SAP Allocation Management, add-on for SAP Customer Activity Repository performance based real-time allocation

Transcription

1 SAP Allocation Management, add-on for SAP Customer Activity Repository performance based real-time allocation Peter Ehses, Chief Product Owner, SAP SE January 2018

2 SAP Allocation Management, add-on for SAP Customer Activity Repository 2

3 The Starting Point Collaboration between customers and SAP teams Opportunity for customers to influence SAP development SAP collaborated with 6 fashion companies in different fashion segments and from different regions in the world 360 Research Ideation Validation Scoping Synthesis Prototyping Implementation 3

4 The Basis C A R 4

5 What Means Retail Allocation? From: Distribution Centers To: Stores Department Stores Franchise Stores What: The right product seasonal oriented What Exactly: THE right quantity When: At the right time By: Monitoring the current and future stock situation With: Real time inventory Why: Reduce: Out Of Stock Rates, % Of Leftovers, % Of unwanted Markdowns, unwanted Store-2-Store Transfers TO: Increase: Store Sell-Through Rates, Revenue and Sales Profit 5

6 The Business Process Pre-Season Allocation Plan Allocation Management Strategic Planning Merchandise Planning Plan Targets like Sales Revenue Assortment Planning Define Product Mix, Define Buying Instruction Assortment Planner Allocator Initial Allocation In-Season Fill-In In-Season Manual-Push Assign individual Product Quantities to eligible Stores 6

7 Business Process Detailed View Initial Allocation (Push) First allocation to Stores, typically at the beginning of a Season/Collection/Theme Manual or automatic Based on Assortment Plans, Target Settings, or KPI Triggered from Purchase Order, Inbound Delivery, or DC Stock In-Season Fill-in (Pull) After the first sales of initially allocated products took place Automatic Triggered after Initial Allocation, slows down at phase-out, stops at end of season Keeps static or Initial Targets or uses Statistical Forecast In-Season Manual-Push For special situations In-season, where the allocator would like additional Pushes Manual Possible Extra Push after Initial Allocation Analyze KPI, possible top-down approach Available To Promise Available To Promise Available To Promise Purchase Order Inbound Delivery Stock Stock Stock 7

8 Screen Example 8

9 Business Value Top Five Challenges 1. No possibility to monitor actual and future stock situations in different channels in one view 2. No flexibility to allocate stock based on real time inventory / online execution of simulations 3. High Out Of Stock Rates, % Of Leftovers, % Of Markdowns 4. High manual effort, with no possibility of driving the decision using system parameters 5. Missing integration with Assortment Planning Business Value Increased customer satisfaction Reduction of Markdowns and Out-of-stocks FTE (Workforce) savings automation of manual processes Reduction in the surplus (e.g. in specific sizes) at the end-of-season Increased revenue and higher profit Operating efficiency improvements Reduced Supply Chain Costs Increased Store Sell-Through Rates, reduction in Missed Sales Opportunities and in Store-To-Store Transfers 9

10 Thank you Contact Information: