SAP S/4HANA®

Transform
Retail Merchandise
Management
with SAP S/4HANA
Update: 1709 Release
Table of Contents

SAP S/4HANA Retail for Merchandise Management

 Executive Summary 3
 Overview 4
 Examples 5
 Deep Dive 7
 End-to-End Solution 9
 Value Proposition 10

SAP Solutions for Retail with SAP S/4HANA 11

Accelerated Innovation for Retail with SAP Leonardo 13

Retail: SAP Portfolio with SAP S/4HANA and SAP Leonardo 14

Customers Are Achieving Value from SAP S/4HANA 15

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SAP S/4HANA® Retail for Merchandise Management
Executive summary

Transform retail merchandise management on SAP S/4HANA®

We have arrived in the age of digital transformation where Third, reimagine your business processes with the power Mini King provides healthy leisure
everything is connected. Retailer CEOs need to keep up with of in-memory computing. Accelerate mission-critical food for customers throughout
innovation cycles that are becoming 5 to 10 times faster1 operations, run simulations, and take advantage of China. SAP S/4HANA Retail for
and answer tough questions: How do we build a customer embedded science to gain better control over your core merchandise management has
experience that new competitors cannot easily replicate? How processes. Move away from traditional batch processing helped it increase efficiency, reduce
can we conquer new segments or markets? How can we to dialog processing, and eliminate decision cycle time to warehousing costs, and improve
create new business models to outpace existing competitors take action in the moment. decision-making.
and to change the way we make money?
Overcome siloed information and fragmented business
There are three important aspects of driving your digital processes within the same system to stay on top of your “By enabling digital management,
transformation. business at all times. With finance, inventory management, we have seen improvements that
and valuation harmonized in common journals of SAP stagger the imagination: from
First, rethink your business model and try out new territories.
S/4HANA, supply chain teams have real-time insights paper to online, closings in an
Retailers are leveraging their customer proximity to add
into inventory, and finance people control intercompany hour instead of a business week.
services to products and to market banking and insurance
profitability with real-time inventory evaluation. It’s good we’re mobile now too.
products. They are extending manufacturing of private-label
We’re rolling.”2
products, generating revenue from parking lots with fuel The SAP S/4HANA Retail solution for merchandise Xianhao Cai
stations, or turning into network providers for consumer health management is the industry-specific version of the SAP CIO
and lifestyle information. The opportunities are manifold yet S/4HANA Enterprise Management solution. Providing Guangzhou Mini King Food Co. Ltd.
are often blocked by prescriptive industry practices in ERP previously unavailable agility and flexibility, it is the new
systems. merchandise management platform that enables you to
“SAP's considerable investment
reinvent your business.
SAP S/4HANA®, our new-generation ERP suite designed in the digital core, the SAP
specifically for in-memory computing, integrates historically SAP S/4HANA leverages the breakthrough technologies of HANA® platform, fashion manage-
separate industry solutions on one platform. This allows new the SAP Leonardo digital innovation system. By adding the ment capabilities, and the IoT
capabilities and practices that extend the traditional value map Internet of Things (IoT) and machine learning capabilities bode well for SAP customers and
and process framework – the basis for running vertically and to your key business processes, SAP Leonardo capabilities prospects, and IDC recommends
allowing business-model innovation across the value chain. help connect all elements of the enterprise and get you that retailers evaluate how SAP’s
closer to each one of your customers. portfolio and road map have
Second, become more data driven to create insights that
changed to serve them into the
improve your business, for example, the ability to connect, Make SAP S/4HANA the digital core of your future value
future.”
record, and report live on your business. network. Start now to connect your workforce, suppliers, Achim Schneider
consumers, and assets in real time to capture every signal Global Head of Retail Business Unit
SAP S/4HANA allows real-time insight into operational data SAP SE
and turn it into a differentiating advantage.
and combines analytics with transactional capabilities. It
removes the dichotomy of transactional versus analytical
systems and allows for better decisions every time.

