SAP Customer Activity Repository

Overview for African SAP User Group

Ines Wannemacher, Solution Management Retail
October 1st

PUBLIC
Agenda

➢ Intelligent Enterprise & Reference Solution Architecture

➢ Overview SAP CAR - Components

➢ Overview SAP CAR - Consuming applications

➢ Overview SAP CAR - Customers

➢ Overview SAP CAR - Roadmap

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Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
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This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
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particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.

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The Forrester WaveTM: Retail Planning Q1, 2020

SAP ranked as a Leader

"SAP’s patient investment in retail planning is paying off"

Evaluated SAP solutions:

 SAP Customer Activity Repository (including Unified
Demand Forecast)
 SAP Merchandise Planning
 SAP Assortment Planning
 SAP Allocation Management
 SAP Forecasting and Replenishment
 SAP Promotion Management

The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester Research,
Inc. The Forrester Wave™ is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with
exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester
Wave™. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
©
© 2020
2020 SAP
SAP SE
SE or
or an
an SAP
SAP affiliate
affiliatecompany.
company.All
Allrights reserved. ǀ ǀ PUBLIC
rightsreserved. PUBLIC 13
4
Bye bye infinity loops

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Intelligent Enterprise

BUSINESS NETWORK

BUSINESS
PROCESS Across all functions

EXPERIENCE MANAGEMENT

APPLICATIONS INTELLIGENT SUITE INDUSTRY CLOUD

SUSTAINABILITY MANAGEMENT

TECHNOLOGY BUSINESS TECHNOLOGY PLATFORM

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High Level Reference Solution Architecture – (*planned, **vision)

Experience: Experience Management Customer Employee Product Brand

Intelligent Suite: Customer – SAP CX

SAP Marketing Cloud SAP Commerce Cloud/Upscale SAP Customer Data Cloud SAP Sales Cloud SAP Service Cloud

Intelligent Suite: Merchandise & Fashion Management, Enterprise Industry Cloud Eco system
Management, Supply Chain, Finance, HR, Supplier Networks SAP Consumer Sales Intelligence
▪ SAP Mobile Consumer
SAP S/4HANA Retail for merchandise SAP Customer Activity Repository Assistant by GK
mgmt./ for fashion and vertical business application bundle SAP Customer Order Sourcing ▪ SAP Dynamic Pricing by GK,
POS Data Transfer and Audit, unified demand forecast, article cloud edition
Master data, assortment, pricing and promotion, MRP, availability and sourcing; SAP Omnichannel promotion pricing ▪ SAP Omnichannel Point-of-
merchandise buying, allocation, inventory management, SAP Omnichannel Pricing &
SAP Merchandise Planning Sale by GK, cloud ed.
(advanced available-to-promise, retail store management, Promotion Service
sales order mgmt …
SAP Assortment Planning ▪ Loyalty by Annex CLD
SAP Promotion Management ▪ SAP Loss Prevention by
SAP Allocation Management Intelligent Store** Fujitsu
SAP Replenishment Planning* ▪ …
SAP S/4HANA Enterprise Management
Predictive Inventory Orchestration**
LoB solutions SAP Ariba
for finance, asset management, sales, sourcing & ▪ SAP Omnichannel Point-of-
SAP Integrated Business Planning Sale by GK
procurement, manufacturing, R&D/engineering, supply S&OP, Demand, Supply Omnichannel Order Mgmt. &
chain, service, HR, industry & technology solutions (see ▪ SAP S/4HANA for
SAP Supply Chain Management Fulfillment**
here) … SAP (Forecasting and) Replenishment agreement profitability and
negotiation by gicom
▪ SAP Master Data
Analytics: SAP BW/4HANA (Industry content) – SAP Analytics Cloud (Model Company content) Governance, retail and
fashion management
extension by Utopia
Technology: SAP Business Technology Platform Data Plane Foundational Plane Application Plane Analytics ▪ …

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* Road map https://roadmaps.sap.com/welcome
SAP CAR (aka SAP Customer Activity Repository) provides …

A unified view on An omnichannel An integrated Analytics & can

sales, inventory, retailing planning & serve analytical
and demand foundation predictive applications
platform

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 SAP Customer Activity Repository applications bundle and environment

▪ Real-time hub providing insight

SAP Customer Activity Repository applications bundle
about the business, customers, &
inventory Consumer Sales Intelligence
▪ A predictive platform for integrated,
omnichannel planning process
Replenish-
Merchandise Assortment Promotion Allocation
ment
▪ A platform for innovation Planning Planning Management Management Analytics Cloud
Planning*

