1 - Introduction 2019-12-12 09 - 17 - 08

SAP S/4HANA Retail for Merchandise Management
Introduction
Andreas Lueckler
SAP SE
Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your
license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course
of business outlined in this presentation or any related document, or to develop or release any functionality mentioned
therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or
platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason
without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any
material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied,
including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-
infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes
no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or
gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. 2

Strategic Priorities in Retail
Customer Serving the Digital Smart stores New customer

centricity “segment of one” supply chain offers
 Design every aspect of  Configurability  Connected end to end  New shopping  Extend to other verticals
the customer experiences  Personalization  Greater efficiency experiences  Value-add services
with the customer in mind  Adaptability  New levels of  New insights and  Outcome based
responsiveness revenue opportunities

. . . as they evolve their strategic priorities
Be immersed in consumer lives

Optimize Extend Transform through trusted experiences
Delivered at scale.
Profitably.
Leverage deep ▪ Tailored assortments, offers and services

Customer Respond to real world Create tailored immersive
understanding of
centricity data and changes in experiences pre-empting ▪ Seamless omnichannel interactions
customer need to drive
usage and consumption customer needs ▪ Pre-empt changes in preferences
winning assortments
Identify moments of need ▪ Mass-customization

Serving the Understand and predict Mass customize product
and respond with timely
segment of one individual and contextual and service bundles to ▪ Zero click ordering
and relevant offers and
customer needs single customer outcomes ▪ Customer for life relationships
services
Digitize the supply chain Extend to point of Source-to-consumer ▪ Hands-free robotics supply chain
Digital supply
chain from the customer to the consumption for instant delivery to the place of ▪ Connected homes and smart products
manufacturer response need ▪ Flexible delivery anywhere anytime
Experience centers with ▪ Unified digital experiences

Smart stores Empower the front line Sensor based customer
highly personalized
with real time insights to identification, store ▪ Ultra convenience
services and ultra
serve their customer interaction and check-out ▪ Experiential retail
convenience
▪ “No ownership” and continuity business
Selling outcomes Leverage experience and Move from selling models
Usage-based services
beyond products operational data to create products to selling
enabled by sensors ▪ Create platform scale and expand into
new offers and service outcomes
adjacent and new businesses

Bringing intelligence key retail processes across the value chain
Customer-centric Digital Omnichannel customer

Omnichannel marketing Procurement excellence
merchandizing supply chain service
Customer segmentation Master data inbound intelligence Contract management Assortment planning Conversational AI
Customer Before: Marketing activities based on Before: Error-prone master data Before: Unable to track if contract Before: Difficulties to handle new Before: Manual ordering
centricity own system data only maintenance consumption exceeds plan products Today: Conversational Commerce
Today: Using Sentiment Analysis Today: ML supported Master Data Today: ML supported tracking of Today: Unified Demand Forecast with access to all customer, product
experience, and social media Enrichment Contract Consumption using product similarity scores as and inventory information
feedback modeling at aggregated level
Campaign Execution Assortment planning Revenue management Order intelligence Smart recommendations
Serving the
Before: Broadcasting to customer Before: Assortments based on Before: Revenue loss due to Before: Ordering based on static Before: Simple recommendations
segment groups history and human experience unclaimed cash discounts rules based on similar purchases
of one Today: Real-time customer profile Today: Linear optimization Today: Proactive notification to Today: Order Intelligence for cost- Today: Upsell/Cross offers for
and Intelligent scores determining the most profitable mix inform about cash discounts at risk optimal deliveries known and unknown preferences
Campaign execution Assortment planning Intelligent line item matching Retail allocation Smart replenishment
Before: Wasting marketing budgets Before: Over-ordering of prepacks Before: Unable to clear payments Before: Poor management of new Before: High waste in fresh item
Digital on poorly managed campaigns Today: Prepack optimization to efficiently grocery spot products categories
supply chain Today: Detect Best Sending Time to determine prepacks that will match Today: Payables line item matching Today: Capacity optimization for Today: Cost-Optimal Ordering in
address customer demand best with ML support promotion allocation of new Store Replenishment with Data
products with Data Intelligence Intelligence
Smart recommendations Promotion planning Smart stock management Retail allocation Smart store
Before: Simple recommendations Before: Running promotions with Before: Manual stock transfers Before: Poor balancing of end-of Before: Time consuming stock
Smart based on similar purchases no insight on cross-product impact Today: Predicted Delivery Date for season stock operations
stores Today: AI powered product Today: Affinity Analysis to Stocks in Transit to take action in Today: Cross-Product store Today: Retail Store Management
recommendations based on lifestyle understand promotion impact time allocation with Linear Optimization with RFID/AR
Customer retention Promotion planning GI/IR reconciliation Warehouse insights Smart fraud detection
Selling Before: No insight into root cause for Before: No real-world feedback into Before: Time consuming matching Before: Simple monitoring of Before: Cumbersome manual check
outcomes declining customer satisfaction assortment decisions of goods and invoice receipts warehouse operations for data issues in TLOG
beyond Today: Use ML to anticipate Today: Using Google Product Today: Automated Goods Receipt / Today: Warehouse Insights for Today: use ML to detect POS data
customer behavior, such as product Ranking to finetune assortments Invoice Receipt processing optimized warehouse operations anomalies
products cancellations or renewals using ML

User Need: 24/7 shopping of convenience products in reliable time
Will I catch my train, if

I get a coffee and a
snack?

– Future Store avec-x and avec-box
© 2019 SAP SE or an SAP affiliate company. All rights reserved. https://www.isnz.ch/avec-x-und-avec-box/ 7

– Future Store Avec X und Avec Box

Globus Scan & Go
Link to video

Mannheim Mall Q 6 Q 7 drive Retail technology innovation
The new shopping mall in the heart of

Mannheim is the test bed for Retail store
innovation.
SAP is working with premier brand to
innovate around the Point of Sale and
integrate the physical and online world :
Smart product displays, guided buying,
customer checkout, etc. as well as new
engagement models with residents in the
adjacent real estate.
Link to video

H&M garment collecting
RECYCLE AT H&M
The H&M Garment Collecting programme is

a global initiative that works to prevent
customers unwanted clothes and textiles
from going to landfill. All clothes collected by
H&M are either reused, reworn or recycled
with 0% going to landfill.
REWEAR - Clothing that can be worn again is

marketed worldwide as second-hand goods.
REUSE - Clothing that is no longer wearable

is converted into new products, such as
remake collections or cleaning cloths.
RECYCLE - Clothing that can’t be reused is

recycled into textile fibres and used to make
new materials and products such as Source: https://www2.hm.com/en_gb/ladies/shop-by-feature/16r-garment-collecting.html
insulation for cars.
Adidas introduces 100% recyclable shoes
Adidas has moved closer to fully

recyclable performance sportswear and
a circular supply chain system with the
release of “Futurecraft Loop”, a first-
generation, one-material running shoe
made entirely from ocean plastic.
Futurecraft Loop is the brand’s first

100% recyclable product that is made to
be remade. Through a partnership with
Parley, an organization that works to
address threats to the world’s oceans,
the shoe maker has created zero-waste
sportswear from plastic waste
intercepted from beaches and coastal
communities before hitting the ocean,
according to the Adidas website.
Source: https://consumergoods.com/adidas-introduces-100-recyclable-shoes

Recognizing New Demands on Retail Supply Chain
SAP Customer Order Sourcing
Enable retailers to intelligently manage their resources and to make competitive customer promises
Supply Customer Promise Demand

POS
Fulfillment Sourcing
Mobile
STORE
CUSTOMER
Click&Collect
STORE In-store
Ship from
Store
VENDOR DC
CLICK & Web
COLLECT Consumer
ONLINE ORDER CUSTOMER
FULFILLMENT
LOCATION
Ship to Contact
Legend:
Home center
Replenishment
Dropship Order Management

HOME
DELIVERY Social In-Store Pickup /
CUSTOMER Purchase
SAP Customer Order Sourcing
Problem Statement and Approach
Problem Statement Retailers’ Goals Our Approach
▪ Efficient order processing and fulfillment ▪ Balance between customer promise and ▪ Central place for availability information
is the core of each consumer-facing profitability from all sourcing locations
business.
▪ Make intelligent order sourcing decisions ▪ Sourcing strategies reflecting the
▪ Focus on efficient customer order business goals
sourcing required to deal with: ▪ Increase customer experience
▪ Easily consumable by Web shops, sales
➢ Same day delivery ▪ Keep loyal customer base agents inside a store, or call center
agents
➢ High return rates
▪ Data from different back-end systems for
➢ Low margins in e-commerce availability information
➢ Pressure from pure play internet ▪ Flexible microservice architecture based
retailers on SAP Cloud Platform

