Accelerated implementation of SAP

Merchandise and Assortment Planning

with ASAP for SAP MAP

SAP Trading Industries

July 2010

Accelerated implementation of SAP Merchandise and

Assortment Planning with ASAP for SAP MAP

Agenda

1. Challenges, Background and Solution

Barbara Tin
2. Overview on SAP Merchandise and Assortment Georg Meier
Planning (SAP MAP)
3. ASAP Business Add-On ASAP for SAP MAP Georg Meier

SAP 2009, Trading Industries Program Optimized Customer Support / 2

Accelerated implementation of SAP Merchandise and Assortment

Planning with ASAP for SAP MAP
Challenges and feedback from customers and the field
Id like to make it
transparent for my
prospective customer
how an efficient MAP
implementation
project would look
like.

I need to have a proper insight into a

SAP MAP implementation in order to
ensure that the implementation project
is fast and efficient with a high quality
result and low risk.

I need to have a solid

information base
regarding SAP MAP
implementations for a
reliable project
proposal.
With available sample
blueprint documents,
blueprint questions and
other relevant tools and
deliverables, we could
speed up our SAP MAP
implementation projects

I like to know which

resources are required
from our side for which
tasks during the
implementation.

Customer
Project Manager

Consulting / Bid
Manager

With elaborate samples, it

would be easier to achieve a
common understanding with
the customers key users how
their future system and
processes would look like.

Consulting
Project Manager

ASAP for SAP MAP

Senior
SAP MAP Consultant

SAP 2009, Trading Industries Program Optimized Customer Support / 3

New SAP MAP Implementation

Project Team members

I like to have a sample

project schedule of an
SAP MAP
implementation as
basis for my specific
project planning and
execution.

Id like to build on
existing SAP MAP
implementation
expertise in order to
make our project fast
and efficient and to
deliver in high quality.
Id like to have detailed
task descriptions and
concrete examples in
order to get up to speed
quickly in our SAP MAP
implementation project
Id like to have a
detailed project
schedule and task
overview in order to
keep track of my
activities efficiently.

ASAP for SAP MAP Pre-packaged Implementation Expertise

Background, Solution and Tangible Benefits
Background

Implementable Solution
needs to be realized

Customers are expecting quick

implementations in high quality with
reasonable TCO
Customer

Fast
Inexpensive
Without risk
High quality
Repeatable

Solution: Pre-packaged Implementation Expertise

The implementation accelerator package ASAP for SAP MAP addresses Customers needs to reduce
implementation cost, time and risk by pre-packaging SAP Merchandise and Assortment Planning
(SAP MAP) specific implementation expertise.
It guides project teams through the process of implementing SAP MAP and provides sample project
deliverables and best-practice guidelines in order to accelerate the implementation.
ASAP for SAP MAP is a so-called ASAP (Accelerated SAP) Business Add-On:
It is based on the proven ASAP implementation roadmap for SAP solutions.
It is enhanced by specific tasks for a SAP MAP implementation project and by elaborate MAP-specific
implementation accelerators like a sample SAP MAP Business Blueprint or a sample project schedule.
Tangible benefits for Customers and Consultants
Generic

Cost Saving and Quality

Structured and proven implementation approach

Reduced effort required

Prototype oriented Business Blueprint

Reduced implementation time

Repeatable and consistent implementations

High implementation Quality with reduced risk

SAP 2009, Trading Industries Program Optimized Customer Support / 4

Accelerated implementation of SAP Merchandise and

Assortment Planning with ASAP for SAP MAP

Agenda

1. Challenges, Background and Solution

Barbara Tin
2. Overview on SAP Merchandise and Assortment Georg Meier
Planning (SAP MAP)
3. ASAP Business Add-On ASAP for SAP MAP Georg Meier

SAP 2009, Trading Industries Program Optimized Customer Support / 5

Merchandise and Assortment Planning

Objectives & Key Capabilities
Objective:
Plan the best product ranges for each store location to maximize margin, and shopper
satisfaction
Best practice solution:
Support for one end to end planning process that cascades information from strategic
planning to assortment planning, with common date and KPIs across the company

Issues
Difficult to get products to the
shopper in time to generate new
sales in this highly competitive
environment
Need to plan at store level to
accurately match shopper
demand and shopping habits
Increase sales and margins to
drive profitability

Key business capabilities

Common set of plans that are driven
from same top line goals

Increased speed of products to

shopper

Plan for requirements of all channels

and geographies

Audit of all plans and revisions

Common work flow and authorization

processes
Plans are based on consumer insight
Constant fine tuning to match to
sales activity

SAP 2009, Trading Industries Program Optimized Customer Support / 6

Benefits

Reduced data errors with one set of

master plans
One unified view of customer
demand drives more accurate
replenishment

