Enabling retailers to embrace the next wave of game changing retail technology
- Empowered consumers expecting personalized experience
- Product life cycle shortened from season to months or even weeks
- Wider range of merchandise
- Increased influence of social media
Challenges in the retail industry:
- Home-grown spread sheets with no integration to central data and or sync with transactions
- Reconciling siloed data requires up to 80% of a planner’s time
- Deciding the best product mix to maximize sales and profit
- Using outdated or inadequate tools to balance the ‘art and science’ of planning
- Meeting customer demand without over-buying and under-buying of merchandise
What is SAP Merchandise planning solution for retail?
SAP Merchandise Planning for Retail (MPR) provides a robust workbook-based solution for preparing one to ﬁve-year ﬁnancial plan. SAP MPR provides a centralized repository for all planning activities that enables 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 with 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