retail master guide

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Master Guide

SAP for Ret ai lBusiness Sui t e 2005

Document Version 1.20 December 2006


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Copyright 2005 SAP AG. All rights reserved.

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example, SELECT andINCLUDE.

Example text Screen output. This includes fileand directory names and theirpaths, messages, names ofvariables and parameters,source code as well as names ofinstallation, upgrade anddatabase tools.

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F2) or the ENTER key.

I cons

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Recommendation

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Contents

Overview

4

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

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

History of Changes................................................................................................................ 7

Getting Started .......................................................................................................................... 8

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

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

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

SAP Solution Manager ........................................................................................................ 12

Important SAP Notes........................................................................................................... 13

Business Scenarios of SAP for Retail.....................................................................................14

Allocation ............................................................................................................................. 14

Assortment Management..................................................................................................... 15

Category Business Planning ............................................................................................... 16

Demand Modeling and Forecasting.....................................................................................17

Forecasting & Replenishment .............................................................................................19

Instore Customer Relationship Management ...................................................................... 21

In-Store Workforce & Task Management ............................................................................23

Markdown Planning & Optimization..................................................................................... 25

Merchandise and Assortment Planning...............................................................................28

Merchandise and Assortment Planning (Integrated) ........................................................... 30

Multi Channel Loyalty Program Management .....................................................................32

Point of Sale GM..................................................................................................................34

Point of Sale TE...................................................................................................................37

Promotion Planning & Optimization.....................................................................................39

Purchase Order Management .............................................................................................42

Requirements Planning and Replenishment .......................................................................45

Retail Price Planning & Optimization................................................................................... 47

Returns Authorization .......................................................................................................... 50

Store Analytics.....................................................................................................................53

Store Connectivity................................................................................................................ 55

Store Merchandise Management ........................................................................................58


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SAP for Retail

Overview

5

SAP for Retail

Overview

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

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

SAP for Retail brings all the speed, efficiency, and flexibility of the Internet to every aspect of

your enterprise. SAP for Retail focuses your entire value chain -- from the way you managecustomer contacts and fulfillment to how you maintain inventory and analyze performance --on your customers, generating measurable benefits in cost, revenue, and strategy.

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

Impact on RevenueMultichannel relationship and transaction management, coupled with automated

marketing and customer self-service, helps you boost sales, increase shoppingfrequency, raise customer retention, and more effectively attract new customers.Assortment, shelf management, mass customization, and cross-selling functions let youcut stock levels and improve shelf space efficiencies, giving you extended productlifecycles and greater profitability.

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

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

Allocation Assortment Management

Category Business Planning

Demand Modeling and Forecasting

Forecasting & Replenishment

Instore Customer Relationship Management

In-Store Workforce & Task Management

Markdown Planning & Optimization

Merchandise & Assortment Planning


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SAP for Retail

Overview

6

Merchandise and Assortment Planning (Integrated)

Point of Sale GM

Point of Sale TE

Promotion Planning & Optimization

Purchase Order Management

Requirements Planning & Replenishment

Retail Price Planning & Optimization

Returns Authorization

Store Analytics

Store Connectivity

Store Merchandise Management

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

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

Specific MapsRetail.

The business scenarios that are presented here serve as examples of how youcan use SAP software in your company. The business scenarios are onlyintended as models and do not necessarily run the way they are described herein your customer-specific system landscape. Ensure to check your requirementsand systems to determine whether these scenarios can be used productively at

your site. Furthermore, we recommend that you test these scenarios thoroughlyin your test systems to ensure they are complete and free of errors before goinglive.


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SAP for Retail

History of Changes

7

History of Changes

The Master Guide is updated on a regular basis in SAP Service Marketplace at:


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

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

Master Guide Version Important Changes

1.00 (October 2005)

1.10 (December 2005) Business scenario Forecasting and Replenishmentadded

1.20 (December 2006) New Business Scenarios added:




Point of Sale GM

Point of Sale TE




Obsolete Business Scenarios removed:

Promotion Planning & Management

Retail Price and Revenue Management

Vendor-Managed Inventory

Workforce Deployment - Limited Access for

Manager

Workforce Deployment - Open Access forManager

Workforce Deployment with ERP


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Getting Started

History of Changes

8

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

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

Business Scenarios of SAP for Retail [page 14] contains the following information foreach business scenario:

A short overview about the business scenario

Minimal system landscape

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

Where you can find further information about the business scenario

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


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


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Getting Started

The Main SAP Documentation Types

9


Several documents have been created to assist you in installing, implementing, operating and

upgrading your SAP solutions. The Solution Master Guide (this document) is the firstdocument you obtain. Although strongly related to each other, the different documentationtypes should help you solve problems on different levels at different solution phases. Thefollowing figure shows an overview of the most important documentation types that youneed in the various phases in the life cycle of an SAP solution.

Documentation types in the software life cycle

ImplementationImplementation

Master Guide

ConfigurationDocumentation

Release Notes

ComponentInstallation Guide

ComponentUpgrade Guide

Upgrade Master Guide

OperationOperation UpgradeUpgrade

Solution ManagementGuide

Implementation Guide (IMG) Delta and Upgrade IMG

Security Guide

SAP Library

SAPterm

Cross-Phase Documentation

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

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

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

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

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

SAP Easy Accessmenu of the SAP system underToolsCustomizingIMG.

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


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Getting Started


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

Implementation

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

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

Production Operation

The Solution Operations Guide is the starting point for operating an SAP solution. Theguide refers users to the tools and documentation that are needed to carry out various tasks,such as monitoring, backup/restore, master data maintenance, transports, and tests. It alsorefers users to other documents, for example the SAP Library, the Master Guide, and theComponent Management Guides. The current version is located on SAP ServiceMarketplace at service.sap.com/instguides .

Upgrade

The Upgrade Master Guide is the starting point for upgrading the Business Scenarios of anSAP solution. It provides scenario-specific descriptions of preparation, execution, and follow-up of an upgrade. It also refers to other documents, such as the Component Upgrade Guidesand SAP Notes. Instead of an Upgrade Master Guide, there may be several Business

Scenario Upgrade Guides or a Solution Upgrade Guide for earlier shipments of the BusinessScenarios of an SAP solution. The current Version is located on SAP Service Marketplace atservice.sap.com/instguides .

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

Release notes are documents that contain short descriptions of new features or changes inan SAP component since the previous release. Release notes about ABAP developmentsenable the SAP system to generate delta and upgrade IMGs. The current version is locatedon SAP Service Marketplace at service.sap.com/releasenotes or in the SAP menu of

the SAP system underHelpRelease information.

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


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Getting Started

Related Information

11

Related Information

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

List of Related Documentation

Content Location

Information about technical and releaseplanning issues on SAP components

service.sap.com/pam

Information about the latest version ofinstallation and upgrade guides for SAPcomponents


Information about SAP Notes service.sap.com/notes

Information about released platforms service.sap.com/platforms

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

service.sap.com/sizing

Information about network security SAPSecurity Guide

service.sap.com/securityguide

Information about network integration service.sap.com/network

Information about high availability service.sap.com/ha

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

Performance Map service.sap.com/performancemap

Documentation on SAP Help Portal help.sap.com/


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Getting Started

Related Master Guides

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Related Master Guides

This Master Guide is based on Component Master Guides. You will find detailed information

about the relevant components in the following documents:

List of Related Master Guides

Content Location

mySAPTM

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

ERP 2005

SAP NetWeaverTM

2004s service.sap.com/installNW2004s

mySAPTM

Supply Chain Management service.sap.com/instguides mySAP

Business Suite SolutionsmySAP SCMUsing SAP SCM 4.1 Server

mySAPTM

Customer RelationshipManagement

service.sap.com/instguides mySAP

Business Suite Solutions mySAP CRMSAP CRM 5.0

mySAPTM

Supplier RelationshipManagement t

service.sap.com/instguides mySAP

Business Suite Solutions mySAP SRMUsing SAP SRM Server 5.0

SAP Solution Manager

SAP provides the SAP Solution Manager as the highly recommended platform to efficientlysupport the implementation of your solution. Using SAP Solution Manager will significantlyaccelerate the implementation process and help you to achieve your business goals. At thesame time, SAP will be able to deliver Support Services based on the business scenariosdesigned and documented in SAP Solution Manager. Implementation content for yoursolution may further accelerate the implementation process. For information about availabilityof content specifically tailored to your solution, see SAP Service Marketplace underservice.sap.com/solutionmanager .


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Getting Started

Important SAP Notes

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Important SAP Notes

This section contains important SAP Notes forSAP for Retail.