Inventory Visibility + Omnichannel Article BW/4HANA

Omnichannel Promotion Pricing
Availability and Sourcing
S/4HANA Location Product Promo Offer Analyse / Demand Infl. Commerce Cloud
(or SAP Merchandising) Cluster Attributes Management Adjust Forecast Factors
for Retail or for Fashion
Distribution On-Shelf
and Vertical business Unified Demand Forecast
Curve Availability Marketing Cloud
Master data
Transactional data
Logistic documents Demand Data Foundation
Etc. Integrated Business Planning
Multichannel Transaction Data
POS Data Transfer & Audit
Management
(Forecasting and)
GK POS HANA (in-memory db, predictive analytics) Replenishment
SAP Customer Activity Repository

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* Upcoming innovation, subject to change
SAP CAR - Components
POS Data Transfer and Audit
POS Data Transfer and Audit

Functional scope contained in CAR is essentially identical to POS Data Management. POS Data Transfer & Audit within CAR does not require
BW/BI Content anymore like POSDM.

 Prepares data for subsequent processing by performing master

data checks and eradicating simple errors such as duplicate POS Transactions
transaction numbers or missing transaction numbers

Master data
 Customer and Channel harmonization check

 Provides access to transactional data for sales audit ( POS Customer

Workbench) and
Channel
Derivation

 Aggregates transactional data and transfers it to follow-on

Aggregate
systems, such as SAP Retail, Forecasting and Replenishment,
 Provides access to real-time, non-aggregated transaction
data

 Support for Season Determination by Inclusion of retail fashion

season information that integrates with SAP Fashion Management To ERP,
To F&R To …
(such as the season year, season, fashion collection, or fashion CRM
theme)

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Multi Channel Sales
Multi Channel Sales POS E-com
Calculation ODATA
Views Interface
Collects a wide variety of data types (such as transaction, inventory, Order

and master data) from multiple sources to provide an overview of SAP Multi channel sales
business activities across all channels. CAR

Sales
Multi Channel Sales Analytics T-log
orders

▪ Web, POS, and all channel sales

▪ Customer loyalty information
▪ Order channel vs fulfillment channel
▪
Sales
Near real time Inventory Order

▪ Analyze specific customer segments

and demographics
▪ Drill down from channel to receipt
Sample of Basket Analyses by Day on SAP
▪ Availability of POS, sales order, and Analytics Cloud
return transactions at one place enables
360° view of the customer

Merchandise Sales Analytics

▪ Analyze performance across
merchandise categories Sample of Fiori Omnichannel Sales and
▪ Understand Category performance Inventory Report

across channels and customer

segments

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SAP Analytics Cloud
Demand Data Foundation (DDF)
 Demand Data Foundation

• Demand Data Foundation (DDF) is a module in SAP Customer Activity Repository, which includes a reusable data layer that
supports the planning, analysis, and forecasting required by different business processes.

• DDF manages master data such as products, locations, product hierarchy, location hierarchy, offers, or prices.

• DDF acts as a liaison between the consuming applications installed on top of SAP Customer Activity Repository and the
modules within the repository that provide the analysis, modeling, and forecasting services like Distribution Curve or Location
Cluster.

• DDF is also a prerequisite for Unified Demand Forecast (UDF). UDF is the module in SAP Customer Activity Repository that
provides the demand modeling and forecasting services. UDF requires that DDF is installed and fully configured.

• DDF provides integration with SAP Business Warehouse (SAP BW) to support the inbound of historical sales data for the
following data types( Consumption Data, POS Data, Inventory Data, Sales Orders).

• Additionally, DDF provides the integration to SAP Marketing Cloud to retrieve e.g. Target Groups to be assigned to an Offer
created in SAP PM.

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On Shelf Availability
OSA: Analyze Sales Patterns to Predict Out of Stocks & Potential Lost Sales
• The OSA algorithm considers the sales of a product at a specific store.
This algorithm extracts the sales transactions from POS Data Transfer
and Audit transaction data. Then, the algorithm analyzes the length of
each sales interval between two subsequent sales of that product.
Typically, long intervals indicate potential on-shelf availability issues.

• Using the analytical processing of OSA, you can determine past out-of-
shelf situations.

• This information can be used to determine hotspots of out-of-shelf

situations and to determine appropriate measures to improve the on-
shelf availability in your stores. By continued observation of the KPIs
that can be built on top of the OSA results, you can measure the
success of the realized measures.

• Using the OSA monitoring for operational processes, you can receive
real-time alerts for products that probably have on-shelf availability
issues. Employees can react to these alerts by either refilling the shelf
with products or triggering other appropriate activities.

