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SAP for Retail

241 Posts

Faced with increasingly demanding customers and sustained competition, retailers only have a narrow window to seize the moment and influence the sale. Thriving in this environment means maximizing the profit potential of each interaction and customer contact.

 

Retailers have the information to achieve this goal. All the customer and operational information they need is buried in their loyalty, POS, CRM and back-end systems. The trouble is, retailers only have the time and expertise to analyze and act on a fraction of it, so it’s only of limited advantage.

 

But suppose it was possible to analyze and act on all of it in real-time. Suppose you could combine it with new delivery methods, like mobile apps and the web. Then you could approach shoppers in exciting new ways with new processes that were previously only a dream.

 

The reality is that this can be done now. The SAP HANA® platform can analyze massive amounts of data up to 3,600x faster* than conventional techniques. Couple this with SAP for Retail solution portfolio and retail specific mobile applications SAP has been developing, and you can now do things that simply weren’t possible before. We call it real-time retail.

 

Here are just a few examples:
• Boost margins with on-the-fly profitability analyses and real-time sales analyses in store
• Increase sales with real-time promotions to customers in-aisle, based on preferences and previous behavior
• Minimize the number of empty shelves with real-time on-shelf availability analyses
• Reduce write-offs by optimizing in-store promotions for perishables
• Reduce out of stock situations with real-time visibility of stock across the organization

 

Visit our website dedicated to retail without boundaries to find out more.

Some 33.7 % of consumer packaged goods were sold on promotions through 12 months through February 2014 - an extremely high amount. What does this mean ? Well considering the majority of retailers still plan to a large extent on spreadsheets, employ little after the fact analysis, they basically have a hard time measuring the effectiveness of  a third of their business in a lot of retail verticals. Tactics such as Price. Ad & Display long the cornerstone of promotion effectiveness analysis are being replaced and augmented to include social, e-commerce, mobile and a host of other influences. Given many retailers didn't employ systemic analysis of traditional tactics on their weekly promotions what will happen with all these new demand signals to track....

great article from WSJ today on this. Basically in developed world there is a zero sum game in CP with little growth over several years despite commodity costs driving higher, consumer is spending less on CPG as a % of overall spend because of other costs rising. When trade funds become more scarce due to emerging market becoming a higher priority, retailers will need better analysis than ever because they will quickly lose profitability overall.

 

Discounts Reign as Shoppers Cut Back on the Basics

By

SERENA NG

Updated April 4, 2014 12:38 a.m. ET

Makers of consumer staples are resorting to aggressive discounts to overcome an unexpectedly persistent problem: Their industry is barely growing.

For decades, Americans' purchases of basics like laundry soap and toothpaste roughly kept pace with the rate of growth in the overall economy. But that rule of thumb no longer applies, which is bad news for billion-dollar brands like Tide and Colgate.

For the past three years running, unit sales of consumer products have been largely flat, according to market research firm Nielsen.

Many segments are affected by changing preferences, habits and spending priorities. People are eating less cereal and drinking less soda. Razorblade sales are down as many men shave less or grow beards. Pre-measured laundry soap capsules and higher-efficiency machines require less detergent. And more people are choosing freshly prepared food over packaged fare.

Procter & Gamble Co. PG -0.30% , Georgia Pacific Corp., Henkel AG HEN3.XE +1.29%and other companies have responded with a blitz of deals and coupons in conjunction with retailers. Indeed, over a third of packaged food and household products are now sold with discounts, as retailers and manufacturers struggle to get people to open their wallets. In some categories, such as soda, toilet paper and potato chips, more than 50% of consumers' purchases include discounts, said Gary Stibel, chief executive of the New England Consulting Group, a marketing consulting firm.

"When we see some of the promotional pricing out there, it's pretty clear someone has lost their mind," said Bill Schmitz, a Deutsche Bank analyst who follows companies that sell beverages, household and beauty products.

At Target Corp. TGT -0.67% stores, shoppers recently could get a $5 gift card for purchases of five Febreze air-freshener products, a discount of more than 30% for a $15 purchase of the P&G brand. This week, the chain is giving a $10 gift card to customers who spend $30 on Angel Soft or Quilted Northern toilet paper, made by Georgia Pacific.