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

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

SAPNet - R/3 Frontend.

List of Related SAP Notes

SAP

Note

Title Description

General

852235 Release Limitations for mySAPERP 2005

This note provides information aboutlimitations in mySAP ERP 2005.

874967 Release Limitations for mySAPRetail

This note provides information aboutlimitations in mySAP Retail.


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Business Scenarios of SAP for Retail

Allocation

14


Allocation

Overview

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

The flow of products is then triggered by follow-on processing, that is, procurement and issuedocuments are automatically created by the system. Alternatively, you can also generateallocation tables automatically with reference to standard purchase orders or vendor ordersthat have been generated or created based on detailed assortment planning (in particular,purchasing lists). This way, quantity distribution of the planned assortment in the purchase listis performed to the recipients.

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

Technical System Landscape

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

ERP Server

RDBMS

SAP ERP 2005 SAP ECC

BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.02

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

Component Mandatory Optional

SAP ERP 2005 (SAP Retail withSAP ECC 6.0 Server)

X

SAP NetWeaver 2004s usagetype BI

X


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Assortment Management

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Assortment Management

Overview

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


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

ERP Server

RDBMS


BI Server

RDBMS

SAP NetWeaver 2004susage type BI

BI CONT 7.02

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



X


X

Further Information

The following documents provide more information about Assortment Management.

Further Scenario Documentation

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


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

Security Guide For more information, see

service.sap.com/securityguide Industry Scenario

Security Guides.


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Overview

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


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

BI Server

RDBMS


BI CONT 7.02

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



X

Further Information

The following documents provide more information about CategoryBusiness Planning.


Scenario Description The scenario description is part of SAP Solution Manager. For

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





Security Guides.


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Overview

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

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


The following diagram provides an overview of a possible system landscape forDemandModeling and Forecasting.

SAP ECC 6.0 Server

RDBMS

SAP ERP 2005 (SAP Retail)

BI Server

RDBMS


BI CONT 7.03

Demand Management Server

RDBMS

DM Web Application

DM Job Processing

PI/XI Server

SAP NetWeaver 2004susage type PI

XI Content DemandManagement

XI Content SAP ERPENHANCE PACKAGE 2005.1

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


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SAP DEMAND MANAGEMENT6.4

X


X


X

SAP Netweaver 2004s usagetype PI/XI

X

Further Information

The following documents provide more information about Demand Modeling and Forecasting.







Security Guides.


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Overview

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


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

& Replenishment.

ECC Server

RDBMS


BI Server

RDBMS

SAP NetWeaver 2004s

usage type BI

BI CONT 7.02

XI Server

RDBMS

SAP NetWeaver 2004s

usage type XI

XI CONTENT SAP_APPL

600

SCM Server

RDBMS

SAP F&R 5.0

SAP F&R - Store UI

5.0

XI CONTENT SCM 5.0

XI CONTENT SCM BASIS5.0

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


SAP SCM 5.0 SCM Server X


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X

SAP NetWeaver 2004s usage

type BI

X

FRP 2.8.1 X

SUI 5.0 X

SAP NetWeaver 2004s usagetype PI/XI

X

Further Information

The following documents provide more information about Forecasting & Replenishment.







Security Guides.


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Overview

You can use this business scenario to map all customer-related processes in a retail store.This includes the processes for creating customer data and entering RFQs, quotations,orders and returns, as well as invoice processing. You can enter exact information on pricesand dates, and inform customers about the status of their orders in real time.

The existing tools for handling store-based processes use a browser-based user interfacethat is tailored specifically to the needs of stores. The interface combines the intuitiveusability of a Web browser with the special store-based transactions of centralized retailing.As a result, even recently trained part-time staff can start working with the system quickly andefficiently.Technical System Landscape

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

ERP Server

RDBMS

SAP ERP 205 SAP ECC

SAP ECC 6.0 Server

RDBMS


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



X

Further Information

The following documents provide more information about Instore Customer RelationshipManagement.




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


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22

service.sap.com/solutionmanager .



Security Guides.


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Overview

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

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

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

Recording, managing, and evaluating internal and external employees time managementdata.

Planning, creating, and maintaining employee schedules.Technical System LandscapeThe following diagram provides an overview of a possible system landscape forIn-StoreWorkforce & Task Management.

