from
a variety of sources. There is no need for the business intelligence department to get involved.”
Christian Schnetzer, CRM Team Lead, HSE24
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
155
Groupe Auchan: Gaining Control Over Spend with
Ariba® Procure-to-Pay and Ariba Sourcing Solutions
Company
Groupe Auchan
Headquarters
Croix, France
Industry
Retail
Products and Services
Discount stores, specialty
electronics, hypermarkets,
supercenters,
supermarkets,
superstores, e-banking,
and real estate
Employees
330,700
OBJECTIVES
▪ Drive efficiencies by gaining control of indirect spend
▪ Centralize and standardize spend processes across thousands of sites with disparate needs
▪ Improve supplier management and onboarding
RESOLUTION
▪ Deployed the Ariba® Sourcing, Ariba Supplier Information and Performance Management, and Ariba
Procure-to-Pay solutions to effectively manage all of the indirect spend for all business units
▪ Ensured standardized Ariba solutions were used to manage both buyers and sellers throughout the
purchasing cycle
▪ Used the Ariba Network to better manage Auchan’s global network of 15,000 suppliers
BENEFITS
▪ Increased savings from standardization and better-quality information for purchasers
▪ Managed all indirect spend effectively
▪ Established a consistent and common approach for all buyers and users
FUTURE PLANS
▪ Deploy electronic transactions to suppliers across the Ariba Network
▪ Roll out the Ariba Supplier Information and Performance Management solution to more users
Revenue
€53.5 billion
Web Site
www.groupe-auchan.com
“Ariba solutions are very complete and handle the entire purchase cycle, allowing us to start an event
with sourcing and end it by receiving the goods, so much so that our mantra is ‘no Ariba, no business.’
Ariba helps us do business the right way.”
€3 billion
Annual indirect spending
managed by Ariba
solutions
100%
Estimated single-year
rise
in sourcing events
15,000
Suppliers managed
12,000
Auchan users of Ariba
solutions globally
3,050
sites
Using centralized,
standard processes
Pascal Delval, Chief Purchasing Officer, Groupe Auchan
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
156
Tata CLiQ: Transforming the Digital Marketplace with
SAP® Solutions for Improved Customer Satisfaction
Company
Tata CLiQ, part of Tata Group
Headquarters
Mumbai, India
Industry
Retail
Products and Services
Apparel, footwear, electronics,
watches, and accessories
Employees
>150
Web Site
www.tatacliq.com
Partner
Tata Consultancy Services
www.tcs.com
Objectives
• Build an omnichannel marketplace that delivers a proper marriage between online and brick-and-mortar stores
• Enable online store inventory reconciliation and visibility to the customer at the product-attribute level
• Provide ease of mind by allowing a cash-on-delivery payment option
• Enable insight into customer data to ensure all customers feel special
Why SAP® Hybris® solutions
• 20-year relationship with Tata companies
• Proven SAP® BusinessObjects™ Business Intelligence suite and SAP CRM powered by SAP HANA ®
• Agile, scalable, cloud-based SAP® Hybris® Commerce solution; SAP Hybris Commerce, order management services;
and the SAP Hybris Product Content Management solution that meet unique omnichannel marketplace requirements,
implemented by Tata Consultancy Services
Resolution
• Catalog authority that provides customers with the best options based on interests and past behaviors
• Ability for customers to buy from a much larger collection of brands while enabling the brands to have a much closer
relationship with customers
Hassle-free
Secure, and simple
shopping and delivery
options for valued
customers
Real-time
Full-scale tracking of
purchases
Agile
Solution that meets the
evolving needs of an
omnichannel marketplace
Future plans
• Gain insight into enhanced analytics to better understand customer behaviors, tastes, likes, dislikes, past purchases, and
preferences
• Continue to innovate and evolve with a digital transformation journey
• Achieve 100% customer satisfaction
“Every customer experience is important. We have the mastery of trying to make customers happy through our offering, through
our service, and through our end-to-end experience that we provide. SAP Hybris solutions allow us to achieve these goals.”
Ashutosh Pandey, Chief Executive Officer, Tata Unistore Limited
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
157
MEMEBOX: Increasing Revenue 100%
with SAP® S/4HANA Finance​
Company
MEMEBOX Inc.​
Headquarters
Seoul, South Korea (MEMBOX
Inc.)
San Francisco (MEMBOX Corp.)
Industry
Retail​
Products and Services
Beauty products​
Employees
300​
Revenue
US$24 million (MEMEBOX Inc.)
US$40 million​ (MEMEBOX Corp.)
Web Site
us.memebox.com
Partner
Global Service & Support
organization​
Objectives
• Improve the accuracy of inventory
• Increase insight into logistics information
• Create a secure foundation for global business expansion
Why SAP
• High visibility and strong control of financial and logistics information in real time with the SAP ® S/4HANA Finance
solution
• Support for the entire application lifecycle from implementation to operation
Resolution
• Deployed SAP S/4HANA Finance using the SAP HANA® Enterprise Cloud service in just five months
• Minimized deployment risk and eased change management with greater visibility of processes and functionality using a
system based on the “best model company” and SAP Application Management services
• Improved competitive advantage, accelerated growth, and penetrated new markets with stronger logistics governance
and supply control
• Enhanced insight into customer interactions at every touch point, providing sales real-time visibility into stock information
Future plans
• Roll out the SAP ERP application in China and other markets to support global business expansion
• Deliver best-fit customer insight solutions with marketing analytics, performance management, customer insights and
segmentation, and merchandising analytics
“With this stable platform and approach, the Korea team is able to support MEMEBOX in developing innovative
business processes using SAP S/4HANA Finance, which is highly valuable as a quickly growing company. We
look to SAP as a strategic partner that can guide us toward digital transformation.”​
100%
Increase in revenue since
the launch of SAP
S/4HANA Finance ​
30%
Shorter delivery lead time
to customers
50%
Increase in sales
productivity with on-the-go
data access
100%
Improvement in inventory
accuracy ​
50%​
Reduction in the closing
period​
Rio Kim, CFO, MEMEBOX Inc.​
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
158