• Additionally, you can use the OSA module together with the UDF
module to generate intraday demand forecasts for your products
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Unified Demand Forecast (UDF)
 The Unified Demand Forecast (UDF) – Automated learning from data
Unified Demand Forecast (UDF) is an advanced statistical forecast using ML algorithms.
UDF combines strengths of various forecasting methods to supply predictive information to all Retail applications.
This includes SAP Promotion Management for Retail, SAP Assortment Planning for Retail, SAP Allocation Management, SAP
Forecasting & Replenishment and all future consuming applications on the SAP Customer Activity Repository.
SAP HANA gives the appropriate technology base to run ad-hoc simulations with in-memory performance.

• Calculates the impact of historical factors that influence demand

like promotions, calendar events, seasonality or price elasticity,
then uses Bayesian statistics to fill in the gaps of knowledge of
what happened in the past.

• Calculates a forecast per product / location / channel /

promotion / day – flexible multichannel data model is introduced,
Intraday results possible

• Supports what-if forecasting capabilities to compare multiple

scenarios, or production forecasting capabilities for
ongoing/analytic access

• Visualization tools and apps available

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Unified E2E Processes with UDF
Applications on SAP CAR Side by side

Promotion Planning Assortment Planning Allocation Management Replenishment

UDF Offer Modelling Sales and inventory analysis UDF driven allocation plans Integration of UDF with SAP
▪ Optimal promotion planning ▪ In season KPI’s to support F&R
▪ Multiple offer types (Price ▪ UDF as input into allocation
assortment building ▪ UDF can be used by F&R
reduction, coupon, points) strategies, such as as an alternative forecast to
▪ Multiple tactics (Shelf tag, ▪ Analysis of sales ▪ bottom-up store demand calculation (for calculate the SAP F&R
newspaper mail-in, TV) performance: Actual and example, during the season)
replenishment order
▪ Effects by product location forecasted sales revenue, ▪ top-down allocation using forecast KPIs for
proposals (including safety
calculation the store split
▪ What if analysis for impact margin and units per day, amounts)
▪ promotional push with store capacity
of promotion type and week, month, year optimization (upcoming Q4/2019) ▪ UDF can be used for
tactics ▪ Display of current inventory selected categories
▪ Consideration of offer ▪ Special handling of generic
position and projection of (definition by forecasting
information from Promotion products: Modelling and profile)
inventory coverage based
Management as well as forecasting on color level and ▪ Integration Guide see note
on the forecasted sales and
offer information from POS automatic size distribution 2367172
Data Transfer & Audit incoming orders
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Analyze & Adjust Forecast
Analyze Forecast

Key features of this Analyze Forecast app are:

• Visualize the forecasts provided by UDF, which gives greater visibility into
factors that influence demand

• Get better understanding how the history is explained in relation to DIFs,

pre-processing findings (e.g. outliers) and other components

• Get better understanding how the forecast is calculated based on the

determined model and in relation to future DIF occurrences

• Select forecasts by product, location, or direct link access (e.g. other FIORI
app)

• Display information by channel

• Share information on analysis results via mail, pdf, …

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Decomposition

Friday
Price
A
r

231 items
t Seasonality
Price reduction
i
c Season
Public Holidays
l Offer
Promotion
e
Baseline
Base Sale

Training based on history Forecast

Internal DIFs (Automatically considered) External DIFs (Entered by the user and automatically considered by UDF)
• Offertypes from PMR • Concerts
• Tactics from PMR: • School Holidays
• Seasonality • Weather
• Day of week effect • Hotel Bookings
• Public Holidays • Beginning of Month Effect
• Price Reductions • Store Construction
• Trend • …
• Listing
• Closing Days
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Adjust Forecast

Key features of this Adjust Forecast app are:

• Cross linked from UDF Analyze Forecast app.

• Forecast correction on different assignment levels (products, product hierarchy

nodes, locations, location hierarchy nodes).

• Relative, additive and absolute corrections.

• Provide demand plan (final forecast) service for other processes like
Replenishment.

• Demand plan considers original UDF forecast, forecast corrections and

external forecast.

• Forecast corrections are not considered in forecast calculation.

There will be no learning effect in forecast calculation!

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Manage Demand Influencing Factors
Manage Demand Influencing Factors
Key features of this Manage Demand Influencing Factors app are:

• User interface to maintain validity period and assignment

for User DIFs
(e.g. to explain store reconstruction, local event, strike
impact).
• Per User DIF automated assignment to location and/or
product hierarchy nodes or selected locations and/or
products can be configured.
• Maintenance for
Boolean DIFs only
• Trigger simulation
for newly added DIF

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Manage Distribution Curves
 Apply Dynamic Distribution Curves to Assortment Planning - Buy Plan