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1. “The Pace of Technology Adoption is Speeding Up,” Harvard Business Review, November 2013, https://hbr.org/2013/11/the-pace-of-technology-adoption-is-speeding-up. 3
2. “How Do You Turn Chestnuts into Pearls on the Crown of the Snack Industry?” Guangzhou Mini King Food Co. Ltd., SAP Business Transformation Study, 2017.
SAP S/4HANA Retail for Merchandise Management
Overview

SAP S/4HANA Retail for merchandise management: sources of value

SAP S/4HANA Retail for merchandise management is at the core of a comprehensive suite of retail offerings designed to help retailers meet the demands of a
digital economy. It supports retail core processes, starting with master data down to point-of-sales connectivity. It allows insight into operational retail data,
empowering users with contextual, real-time information for faster and better decision-making. Processes can be extended easily to connect to business networks
to form a digital ecosystem and collaboratively drive business model improvements. Equipped with a simple and intuitive user experience, the solution offers better
support for headquarters users as well as store associates to drive compelling customer experiences.

Key capabilities for SAP S/4HANA Retail for merchandise management

Responsive merchandise management

 Redesign with highly simplified data models and processes in key areas such as inventory management and stock valuation, and even closer integration with
the SAP S/4HANA Finance solution, leading to high throughput and fast reporting in key processes
 Consistent user experience and launch pad access across all functional areas, allowing new ways of working for business users
 Empowerment of store associates and store managers with everything they need for better customer service and store operations
 Omnichannel order execution and fulfillment based on real-time sales and inventory information to keep up with customers’ expectations of world-class
shopping experiences
 “Industry to core” with one platform that unites various industry solutions using harmonized data models and objects, thus opening up potential for synergies and
cross-industry scenarios
 Use of the breakthrough technologies in the SAP Leonardo digital innovation system by adding IoT and machine learning capabilities to key business
processes, thereby connecting all elements of the enterprise and getting you closer to each one of your customers

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SAP S/4HANA Retail for Merchandise Management
Example

Example: Simplification of the store employee user experience

The store has moved from being a pure selling location to a brand ambassador and omnichannel fulfillment hub. It now needs to unify the customer’s experience and
be instrumental in supporting today’s anything, anywhere consumer supply chain. And it requires a smart and empowered workforce to provide expectation-beating
customer service.
? ?
Traditional ERP means:
 Use of slow, tedious processes and
guesswork to make stock available on Store staff Store staff
store shelves
 Systems that do not guide staff or
reflect reality
 Risk of shelf gaps that impact the
Staff moves around the store Staff uses mixed applications Manual corrections and Required stock is
customer shopping experience and
without system guidance to and interfaces to sort out stock expensive expedited made available
lead to missed revenue despite
determine if store shelf stock situations and make corrections. deliveries are made on store shelves.
manual, expedited replenishment
is adequate. using “best guesses.”

SAP S/4HANA
Up to 10%
Role-based in-store processes
reduction in
 An exception-driven guided process stock-outs3
enables precise stock assessments
and immediate corrections, thereby Store staff
increasing staff productivity. Up to 30%
 Accelerated replenishment and
accurate inventory help ensure
? Required stock is
improved user
productivity4
optimum on-shelf product availability. made available on
 Store staff is freed up from non- store shelves.
customer-facing tasks and can focus System guides staff through store, and staff Up to 5%
on serving the customer. makes real-time, exception-driven stock higher revenue
corrections using an intuitive mobile app by employee5

3.–5. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is
at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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SAP S/4HANA Retail for Merchandise Management
Example

Example: Simplification of inventory control process

Inventory is the greatest asset of retailers but it is also the most costly. Therefore, controlling must strike a balance between being in stock but not tying up too much
capital. It is essential to look not only at stock value but also at how product profitability evolves across the entire value chain. To do this, controllers need continuous
visibility into inventory and value at both the highest and the lowest level of granularity, as well as the flexibility to react in real time.

Traditional ERP means:

 Obstacles in understanding total stock
position and upward and downward
trends between reporting milestones
 Difficulty in steering overall tied-up capital Product Posting to Period-end Extraction Review and Profitability
and driving profitability proactively profitability finance, reconciliation to data correction of reports
 Permanent latency in inventory turnover assessment controlling, and cost warehouse goods movement
reporting by controller and allocation postings and
 Inflated capital investment and reduced profitability intercompany
profitability analysis product flows

SAP S/4HANA
Inventory management
 Inventory quantities and values are
stored in general journal tables that
allow insights into stock positions and
values in real time.
 Logistics and controlling share the Product profitability Granular review of product flows across Profitability
same base of data, which enables assessment by controller the entire value chain using one central analysis
course corrections and revaluations journal for finance and controlling data
whenever needed.