Drugstore chains CVS and Rite Aid last month touted a buy-one, get-two offer for Purex laundry detergent. Henkel, which makes Purex, also distributed coupons for $1.50 off purchases of two bottles. By combining both offers, shoppers could pay a little more than $8 for six jugs of detergent, or $1.35 per 50 oz. bottle, according to Christie Hardcastle, who runs a website that tracks consumer deals.

At Walgreens, Colgate Optic White toothpaste was on sale for $3 last month, and shoppers could apply a $1.50 coupon to get it at half that price, and also receive a $2 store coupon for their next purchase.

Some manufacturers, like Church & Dwight Co. CHD -0.76% , bemoan the trend, and worry that the discounts will train consumers to wait for the sale price.

"Price wars don't help growth and are not good for the industry," said Jim Craigie, chief executive of Church & Dwight, which owns the Arm & Hammer brands and produces other household products. "They are the easiest things to start, and the hardest to finish."

P&G and Henkel declined to comment, and Georgia Pacific had no immediate comment. Colgate-Palmolive Co. didn't respond to requests for comment.

Sales of many essentials have suffered in the wake of the financial crisis. Consumers cut spending and shifted to cheaper store brands. The average American spent $2,515 on packaged consumer goods last year, up just 0.6% from 2012, according to Nielsen. The previous year, the increase was 2%, due largely to inflation.

Americans now devote about 10.8% of their personal expenditures to packaged consumer goods, down from 11.2% in 2000 and 13.7% in 1990, according to Ali Dibadj of Bernstein Research who examined data from the U.S. Bureau of Economic Analysis.

"It's still a tough time for the average American," said Church & Dwight's Mr. Craigie. "There's nothing wrong with the industry. You just have an economy that's stagnant and people are having to trade down."

To be sure, not all categories in the roughly $770 billion-a-year industry are stagnant or shrinking. Sales of things like pet food, energy drinks, and Greek yogurt are seeing growth.

Discounts are in the standard tool kit for consumer-products makers. Still, the current level of activity is particularly high. All told, some 33.7% of consumer packaged goods—from soda and razors to shampoo, shaving cream and paper towels—were sold on promotion in the 12 months through February 2014, according to data from Nielsen. That's the highest level since the U.S. recession ended in mid-2009. The numbers exclude alcohol, tobacco, fruits and vegetables.

The problem for makers of household basics is that consumers are devoting a shrinking share of their wallets to packaged goods as other costs of living rise more sharply, such as health care and education.

Prices of consumer goods last year rose by 1.1% on average, in part because retailers—wary of moderating commodity prices—were reluctant to let manufacturers raise prices as much as in previous years.

Shoppers are visiting stores less often, partly because of the Internet. Unemployment remains high, meaning pennies are pinched. The U.S. population is aging, and research shows older people tend to consume and spend less. Americans, meanwhile, have been feeling more strains on their wallet from last year's expiration of the payroll tax break. And even some cash-strapped consumers would rather spend money on their cellphone bills than shell out more money for everyday items.

Stacia Braun, a fourth-grade teacher from Shumway, Ill., recently forked out $30 for toothpaste, makeup, candy and dozens of other everyday items that would have added up to $200 without various discounts and coupons.

"I never pay full price for a lot of things," said the 39-year-old mother of three, who said she often finds generous deals at a Walgreens WAG -1.58% store 13 miles from her home.

The discounts may give some brands a temporary boost, but they aren't reversing the industry's malaise and they erode the value of sales that do happen. Sales of household products grew just 0.6% in 2013 in dollar terms, below the 1.9% growth in U.S. GDP and well below last year's 4.2% growth in retail sales. Dollar sales of laundry detergent and razors actually fell, according to Nielsen's data.

Packaged-goods makers typically try to raise prices by 2% to 3% each year, and more if raw-materials costs have risen, said Krishnakumar Davey, a managing director at market research firm IRI.