MAP Temple Planning Process

SAP 2009, Trading Industries Program Optimized Customer Support / 7

Merchandise Planning
Business Process Workflow
Retail Analytics

Develop and implement strategic financial plans that meet

department objectives in partnership with Finance and the
Merchants
1

Strategic Planning

3-5 year high level

strategic plan by year,
quarter and month
Sales, margin and
markdown targets
Based on comp store
increase/decrease,
multi-channel
considerations
Allocated to retail
divisions and Depts
(hardlines/apparel),
(Mens/Womens)

Revenue and
Inventory Planning
Merchandise
Planning

In Season Forecast

In Season Re-Plan
/ Updating

Top Down
merchandise category
plan based on
strategic plan targets

Forecast at item/store
level rolled up the
merchandise
hierarchy

Analyze business
trends weekly to
identify variances to
plan and take action

Visual merchandising

Re-calculate Open to
Buy based on trend

Simulate forecasted
demand across
category/department
to see sales, margin
and budget impact

Merchandise
Planning

Sales, inventory and

receipt flow to
category/sub-category
level by week and
seasonality
Planning of Open to
Buy budgets
Planning of Markdown budgets

SAP 2009, Trading Industries Program Optimized Customer Support / 8

Reduce need for

markdowns

Store Planning
Business Process Workflow
Retail Analytics

Develop and implement strategic financial plans that meet store

operation objectives in partnership with Finance and the Store
Mangers
1

Strategic Planning

3-5 year high level

strategic plan by year,
quarter and month
Sales, margin and
markdown targets
Based on comp store
increase/decrease,
multi-channel
considerations
Allocated to retail
divisions and Depts
(hardlines/apparel),
(Mens/Womens)

Store
Planning
Top Down store /
category plan based
on strategic plan
targets
Planning on multiple
and different
distribution chains
down to store level
Comparable and noncomparable stores
Store Sales, inventory
and receipt flow to
category level by
week

SAP 2009, Trading Industries Program Optimized Customer Support / 9

Revenue and
Inventory Planning
Store
Planning

In Season Forecast

In Season Re-Plan
/ Updating

Forecast at item/store
level rolled up the
store hierarchy
Reduce out of stock
rates
Reduce over stock
rates

Analyze business
trends weekly to
identify variances to
plan and take action
Simulate forecasted
demand across
category/department
to see sales, margin
and budget impact

Assortment Planning
Business Process Workflow
Ensure the department assortment plan is well balanced with
the appropriate # of SKUs and average unit retail to drive
gross and net margin targets

Retail Analytics

Revenue and
Inventory Planning
Assortment
Planning

Efficient Assortment

Plan product mix for

category/department
Discontinue
unprofitable products
Plan purchase
quantities & flow to
maximize regular
price sales by store
volume/group/cluster

Localized
Assortments
Prepare assortment
for different markets
or regions
Provide direction and
allocation strategies
to Store Planners
Visual merchandising
Plan and implement
test strategies

Finalize and validate

assortments

SAP 2009, Trading Industries Program Optimized Customer Support / 10

In Season Forecast

In Season Re-Plan
/ Updating

Forecast at item/store
level based on
accurate shopper
demand
Special event
forecasting
Reduce out of stock
rates
Reduce need for
markdowns

Fine tune the plan to

ensure optimum
allocation of the right
quantities to each
location
Simulate forecasted
demand across
category/department
to see sales, margin
and budget impact

Merchandise & Assortment Planning

Solution Overview
Objective
Plan, track, and analyze merchandising decisions with
easy-to-use templates that create high-level strategic and
low-level detailed store, merchandise and assortment
plans

Process
Create top down & bottom up plans for all Retail Segments
Define unlimited KPIs (sales targets, budget etc)
Flexible planning views
Support for Placeholders

Key Outputs
defined budgets (OTB & markdown);
adaptive, phased assortments based on consumer behavior at store level
Increased sales with right assortment in the right place at right time
Receipt flow by a periods to generate purchase quantities

Technical Integration
SAP MAP uses SAP NetWeaver BW Integrated Planning as generic planning
engine which combines the same UI and database for planning and reporting
SAP MAP offers Retail related functionalities for planning and integration into
operative processes
SAP 2009, Trading Industries Program Optimized Customer Support / 11

SAP NetWeaver Integration

SAP 2009, Trading Industries Program Optimized Customer Support / 12

Planning and Process Content of MAP

OTB
SOP Integration

Assortment Definition
Store Clustering

BW IP
Generic
Planning
Engine

Assortment Planning
Interface to OAPC

Slow seller
Management

Inventory
Planning

Master Data
Planning

Content/Predefined
Templates*

SAP 2009, Trading Industries Program Optimized Customer Support / 13

Release
Workbench

MAP Scenario Overview

Reporting/
Analysis

Strategic planning

Reconciliation /
Plan Alignment

Store
planning

OTB
plan

Assortment
planning

Store
clustering

Non-Seasonal

Assortment
Version creation

Merchandise
planning

Range /
Assortment Mix

Seasonal

Range/Target
planning

MD
plan

Style creation
Color creation
Style/Color Mix

Article creation

Product
planning

Option planning

Prepack/Quota
Scale per Color
Size c<reation

Size planning

SAP ERP / SAP Retail

Store operations / sales (POS)

