it5 s2 sap distribution solution

Retail IBUMay 2012

SAP Distribution Management solution

Strictly Confidential

PerfectInstructions

Better insights

Perfect Execution

Perfect Execution

Higher Quality Feedback

Distribution Management system - Expectations

OrdersStocks …

Retail Execution

Next Generation DMS

Retailer

Information Command & Control

• Support Growth through More Stores, Better Stores, Better Service• One repeatable scalable model• Enable sustained leadership thru General trade and Modern Trade

How will SAPDMS deliver benefits?

StandardizedDistributor ProcessesIntegrated withCPG Principalprocesses

Superior &Consistentexecution

Better service to outlets

Less out of stock at outlet

Less wastage for CPG Company

Better productivity of distributor & salesman

Flexible businessModel allowingRapid expansion,Merging, openingClosing of distributors etc

Better coverage

Stock Efficiency at distributor & CPG company

…and legacy systems may not be robust enough to handle demands of the business

Distributor Stock Management Distributor Order Generation(CRS) Distributor Order Fulfillment (Primary sales) Trade PromotionsInvoicing from CPG company PO and Payments in DMS

PO and Payments in DMS Outlet Servicing ( Secondary Sales) Claims Processing Standard Reporting Communication Connectivity IT System Capabilities Financial management capabilities Damage and shortage goods handling

Minimize information losses during changeovers

CPG Principal Processes

Distributor Processes

Technology for hosted DMS – Own Distributor ‘s / shared dealer network

Mandatory Operational link

MandatoryStrategy links

SAP ECC

APO

Business Planning Systems

CRM

Cloud Hosting

CPGDistributor Management system Processes

SAP Retail on ECC6.0Claims/ Incentive managementSybase unwired platform

SAP PI

SAP PI

Distributor

Good connectivity

Non Exclusive Distributor

OfflineInbound

Data Warehouse

Third Party DMS

CPG CompanyProcesses

Distributor

Poor connectivity

TPM

© 2011 SAP AG. All rights reserved. 5Strictly Confidential

A Day in the Life Of…..

Master Data

Master data syn via Pricat

Dat

a sy

n to

HH

T

Promotions Allocation

Sales Order

Inventory Management

Data syn

Requirements Planning

Reporting

Sales Pricing

AssortmentManagement

SOCPG

Company


1. Master Data Management • Design suits the requirements of FMCG Distribution business.• Integration Frame work available (Principal, Distributor, Retailer- Pricat tools).• Ease of maintenance thru reference data and mass maintenance tools.• Terminology suits the Distribution business store or Distribution centre instead of plant,

and article instead of material. • Article categories like Single, Generic, Sales set,Prepack, are suited to meet distributors

requirements to manage SKU’s to suit the needs of retailers

2. Assortment and Listing

• Assortment management helps manage the product or product range relevant for different sets of distributors. Reference assortments makes it easy to maintain

• Listing enables easy on boarding of new distributors , Extend article ( Material) master views for the new distributors .

3. Pricing • Retail pricing engine suits the requirement of managing pricing calculation• Ref pricing at Dist chain makes it easy to maintain prices• Price lists, site specific / Dist chain are easy to manage and deploy

SAP Distribution Management solution - Key enablers


4. Allocation for new products and Consumer promotions.

• Allocation tool available as part of the Retail fits the requirement of Allocating stocks for new products, consumer promotions to customer, customer groups, Salesmen.

5. Key Account Management – Category management

• Multiple hierarchies/ Version management/ Define Category goals evaluate their performance in BW.

• Use the layout module to create model shelving plans for modern trade and evaluate the compliance. Create competitor articles in the system to use them in the shelving plan. Standard SOA packages available to integrate Layout modules to Space management tools to deploy planograms.

6. Promotion management

• Bonus buys definition makes it easy to model special kind of promotions

7. SAP Retail store / In store Merchandise and Inventory Management

• Easy to use interface for the distributor users

8. Standard ECC6.0 functions – Lean WMS, Physical inventory, Consignment, Advanced returns management ( Customer Vendor) are available

SAP Retail Distribution Management solution - Key enablers

© 2011 SAP AG. All rights reserved. 8Strictly Confidential © SAP 2010 /

Coverage Management


Site MasterSite Classification

Van Sales

Store

StoreDistributor BranchStoreDistribution Centre (HQ)

© SAP 2010 /

Grouping of Customers

Modern RetailStore

Store

Store

Store

Modern Retail

Modern Retail

Modern Retail

Store

Store

© SAP 2010 /

Drug Pharmacy

Drug Pharmacy

Drug Pharmacy

Drug Pharmacy


Assigning and extending customers to different distributors and branches

customer A

customer B

customer C

customer F

customer H

customer J

customer L

customer K

CG MarketingSwastik

customer D

customer E

customer G

customer I

PJP CDR Permanent Journey Plan

PJP Delivery Permanent Journey Plan

Sending zone Receiving zone Route

Zone (Warehouse) Zone1 Route1




The warehouse (site master) and the customer (customer master) will have zone codes assigned to it. The zones will be used to determine the route the delivery shipments will take to deliver the stocks to the customers


Van sales – Van as a storage location of the sitecustomers that are covered by salesmen and outlets covered by Vans are mutually

exclusive

Based on the running rate of the outlet, for the outlets to be visited the goods are loaded from the warehouse into the trucks

Once the visits to all the outlets are over the van returns to the warehouse where are all the orders are entered into the system

Stocks that could not be sold during the visits are unloaded from the van and are either moved to the ‘sales’ storage location or the ‘damaged’ storage location

Site

Sales Scrap

Loss VanWM active

VAN1

VAN2

VAN3

Site

Storage locationStorage bin

Damaged


Allocation – New product Launch, Promotions- PUSH

PrincipalDistributor

Art

Salesman

Allocation Table

Purchase Order

Art Art

Salesman Salesman Branch


Allocation Strategies


Pricing Structures

Pricing Hierarchy:Company Regional GroupingZoneStore

Validity Date Triggered

Customer Specific Prices

Layered in discounts or surcharges


Price Methods & Rules

Price Methods:Quantity basedBOGO – Buy One Get One% OffScaled Retail PricingCoupons

Rules Based Pricing/ PromotionFamily /Spread Family PricingCompetitive PricingPlanned MarginRounding


Closed Loop Process

Reconcile and Settle

Approve Contract

Record Marketing Event

CalculateClaim

Send Claim to P&G

Create Contract

Set Claim Terms

Analyze Profitability

Portal provides capability to have Principal create Contracts Workflow based

Approvals

Record Marketing Event in SAP

Real-time Tracking of Claims

Send Claim to Principal electronically

Inbound Response

Analyze Balances against Marketing Activities


SUP Connecting to SAP Applications

Mobilebusinessobjects

Containerapplications

Nativeapplications

Sybase Unwired Platform

SAP CRM Marketing

SAP mPayment

SAP HANA for AnalyticsSegmentation etc.

Precision Retailing

SAP Loyalty/Couponing

SAP Web Channel

Create

Eclipse

BlackBerry

iPhone

iPad

Windows

Windows Mobile

Consumeheterogeneousmobile devices

ControlDevice and server management and security

Management console

SAP Distribution Management solution

Non SAP

© 2011 SAP AG. All rights reserved. 23Strictly Confidential © SAP 2009 / Page

In-Store Merchandise and Inventory Management – Guided Procedure

Business benefits:It guides the user throughout the business processes, such as Store Order or Cycle Counting, back and forth in simple steps that makes the solution easy to learn and to train.

Reduce Total Cost of Ownership and Increase Customer Focus


Challenges:• Master data migration. • Change management and

trainingGoals:• Increase customer service• Improve Sales team productivity• Drive volume & margin with greater up sell

Benefits:• Online tracking of the distributor fill rates

• Effective promotions • Better turnaround of Claims• Single source of truth

Distribution Customer using SAP Distributor Management Solution

Thank You!

Contact information:

Bharani KrishnanTrade Industriesmailto: [email protected]


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© 2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

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All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

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it5 s2 sap distribution solution

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