Last year, however, 98 product categories out of 309 tracked by IRI recorded price decreases, up from 57 in 2012. Shoppers on average paid less for shaving lotions, fragrances, peanut butter, laundry detergent, pasta and mayonnaise.

Price cuts and discounts can be used effectively to encourage consumers to try a new product, or buy something on impulse, said Doug Bennett, who analyzes companies' promotional strategies at Nielsen. Now, however, they may just be training shoppers to hold out for deals.

SAP Cross-Channel Order Management for Retail integrates all steps from order entry to outbound delivery into a single process and helps merchandisers to increase their order fulfillment rate, reduce lost sales and stock outs, and serve multiple channels at the same time. The new demo scenario is now available in the SAP demo store and provides, amongst other things, an ATP overview of all variants of an article within a sales order, various cumulated views toward completed sales orders, Automated Allocation Processing, and Order Life Cycle Management.

 

Get more information about the demo in the jam article Highlight Retail - SAP Cross-Channel Order Management for Retail and in the demo store.

How can you create highly personalized offers tailored to your customer’s shopping context?  In other words, make it timely, relevant, right now, and make sure it is truly appropriate to where the shopper is and what they are doing.

 

It’s not always what you know, it’s who you know. And today, there’s no-one you need to know better than your customer. The winners in today’s competitive retail marketplace are those that really understand their customers and can inform and influence their behaviour in real time at the point of decision.

 

Creating instant connections with your customers is very powerful - and this power is now available to retailers. Today you can deliver personalized offers to shoppers when they’re in your store that they can take advantage of there and then. And you can do this across multiple channels.

 

The interactions that follow will add to your understanding of your customer’s shopping context, giving you the opportunity to increase customer satisfaction and increase your revenue.

 

You can even tailor your offers using location data. So for example, if your customer is approaching the beverage section of your supermarket, you can make a timely ‘you may like this’ suggestion with an offer tagged on. This could just as easily be an offer on power drills in a hardware store.

 

The way to do this is with the SAP Precision Marketing solution - a new cloud-based enterprise solution, powered by SAP HANA. Retailers can influence consumer shopping behavior at the point-of-decision by delivering highly impactful one-to-one personalized offers in real time across multiple channels.

 

See the solution in action. Watch the video now: http://bit.ly/1g2Y6J7

It’s easy to say that customers want to save time and money when looking for and buying products. But how can you, as a retailer, make that happen and achieve your sales targets?

 

Satisfaction for Sales

 

If you give your customers what they want, they may come back again. But to see the growth you’re after, you need to be cleverer than that. You’ll do even better by providing the right product and the right offer on the right channel at the right time. This way, your customers can make informed decisions and enjoy a superior shopping experience, resulting in maximum spending, satisfaction with their purchase and loyalty.

So how can you go about giving customers what they want?

First, you need to address the many different communications channels that are open to you and your customers. Then you should throw out any irrelevant, one-size-fits-all, hackneyed direct marketing messaging.    To replace this hit or miss messaging effectively, you’ll have to better understand your customers by analyzing the huge amounts of personal information customers share on social network media. Only by generating these true customer insights can you start to create truly targeted and highly personalized interactions with your customers.

 

Analytics for Answers

 

SAP analytics solutions, such as those that make real-time offer management possible, enable advanced modelling and optimization throughout every aspect of your retail network. For example with the basket analyzer tool, you can suggest promotions that are relevant to a customer’s current shopping basket. You can’t get much closer to your customer than that.

 

The idea of using analytics in marketing isn't new, and yet, instant access to information is here, today. You get insight first-hand, it's really compelling, and doable now.

 

I've included some ideas here - Read more: http://bit.ly/1ep4Vm6

The South African business environment is in flux right now, but retailers have a secret weapon in their belts – mobility

 

South African retailers are in the midst of an exciting period. Their middle class consumer base is rising but so too are the prices of essentials like electricity and petrol. By introducing greater mobility into their network architectures, retailers can take best advantage of the growth in their potential consumer base while mitigating spiralling operational costs.

 

SAP’s portfolio of specialised retail solutions offers companies the toolbox they need to revitalise their operations, whatever their needs and initial budget. Here are five ways in which integrated mobility solutions can make a difference.