Distribution Curves

• Demand Data Foundation (DDF) can calculate distribution

curves for different scenarios. You can use this service and the
Total Planned Units
= 1000 units
S M L XL
150 units 250 units 400 units 200 units

associated Configure Distribution Curves SAP Fiori app to

calculate distribution curves for different consuming applications ▪ Derive a distribution curve for your
products utilizing predictive analytics
and scenarios. The service analyzes historical daily sales data ▪ Use several parameters to size
products
that spans over all sizes of a particular product in a particular – Type of rounding (up, down,
commercial)

color, while considering past and future season information. –

–
Minimum by size
Maximum stock

▪ Plan allocation size curve and fill-in

unit size distribution

• For example in an allocation management scenario you might

have a pair of jeans that is available in multiple colors and Apply Dynamic Distribution Curve to Allocation Management - Allocation Plan
multiple sizes per color, and that you want to sell in different
locations.
• You want to know for each color how many units you will most
likely sell in each size, so that you can plan the stock transfer
orders accordingly.

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Manage Promotional Offers
 Manage Promotional Offers FIORI UI

• Enables a basic offer creation capability as well as

enhanced Fiori based Offer creation and
maintenance

• Basic Offer UI Maintenance capability without the

requirement of a PMR License.

• Includes Offer templates called Term Styles. These

make it faster, easier to create basic Offers.

• If the customer needs financials, vendor funds,

versioning, etc. and more sophisticated marketing
functionality then they need the PMR license.

Fiori Offer Maintenance UI- Offer Detail Properties Screen

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Manage Product Attributes
Manage Product Attributes

This transactional app allows planning administrators to

1. Create Attributes
create, configure, assign, and maintain product attributes for Use existing master data attributes
a selected product hierarchy. Generally, attributes help to Create planning-only
attributes
further slice and dice product hierarchy nodes by product
attributes, such as fashion-grade or price-band

Product attributes can support different business scenarios 2. Assign & Define Role
like: Assign attributes to product hierarchy levels
Manage exceptions
Define attribute’s role in planning:
• In Assortment Planning to create assortment modules to Use to define # of choices offered
define the right assortment per location. Plan KPIs at this level
Informational
• For example, you can determine the total planned sales Define whether to plan at style or style/color level

by the attribute “High Fashion” to ensure there is a good

representation of “High Fashion” items in the stores.
• In Allocation Management, product attributes are used to
select the workload and allocation plan to allocate the
products.
• In Distribution Curve Analysis, they can make the 3. Mass Maintain
product groups more specific (e.g. compare only tshirts Assign attributes to products
Mass maintain
of the same fashion grade).

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Manage Location Clusters
Intelligent Location Clustering

Location clusters can be created and managed by grouping locations into

clusters based on common characteristics or attributes.

The following can be done:

• Specify clustering filters, such as locations and products.

• Specify settings, such as a date range and currency.
• Specify clustering criteria, that is, which key performance indicators
(KPIs) or business measures you want to use as the basis for
clustering.
Cluster A
• Group the locations into clusters based on your criteria. Clustering
criteria:
• Once you have created the clusters, you can activate those that you KPIs
wish to use as the basis for follow-on activities, like assortment Attributes
planning, create location hierarchies or allocation planning. External data

Location clusters are used for example:

Intelligent
Clustering
• In Assortment Planning for option planning, assortment definition and
sales planning
Cluster B
• In Allocation Management to ease parameter maintenance and for
reporting purposes Predictive
analytics:
• In Distribution Curve configuration for defining where the configuration k-means

shall apply Slight silhouette

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Inventory Visibility
 Real Time Inventory Visibility

Store
personell
(In Store B2C apps and
Apps) click&Collect
Check Submit
E-com out Order

Calculation ODATA
Views Interface

POS Current Store Stock = Current ERP Retail stock - POS Unprocessed Sales - POS Unprocessed
SAP CAR Goods Movements – Reservations (optional)

Unprocessed Unprocessed Current Unrestricted Stock in Reservations

T-log goods movements ERP Stock ERP Stock transit (optional)
sales
Inventory valuation at cost and retail

Goods
move-
ments Inventory

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Omnichannel Article Availability &
Sourcing
Omnichannel Article Availability

CAR is the central hub for article availability information for all
channels
• Availability requests for DCs, stores and vendors
• Multiple API’s provided to check article availability in CAR (taking eligible sources
into account)
• Rough stock indicator (traffic lights) in a webshop (out-of-the-box integration with
Hybris Commerce)

ATP information in CAR

• DC availability is based on ATP calculation in ERP (time-series information), while
stores availability is based on inventory visibility in CAR (current stock information)

Temporary reservations
• Ensure data consistency by using temporary reservation as placeholder until ERP
order is created
• Increase performance by using temporary reservation as placeholder until next ATP
run for DCs

Smart update logic

• DC availability snapshot update by parallelized ATP run in ERP Retail (full & delta)
• Store availability update by real/near-time POS & SD sales order & ERP stock
upload

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Online Shopping Scenario using Omnichannel Sourcing and Availability

Order Fulfill Handover

Click &
Collect

Store
in the store

Option: Stock transfer from DC to

Online Store store for click and collect

DC
Ship
Vendor
Availability Sourcing Reservation
Availability and Sourcing

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Omnichannel Promotion Pricing
Omnichannel Promotion Pricing
Provide a seamless omnichannel buying experience for end-customer across all sales channels
What is it?

