marketing trends

Market Trends

  • Empowered Consumers
  • Rapid Changes as products life cycle is shortened from season to month or weeks
  • Availability of wide range of merchandise
  • Influence of social media
  • Localization of assortments, personalized offers

Pain Points of planning in retail industry

  • Home Grown Spread sheets—no integration with master data and not in sync with real time transaction feed
  • Old Planning applications- Most planners working on old planning tools which is outdated in current changed business models
  • Lack End to End Integration – Absence of real time integration with actual data, master data and forecasted data
  • Complexity – Planners work on many versions of sheets and its becomes very difficult to control versions and data feed from sources is not fully integrated and most of time does not match with top level plan. Reconciliation eats 80% of time for planners.
  • Given financial and space constraints, retailers must decide the right product breadth and depth for a given period of time for each location to maximize sales and margin.
  • Retailers need right tools to arrive at the right balance combining art and science of planning.
  • Planners and buyers need to ensure a customer- centric assortment is reconciled to merchandise plans.
pain points

What is SAP Merchandise planning solution for retail?

Merchandise Planning is used in the process of developing sales, margin and inventory for the upcoming fiscal year. SAP Merchandise Planning for Retail (MPR) provides a robust workbook based solution for preparing one to five-year financial plan which further translates into store level and merchandise level plan for operations to use. The plan is prepared in user friendly workbook with all features of workbook plus enhanced planning level features like version and release management. SAP MPR provides a centralized repository for all planning activities that enable quick reconciliation of strategic merchandise plans and reduces the manual effort associated with spreadsheet based planning processes The solution integrates and facilitates end to end planning from channel financial, location-to- merchandise, and open-to-buy planning utilizing real-time data and forecasts.

What is SAP Assortment planning solution for retail?

Assortment Planning helps retailers identify the optimal product mix to satisfy customers, maximize profits and minimize inventory and markdowns. SAP Assortment Planning for Retail (APR) is SAP HANA based solution to build assortment plans based on capacity of stores and store grouping. It also creates place holder for products which does not exist at planning stage or product in development stage and once product is finalized it matches the product and inserts an assortment.

The UI for current version of the solution is offered as an easy to use SAP FIORI App. Using pre-built advanced optimization algorithms SAP APR reduces the operational time for assortment to achieve more sales and profit from relevant assortments. With help of past sales figures, financial plans and system generated projections, assortment planners use SAP APR application to:

  • Group like stores into clusters
  • Plan the product mix at attribute level and by category
  • Formulate an assortment strategy before planning using Option Plan feature
  • Assign merchandise to assortment modules and modules to clusters Plan
  • Derive exact product quantities at the cluster or location level