 

Cheaper Goods

It hardly seems possible to promise that retailers would be able to sell their products cheaper in this economic landscape but this is exactly what mobility can achieve. Greater mobility allows for more streamlined distribution channels by allowing for workers to communicate more effectively on the field and for real-time handling of problems. Companies are able to save costs on procurement and pass those savings onto customers.

 

More Productive Employees

High employee turnover is a persistent problem in the retail industry. An HR strategy based around mobility not only facilitates the recruitment of new and skilled people but helps companies maintain and train their already existing talent. Data analytics allow for a more personalised approach to employee relations, thus ensuring a happy, healthy workplace that promotes productivity.

 

Happier Customers

Customer relations are something that no retailer can afford to ignore. One of the most exciting applications of mobility is the way in which it can so easily allow for a customer-centric strategy. The degree of personalisation afforded by mobility leads to a customer who feels as if they are always first – a priority in a world where their choices are nearly unlimited.

 

Better Sales

Tied into greater customer satisfaction are better sales. Point of sale mobility is becoming a trend among retailers and for good reason. It allows companies to compile and instantly target individual customer preferences. This data makes in-store shopping more relevant for customers by offering them individualised marketing prompts, loyalty programmes and targeted campaigns.

 

Faster Growth

All of these aspects working together in sync lead to much faster growth. No longer will retailers have to weigh their need to expand against high operational costs or sluggish sales. Retailers are able to streamline operations so that they have in essence the “perfect store” – one that easily beats out its competitors and gobbles up large chunks of market share.

 

The full potential of mobility in the retail sector is only just now being tapped. South African stores would do well to explore all of the possibilities it offers.

Mobility and cloud technologies are the single best means for companies to successfully enact customer-centric business models.

 

Retailers in South Africa operate in a hyperconnected world that offers innumerable opportunities for marketing and generating sales leads. However, there are downsides. Customers can express their sentiments in many different digital avenues, and dissatisfaction can spread faster and more pervasively than before.

Now, more than ever, customer satisfaction is paramount. Companies who understand this are making Customer Relationship Management one of their central priorities. This can be a difficult model to get right. Too few channels of communication and businesses could be seen as faceless and uncaring, but management becomes an increasingly convoluted affair the more avenues there are for contact.

 

Mobile technologies have been gaining popularity as a means to handle CRM. Retailers however need to reconceptualise their thinking and stop seeing these solutions as optional niceties. Rather they need to recognise them as essential components of a successful customer relations strategy.

In order to do this, they need to embrace the cloud fully. Companies who invest in end-to-end mobility will find themselves leading the pack when it comes to customer satisfaction, insight and service.

 

One issue impeding companies implementing integrated mobility solutions is that customers lack awareness of the cloud as a concept and thus do not wish to engage with it. This can be solved by partnering with a company that understands these issues and knows how to make traction with them. Mobility experts such as SAP have made it a priority to open up customers to the potential of the cloud.

The right mobility package is necessary to take full advantage of mobility-based CRM and take customer service to the next level. Not only does a comprehensive solution empower management to run an integrated customer relations network, but it allows for unprecedented speed and flexibility in responding to issues as they arise.

 

Mobility offers unprecedented potential for sharing and accessing data, whether it is information on client needs, disruptions in the supply chain that could impede delivery, or sales performance. This enables a personalised customer service based on strong engagement. What’s more, cloud computing allows for near instantaneous response times.

 

These solutions support more than just customer service teams. A solution such as SAP’s Cloud for Sales is a boon for any sales team, offering them exceptional insights into what customers really want through sentiment analyses, and allowing them to generate sales leads and create new opportunities for business.

 

In today’s diversified market, customers always have somewhere else they can go if they are not completely satisfied with a retailer’s performance.

Companies can no longer afford to underestimate the importance of personalisation in CRM. Integrated mobile solutions offer companies an unmatched means of engaging with customers and achieving optimum sales success.

Join us for a free Retail & Consumer Products focused Webinar: Introducing the ALL NEW SAP Learning Hub, Your On Demand Learning Platform from SAP.