▪ With the new Omnichannel Promotion Pricing Service, SAP provides a solution
to ensure correct and consistent effective sales prices in all sales
channels along with the ability to introduce new pricing rule types with low
implementation effort across all sales channels.

How?

▪ Central price and promotion repository containing the price and promotional
values and rules needed for correct sales price calculation in all sales channels
and supporting a defined set of rules (e.g. bonus buy types/ mix’n match,
customer specific prices)
▪ Promotion Pricing Service provided by SAP that calls into the price and
promotion repository to calculate the effective transactional price for the end-
customer WHAT IS IN FOR YOU?
▪ Price and promotion repository and promotion pricing service can be deployed ➢ Increase customer satisfaction and customer loyalty by having consistent
locally or can be called via web-service (centrally) price and promotion information available at all touch points
▪ Provide an integration with SAP Commerce Cloud and SAP ERP Sales Order
➢ Increase revenue by higher customer satisfaction and higher customer
loyalty

Highlights ➢ Rapidly implement new marketing initiatives and promotional offer types in
all channels
▪ Same price calculation logic (coding) in all sales channels
➢ Save costs due to low implementation and low test effort for the retailer
▪ One central sales price repository for price calculation purpose when introducing new pricing/offer rules
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SAP CAR - Consuming applications
SAP Promotion Management
SAP Promotion Management: Solution Overview

SAP Promotion Management for Retail leverages the master data, sales analysis, and predictive algorithms within SAP CAR to
enable retailers to collaboratively plan promotions in line with unique customer preferences across channels.

• Design promotion pricing and offers

to in line with customer preferences
and financial objectives
• Leverage vendor funding to maximize
margins from trade fund proposal
through collection and settlement
• Preview promotion presentation
across media types such as print,
digital, web, poster, and coupons
• Create what-if simulations to predict
financial performance and optimize
• Integrate approved promotions
through POS/channel, advertising,
and supply chain

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SAP Merchandise Planning
SAP Merchandise Planning: Solution Overview

• Plan all channels in one solution: retail, e-commerce, &

wholesale
• Work using a familiar, customizable, Excel-based user
experience
• Use best-practices templates and/or build tailored workbooks
using a planning toolkit
• Plan at any level of the merchandise and organizational
hierarchies
• Plan top-down, bottom-up, or middle-out
• Create an open-to-buy budget
• Define alerts and exceptions
• Lock cells, columns, & rows
• Utilize “rules of precedence” to control the order & priority of
calculations
• Manage multiple plan versions and history through a versioning
concept
• Access limited to area of responsibility
• Plan flavors of sales: regular sales, promotion sales, &
markdown sales
• Support multiple currencies & languages
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SAP Assortment Planning
 SAP Assortment Planning: Solution Overview

• Select products to sell, where to sell those products, &

how much to buy
• Plan all channels: retail, digital, & wholesale
• Cluster locations using attributes, history, & predictive
analytics
• Create an assortment strategy before defining an
assortment by planning the number of customer choices
by key attributes (“option planning”)
• Utilize modules to group and plan products together that
are assigned to the same locations. Group products using
any criteria (e.g., collections, climate, demographics,
display / space, etc.).
• Build assortments based on combinations of carry-over
products & new products
• Simplify new product planning using placeholder products
& reference products
• Plan sales & purchase quantities
• Use a simple, customizable, & highly-visual user
experience
• Manage user access by planning area of responsibility

