SAP FMS - Segmentation

Fashion Management Solution 1.
0
Ramp-Up Knowledge Transfer
Segmentation Concept
May, 2014
Fashion Management Solution 1.0
Ramp-up Knowledge Transfer – Content Overview
Unit 1 Overview
Unit 2 Master Data
Unit 3 Segmentation
Unit 4 Planning
Unit 5 Purchasing
Unit 6 Inventory Management
Unit 7 Sales
Unit 8 ATP
Unit 9 Allocation Run
Unit 10 Outbound Delivery
Unit 11 Financials
Unit 12 Special Functionalities
© 2014 SAP AG or an SAP affiliate company. All rights reserved. Ramp-Up Knowledge Transfer Customer 2
Objectives Slide – Unit 3 Segmentation
At the end of this lesson, you will know

- How to create characteristics relevant for segmentation
- How to define segmentation structure
- How to define segmentation strategy
- How to assign the segmentation relevant master data to the article
master data
Agenda
Segmentation concept
 Segmentation - Introduction
 Segmentation specific characteristics
 Segmentation customizing
 Segmentation within article master data
Agenda
Segmentation - Introduction
•Businesses compete today in an increasingly customer-oriented market. Therefore,

it becomes necessary to streamline internal processes and logistics around the
needs of each market and its unique requirements through appropriate sourcing,
planning, and supply of goods to meet market demands.
•Some articles are expected to support large volumes of data. Segmentation can be
used to order such articles by logically categorizing them based on certain criteria
or characteristics.
•For example, in the fashion industry, you can distinguish a fashion article such as a
t-shirt based on the size and the color. This t-shirt in a particular size and color is
called an article variant. You can enter a specific item line for an article variant.
Using segmentation, you can also order article variants of different quality levels, for
different customer channels, and from different countries of origin.
Segmentation – Elements of Segmentation
Segmentation is a classification of all logistically relevant documents of an article. Beyond this

classification, segmentation also defines how logistic processes flow depending on the segment value of
the document.
Segmentation Structure:
segments used, i.e. quality, channel, country of origin etc.
Also defines possible values for each segment
Segmentation
Strategy:
Segmentation defines interaction of business documents process-wise, i.e. MRP supply
proposal, ARun handling of sales orders, planned independent requirement
consumption
Segmentation Scope:
Defines relevancy of segmentation for both requirement
and stock segments or only requirement only
Segmentation - Examples
Channel/Market
Logical
Sub-Channel/Region
Segmentation*
County of Origin
Segmentation
Quality
Physical
Promotion
Segmentation*
Customer
* The system does not distinguish between physical and logical segmentation
Segmentation- Process Steps
Agenda
Define Characteristic (CT04) (1)
Basic data:
• The characteristic must be assigned to characteristic
group:
SGT_SAP-C Segmentation Characteristic
• Only characteristic with data type: CHAR are
supported
Values:
• The possible values are assigned to the characteristic
Additional data:
• The relevance for functions are defined
Define Characteristic (CT04) (2)
The following functions can be flagged as relevant for segmentation
Agenda
Definition of Segmentation Structure (SGTS)
A segmentation structure is a combination of one or more segments of any article.

For example, a segmentation structure can be a combination of quality, customer
channel, and country of origin.
IMG Path SPRO  Logistics - General  Segmentation Define Segmentation
Structures
• Several segmentation structures can be
defined and locked after maintenance
• The relevant characteristics are assigned
• The entire segmentation structure may be up
to 16 characters long
• Blank as a valid entry can be enabled
• Defaults can be maintained for different
applications. This means for a particular
application say Sales Order while determining
the requirement category, values are
populated automatically if the dynamic filling is
maintained.
Segmentation Strategy – Introduction
•To efficiently plan the requirement, it is necessary to fulfill newly arising requirement
(such as sales orders) with existing or future stock (for example, purchase
requisition). If you have defined segments for the article, you can assign the stock
to the requirement using these segments. Segmentation strategy determines how
requirement segments are assigned to stock segments. This kind of assignment
takes place during available-to-promise (ATP) check and material requirements
planning (MRP).
•Segmentation strategy is also important for the following requirement elements and
stock elements:
•Forexternally procured articles during planning run. For example, during the
creation of purchase requisitions.
•For the components of articles, i.e., the dependent requirements and the fulfillment
of those requirements. Dependent requirements resulting from a BOM explosion
•Forconsumption of planned independent requirements using the actual customer
requirements during the planning run.
Segmentation Strategy – Feature
Assignment of Stock or Requirement Segments

