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SAP Best Practices for Retail Solution Brief


Complete Solutions for your Retail Enterprise

Retailers today face many challenges amidst dynamic consumer trends and evertightening margins. To stay competitive, it is crucial for retailers to improve process efficiency and shorten cycle times, while maintaining effective management of their multiple sales channels and customer service abilities.

SAP offers complete horizontally- and vertically-integrated business solutions for various industries, including retail. Our business solutions have been customized specifically by industry so that you can better manage of your business operations. In addition, our extensive network of partners also ensures that we are well-equipped to provide you with not only the technology, but also consulting and system implementation services, whatever your requirements.
All Aspects of Retail

Business IT solutions are powerful tools that retailers can leverage to drive and improve your business operations. And when it comes to understanding business, SAP has a wealth of experience behind it.

The SAP Enterprise Retail Suite is designed with the retailer in mind, and offers a comprehensive set of features and functions that target each area of your retail business. It spans areas such as merchandise management, corporate administration, store and retail operations, planning, as well as supply chain management. The key products under the SAP Enterprise Retail Suite include: SAP Merchandise Management SAP for Retail SAP ERP 2004 SAP Multisite Workforce Deployment, Version 1.0 SAP Business Information Warehouse, Version 7.0 SAP POS Data Management, NetWeaver 2004 Each of these products has its own set of wide-ranging applications that can provide you with a centralized approach to managing your retail business. You can either purchase the entire family of business solutions, or individual applications to target specific areas of your operations.

Whats more, the scalability of these SAP systems means that as your business grows, you can simply supplement your existing SAP system with additional modules as required. These solutions can not only increase operational excellence in your core business processes, but also help you lower costs and achieve high revenue growth. With SAP Enterprise Retail Suite, retailers can achieve: Enhanced inventory management efficiency Increased product profitability Integrated sales channels Increased visibility of business processes Optimized workflow processes Together with SAPs broad, foundational software platform, our proven retail solutions promise to help you meet both your short and long term business goals and expansion plans.

Global Excellence

Many international retail chains have found success using solutions within the SAP Enterprise Retail Suite. Satisfied customers include grocery and drug-store chains Boots (UK), and Spar (China); fashion apparel stores J.Crew (US) and Petit Bateau (France); speciality stores Montblanc (Denmark) and Indigo Books (Canada); general merchandise shops OfficeMax (US) and Hornbach (Denmark); convenience stores 7-Eleven (Australia) and Zabka (Poland); and postal services in Switzerland and Germany.
The SAP Retail Portfolio SAP Merchandise Management

SAPs merchandise management application is an integrated retailing solution that covers the core processes of a retail company. It maps the complete set of business processes required for competitive assortment strategies, different retail formats, and ECR-driven logistics and distribution, providing all the functions necessary for modeling business processes in a retail company. The key merchandise management processes include: Master Data Management, Merchandise and Assortment Management, Price and Revenue Management, Promotion Management, Purchase Order Management, DC and Store Replenishment, Inventory Management, Warehouse and DC Management, and Integration of Store Processes (e.g. POS Integration).

Inventory Management

Inventory Management in SAP Retail offers you a real-time view of inventory positions for every location in your business, enabling complete control over your inventory activity. For instance, you can easily view and control what items a store can order and sell, and calculate inventory requirements for your distribution center. SAP Retail also provides Business Intelligence functionality, which allows the setting of inventory performance alerts that enable you to address inventory issues promptly.
Purchasing Management

SAP for Retail

SAP for Retail offers a large portfolio of solutions that will enable you to run your retail business efficiently. These include:
Item Management

Item Management provides an integrated merchandise management solution that helps retailers create and manage large amounts of master data. This is done through userfriendly mass maintenance tools, such as exception-based management, referencing logic to limit data creation, manual input matrices and electronic import/export mechanisms. You only need to set up your items once in a single place, and all required personnel will have instant access to that information. Inventory transactions and adjustments, as well as item maintenance are updated in real-time, ensuring that retailers will always have an accurate view of performance.

Purchasing Management can enable automation, optimization, and control of the entire retail procurement process, and is capable of supporting a global supply chain. It is tightly integrated and able to handle planning and forecasting, as well as settlement and reporting requirements. Using this module, retailers can handle procurement for a variety of goods, including replenishable, non-replenishable, seasonal and fresh products. Retailers can use this module to purchase order processing, optimize orders, match invoice, and handle vendor requests for quotations, collective purchase orders, rebates and settlements.
Price Management and Execution

Using a rules-based retail pricing solution, Price Management and Execution allows retailers more control over pricing throughout the entire product lifecycle. Retailers can rely on various strategies such as formats and price zones, competitive pricing and margin targets, in order to improve gross margins and measure sales and profitability performance more accurately. It also provides better management of promotional deals and prices, as well as markdown planning.