 

SAP Learning Hub offers a public cloud environment that combines flexible learning approached with anytime, anywhere availability. It makes it easier to prepare for your next project, implementation or certification exam with comprehensive content, dynamic social learning opportunities, and optional live access to training systems.

 

Want to find out more?Join our experts for a 45-minute Webinar on how the SAP Learning Hub can benefit customers from within your specific industry. We will give a live demonstration of SAP Learning Hub, give you the opportunity to hear about how some of our customers are already benefiting from LH and finally answer the most frequently asked questions.

 

Click on the link below to register now:

 

Retail and Consumer Products: Thursday 20th March 2014 Time: 2pm GMT / 3pm CET

 

 

 

For more information on the other webinars in the SAP Education Webinar Series, please click on the link below:

New Industry-Focused SAP Learning Hub Webinar Series

Don’t underestimate it. The social shopper is fundamentally changing the rules of retailing. One negative blog can break a product or company. One positive Facebook comment can skyrocket sales. Such is the power of social media.

 

Sceptical? Here are three facts that demonstrate why you can’t afford to ignore the social shopper:

  • 59 per cent would tell others about an 'excellent' experience, increasing to 64% amongst under 35s
  • It only takes an average of 8 negative comments on social media for a consimer to think twice about buying a brand
  • Social commerce (using social media to assist in the online buying of products and services) is predicted to be $30 billion by 2015 and growing fast

 

Don’t stand back. Start mingling with social shoppers and harnessing the power of social media to develop more dynamic, collaborative, real-time consumer relationships, and grow sales and revenue as a result.

 

Visit our website dedicated to retail without boundaries, and see how SAP can help you.

Amitabh Nema

PAL & ASSORTMENT

Posted by Amitabh Nema Mar 10, 2014

PAL & ASSORTMENT


Retail Industry is going through dynamic changes – one, primarily due to shifts in economy and other due to shifts in technology. Brick and mortar commerce is merging with e-commerce, m-commerce and ultimately with budding Omni Channel scenario which include multiple online sales platforms, New Cross Sell and Up Sell Models, Online Auction Engines and Social Media. All along these changes have been pushing and introducing different directions and business process requirements, which are currently not met by traditional ERP/POS and Planning Solutions for Retailers.

 

However, the key change and impact – which is evidently due to the incremental Omni Channel - is on Demand Planning accuracy and Right Assortment planning. We have experienced this during the past years Thanksgiving and Christmas where the retailers were unable to meet with the customer service expectations.  The cause has been highlighted as shipping issues. However, the issue is of stock availability at right place. As these Omni Channels are new in existence and there is not much historical data to support supply chain decisions - Predicting Virtual consumer behavior has become a bottleneck for the Retailers. This situation is expected to continue as the shopping destination for products are no more definite or limited to stores.  The efficiency of service would be the key to success for Retailers.

 

In one of my recent Assortment solution assignments with a Global Fashion Retailer, I can see this dynamic shift – the process of local assortment and allocation has to change,  as the Omni Channel demands are creating the imbalance in stocking strategy. In current scenario one Channel is moving unpredictably - suddenly faster/slower than other. This becomes a critical issue and to plan Stock availability at right place becomes a huge challenge – agile quick decisions are required as Stock pools have to pushed and pulled based on dynamic demands of the consumer behavior.

 

The introduction of the Omni channel in the Retail environment is creating a new need for Retailers. They need to gear up with sophisticated tools like SAP HANA - Predictive Analysis. SAP HANA - PAL ( Predictive Analysis Library) provides a fantastic solution for Retailers to tackle these complex stock assortment scenarios and ensure the Channel / Location predicts the right assortment, right quantity at right place including the virtual locations.

 

In SAP HANA, release of PAL includes classic and universal predictive analysis algorithms in the eight data mining categories:

  • Clustering
  • Classification
  • Association
  • Time Series
  • Preprocessing
  • Statistics
  • Social Network Analysis
  • Miscellaneous

(One can get great details here http://www.saphana.com/community/learn/solutions/predictive-analysis)

 

Few of the Key algorithms available in PAL are - Outlier algorithm / K- Means algorithm /Apriori algorithm / Multiple Liner and Polynomial Regression / ABC Analysis. These algorithms can play a very critical role in setting the right and profitable Assortment for the Retailers.