•If you have assigned segments to an article, you can assign stock to the requirements
using segmentation. The assignment of stock to requirements takes place during the
planning run. The system determines which requirement segment is covered by which
stock segment
•You determine the following sequence for your segmentation using your segmentation
strategy:
1) You receive a requirement, such as a sales order. For example, the requirement
belongs to customer segment Wholesale and is of quality Quality 1
2) Using segmentation strategy, you define that this customer will receive the
requested segment first, if you have the segment in stock.
•If the requested segment is not in stock, you decide that the customer will receive
available stock segment in the next level. It is not mandatory to attach a segmentation
structure or a segmentation strategy to an article
•A segmentation strategy can have multiple requirement segments but can be assigned
to only one blank stock segment. Such segmentation strategies are identified by scope
in segmentation strategy. Scope indicates if the segmentation strategy only contains
requirement segments or both requirement and stock segments.
Definition of Segmentation Strategies of Structure (SGTC)
(1)
IMG Path SPRO  Logistics - General 

Segmentation Define Segmentation
Strategies
• Segmentation structures are defined and
locked after maintenance
• Segmentation strategies are defined and

assigned to a segmentation structure
• New strategies can be created for the
blank entry
• The scope for segmentation strategy is
defined. The following scope is possible:
1) Requirement and stock segments
maintained
2) Only requirement segments maintained
Definition of Segmentation Strategies of Structure (2)
Segment combinations
• Segment Value = Combined value of
characteristic
• Priority Sequence for Segment Combinations
• Stock Protection Indicator - Used at the time of
Stock Allocation according to priority sequence
Requirement/ Stock allocation

• Stock Segment - Segment assigned to a
stockable item. The valid stock segment is
defined in the segmentation strategy and
assigned to the article master data
• Requirement Segment - Indicates additional information about type of
requirement. You can freely define which requirement segments are satisfied by
which stock segments using segmentation strategies in Customizing
ATP: Requirement/ Stock allocation

• Segment Check Level during ATP: Specifies
the level at which the availability check
happens
• Pool Segment & Use: Specifies an individual or a combination of valid
requirement or stock segment values. During ATP, the availability is checked for
the requirement or stock segment values maintained here
Stock transfer
stockable item.
• Requirement Segment
Requirement to stock conversion

stockable item.
• Requirement Segment
Planned ind. Requirements consumptions

• Sales Order Requirement Segment -
Indicates the segment of the sales order
which consumes a certain segment of
planned independent requirements
• PRC Planning Level - When defining segment assignments, you use numbers in
this field to define that there are several possible entries with the same site,
segmentation strategy, and segment
• Planned Independent Requirements Segment - Indicates the segment of the
planned independent requirements which sales orders of a certain segment are
to consume
• Consecutive Number for Segmentation of Equal Status -When defining
segmentation assignments, you use numbers in this field to define that there are
several possible entries with the same site, segmentation strategy, and segment
MRP: Consolidated Segmentation Rules

• Mapping rule defined in the
segmentation strategy
General remark segmentation strategy: If you do not want to use specific segment
values in the segmentation strategy for the above, you can use:
- “*”: Indicates a 1:1 mapping, that is, the system maps requirement segment X to
stock segment X
- “#”: Indicates a 1:N mapping, that is, the system maps requirement segment X to
multiple stock segments as defined in the segmentation strategy
You assign and fix your segmentation strategy to the article master. When you fix
the segmentation strategy for an article, you cannot change the segmentation
strategy.
Agenda
Assignment Segmentation Structure to the Article - Basic
Data
Basic Data Fashion: Maintenance of

segmentation relevant master data for
the article in general
The following maintenance is possible:
•Segmentation Relevant
(only within creation mode)
•Segmentation Structure
•Segmentation Strategy/ Segmentation