SAP 2009, Trading Industries Program Optimized Customer Support / 14

Site master

Style/Size Mix

Business
Partners

Hierarchies

Organization
al structures

SAP BW / SAP MAP

MAP Scenario Overview and Planning

Integration
Reporting/
Analysis

SAP BW / SAP MAP

Strategic planning

Reconciliation /
Plan Alignment

Store
planning

Merchandise
planning
OTB
plan

Assortment
planning

Store
clustering

Slow Seller
Analysis

MD
plan

Seasonal

Non-Seasonal

Seasonal
Purchasing list
(OAPC)

Assortment

Price Planning
Workbench

Article master

F&R

PO

Sales
price

Purchase
price

Seasonal
Procurement
PO

SAP ERP / SAP Retail

Merchandise
distribution

Allocation

Store operations / sales (POS)

SAP 2009, Trading Industries Program Optimized Customer Support / 15

OTB
check

Promotion

Site master

Price
reduction

Business Partners

(LWB) Layout
Workbench

Layout Module
Hierarchies
Hierarchies

Organizational
Organizationalstructures
structures

Non-Seasonal

Accelerated implementation of SAP Merchandise and

Assortment Planning with ASAP for SAP MAP

Agenda

1. Challenges, Background and Solution

Barbara Tin
2. Overview on SAP Merchandise and Assortment Georg Meier
Planning (SAP MAP)
3. ASAP Business Add-On ASAP for SAP MAP Georg Meier

SAP 2009, Trading Industries Program Optimized Customer Support / 16

ASAP Business Add-On ASAP for SAP MAP Overview

Implementation accelerators are integrated into ASAP for SAP MAP implementation roadmap
and will also be available as SAP Solution Manager Content

Accelerated SAP (ASAP)

for SAP MAP
Project
Preparation

Business
Blueprint

Realization

Final
Preparation

Go Live
Support

Run

ASAP for SAP MAP Implementation roadmap with MAP-specific task descriptions and links to the accelerators

with recommendation how to benefit

MAP specific Accelerator assets

ASAP for SAP MAP sample project schedule

ASAP for SAP MAP

accelerated approach

Blueprint workshop output doc.

with sample blueprint questions

Consultant
qualification
curriculum

Sample business blueprint document including configuration hints

Sizing Exercise

Sample scope
statement
(Typical scope, aligned
with project plan and
business blueprint)
Sample roles &
responsibilities

Configuration information
MAP Best Practice Guide Performance
Configuration guide MAP integration
Connectivity kits and Enterprise Service Bundles for Integration
MAP Release workbench with Interfaces and Message types
Run SAP for Retail - SAP MAP Operations Best Practices document
SAP MAP BPX Wiki page (Knowledge Repository)
Trading Industries Forum for MAP questions
Run SAP for Retail
Roadmap

SAP 2009, Trading Industries Program Optimized Customer Support / 17

Further Information and Contact

Further Information
ASAP Business Add-Ons page with downloads on the SAP Service Marketplace:
http://service.sap.com/asap-business-add-ons
Retail BPX Wiki page SAP ASAP Business Add-ons for Retail: Help to Lower Implementation
Costs http://wiki.sdn.sap.com/wiki/display/Retail/ASAP+Business+Add-ons+for+Retail
ASAP page on the SAP Service Marketplace: http://service.sap.com/asap
ASAP page on BPX http://www.sdn.sap.com/irj/bpx/asap

Contact
Barbara Tin
Product Unit Trade
SAP AG
Neue Bahnhofstrae 21
66386 St.Ingbert, Germany
T +49 (6227) 7-71140
F +49 (6227) 78-20709
M +49 (173) 3090018
E barbara.tine@sap.com
http://www.sap.com

SAP 2009, Trading Industries Program Optimized Customer Support / 18

Accelerated implementation of SAP Merchandise and

Assortment Planning with ASAP for SAP MAP

Appendix

1. Accelerated SAP (ASAP) Methodology and Roadmap

2. ASAP Business Add-On ASAP for SAP MAP Samples

SAP 2009, Trading Industries Program Optimized Customer Support / 19

Accelerated SAP (ASAP)

ASAP Methodology, Roadmap and ASAP Business Add-Ons

Accelerated SAP Methodology

Accelerated SAP (ASAP) provides a proven, comprehensive, repeatable and rich implementation
methodology for SAP solutions to streamline projects and achieve lower total cost of implementation (TCI).