Up to 20% Up to 0.5 percentage points

Improvement in inventory turnover6 Increase in profitability7

6., 7. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is
at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.

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SAP S/4HANA Retail for Merchandise Management
Deep dive
Typical Challenges
Fast fashion, consumer electronics: any
retailer dealing with highly seasonal
merchandise needs to manage an increasing
number of products with rapid changes in the
product lifecycle.
Inefficient, manual processes for product data
maintenance with no clear data ownership
and little to no transparency in the process as
well as high costs through incorrect master
data across the value chain impact not only
the retailer’s bottom line but also present a
risk to consumers if data is not correctly
displayed in all sales channels.
Slow collaboration and complex supply
chains for products with fast lifecycles make it
difficult to bring in the merchandise in time
and in the right shape to launch the season.
Grocery retailers define their brands more
and more by their range of fresh products.
Meat and cheese counters are points of
attraction for consumers, but managing
catch-weight products is a major challenge
for inventory management and valuation.
8. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is at
a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
9. Planned item on solution road map
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Traditional ERP
Master data management and retail trans-
actions provided little support for season
handling or decision-making to steer
merchandise flows accordingly in order
to procure and deliver goods on time.
Master data management for retail products
was very different from master data manage-
ment of other industries in terms of data
models and tables. In addition, maintenance of
product data was complex and not intuitive.
Tracking the journey of products from remote
supplying locations into the stores was difficult
and implemented across separate systems
(event management system) that were not
entirely built into a unified procurement
process.
Conversion of the number of pieces of catch-
weight article into the right weight is based on
rigid conversion factors and ends in incorrect
stock values, requiring permanent inventory
corrections.
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Enhancements with SAP S/4HANA® Benefits8
New seasonality concepts are a main driver for all 5%–10% reduced markdowns
processes of a product along its complete lifecycle,
from master data creation to procurement and
sales, price calculation, and stock management.
On-top distribution curves help merchandisers
come up with the right mix of sizes.
New SAP Fiori® apps provide a state-of-the-art Reduction in cost associated with
user experience for the creation and maintenance data errors
of retail products as well as standard materials.
Tight integration into the SAP® Hybris® Commerce
solution supports flawless display of product data
to the consumer.
Collaboration between suppliers and agents and 3%–5% decrease in revenue loss
close tracking of the merchandise journey with due to reduction of stock-outs
workbenches allow course corrections in an
automated manner as well as through manual 10%–20% lower overall supply
interaction. Information and process support for chain planning cost
special handling, such as labeling, ticketing, and
packaging, are embedded.
Ability to hold different weight factors (catch- 5%–10% higher inventory
weight management) is a key functionality in accuracy
meat production facilities, for instance. With
SAP S/4HANA®, industry capabilities are 5%–10% less waste
integrated and can be accessed and leveraged to
improve functional fit.9
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SAP S/4HANA Retail for Merchandise Management
Deep dive

Typical Challenges Traditional ERP Enhancements with SAP S/4HANA® Benefits10

Legal regulations, the daily reality in the
supply chain of goods, and, last but not least, the area of product data are often rigid and
consumer demand: these all represent
challenges to enterprise software, as they
require not only flexibility in the creation of
product data and logistical units to come up
with attractive product combinations but also
capabilities for better tracking and inventory
management of deposits.
Having the right product in the right quantity
at the right time is key in retail. The massive
number of products and locations within a
retail company puts pressure on supply
chain planning and omnichannel fulfillment
processes.
Data structures and data models especially in
very difficult to change.
Core mission-critical retail processes, such as
replenishment processes or calculation of
available-to-promise (ATP) quantities, can be
run only in nightly batch windows.
A new article type allows the creation and 5% higher inventory accuracy
management of structured articles that include full
products and products that are subject to deposit, Better quality of data
such as mixed pallets, generic articles with full
products, and sales sets with full products. This
allows category managers to not only comply with
legal and economic regulations but also create
attractive product offerings for the consumer.
Replenishment for distribution centers and stores 3%–5% reduction in revenue loss
and ATP runs are accelerated by multiple factors, due to stock-outs
practically allowing users to work in dialog by using
in-memory technology (code pushdown and 10% lower total logistics cost
embedded algorithms).
Higher inventory turns