 

In order to quickly identify the Stock Out and Over Stock Situation - Outlier algorithm is a smart way. By using Outlier algorithm, Retailers can get information on their stock status in fraction of seconds. Traditionally achieving clear information about Stock Out / Over Stock and Loss of Sales information has been a handicap.

 

Currently, merchandise category performance matrix are viewed at standard grouping or static clustering level. K-Means Algorithm has the potential to be a great tool for Merchants and Stock Planners to analyze the fast moving and slow moving products and locations.

 

Concept of cross sell and up sell can be easily identified with Apriori algorithm.

(check this link for an informative blog by Hardik Patel http://www.saphana.com/community/learn/startups/news-views/blog/2014/02/27/hana-curious-apriori-algorithm

 

In my current POC, we are implementing the PAL library in our Assortment solution.  A few interesting facts we are observing are:

  • Algorithms are extremely powerful in nature,
  • Easy to deploy in a complex solution
  • Speed and Performance is great

 

As I continue to explore PAL library on SAP HANA, it is becoming evident that PAL is meant to play a vital role for Retailers in the current complex Omni channel environment.

Colin Haig

What makes Emperor tick ?

Posted by Colin Haig Mar 7, 2014

I couldn't put down Stacey Perman's A Grand Complication, a history of two wealthy watch collectors who inspired leaps in art, science, and technology. In the early twentieth century, their duel produced Patek Philippe's finest timepieces. Today, luxury watches are sold by jewellers around the world, as individual income has risen.

 

What makes Emperor tick?

 

China’s economy is growing at double-digit speed. And with its middle classes on the rise too, more consumers have started to invest in watches from companies like Patek Philippe or Cartier – the kind that luxury retailer Emperor Watch & Jewellery have been selling since 1942.

 

Move up in the world

 

So, when Emperor decided to sell its own jewellery range, China looked the perfect place to set up shop. To be precise, it’s got 17 stores in Hong Kong and 40 in mainland China. To move at this pace, Emperor needed a scalable IT platform to get rid of inefficiencies that were slowing them down. Amy Lo, Emperor’s assistant finance controller, talks about one way the company has streamlined. “We have eliminated many tedious and repetitive tasks while at the same time [been] greatly improving accuracy and internal control”. With the right IT platform in place, Emperor has halved the time it takes to retrieve documents. And it can find data two times faster. It’s this kind of efficiently that lets Emperor open new stores in less time with fewer resources.

 

Keep your eyes on the silverware

 

It may take less people to open a store, but its staff are as valuable as a diamond-studded watch. Bryan Wong, Emperor’s managing director, says “We concentrated on meeting both the strategic objectives of our company and the business needs of our employees”. That included training tailored to staff needs.  Just because something is bespoke, doesn’t mean consumers will hang around. As Gordon Sin, Emperor’s jewellery business analysis manager, says, “Now it’s easier to design specific jewellery products for our customers, without delays in sourcing”. It’s not just hand-crafted pieces that Emperor saves time on though. As Sin says, “With better inventory control, we can create space at the jewellery counter for newer styles that are more profitable”. And with watches that range into the tens of thousands, shelf space is at a premium. Real-time stock control has helped Emperor boost sales margins by 120% at its Hong Kong stores alone.

 

Data on display

 

It’s not just inventory information that’s available in real time. With Emperor’s IT platform, sales data is automatically integrated with financial data. That lets business leaders make decisions based on minute-by-minute, precise data – on everything from procurement to discounts. This crystal-clear transparency helps Emperor cut the time it needs to find data by 50%. And opportunities keep growing.

 

See how SAP for Retail makes Emperor tick > http://bit.ly/1hNIMSi

"Here is the basic idea: Amazon would forecast demand for a given geographic region, whether that is a state, a metro area - or maybe even an apartment building, on something like a daily basis.