Strategy Scope
Assignment Segmentation Structure to the Article -
Reference Site
Logistics: DC Fashion: Maintenance of segmentation

relevant master data at ref. site level
• Segmentation Strategy/ Segementation Strategy
Scope
• Consumption Priority
• Stock Protection Indicator: You can maintain stock protection indicator for
segmentation value combinations in the Customizing. You can activate the stock
protection indicator at article or site level in article master
• Discrete Batch number: Discrete batch numbering enables you to trace individual
batches in the system, since a separate batch number is issued for each received
quantity of an article with stock segmentation
Assignment Segmentation Structure to the Article -
Explicit Site
Logistics: DC Fashion: Maintenance of segmentation
relevant master data at explicit site
• Segmentation Strategy/ Segementation Strategy
Scope
• Fix Segmentation  the segmentation must be
fixed to “activate” the data for the site
• Consumption Priority
• Stock Protection Indicator
• Discrete Batch number
Logistics:DC2: Maintenance of Batch Management
at explicit site
• Batch Management at site level
Maintenance of Segmentation Specific Data
Article master data  Additional Data  Weights and

Volumes : Maintenance of segment specific data
• Volume
• Gross Weight
• Net Weight
• Mass maintenance available
Sales (+ distribution chain)  Additional Data  Sales- Segmentation:

Maintenance of segment specific data
• Distribution chain specific status
• Valid from
• Mass maintenance available
• Indicator at Sales view for segment
specific data
• Direct branch to Sales-
Segmentation data
Article Master: Purchasing Inforecord - Segmentation
Specific Data Maintenance
Purchasing  Purchasing Info Record 

Purchasing Organization Data 1
The following information can be maintained for

different stock segments of an article at
purchasing info record level:
•Under delivery tolerance
•Over deliver tolerance
•Minimum purchase order
•Maximum purchase order quantities
•Rounding profile for each segment
Enhancements for Segmentation
The segmentation logic can be influenced via Enhancements:
•BAdI: Batch Determination
•BAdI: Priority of Determined Batches
•BAdI: Segment Values in Purchase Order
•BAdI: Segment Values in Purchase Requisition
•BAdI: Segment Values in Sales Documents
•BAdI: Validation of Segment Values
•BAdI: Generation of Valid Segments
•BAdI: Dynamic Entering of Segment Values
•BAdI: Segment Values for Retail Structured Article
Lesson Summary
You should now be able to know

 How chararcteristics are defined for segmentation
 How to define segmentation strategies
 How to define segmentation structures
 How to assign segmentation relevant master data to the article
master

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Fashion Management Solution 1.

At the end of this lesson, you will know

•Businesses compete today in an increasingly customer-oriented market. Therefore,

Segmentation is a classification of all logistically relevant documents of an article. Beyond this

The following functions can be flagged as relevant for segmentation

A segmentation structure is a combination of one or more segments of any article.

Assignment of Stock or Requirement Segments

IMG Path SPRO  Logistics - General 

• Segmentation strategies are defined and

Requirement/ Stock allocation

ATP: Requirement/ Stock allocation

Requirement to stock conversion

Planned ind. Requirements consumptions

MRP: Consolidated Segmentation Rules

Basic Data Fashion: Maintenance of

The following maintenance is possible:

•Segmentation Strategy/ Segmentation

Logistics: DC Fashion: Maintenance of segmentation

Article master data  Additional Data  Weights and

Sales (+ distribution chain)  Additional Data  Sales- Segmentation:

Purchasing  Purchasing Info Record 

The following information can be maintained for

•Under delivery tolerance

•Over deliver tolerance

•Minimum purchase order

•Maximum purchase order quantities

•Rounding profile for each segment

The segmentation logic can be influenced via Enhancements:

•BAdI: Batch Determination

•BAdI: Priority of Determined Batches

•BAdI: Segment Values in Purchase Order

•BAdI: Segment Values in Purchase Requisition

•BAdI: Segment Values in Sales Documents

•BAdI: Validation of Segment Values

•BAdI: Generation of Valid Segments

•BAdI: Dynamic Entering of Segment Values

•BAdI: Segment Values for Retail Structured Article

You should now be able to know

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