ERP Server

RDBMS


BI Server

RDBMS

SAP CRM 5.0 BI Content


Workforce Management Server

RDBMS

SAP WorkforceMAnagement 3.0

Portal Server

RDBMS

Business Package forRetail 2.0

SAP NetWeaver 2004susage type EP

E-Recruting Server

RDBMS

SAP E-Recruting 6.0

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


SAP Workforce Management 3.0 X

SAP NetWeaver 2004s usagetype EP Core

X

SAP NetWeaver 2004s usage X


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type Portal Content with BusinessPackage Retail 2.0

SAP ECC 6.0 X


X

SAP XMTT 2.0 X

SAP E-Recruiting 6.0 X

Further Information

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






service.sap.com/securityguide Industry ScenarioSecurity Guides.


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Overview

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

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

In Slow Seller Management you plan markdowns (price reductions) for seasonal products.Using rule-based markdown controls, SAP BW automatically creates markdown proposalsthat provide analysis of sales data. Markdowns are proposed, and once accepted, areprocessed in the Price Planning Workbench in SAP Retail. If the retailer uses markdowns

based on a predefined markdown schedule, the dates for the markdowns are definedbeforehand and executed on those dates.


The following diagram provides an overview of a possible system landscape forMarkdownPlanning & Optimization.


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SAP ECC 6.0 Server

RDBMS


BI Server

RDBMS


BI CONT 7.03


RDBMS

DM Web Application

DM Job Processing

PI/XI Server




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


SAP DM 6.4 X


X


X


X

Further Information

The following documents provide more information about Markdown Planning & Optimization.


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Scenario Description The scenario description is part of SAP Solution Manager. Formore information about SAP Solution Manager, see






Security Guides.


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Merchandise and Assortment Planning

28


Overview

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

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

When you integrate merchandise and assortment planning in SAP NetWeaver 2004s, usage

type Business Intelligence with BI Content 7.0.2 Add-On (BI system), the system accessesvarious data from different areas. This has the advantage that you can optimize futuredevelopments for your company by comparing planning, actual, and historical data. Inaddition, you can continuously monitor defined objectives, and adapt to given developmentsand influencing factors.


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

BI Server

RDBMS


BI CONT 7.02

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



X

Further Information

The following documents provide more information about Merchandise and AssortmentPlanning.


Scenario Description The scenario description is part of SAP Solution Manager. For


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

Configuration

Documentation

The configuration documentation is part of SAP Solution

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



Security Guides.


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Overview

Retailers can use this business scenario to implement integrated and complete planningwithin their company. You perform planning and reporting for all your business activities thatinvolve assortments and merchandise. You can define sales, quantities, areas, stores andbudgets, which are then transferred to an executing system for operational purposes andprocessed further.

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

When you integrate merchandise and assortment planning in SAP NetWeaver 2004s, usage

type Business Intelligence with BI Content 7.0.2 Add-On (BI system), the system accessesvarious data from different areas. This has the advantage that you can optimize futuredevelopments for your company by comparing planning, actual, and historical data. Inaddition, you can continuously monitor defined objectives, and adapt to given developmentsand influencing factors.


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

BI Server

RDBMS


BI CONT 7.02

SAP ECC 6.0 Server

RDBMS


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



X


X

Further Information

The following documents provide more information about Merchandise and AssortmentPlanning (Integrated).


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Security Guides.


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Multi Channel Loyalty Program Management

32


Overview

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

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

Ability to directly target information in a real-time, on-line environment. To accomplishthis, pertinent data from your CRM analytical solution is synchronized with the Allegiance1 to 1 database. This information is held centrally and provides that information to thecustomer point of interaction including POS systems, customer service desks, kiosks,

and e-commerce applications.Technical System Landscape

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

Allegiance Server

RDBMS

ALLEGIANCE DB Server

ALLEGIANCE Server

Loyalty Solutions Server

Transnet Server

Transnet Client

Transnet Monitor Server

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


SAP Allegiance 6.0 X


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Further Information

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







Security Guides.