Financial Accounting

Financial accounting supports the valuation and reporting of inventory according to different regulations. It uses the Material Ledger component to carry inventory values in two additional currencies/valuations, and performs all goods movements in the Material Ledger in up to three currencies or valuations. It also has the ability to translate currency amounts into foreign currencies at historical exchange rates at the time of posting. In addition, it supports the determination of actual costs (compared to standard costs) for externally procured materials and materials produced in-house via Actual Costing.
Management Accounting SAP ERP 2004

SAP ERP 2004 is an integrated system that provides retailers with an all-round solution. There are various modules that comprise this suite:
mySAP ERP Financials, SAP ERP 2004

Management accounting provides valuation and recording of financial data as the basis for all cost and revenue related reporting. It includes features such as profit center accounting, cost center and internal order accounting, project accounting, investment management, product cost accounting, profitability accounting, revenue and cost planning and transfer pricing.
Corporate Governance

This solution allows retailers better control and management of their financial information as well as accounting reports. It comprises the following functionalities:
Financial Supply Chain Management

Financial supply chain management enables collaboration within enterprises and within their business networks by using defined business policies and shared services to handle all customer-related and supply chain-related financial processes. It also helps automate the financial supply chain by using the Web and other electronic service models. Features of this solution include credit and dispute management, electronic bill presentation and payment, among others.

SAP can help to ensure that corporate governance is met at all levels of your business. To do so, the software features as audit information system, management of internal controls, business risk management, handling of whistle blower complaints, and transparency for Basel II regulations. In this way, it helps to guide trustworthy and legally compliant behavior for all employees and shareholders in your business.

mySAP ERP Human Capital Management, SAP ERP 2004

SAP Services and Asset Management, SAP ERP 2004

mySAP ERP Human Capital Management enables retailers to manage all related human resource management processes and optimize your most valuable investment employees. Major functionality includes:
Talent Management

This feature consolidates all stages of your employees career with the company, identifying and tracking high potential employees for future leadership roles. It supports processes like recruitment, career management, employee performance management and more.
Workforce Process Management

Enterprise asset management (EAM) enhances the management of physical assets and equipment at all stages of procurement and maintenance, from the investment idea stage to the end of operation, and through to the replacement of assets. By addressing these business issues, EAM aims for better managed capital expenditures, reduced operating costs, and improved asset utilization. Enhanced collaboration with equipment suppliers, engineering contractors, and other service providers can further add opportunities for an increased return on assets.

Through its dynamic workforce process management capabilities, mySAP ERP Human Capital Management can streamline and integrate essential workforce processes such as employee administration, payroll, time management, and legal reporting.
Workforce Deployment

mySAP ERP Human Capital Management serves as an integral contributor to workforce deployment solutions across other solutions of the mySAP Business Suite. It empowers users to eliminate redundant or ineffective projects, increase profitability through the smarter use of resources, and manage the workforce as efficiently as possible.

mySAP Supply Chain Management, SAP ERP 2004

mySAP Supply Chain Management ensures the smooth management of your inventory from storage in your warehouse, right up to merchandise distribution. It controls the flow of merchandise from the supplier to distribution center, and finally to your stores. It also provides crossdocking support for movement within warehouses, and real-time tracking of inventory throughout the entire process. Documentation is automatically created to ensure an audit trail.
SAP Multisite Workforce Deployment, Version 1.0

environment. Retailers who implement SAP BW can enjoy reduced total load on their OLTP systems, an overall view of enterprise data, a consistent and reliable reporting tool for historical analysis, and ad hoc query capabilities for end-users.
SAP POS Data Management, NetWeaver 2004

SAP Workforce Deployment is a web-based, scalable application with a focus on providing end-to-end solutions for solving retail workforce management business challenges. Key features include labor scheduling, forecasting, and reporting capabilities, management of time administration and payroll functions.
SAP Business Information Warehouse, Version 7.0

SAP POS Data Management improves decision-making at all levels of the retail organization by gathering facts and figures from each retail store and making them available throughout the enterprise. It provides standard reports at the click of a mouse through a web-based user interface, enabling users to access, explore, and analyze incoming POS sales information faster and easier than ever before. Retail management can examine key events, sales, promotions, price changes, margins, and returns among other key figures. The application resides on SAP NetWeaver and is integrated directly with SAP Business Information Warehouse (SAP BW). It also links to a range of follow-on processes such as inventory management, financials, billing, credit card settlement, and customer facing applications. The application also supports trickle polling, giving managers more relevant sales information.

Data warehousing/reporting capabilities are provided in SAP Business Intelligence through the Business Information Warehouse (SAP BW). This allows all construction and maintenance tasks to be performed within a single, unified

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