Retailing in SAP: Overview

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Retail is part of supply chain management based on products or merchandise. These merchandise and commodities are procured according to need and delivered to end users or consumers in a systematic manner. Generally, end customers, pick up their necessary products to be consuming from various point of sales in a fixed locations. So, we can say, consumers are driving force behind Supply chain behind the retailing. These fixed locations could be a store, shop, or through mail service, even a seasonal retailing, etc with their uniqueness.

In SAP Retail we can administrate different activities of retailing. For that SAP provides different roles, based on different activities. SAP retail totally integrated system for Retailing. It encompasses, comprehensive set of business procedures required for competitive collection of strategies, different retail formats, and ECR-driven logistics and distribution. In other words, it has got all necessary functionality for a Retail company to model all the business processes.

With SAP Retail, SAP has projected to model the full “Value Chain,” all the links in the logistics pipeline from consumer to vendor. Retailers can thus optimize the whole array of business processes and control checks in managing the flow of merchandise and information among vendors, retailers and consumers.

In SAP Retailing, there are several business process area covered like procurement, storage, distribution, and sale of merchandise.SAP Retail able to support both wholesale and retail scenarios.

The Retail Information System enables goods movements to be planned, monitored and tracked throughout the whole supply chain.

The key retailing processes include:

  • Assortment Management
  • Sales Price Calculation
  • Promotion Management
  • Allocation
  • Requirements Planning and Purchasing
  • Goods Receipt
  • Invoice Verification and Subsequent Settlement of End-Of-Period Arrangements
  • Warehouse Management
  • Picking and Delivery
  • Billing
  • Store Supply

The SAP retailing enables us to control and coordinate the whole value chain, and thus act according to the changes in consumer behavior. New trends, such as electronic commerce or ECR, flow continually into ongoing development cycles. SAP Retail also allows us for changes in legal structures or business practices like franchising. This ensures that, retailers not only have a future-proof investment but are able to adapt according to a changing market scenario. The growth of a company is not hampered by system constraints, and we can map changes from real world to the system very smoothly.

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By Shreedhar Babu (on behalf of SAP Consulting Team)

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