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SAP Allocation Management
SAP Allocation Management: Solution Overview
SAP Allocation Management manages the distribution of products from distribution centres to
stores with special attention to
▪ seasonal and short to medium lifecycle products (focus on Fashion)
▪ Promotional products (one-timers, multi-timers, focus on Grocery)
The solution supports the allocation process by offering following important predefined business
scenarios:
▪ Plan-, target, or KPI-driven initial allocation
▪ Automatic forecast-driven in-season fill-in
▪ In-Season manual push
▪ Promotional push with capacity optimization
▪ Promotional buy and multiple logistic units
It optimizes allocation quantities by automatic rationing in case of limited availability (according to
ATP), and cross-product optimization capabilities.
It gives full transparency into both, upcoming workloads and planned allocations across the market
and down to store and size, as well as allocation analysis
It uses capabilities of Customer Activity Repository, such as
▪ Unified Demand Forecast (on single product or product/color level)
▪ Size curve analysis (down to store or cluster, for automatic size break-down)
▪ Store clustering
▪ Real-time inventory (including stock in transit)
The solution offers best of breed retail allocation logic and the possibility to run the process in a
highly automated and system-supported way.
Typical benefits for the customers are:
▪ Higher profit by reducing markdowns, out of stocks and store-to-store movements
▪ High automation level freeing up time for business critical tasks
▪ Faster processing and inventory turns
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Allocation Management: Business Scenario Options
Promotional buy
(RTC Q2/2020)
Workload based on
promotional offers that
SUPPLY are not ordered yet
Calculates the split
Purchase Inbound DC between DCs
order delivery
Stock Supports multiple
logistical units for a
product
Real-
time
ATP
Initial Allocation In-season Fill-In In-season Manual Promotional push
Manually or auto Fully automated Push
triggered Manually triggered, Workload based on
Demand-driven with promotional offers
possible any time after
Workload based on UDF
initial push Store allocation driven
(planned) availability (or target-driven or
Unified and driven by season; refill), real-time store Typically based on by promotional
Demand demands according to inventory & open sales performance KPI forecast, inventory,
Forecast Static assortment plans, orders (others possible) total available qty etc.
targets target settings, KPIs,
Triggered after initial Store capacity
forecast optimization: balance
allocation, slows down
Assortment Triggered from demand with fill levels
Stock & at phase-out, stops at
Plan KPIs purchase orders, across products and
orders exit
inbound deliveries, or stores
STORE DEMAND warehouse stock

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SE or
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SAP affiliate
affiliatecompany.
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SAP Replenishment Planning
SAP Replenishment Planning: Solution Overview

Cost optimal ordering Stock

Prediction and consideration of
expected waste
▪ Determine order amount that leads to
▪ Predict expected waste due to shelf
order
lowest expected costs
life restrictions
▪ Consider forecast distribution and
product specific situations ▪ Avoid wrong stock assumptions and
generate better orders

Intra-day and real time replenishment Monitoring, control and simulation

▪ Order multiple times per day ▪ Aggregated views on current and
forecasted orders, stock
▪ Consider store opening hours and
intra-day sales distribution ▪ Central cockpit for monitoring of demand
planning and replenishment
▪ Use real time inventory (most current
data, at different times ▪ Alerting on different aggregation levels
▪ Simulate the impact of changed
parameters
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SAP CAR - Wrap Up
 *Upcoming or future innovation

SAP Customer Activity Repository applications bundle:

Sales, Forecast, Vertical & Retail Supply Chain Planning and Integration

Integration with
Perform business ▪ Integrate seamlessly with the ERP or S/4H backend • S/4HANA
4 ▪ Perform holistic business analytics • Analytics Cloud
analysis and
▪ Vertical S&OP and supply planning processes • Marketing Cloud
interactions ▪ Interact with marketing, commerce & vertical supply chain • Commerce Cloud …

▪ Plan merchandise for channels, define the assortment mix, plan

sales/buy and hand-over to initial launch • Merchandise Planning
Run planning ▪ Allocate during the product’s lifecycle • Assortment Planning
3 scenarios E2E ▪ Plan Promotions and push promo articles to stores • Promotion Management
▪ Run your regular products through replenishment* • Allocation Management
▪ Embedded intelligence (ML & optimization) • Replenishment Planning*

Manage prices, • Omnichannel Article

▪ Manage omnichannel regular and promotional prices
Availability & Sourcing
2 inventories & ▪ Determine article availability in any location, reserve for e-com
• Omnichannel Promotion
supply sources and plan sourcing
Pricing

• Multichannel Sales
▪ Collect sales transactions from all channels Repository (+ POS DT&A)
Collect all sales & ▪ Model, forecast and adjust omnichannel demands • Unified Demand Forecast
1 forecast demands • Size curve, on-shelf
▪ Analyze sales e.g. for size distribution and on-shelf availability
• Location clustering
Customer Activity Repository, appl. bundle
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SAP CAR - Customers
SAP Customer Activity Repository
approx. 610 lisenced CAR customers worldwide
as of August 2020

311 EMEA/ MEE

customers 66North America customers

59 GC customers

79 APJ customers

94 Latin America
customers 62% Retail
14% CP
9% Wholesale
15% Others

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 Enabling Sustainable Shopping with SAP® Promotion
Management and SAP Customer Activity Repository

