Sap retail promotion management
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Transcript of Sap retail promotion management
Promotion Management for Retail at Brookshire Grocery Company
Cathy Cockrell, Terry Gilbert, and Ina Viljoen
LEARNING POINTS
SAP PMR Overview Brookshire Grocery Company business goals
Brookshire’s PMR implementation experience
Our Lessons Learned
What is Promotion Management for Retail?
SAP Retail Promotions is an application that helps retailers identify the promotions that will be most profitable based on true shopper demand. SAP Retail Promotions provides support for planning promotions, forecasting their performance, and creating a single platform that allows business users to collaborate quickly and effectively throughout the entire promotion
planning and execution lifecycle.
SAP Retail Promotions Objective Connect promotion planning, creation, forecasting, and execution process to improve promotion effectiveness and profitability
Process Goals Build Area and Block Templates used to create the Event’s page layouts that can be viewed and printed Manage variations by product, locations, and date Forecast impact of promotional offers & deals
Key Output End Result is approved promotional events and offers that are transferred to ECC for execution at point of sale
Promotion Analysis Analysis Modeler
SAP Retail Promotions Promotion Planning Overview
A Advertising
Pricing Analysts P
Promotion Planning
Export to POS
Offer Modeling & Analysis; Vendor Funds
Forecast
Assign Offer To Event
Create Events Assign Templates
Event Schedule
Offer Creation
Content Selection
• POS Outbound • AMS WESOUT
Proof Corrections
2500.-
Norm Pris
LIVA kombi-skænk499.
2999.-
SPAR
Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*
2500.-
Norm Pris
LIVA kombi-skænk499.
2999.-
SPAR
Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*
2500.-
Norm Pris
LIVA kombi-skænk499.
2999.-
SPAR
Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*
2500.-
Norm Pris
LIVA kombi-skænk499.
2999.-
SPAR
Hylder, top og fronter i massiv eg. Med 2 trælåger,1 glaslåge og 2 skuffer med metaludtræk.B136 x H140 x D45 cm*
Data Management
<Display Price>
<Text>
<Size>
<Product Group Head>
<Product Group Description>
<Unit>.
<Reg Price>
<Primary Display Image>
<Display Price>
<Text>
<Size>
<Product Group Head>
<Product Group Description>
<Unit>.
<Reg Price>
<Primary Display Image>
Manage Block, Area, & Content Templates; Product & LOC Groups
Solution Components
Ad Specialists A
Transfer
-Event Transferred to ECC 5 weeks before Ad Break
-Offer Details sent to Advertising
-Complex BBY Offers sent to AMS
Article 1Article 2Article 3
Product Groups
Store 1Store 2Store 3
Site GroupsStore 1Store 2Store 3
Site Groups
Block Elements
Event (Collection of Areas) [Could be a Printed Weekly Ad, Mailer, Flyer, In-Store Displays, etc.]
Campaign (Collection of Events)
Area (Collection of Offers) [Could be a Printed Weekly Ad Page, Mailer, Flyer]
Offer Financial metrics and content for a Product, a groups of Products, or a category; presented to the consumer for purchase within a specific Store or Store Group and for a particular date range
Location (Store or Web)
Location Hierarchy (Group of Stores)
Display Image 1
“Save” Story Display Promo Price
Product Description 1
Product Headline
SAP Retail Promotion Glossary
SAP Retail Promotion Goals/Benefits
Enable Collaboration between Departments Improve planning and execution of Promotional Activities
Automation of Promotion Creation Improved Accuracy of Promotions – Verification & System Validations Re-use Previous Promotions / Offers Product Group Library
Science-Based Forecast for Promotions More Reliable for Profit Management and Procurement Run Scenarios to Maximize Sales and Profits Identify Incremental vs. Cannibalized Sales in a Promotion Attach Vendor Funds to Offer
Promotion Process Taken On-line Improved Visibility to Cost Merchandising Layouts / Template Management Event Preview and Print
BGC Business Goals and Objectives
Enable Collaboration between Vendors, Category Managers, Marketing and Advertising within the Retailer
Ensure information is consistent throughout the Planning Process between these groups
Improve Planning and Execution of Promotional Activities
Reduce the number of Tactical Tasks
Reduce communications between Category Managers and Advertising with regarding to promotional Content
Provide iterative support for the strategic Annual/Semi-annual planning process
Incorporate re-use of previous Events thereby reducing time for Event creation
Leverage Assets from ERP and External Systems
Ensure accurate use and re-use of Master data to eliminate errors
Enable use of low resolution images which improves the proofing process
BGC Business Goals and Objectives continued …
Enable Use of Templates that reduces time to execute and errors in communication
Provide Templates for Pages and Displays which provide a vehicle to communicate Promotional activity between groups
Templates allow use and re-use of information by merchandising and advertising
Allow creation and re-use of Product Groups streamlining the Buyers process
Effective creation and communication of Event Plans
Valuable time savings by enabling Event creation and management utilized by all Groups
Providing a single source for association of Promotional Offers to Events
BGC Business Goals and Objectives continued …
Facilitate consistent method of creating Promotional Offers
Provide a cohesive method of Offer creation among all departments
Allow simulation of Promotional Offers to realize the most effective Offers to promote to the consumer