Limited insight into stock levels prevents
course corrections in time to react to stock-
outs or changes in customer demand.
Stock information is spread across many Inventory information is stored in general journal Higher inventory turns
tables, while aggregates prevent quick access tables for simple reporting in real time on stock
to information on inventory positions. position and stock values. Users responsible for 10%–15% lower inventory
the supply chain can react to critical stock carrying cost
situations, and controllers are able to track and
assess profitability. 30%–40% higher inventory
accuracy

A wild mix of user interfaces based on
different technologies, using different
navigation schemes, hampers the user
experience and employee efficiency,
particularly in the store where mobility and
contextual information is key for better
service.
User interfaces are transaction oriented versus
role oriented and not based on the user’s work
process; therefore, they are not telling the
users what they need to do.
Visual harmonization of all user interfaces present 15%–20% improvement in retail
identical look and feel and navigation schemes across store FTE productivity
all areas – access through role-based launch pads
that empower employee with contextual information, 30% less time needed for
insight to action, collaboration, and real-time access decision-making
to information they need for their daily work.

10. Benefits express potentials and are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is
at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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SAP S/4HANA Retail for Merchandise Management
End-to-end solution powered by the digital core

Retail is a unique industry that requires flawless execution. The end-to-end lifecycle of delivering products and services while providing outstanding customer
experiences is a challenge that requires precision and accuracy to win every time. Retailers must be ready to service their customers at any given moment with the
right information, the right product, in the right location, and at the right price.

The capabilities delivered with SAP S/4HANA Retail for merchandise management and its many integration points into the complementing retail solutions help ensure
processes run smoothly and efficiently across the entire customer engagement lifecycle.

In the reference architecture for SAP for Retail, the SAP S/4HANA Retail for merchandise management solution is the enterprise management solution for stable back-
end operations and flawless omnichannel execution. The solution works in conjunction with the SAP Customer Activity Repository application, which is the single,
unified data platform for retail planning, forecasting, and analytics. Together they form the digital core for Retail that serves to to connect your workforce, suppliers,
consumers, and assets in real time. The digital core fuels your omnichannel execution by capturing every customer demand signal and responding in real time.

SELL
PLAN SOURCE SUPPLY
Omnichannel
Marketing and Procurement and Supply
customer
merchandising private label chain
Marketing experience Marketing
Marketing Marketing
• Master data • Merchandise buying • Replenishment planning • Omnichannel order
management for • Replenishment and allocation response
merchandising collaboration • Demand forecasting • Point of sale
• Assortment planning • Vendor agreement and planning • Omnicommerce
Commerce
Commerce and management Commerce
Commerce
management • Omnichannel inventory
• Retail price planning
and management
• Promotion planning
and management
Store Store
Store SAP S/4HANA Retail for merchandise management Store

SAP Customer Activity Repository application

Mobile Mobile
Mobile Digital core Mobile

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SAP S/4HANA Retail for Merchandise Management
Value proposition

SAP S/4HANA provides retail firms with a proven framework to adopt industry best practices while attaining operational excellence across financial and engagement
management processes.

Strategy enablement Business benefits11

 Accelerate new business-model innovation and  Higher inventory turns
drive new revenue-generating opportunities  Lower inventory carrying cost
 Understand every aspect of your business  Decrease in revenue loss due to stock-outs
and adjust to rapidly changing business  Reduction in total logistics cost
requirements: report in real time by function,  Fewer markdowns and less waste
region, category, channel, and product  Better inventory accuracy
 Enable faster domestic and international  Improved retail store FTE productivity
Strategy Business
expansion  Higher customer satisfaction
enablement benefits
 Accelerate M&A synergy
 Manage risk and help ensure compliance

Empowered IT benefits
Empowered employees employees and TCO IT benefits and TCO11
 Higher productivity and faster user adoption  Fast performance by up to a factor of 10
through tailored user interfaces enabled by  Memory footprint reduction by up to a factor of 5
the SAP Fiori user experience  Merger of OLAP and OLTP
 Improved user experience with access to data from  Elimination of many desktop clients
anywhere on any device, with interactive graphics and  Simplified software landscapes
analytics on a single copy of data  Native integration
 Greater ability of store associates and store managers to serve their  Reduced total cost of ownership (TCO) through
customers effectively when equipped with the right information landscape simplification

11. Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from traditional ERP software to enhanced SAP S/4HANA plus line-of-business and cloud capabilities. As each enterprise is at a different
level of maturity, we can work with you to determine the value proposition for your enterprise.
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SAP solutions for Retail with SAP S/4HANA

In addition to SAP S/4HANA Retail for merchandise management, customers benefit from a complete
portfolio of retail solutions built around the digital core with native preconfigured integration to allow firms
to address the needs demanded by today’s digital economy. Processes are designed and built against an
underlying reference architecture for an end-to-end flow – connecting front office with back office, digital
channels with brick-and-mortar stores, transactional systems with optimizing applications, and on-premise
solutions with cloud solutions.

The solutions listed below are the most pertinent and relevant to SAP S/4HANA Retail for merchandise
management.

SAP Customer Activity Repository

The SAP Customer Activity Repository application provides real-time customer and business insight in retail
and fashion in one location. It is a platform for consuming applications for promotions, merchandising, and
assortment planning. SAP Customer Activity Repository receives transactional data from SAP S/4HANA
Retail for merchandise management, such as master data and promotion, process, and inventory
information. This information is used by the SAP Hybris® Commerce solution to provide omnichannel
product availability and consistent price information into the various channels. Sourcing logic and order
orchestration route the products to the right fulfillment locations. An embedded forecasting engine drives
planning applications that feed their output back into SAP S/4HANA for execution.

 SAP Merchandise Planning and SAP Assortment Planning are applications for the chief merchant
officer. They directly consume data from SAP Customer Activity Repository and feed results back into
SAP S/4HANA Retail for merchandise management to create new products for a collection and assign
them to the store according to the product and location mix that the merchandising department has
agreed upon.

 The SAP Promotion Management application uses master data and the forecast from SAP Customer
Activity Repository to plan optimal offers and promotions that are shared across the various channels
consistently. The planning results are fed back to SAP S/4HANA and used for promotion execution.

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Retail Software from SAP with SAP S/4HANA

SAP Forecasting and Replenishment

The SAP Forecasting and Replenishment application automates replenishment in retail. It integrates
sophisticated algorithms for analyzing and predicting customer demand with the automated functionality
required to manage multilevel product replenishment across an entire supply chain. It receives stock
information, open orders, promotions, and master data from SAP S/4HANA, while optimized order
suggestions are executed in SAP S/4HANA. Information is also integrated into the launch pad for store
employees for review and seamless processing of store-based replenishment processes.

SAP Hybris Commerce

The SAP Hybris Commerce solution is the front-office layer in omnichannel retailing, delivering
contextual customer experiences. It is tightly integrated with SAP S/4HANA for providing product
information and prices and feeding back online orders for processing (see also the connection to
SAP Customer Activity Repository for omnichannel product availability and pricing).

SAP Omnichannel Point-of-Sale application by GK

Operate your brick-and-mortar retail store with point-of-sale applications from GK and tap in to
omnichannel retailing as the point of sale retrieves online orders from SAP S/4HANA and calculates the
right consumer price at the time of checkout, considering available offers stored in the pricing repository
in SAP Customer Activity Repository.

SAP S/4HANA Finance

Finance accounting combines financial and management accounting and profitability data into one
universal journal. It abolishes totals, indexes, and other predefined aggregates and relies on line items
as a single source of truth. Multiple parallel documents for all valuations are posted in real time to help
ensure correct values from the beginning.
 Execute closing tasks and interperiod processes in real time
 Run real-time reporting with complete drill-down by any dimension
 Use a single, unified data model to simplify processes, increase productivity, and reduce risk
 Execute depreciation runs easily with simplified processing logic and data structures

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Accelerated Innovation for Retail

Need to accelerate innovation

C-level executives in retail recognize the need to change and digitally innovate, but they don't know
how to go about it. Many technologies are coming to the market now, but what companies really
want are end-to-end use cases that will disrupt their markets or change their internal processes.
Achieving this goal requires multiple elements of the technology portfolio, which SAP can bring
together. It’s no longer state of the art to put modifications or upgrades into your ERP system that
are time-consuming or lock your organization into systems that can no longer be upgraded. Business intelligence