Before: Challenges and Opportunities “By integrating intelligent technologies into our
• Replace inaccurate and time-consuming manual promotion planning with an automated process using promotions planning processes, we can reduce
© 2019 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC | Studio SAP | 66157enUS (19/10)

sales forecasts based on consumer behavior residual quantities, minimize waste, and offer customers
• Apply intelligent algorithms to meet consumer demand and prevent lost sales, overstocks, and waste the goods they actually require in each store.”
• Maximize limited space in stores using optimal planning of promotional products Heiner Hanser, Head of Master Data Management and Marketing
• Gain store employees’ trust in the new campaign process to reduce the high cost of manual corrections Processes, Coop Group

Why SAP
• Comprehensive support spanning both promotion management, from planning to execution, and
procurement of nonpromotional quantities
• Superior machine learning capabilities of the unified demand forecast component of SAP® Customer 60% Optimal
Activity Repository, supporting Coop’s heavily promotion-driven business for all product categories as Reduction in time spent Promotional quantities
well as replenishment planning for nonpromotional quantities on in-store promotional established with self-learning
• Expertise of the retail data scientists at SAP in building an attribute-based machine learning model campaigns with this artificial intelligence models
based on the predictive library of the SAP HANA® platform to help automate planning intelligent and sustainable based on daily sales data
solution, an SAP Innovation
Award winner in the “Digital
After: Value-Driven Results Trailblazer” category
• Fewer overstocks as well as waste reduction leading to more-sustainable shopping
• Enhanced ability of stores to carry all promotional products to satisfy customer needs
• Better customer experiences, with fresher goods and store employees freed from manual processes to
spend more time on establishing good customer relations

Coop Genossenschaft Industry Products and Services Employees Revenue Featured Solutions
Basel, Switzerland Retail Supermarket chain with 86,000 CHF 30.6 million SAP Promotion Management application,
www.coop.ch more than 2,400 stores (€28 million) SAP HANA, and SAP Customer Activity
and 60,000 products Repository, unified demand forecast
component

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 SAP Business Transformation Study | Consumer Products | Mini King

How Do You Turn Chestnuts into Pearls on the Crown of the Snack Industry?

Guangzhou Mini King Food Co. Ltd. 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 in regions such as Guangdong, Beijing, Shanghai, Anhui, and Hunan. The
company offers more than 120 categories of products, including Chinese chestnuts, dried fruit, preserved
fruit, and other healthy snacks. By selecting high-quality raw materials across the globe and improving the
production process, Mini King is committed to growing its brand while promoting Chinese food culture.

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

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.

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 Promoting Chinese Food Culture with
SAP S/4HANA® Retail
Guangzhou Mini King
Food Co. Ltd.
Mini King provides healthy leisure food for customers throughout China. SAP S/4HANA Retail for
merchandise management has helped it increase efficiency, reduce warehousing costs, and improve
Increased
Guangzhou, China decision-making. Procurement efficiency, inventory
turnover, and financial productivity
Before: Challenges and Opportunities
Industry
• Provide better access to internal and external information through the unified management of front-end sales
Consumer products
and back-office production warehouse data

Products and Services

• Improve data timeliness and accuracy and reduce personnel management costs to lay a solid foundation for
future business growth
1 hour
Leisure foods Required for monthly closing, down
Why SAP from 5 days
• Professional and diversified solutions in the national and international retail chain industry that ensure alignment
Employees
with where the company is headed in the future
3,000
• SAP S/4HANA Retail for merchandise management for quick return cycles, efficient business processes, and the

SAP® Solutions
ability to process massive amounts of real-time data
• Basis to build an omnichannel Big Data platform for retail with the SAP Customer Activity Repository application Faster
SAP S/4HANA® Retail solution Store operations, from next-day manual
for merchandise management After: Value-Driven Results
upload to two-hour auto-synchronization
and the SAP® Customer • Real-time profitability projections
Activity Repository application • Decision-making system support by retail Big Data
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

• Vertical integrated operations from production to store

• Calculation of selling costs on a daily instead of monthly basis
• Enhanced communication and cooperation across different lines of business Real-time
• Online processing instead of paper processing for faster business transactions Profitability projections
• Warehouse inventory reports that show real-time stock visibility, helping reduce warehouse costs and lower
financial reconciliation workload

“By enabling digital management, we have seen improvements that

stagger the imagination: from paper to online, closings in an hour instead
of a business week. It’s good we’re mobile now too. We’re rolling.”
Xianhao Cai, CIO, Guangzhou Mini King Food Co. Ltd.
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Studio SAP | 53885enUS (17/10) | This content is approved by the customer and may not be altered under any circumstances.
 “We will increase the number of stores 120
to over 500 and combine online sales to Categories of product,
including Chinese
intensify our efforts in e-commerce. The chestnuts and dried fruit

aim is to go national with the Mini King

300
brand, and even international.” Stores across China
Junhai Pan, General Manager, Guangzhou Mini King Food Co. Ltd.