It would then pre-ship items towards that geographic area at the same level of granularity (meaning possibly, for example, based on a 5-digit zip code, maybe a 3-digit code, or maybe a street address with no name/unit), using common carriers. Each package would be uniquely identified.

If an order is received for that item, then the delivery address would be communicated to the carrier, which would somehow update the shipping information for that parcel."

I think Amazon's Speculative Shipping is one step towards winning the battle in 'Last Mile advantage'. Today in the increasing competition in the e-commerce space, delivery has become an essential factor after pricing and assortment. This strategy from Amazon, if succesfully implemented would help in same day delivery with an premium charge. Proper forecasting would actually allow Amazon to distribute the products at relevant geographic regions,reduce the delivery time significatly and increasing the customer satisfaction.

This would require a paradigm shift in thinking about delivery which typically waits for the order to come from customer. Algorithms need to be built to cater this kind of delivery model.

I think new SAP application on HANA can cater to this speculative shipping process. This would require data crunching of all previous orders, category spread, geographical spread and predict the next shipping.

 

Regards,

Ambarish Modak,

Product Owner @SAP

Do you think mobility is NOT impacting your business?  Mobile devices are everywhere, and they've been turning retail upside down.  From showrooming to employee empowerment, it's a game changer. But where is your mobile strategy, and does it have legs?  I've had the opportunity to both influence and observe what's happening in the retail community, and the professionals at Retail Systems Research have just released their annual benchmark report.

 

Evolving Mobile Strategy


It's good to know where your company stands versus recognized leaders.  As you know, SAP is leading in the mobile space, and many clients are making leaps forward with mobility. Here's what I see happening:

  • Historically, some retailers had a CEO-banged-on-my-door strategy - mobility is limited to internal use by staff for email and maybe a portal, and it was inspired by the shiny new tablet landing on the big Kahuna's desk, demanding email access for it.
  • Employee empowerment strategy - companies like The Home Depot using handhelds as a customer-service tool are seeing dividends.
  • Mobility as a selling tool - the Tommy Hilfiger Look Book is a beautifully executed example.
  • Mobilizing the web site.  More than just shrinking the screen, companies using hybris are building real mobile commerce.
  • Holistic mobile strategy, if it exists, is often all about the customer, and employees come a close second. Sephora sees both as a priority, and does this brilliantly, in my opinion. They've enabled a fantastic shopping experience. This kind of thinking is a great step forward for the industry, and can be emulated, but make it your own.

Now that the mobility is a way-of-life for some, the rest of the industry has to decide what to do, if anything.  My hope is that you are already on board with the idea, but it might be good to know what the pioneers have learned.

 

Reality Sets In


From the latest RSR benchmark data, we can see the leaders are again way out in front.  According to the report, over 40% of customers are shopping from home with mobile devices, and 56% of retailers recognize the need to "be there". The report does a nice job drilling into what this means.

 

The question of how best to "be there" is complex; and a bit surprising.  The part I found fascinating were 41% are now saying cross-channel coordination is a challenge, and there was a pretty big gulf between recognizing these issues are important, versus having implemented a solution to address the issue.

 

Organizational and Technical inhibitors are being addressed, through wise investment. But there is a huge gulf between the leaders (winning retailers) and the rest of the pack.  In particular, investing to empower staff is seen as important, but if it truly was taken to heart, solutions (like SAP Afaria and Retail Store Operations Associate applications and competitive offerings) would be more widely rolled out.

 

Mobilize Your Team

 

There are several more surprises in store with this year's benchmark. There were some shifts from 2012-2013, and I think the industry has come a fair way as shown in the new 2014 report. Clearly, eliminating financial, organizational, and technical barriers is a priority for many organizations. How does your team stack up?

 

See how the leaders measure up, with the RSR Mobile In Retail report here > http://www.rsrresearch.com/2014/02/25/mobile-in-retail-reality-sets-in/

Hi Friends,

 

Recently I have configured Consignment processing in Retail.I would like share my experience with you.