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Point of Sale GM

34

Point of Sale GM

Overview

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

SAP Transactionware GM provides numerous benefits to retailers including:

Improving Service Delivery Add 24x7 customer service

Provide personalized customer interaction

Improving Customer Service

Ensure customers are treated based on predefined business rules

Improve customer retention and loyalty

Reducing Operating Costs and Increasing Efficiency

Ensure more effective sales execution

Reduce training costs


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


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Point of Sale GM

35

POS Express

Triversity Command lineutilities

POS Xpress 9.5

Configurator

Configurator 9.5

Database Tools 9.5

EJV 9.5

Software Dev. Kit

SDK 9.5

Xpress Server

Xpress Server 9.5

EFT

Databse Tools 9.5

Store Manager 9.5

EJV 9.5

RDBMS

POS Thin Server

POSW 9.5

Mobile POS

Mobile POS 9.5

POS DOS Thin Client

POS DOS Thin Client 9.5

RDBMS

The following product is mandatory for the technical implementation ofPoint of Sale GM.


SAP Transactionware GM V9.5 X


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Point of Sale GM

36

Further Information

The following documents provide more information about Point of Sale GM.







Security Guides.


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Point of Sale TE

37

Point of Sale TE

Overview

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

Point of Sale TE provides the following benefits:

Improved Customer Service

Ensures that customers are treated in accordance with predefined businessrules

Improves customer retention and loyalty

Reduced Operating Costs and Increased Efficiency

Ensures more effective sales execution

Reduces training costs

Improved Service Delivery

Adds 24x7 customer service

Personalizes the customer interaction


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


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Point of Sale TE

38

POS Client

POS Client

POS Loader

TE POS Store Server

TE Server

Transnet Site Client

Deployment Manager

RDBMS

TE POS HO Server

TE Server

Transnet Site Client

RDBMS

The following product is mandatory for the technical implementation ofPoint of Sale TE.


SAP Transactionware Enterprise2.5

X

Further Information

The following documents provide more information about Point of Sale TE.



Configuration

Documentation

The configuration documentation is part of SAP Solution

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



Security Guides.


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Overview

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

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

In the planning stage, you:

Specify the articles that you want to include in the promotion and the stores or customersparticipating in the promotion.

Specify distribution chains, price lists, or site groups and optionally define special

promotional prices for the articles, or group conditions, such as discounts formerchandise categories.

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

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

In the layout stage, you specify:

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

The picture to display for the article.

Any additional text to include in the advertisement.

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

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


The following diagram provides an overview of a possible system landscape forPromotionPlanning & Optimization.


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40

SAP ECC 6.0 Server

RDBMS


BI Server

RDBMS


BI CONT 7.03

PML Server

RDBMS

Visual Compos.Framework Server

Visual Compos.Framework Client.

PI/XI Server

SAP NetWeaver 2004s

usage type PI

XI Content Demand

Management



RDBMS

DM Web Application

DM Job Processing

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


SAP DM 6.4 X

SAP PML 6.7 X


X


X


X


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41

Further Information

The following documents provide more information about Promotion Planning & Optimization.







Security Guides.


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42


Overview

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

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

The seasonal procurement process gives you a fast, simple way to enter orders. An OTB

check is also integrated, along with a monitor of existing schedules.The push approach is also followed in the process ofplan-driven seasonal procurement. Inthis process, the generated purchase orders result from the planning results in operationalassortment planning (see Operational Assortment Planning and Control). The OTB check,scheduling, and subsequent monitoring of the calculated dates are integrated in this processas well.

Several workbenches are available to simplify the use of these two push processes:Workbenches from Procurement Monitoring (PO Monitor, Contract Monitor, OTB Monitor),Purchase Order Manager Workbench, OTB Procurement Workbench, OTB ProcurementSpecial Release Workbench.

A separate process is available to assist in the procurement of perishables (fruits andvegetables), enhanced with a process for managing live auctions.

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

Operational order processing is concluded by the invoice verificationprocess.


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


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43

BI Server

RDBMS


BI CONT 7.02

SCM Server

RDBMS

SAP SCM 5.0

SRM Server

RDBMS

SAP SRM 5.0

SAP ECC 6.0 Server

RDBMS


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


SAP ERP 2005 (SAP Retail withSAP ECC 6.0 Server) X


X

SAP SCM 4.1 SCM Server X

SAP SRM 5.0 SRM Server X

Further Information

The following documents provide more information about Purchase Order Management.






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Security Guides.


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Requirements Planning and Replenishment

45


Overview

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

Monitoring stocks

Taking account of recipients sales and purchase orders

Creating forecasts

Calculating requirement quantities

Creating follow-on documents for procurement

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

You can use the scenario to map the following processes:

Direct delivery

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

Delivery via a distribution center

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


The following diagram provides an overview of a possible system landscape forRequirements Planning and Replenishment.