Permit the use of Vendor Funds in Offer to ensure proper margin calculations
Enable the Use of Retailer to Consumer Incentives for Complex Offers
Enable Financial Review of Promotional Offer in Context with Events
Enable Financials of Offers to be compared within the Event
Leverages the ability to negotiate between categories for best financial performance of the Event
Shows full financial performance at Space, Area (Page) and Event levels
Enable user provided planned quantities
BGC Business Goals and Objectives continued …
Forecast of Products within a Promotional Offer
Integrate with a science-based engine to issue Product Store forecasts based on sales history and other influencing factors
Comprehensive Export of Promotional Information
Enable automated communications with Desktop Publishing programs
BGC Summary of Business Benefits
Improved productivity – supporting better collaboration among vendors, marketing, Category Managers, and advertising execution groups; streamlining promotions through fewer cycles; and using resources more efficiently
Greater promotional effectiveness – enabling the creation of relevant, timely, and targeted advertising (by product, category, and zone) via automated ad-versioning functionality
More accurate product and store level forecasts – helping to understand the financial performance of each promotional event before making final decisions
Lower promotional costs – reducing the time required to produce advertisements as well as the number of proofs needed for printing and reviewing
SAP Retail Promotions at Brookshire’s “High Level” Event/Offer Process Flow
Brookshire’s Detailed Event/Offer Process Flow
14
Brookshire’s Original Project Scope and Details
End Users: Category Manager; Category Manager Assistants AD Specialists; Advertising CM Analytics; Pricing Analytics Merchandising; ICAs
Project Note: Ramp Up Customer Original Estimated Timeline: 24 Weeks BGC Project Team: 9 Full-Time Resources SAP Project Team: 2 Full-Time Resources
Overview of the Ramp-Up Communication Structure
SAP Support
Development
BGC PMR Project
BGC Project Team
SAP Project Team
Solution Back Office
Back Office Team
RU Owner
Ramp–Up Coach
OSS Customer Messages
BGC SAP Promotions Extended Project Timeline
Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May S
07/30 – 08/27
Complete Blueprint
FDD’s
FRICE
Blueprint Gate Review and Sign Off
08/27 – 11/24
(Phase I)
ECC Business Functions/Web
Services
New Promo Types/BB’s
UAT/Training
11/12 – 04/22
(Phase II)
Promotions Execution
Promotions entered into PMR
AMS Interface
11/12 – 04/03
(Phase III)
Forecasting
Historical Data Initial Loads
Begin Daily Sales Loads
08/27 – 04/03
(Ongoing through Phases)
Technical Specs
Development
Unit Testing
Complete Blueprint
Go Live Phase I – ECC Business Functions
Technical Go Live Phase II – Promotion Execution
Technical Development and Unit Testing Complete for all Phases
Technical Go Live Phase III - Forecasting
Business Go Live Phase II – Promotion Execution
Business Go Live Phase III -
Forecasting
17
BGC PMR Extended Project Scope
PMR and ECC are integrated Automatic flow of all
Complex Bonus Buys to AMS/LogiX via NCR upgrade
Offer number generated in PMR flows through entire system
Requires NCR modifications
No changes to Retail POS
Single point of Ad Promotions entry (excluding TPR’s)
Analytics will be available during Ad Generation Meeting
Forecast includes two years of historical sales and offer history
Forecast vs Actuals Reporting
Required modifications to link sales to all PMR offers
SAP Retail Promotions Integration at Brookshire Grocery Company (BGC)
SAP ECC SAP Retail Promotions
SAP BI
DTP
Promotion
Master Data/
Inventory Outbound
Promotion Planning
DMF
Promotion Effectiveness
Analytics
Sales History
POS
Daily Sales Load
Released Event Plan
POS Outbound – Non AMS Offers
Master Data, ECC Retail Event
POS Inbound Processing
BW Extraction (ZSEC)
BW Extraction
1
2
5
3
7 8
9
BGC Export
6
AMS 4 POSDM
SAP Retail Promotions Change and Training Topics
Advertising • Template Creation • Creation of Event • Assign Templates to Event Ad Specialists • Create Location Hierarchy (MGR Only) • SAP Retail Promotions Overview /with Glossary
- Offer Creation (Discount Price, Amount Off, % Off, Bonus Buys) • Product Groups
- How to create / maintain; Naming Convention • Assign Offers to Events • Post Processing Office
-Change Process Rules Pricing Analysts • Attaching Vendor Funds to Offers • Creating VF in SAP Retail Promotions • Forecast Analysis
Brookshire’s Expected ROI
Increase in Warehouse Service level for Ad Articles Substitute Sales Increased Scan Gross from Increased Service Level Labor Savings
LESSONS LEARNED
Lessons Learned
Assign a dedicated ECC Pricing & Promotions resource Plan go-live approach early in the project Document & finalize process flows early in the project Ensure all parties are in agreement on scope and what it
means in terms of processes, job functions and expected results
Ensure gaps are clearly defined and accommodated for, in some way
Identify RICEF objects early – during project preparation if possible
KEY LEARNINGS
PMR is the system of record for offers – feeds into ECC Multiple areas & processes are touched PMR offers a one-stop-shop for promotions & offers
feeding into ECC, DTP, Ad creation and execution at the POS. Resultant data allows for forecasting and analytics
Sales data & promotional data is matched for forecasting
THANK YOU FOR PARTICIPATING
Please provide feedback on this session by completing a short survey via the event mobile application.
SESSION CODE: 3203
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visit www.ASUG.com