Bimodal IT
The key to facing the challenge of exponential innovative business is a bimodal IT concept that Mode 2:
secures the stability of the core back-end processes and simplifies IT operations on one side while Mode 1: Innovate and
enabling agile development systems to drive innovation by making use of the latest technologies. Run the business differentiate the
business
SAP S/4HANA Retail for merchandise management and other transactional business systems are Business transactions
mode-1 systems that put your company on a stable core and provide the integration and connection Hyperautomated
Flexible and agile

into mode-2 innovation systems. processes Connecting people, things,

and businesses
Stable core
SAP Leonardo Intelligent
SAP Leonardo is the digital innovation system to intelligently connect people, things and businesses.
Leonardo integrates today’s transformational technologies including the internet of things, analytics,
big data, machine learning, blockchain, into the SAP. We combine these with business services
such as design thinking and industry expertise, to meet the unique needs of any company. Data foundation

SAP Cloud Platform

SAP Cloud Platform is the key strategic platform-as-a-service infrastructure that provides the
framework for the SAP Leonardo digital innovation system. SAP Cloud Platform already provides
Bimodal IT
microservices for machine learning, blockchain, analytics, mobility,
Big Data, security, user experience, user management but most of all integration into SAP’s
business systems. All of these capabilities provide unique value for retailers through comprehensive
IoT-driven solutions, process automation with machine learning, safer transactions using
technologies such as blockchain, and the best experience to users.
Get started today
Customers can collaborate with SAP development and consulting experts to start their innovation
journey based on the SAP Leonardo digital innovation system. SAP runs design thinking sessions to
explore opportunities and determine how to move forward using existing solutions and services or
innovation. SAP also provides packaged offerings, targeted at a specific industry use case and
designed to get customers quickly to their differentiated value proposition.
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Retail: SAP Portfolio with SAP S/4HANA and SAP Leonardo
In addition to the benefits that SAP S/4HANA Retail for merchandise management and its most relevant applications provide to key processes of retail, SAP provides
a complete suite of solutions built around the digital core with numerous integration scenarios to allow firms to address all needs demanded by today’s digital economy.

MARKETING AND MERCHANDISING PROCUREMENT AND PRIVATE LABEL SUPPLY CHAIN OMNICHANNEL CUSTOMER EXPERIENCE

Digital Innovation • Brand impact • Contract consumption • Global track and trace • Predictive maintenance and service
SAP Leonardo • Vehicle insights • Asset intelligence network
• Connected goods

• Merchandise planning • Supplier collaboration • Forecasting and replenishment • Commerce solution

• Assortment planning • Business network • Allocation management • Commerce, assisted service module
• Promotion management • Agreement profitability and negotiation • Extended warehouse management • Sales cloud portfolio
Extensions

Customize applications | Integrate apps, data and processes | Build new apps
• Marketing • Transportation management • Omnichannel point-of-sale

• Master data governance • Supply chain for extended warehouse

• Exchange media management
• Advanced available-to-promise

SAP Cloud Platform

• Master data management • Supplier information and master data • Merchandise allocation execution • Sales order management
• Assortment management • Operational contract management • Distribution curve • Billing and invoicing
• Promotion management • Merchandise buying • Basic warehouse management • Store merchandise and inventory mgmt
• Retail price & markdown management • Private label development • Inventory management and valuation • Store connectivity
SAP® Customer Activity Repository
Digital
core SAP S/4HANA Retail for merchandise management – retail end-to-end
• Time recording • Core Accounting
• Employee central solution connectivity • Basic financial operations
• Profitability analysis and cost mgmt

• Financial planning and analysis

• Core human resources and payroll
• Talent management
• Time and attendance management
• Human capital analytics
Extensions
• Workforce forecasting and scheduling
• 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

• Resume matching • Cash Application

Digital Innovation • Job matching • Accounts payable
SAP Leonardo • Job Standardization • Digital Boardroom

HUMAN RESOURCES FINANCE

Digital core: Core solution capabilities
delivered as part of SAP S/4HANA
Enterprise Management
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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.
14
Customers Are Achieving Value from SAP S/4HANA