Accelerated SAP Roadmap

Delivers structured, proven and deliverable-based approach helping the project team to reduce
implementation time, costs and risks through efficient implementation process
Leverage SAPs vast experience in implementation and industry recognized best practices
Aligned with industry standards and procedures (PMI PMBOK, ITIL)
Contains samples, templates, guidelines and other accelerator assets

ASAP Business Add-Ons

Provide proven implementation content for the implementation of specific industry solutions
Contain industry / solution specific additional flavor on top of the ASAP Implementation roadmap
including solution-specific samples, guidelines, tasks and deliverables
SAP 2009, Trading Industries Program Optimized Customer Support / 20

Accelerated SAP (ASAP)

ASAP Implementation Roadmap Phases

Project
Preparation

Initiate the project:

Provide initial
planning and preparation for a SAP
implementation
project

Business
Blueprint

Realization

Final
Preparation

Implement business and process

requirements based on the Business
Blueprint. The goal is to have a
solution built and integration tested,
and the production environment
designed & setup

Gather business requirements and

achieve a common understanding of
how the company intends to run SAP
to support their business.
The result is the Business Blueprint, a
detailed documentation of the results
gathered during requirements
workshops (corresponding business
processes, process steps and
transaction requirements)
SAP 2009, Trading Industries Program Optimized Customer Support / 21

Complete the
preparation for
Go-Live including
performance
testing, end user
training, system
management and
cutover activities

Go-Live
Support

Run

Cut over to
live productive
operation and
continuous
support

Further
optimize and
automate the
operability of
the solution

ASAP Business Add-On ASAP for SAP MAP Samples:

ASAP for SAP MAP Implementation Roadmap (HTML-Version, Extract)
The ASAP for SAP MAP
implementation roadmap is
the central source of
information for a sample
MAP implementation
project.
In addition to the generic
ASAP tasks (ASAP Core),
it contains MAP-specific
tasks and deliverables for
a sample MAP
Implementation.
The Work Breakdown
Structure (WBS) in the
roadmap is aligned with
the WBS in the sample
project schedule.
MAP-specific accelerators
are assigned to the
appropriate tasks.
These accelerators are e.g.
MAP specific samples like
A sample blueprint
Sample MAP blueprint
questions
MAP specific roles &
responsibilities
The ASAP for SAP MAP
roadmap is available on
the Service Marketplace
(as HTML version) and will
also be available in the
SAP Solution Manager.

Hierarchical Work
Breakdown
Structure (WBS)

ASAP core tasks

Indicator for MAP-specifics

in task or sub-structure

SAP 2009, Trading Industries Program Optimized Customer Support / 22

MAP-specific tasks
MAP-specific accelerators assigned
to this task

ASAP Business Add-On ASAP for SAP MAP Samples:

ASAP for SAP MAP Project Schedule (Microsoft Project, Extract)
The ASAP for SAP MAP
project schedule contains
the detailed schedule and
required resources for a
sample SAP MAP
implementation project.
It is based on a sample
project scope and further
assumptions as described
in the sample scope
document.
The tasks listed in the
project plan are described
verbally in the roadmap.
The column WBS in
Roadmap refers to the
WBS in the ASAP roadmap
The project plan also
shows dependencies
between the tasks.
The project plan is
provided as Microsoft
Project plan and
additionally as pdf and
Excel file.
It is contained in the
ASAP for SAP MAP
roadmap as accelerator
asset.

Hierarchical Work Breakdown

Structure (WBS) referring to
the implementation roadmap

Tasks with color code:

green with prefix MAP: MAP specific tasks
black: ASAP Core tasks

SAP 2009, Trading Industries Program Optimized Customer Support / 23

Sample duration
(not efforts!)
for the tasks

MAP specific sample

schedule as Gantt-chart

example for
dependencies

Required
resources

ASAP Business Add-On ASAP for SAP MAP Samples:

ASAP for SAP MAP Sample Scope Statement (Extracts)
In the scope statement, the
functional and
organizational scope of a
sample SAP MAP project is
described.
Assumptions and
requirements are
described, as well as items
out of scope.
Also, the assumed system
topology and the required
project organization is
described here.
This scope is the basis for
the sample ASAP for SAP
MAP project schedule.

SAP 2009, Trading Industries Program Optimized Customer Support / 24

ASAP Business Add-On ASAP for SAP MAP Samples:

ASAP for SAP MAP Business Blueprint Document (Extracts)
In the sample Business Blueprint document, the business requirements,
the processes and the solution are described, including relevant
configuration considerations.

SAP 2009, Trading Industries Program Optimized Customer Support / 25

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SAP 2009, Trading Industries Program Optimized Customer Support / 26