Consignment process Overview :

Consignment processing in SAP Retail gives us flexibility when dealing with vendor consignment goods. It will allow us to transfer vendor consignment goods using stock transport orders with delivery, we can keep the same stock category, or we can convert the goods to our own stock, depending on the requirement of the receiving site and the result of stock determination. If we transfer vendor consignment goods and keep the consignment stock category, the goods remain the property of the external vendor until they are sold to customer or consumed the Stock.


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Configuration Requirements :


Activating Retail Consignment Processing


SPRO-Logistics - General-Retail Consignment Processing-Activate Retail Consignment Processing


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Define Strategies for Stock Determination


SPRO-Logistics - General-Retail Consignment Processing-Define Strategies for Stock Determination

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Stock Determination Group WCON

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Alternate Stock Determination Rules for Consignment Processing

SPRO-Logistics - General-Retail Consignment Processing-Define Alternate Stock Determination Rules for Consignment Processing


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Assign Stock Determination Rule in the Applications

SPRO-Logistics - General-Retail Consignment Processing-Assign Stock Determination Rule in the Applications-Inventory Management


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SPRO-Logistics - General-Retail Consignment Processing-Assign Stock Determination Rule in the Applications-Delivery


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Consignment Process Returns activation

SPRO-Logistics - General-Retail Consignment Processing-Activate Consignment Returns with Shipping Processing

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Article Master Settings :


Article :295

Distribution Centre: VZ03

Store :M004


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Stock Determination Group Assignment in RP/ Forecast data


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Store :M004 settings


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Stock Determination Group settings same as DC setting as shown in above screen .


Stock Status :


Article 295

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Purchase Order Creation :

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Goods Receipt :


Transaction MIGO :


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After Goods Receipt stock Status at DC VZ03

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Now the Requirement is to transfer the consignment stock from DC to to Store.


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Note : In the STO Consignment Indicator 'K' is not displayed in Purchase Order.Only system determines consignment stock in  background.


Creation of Outbound Delivery VL10B


screen 19.JPG

screen 20.JPG

Delivery PGI:

Transaction VL02N

screen 21.JPG

Document Flow :


Screen 22.JPG

Display Goods Issue material Document

Screen 23.JPG

Goods Receipt at Store Level

Transaction Migo :

screen 24.JPG

After Goods Receipt at Store level the Stock Status


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Hope this information useful to others

Thanks & Regards,

Sridhar



Fashion, it’s in a world of its own. You and I may not know what we’re wearing tomorrow, but fashion folk are already busy designing what we’ll be wearing a year from now.   They’re always seasons ahead with innovation, creativity and style. How do they stay there, on the cutting edge? Well, hip designs are just part of the story…

 

Tommy Hilfiger is one of the world’s favorite fashion and lifestyle brands. In addition to the retail stores you probably shop in, they have a global wholesale apparel business. They process orders for more than 100 million items worldwide-- every year. And, they cannot afford even one of those items to be late. To achieve this, all operations have to fit together seamlessly – because if one thread untangles, the whole system unravels. No purchase order means no distribution, and no sales order means no purchasing. It’s a real balancing act and it takes more than just fantastic creative talent and clever business people to orchestrate the process.  Innovative fashion relies on the most forward-thinking technology to succeed.

 

Tommy Hilfiger has long been running SAP applications. (Personally, I've worked with them on-and-off for over a decade). And now, they are following in the footsteps of their mobile-savvy consumers with SAP mobile applications. It’s no longer just fashionistas that browse the latest collection on their mobile phones, retailers can too. Using their iPads, salespeople can socialize Tommy Hilfiger’s whole "Look Book", complete with high-quality images.  Buyers at leading retail chains and department stores get to see what the new season looks like, and make purchasing decisions for their stores. And, thanks to SAP Afaria, Tommy Hilfiger knows that their data is safe – a concern for many retailers and apparel companies that are considering a mobile strategy.

 

Even if a device is lost or stolen, Tommy Hilfiger can wipe its Look Book from that device it in under a minute.  As a result, the brand’s designs remain safely under wraps, its competitors are kept in the dark and as for Tommy Hilfiger fans…well they’re left guessing for yet another season.

 

Watch the Tommy Hilfiger video: http://bit.ly/1gyPB4G

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