Mini King Meijer

Guangzhou Mini King Food Co. Ltd. (Mini King) is a vertical enterprise that
integrates R&D, refined processing, and retail sales of “green” leisure food. Its
core business focuses on convenience food, and its products are sold across
mainland China. The company offers more than 120 categories of products,
including Chinese chestnuts, dried fruit, preserved fruit, and other healthy snacks.
With the help of the SAP S/4HANA Retail solution for merchandise management
and the SAP Customer Activity Repository application, Mini King integrated its
finance, procurement, and business processes in one central source. This made
live decision-making possible based on real-time insights into its business. The
new technology enables Mini King to collect information on customer behavior
and product favorites. It can now make recommendations based on customer
preferences, which has resulted in increased customer satisfaction and loyalty.
Meijer Inc. is a privately held grocer and supercenter retailer. To keep pace
with the fast-changing retail landscape, the company required an enterprise
platform that supports its growth strategy and digital innovation requirements.
Meijer started the transformation journey with SAP S/4HANA Finance and
SAP Ariba solutions to renew the business on three dimensions: put customers
first, with closer relationships and reenergized omnichannel experience;
leverage talent in a culture of leadership and innovation; and raise their
competitive game with more customer-centric offers and a focus on cost to
serve.

Company Company
Guangzhou Mini King Food Co. Ltd. Meijer Inc.

Industry Industry
Retail – grocery and discount Retail – grocery and discount

SAP solutions SAP solutions

SAP S/4HANA Finance and SAP S/4HANA Finance and
SAP Customer Activity Repository SAP Ariba solutions

Customer Web site Customer Web site

www.gzln.cn/en www.meijer.com
/foodEnterpriseGroup.html
Click here for the source reference
Click here for the source reference

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Customers Are Achieving Value from SAP S/4HANA

MEMEBOX
MEMEBOX Inc., a Seoul-based consumer e-commerce retailer, sells Korean and
international skincare items, perfumes, organic-based products, and various other
cosmetics. It deployed the SAP S/4HANA Finance solution using SAP HANA
Enterprise Cloud in just five months. With SAP S/4HANA Finance, the company is
getting enhanced insight into customer interactions at every touch point, providing
sales with real-time visibility into stock information.
Since the launch of the solution, MEMEBOX posted a 100% increase in revenue,
30% shorter delivery lead time to customers, and 50% increase in sales
productivity with on-the-go data access as well as 100% improvement in inventory
accuracy and 50% reduction in the closing period.
Benetton
Benetton, a leader in the fashion industry with more than 5,000 retailers and
10,000 employees around the globe, selected the SAP Fashion Management
application, SAP S/4HANA, and the SAP HANA platform to simplify its retail
and franchise operations in one integrated system.
With SAP innovations, Benetton expects to increase its speed and flexibility in
supporting distribution and sales processes in order to deliver superior value to
its customers in this digital era.

Company Company
MEMEBOX Inc. Benetton

Industry Industry
Retail Retail – fashion

SAP solutions SAP solutions

SAP Business Suite powered by SAP S/4HANA, SAP HANA,
SAP HANA and SAP S/4HANA SAP Fashion Management, and
Finance SAP Customer Activity Repository

Customer Web site Customer Web site

www.memebox.com www.benetton.com

Click here for the source reference

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Customers Are Achieving Value from SAP S/4HANA

Snow Peak Wilko

Snow Peak is a retail network with more than 100 stores selling products
designed to meet the needs of campers and backpackers. Snow Peak
wanted to serve its customers better by tracking and analyzing their buying
histories to offer the most relevant and compelling products.
It has deployed the SAP S/4HANA Enterprise Management solution,
SAP Hybris solutions, and SAP Predictive Analytics software to manage
its customer points program, analyze customer behavior in real time, and
make product suggestions while optimizing inventories and getting more
productivity out of its staff.
Wilko Retail Ltd., a family-run retailer with an online presence and more than
380 stores in Great Britain, has selected SAP S/4HANA, SAP for Retail
solutions, and SAP Analytics solutions to power its digital transformation
strategy. The company will use these SAP solutions to transform its customers’
in-store and digital shopping experience, with a particular focus on its growing
millennial customer base.

Company Company
Snow Peak Wilko Retail Ltd.

Industry Industry
Retail – outdoor apparel and Retail
equipment
SAP solutions
SAP solutions SAP S/4HANA, SAP HANA,
SAP S/4HANA Enterprise SAP Customer Activity Repository,
Management, SAP Hybris solutions, and SAP Analytics
and SAP Predictive Analytics
Customer Web site
Customer Web site www.wilko.com
www.snowpeak.com

Click here for the source reference

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17

Studio SAP | 48048enUS (17/11)

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