SAP ECC 6.0 Server

RDBMS


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



X


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46

Further Information

The following documents provide more information about Requirements Planning andReplenishment.







Security Guides.


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47


Overview

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

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

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

You calculate the sales prices in SAP Retail. Depending on which pricing procedure you use,

you first define pricing-relevant parameters such as planned markups, competitor prices, orprice families. The three different applications that are available sales price calculation,market basket calculation, and Price Planning Workbench are each focused on differentrequirements in retailing. The sales prices calculated during costing are saved as conditionsin SAP Retail.

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

In Slow Seller Management you plan markdowns (price reductions) for seasonal articles orfashion merchandise. In rule-based markdown control, you define planning parameters inSAP BW to automatically create markdown proposals, which the system uses during analysis

of the sales data. You process these markdown proposals further in the Price PlanningWorkbench in SAP Retail. When you plan based on a markdown plan, you define the datesfor the markdowns beforehand.


The following diagram provides an overview of a possible system landscape forRetail PricePlanning & Optimization.


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48

SAP ECC 6.0 Server

RDBMS


BI Server

RDBMS


BI CONT 7.03


RDBMS

DM Web Application

DM Job Processing

PI/XI Server




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


SAP DM 6.4 X


X


X


X

Further Information

The following documents provide more information about Retail Price Planning &

Optimization.


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Security Guides.


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50


Overview

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

Reducing Operating Costs & Increasing Efficiency

Reduce of error rate by use of automated processes

Reduce transaction costs

Increase Speed & Efficiency

Better decisions with accurate and up-to-date information

Improved quality and accuracy


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


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51

POS Xpress Server

Transnet MT Client

POS Xpress 9.5

Configurator

Configurator 9.5

Database Tools 9.5

EJV 9.5

Software Dev. Kit

SDK 9.5

Xpress Server

Xpress Server 9.5

EFT

Databse Tools 9.5

Store Manager 9.5

EJV 9.5

RDBMS

RDBMS

Express Returns Server

Common Dataload

Express Returns

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


SAP POS Services 1.0 X

SAP Transactionware GM 9.5 X


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Further Information

The following documents provide more information about Returns Authorization.







Security Guides.


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Store Analytics

53

Store Analytics

Overview

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

As part of customer sales analysis (consisting of customer analysis, sales analysis and Top100 analysis), you can systematically prepare the sales promoting area and support sales ina targeted way for improved revenue and sales control. You can evaluate the logisticalprocessing and sale of promotional merchandise using the promotion analysis, identify thebenefit of a promotion and cover the sales margins of specific promotional articles (promotion

analysis). POS data analysis can be used for prompt sales evaluation of cash register data atstore and article level. POS data analysis includes the following components:

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

Effective evaluation of key store figures

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

Increase in profitability through near-time controlling of retail processes

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


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

BI Server

RDBMS


BI CONT 7.02

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



X


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Store Analytics

54

Further Information

The following documents provide more information about Store Analytics.







Security Guides.


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Store Connectivity

55

Store Connectivity

Overview

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

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

Master data (item and price information)

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

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

Sales flows

Goods movements

Financial transactions

Totals records

Cancellation transactions

Control transactions

The transaction data from the POS systems forms the basis for the main sales processes,such as store replenishment, sales analyses, promotion analyses, and profit and lossstatement. Due to its volume and high level of detail, this data is one of the major challenges

to a retailer's IT landscape. You can use POS Data Management for systematic and demand-driven processing of the data.


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


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Store Connectivity

56

BI Server

RDBMS


BI CONT 7.02

SAP ECC 6.0 Server

RDBMS


PI/XI Server


XI Content SAPTRANSACTIONWARE GM 9.5


Triversity GM Server

RDBMS

Xpress Server

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



X


X


X

Further Information

The following documents provide more information about Store Connectivity.



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Store Connectivity

57






Security Guides.


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58


Overview

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

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


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

SAP Business Connector4.7

SAP ECC 6.0 Server

RDBMS


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



X

SAP Business Connector 4.7 X

Further Information

The following documents provide more information about Store Merchandise Management.



Configuration The configuration documentation is part of SAP Solution

Manager implementation content ST-ICO 150. For more


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


service.sap.com/securityguide Industry ScenarioSecurity Guides.

retail master guide

Documents