3,000
© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Operational employees
To become China's leading brand in fried chestnuts and go national and international with its dried fruits and other and physical store sales
products, Mini King embarked on a journey of digital transformation in 2015. It sold products online to accelerate
market expansion and implemented SAP S/4HANA ® and the SAP® Customer Activity Repository application to
associates across China
help build a first-rate logistics system for leisure food and upgrade system management through IT.

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European-based, Global Fashion Company
SAP Allocation Management

Company Objectives
Anonymous • Replace current Excel based tools with user-friendly interface
• Manage quick and flexible allocation process
Headquarters • Integrate allocation management with assortment planning and enable end-to-end
planning process
Europe
• Determine the appropriate allocation quantities based on store performances and analysis
of real time stock
Industry/Segment • Execute allocation on large volumes of articles at one time
Fashion • Trigger allocation management manually or automatically
• Perform In-season allocation based on Forecast
Products & Services
Men’s and women’s Solutions
fashion and lifestyle • SAP HANA
products • SAP Customer Activity Repository (CAR)
• SAP Assortment Planning
Size • SAP Allocation Management
Large Enterprise
Results & Benefits
• Perform assortment planning and allocation management for 50+ stores and 2 distribution
centers in North America initially before performing a global roll-out for hundreds of
additional stores and many more products
• Plan and manage an assortment for high fashion, seasonal products

End-To-End: SAP Assortment Planning, SAP Allocation Management

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 Co-innovation with

SAP Allocation Management: salling group‘s expectations

Kim Rovsing Kraglund, Group Director – Business Process Management

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Roadmap CAR
SAP CARAB milestones for CAR
Release Roadmap 2020 – 2021+
Area Q2 2020 Q4 2020 Q2 2021 Q4 2021 2022+

• Provide the ability to support multiple • Enhance Integration with SAP • Enhance tax integration allowing for • Integration via S/4 HANA on Prem • Provide new customizing entry to
S/4 HANA Marketing Cloud segments 04 and 05 SOAP services allowing the ability to remove leading
• Intraday Inventory support • Minor data type changes in TLOGF • Enhanced transaction traceability zeros from article No.
POS Data (WPUUMS, WPUBON, WPUTAB) • Removal of FIORI scaffolding
• Support for Seasons category • Add ability to Save as Tile on FIORI
Transfer & Audit • report to display list of stores applications
(incl. MSCA) • Provide the ability to post sales data • Integration with Smart Store
to S/4 HANA Cloud

OAA: OPP: OAA: To be defined based on customer OAA: To be defined based on customer OAA: To be defined based on customer
• Provide Last Mile integration • TransactionControlBreakCode feedback feedback feedback
Omnichannel
Customer Activity Repository

OPP: • Enforce Multiple Initial (Part 1) OPP: OPP: Adhoc Promotions, Potential OPP:
• New version of price calc. engine • PCE-new version Enforce Multiple Initial (Part 2) Promotions(Part2), Sales Versus Returns, Proration for Mix&Match Discounts,
OAA/OPP
(PCE) • Support new pricing model in DDF Generic Attributes, Potential Generic Product,Consumption of Discount on most expensive, PCE-new
Promotions(Part1),PCE-new version customer specific prices, version
• • Enabling new features for all • Enabling new features for all
Wholesale sales orders • Additional functionality for data • Location hierarchy improvements
Demand Data • Goods receipt in Purchase Orders consuming applications consuming applications
replication (DRFOut) • POFF replication at store level
Foundation • Report to delete time series data • Multi-channel support for separate
• Product group standardization selling and fulfillment locations
• Auto-detect similar reference prods

• Intelligent modeling • UDF Cockpit for exception mgmt. • Assortment cannibalization • Cannibalization in the Promotional • Cloud enablement of Demand
• Sizing Reduction - Refactored • UDF performance improvements • Auto detection for start forecast Forecasting
database storage design based on customer feedback of variable season • Forecasting targeted offers • Cross location/customer
Unified Demand • UDF integration with SAP • Automatic determination and use • What-if forecast traceability cannibalization
• Modelling with an on-shelf date for
Forecast slow sellers Replenishment Planning of reference items • Forecast enhancements for Grocery
• Handling of holidays that happen on • Multiple promotions on same day Assortment Planning
differing weekdays • Further Business Exceptions – Base • Auto defined Promo cannibal.
• UDF UI Improvements for Cockpit pairs via product similarity
• Extended consid. of selling locations

• Support for Zero Downtime (ZDO) • Integrate POS Transactional data with • Support architectural requirements
the Data Warehouse Cloud and SAC • Support architectural requirements
Architecture • Integration with Native Storage • Reduce dependency on Hana
Extensions Activation Report
• Integration of Data Lifecycle
Management for Data Aging
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Thank you.