Why Are Not SAP Financials + POS Solution
Enough for Retailers?
❖ POS solutions are designed for store operations. So how about

warehouse and corporate financial operations?
❖ How do you get one view of the logistics & financial supply chain from
vendor to DCs to stores? Can you trust the financial numbers enough
in a disjointed environment?
❖ How do you drive a true omni-channel strategy where you need to

leverage on all nodes of your retail supply chain & where you need a
consistent master data strategy?
❖ How do you drive E2E promotion campaigns (e.g. custom promotions

driving replenishment & allocation processes)?
❖ How does such a proposal help retailers simplify the landscape when
more advanced promotion, merchandise planning & assortment
management capabilities are needed?
© 2019 SAP SE or an SAP affiliate company. All rights reserved.

Why a Retail Version of SAP?
The “Standard version” of SAP is not designed to manage:

❖ POS Interfaces (POS Outbound and POS Inbound)
❖ POS Receipts (i.e. not using sales orders)
❖ Retail Pricing & Promotion (e.g. buy any 3 items from this category
and get 10% off the lowest priced item)
❖ Retail Season Handling
❖ Special concepts of Articles (Generic Articles, Structured Articles)
❖ Stores and Distribution Center as Master Data
❖ Assortment Management, Store Clustering & Listing
❖ Layout Management (Space Management Integration)
❖ Vast combinations of Articles & Sites
❖ Retail specific operations (e.g. Retail Allocation, Store Replenishment)
❖ Managing In-Store Business Processes (Fiori Apps)
❖ Omnichannel Sales & Merchandise Analytics
❖ …
SAP S/4HANA On Premise (OP)
General information
SAP S/4HANA OP comes with significant extensions of functionality and scope for retailers as
well as for fashion companies and companies with vertical business
Industry to core and support of vertical business models starting with wholesale enablement
are main objectives for S/4HANA OP
For better and more flexible targeting of our customers, there are 2 solutions corresponding to
2 price list items:
➢ SAP S/4HANA Retail for Merchandise Management
▪ Targeting typical retail companies operating stores and B2C channels
➢ SAP S/4HANA for Fashion and Vertical Business
▪ Targeting fashion companies or companies with wholesale operations for products that are
seasonal, with constraints regarding availability etc.
▪ Enable Manufacturing Functionality for Vertical Retail & Wholesale

SAP S/4HANA: Fashion and Retail: High level scope
Retail Fashion
Store Layout Management
Layout management, space management integration Product Allocation (PAL) Demand and Supply Segmentation
Stock protection concept (without Physical and logical, supported in all
Retail Price Management Manufacturing
physical separation) in sales and stock logistic documents

Retail Price, Bonus buy
transport orders
SAP S/4HANA for fashion and vertical business

Promotion Management Sales Order Management
Product Availability Check (PAC) Wholesale enhancements like multi ship-
Retail promotion logistics and integration with ability to read demand and supply to order, grouping rules (e.g. Pack
segmentation separately – ship together)
Merchandise Allocation Execution
Distribution to store, follow-on documents, compact Backorder Processing (BOP) Supply Assignment, Release
allocation object page Filters and sorters, confirmation
with fashion specific release to
strategies, (ARUN, Order Allocation)
delivery checks (ARUN, Order
Store Merchandise and Inventory Allocation)
Supply Assignment, Insight to
Store Connectivity Action Tool
Point of Sale inbound and outbound (ARUN, Order Allocation)
Master Data Management Demand Forecasting Inventory Management

Article and variants, store, distribution Fashion and Retail
Distribution curve, demand Merchandise distribution, specific use cases
center, article compact overview page maintenance (PIR) for article and for Retail/Fashion in sales order management
common Foundation
Assortment management variants and Inventory, e.g. season determination,
Listing of articles, assortments variant matrix, review stock for generic
Merchandise Buying
Season Management articles, order scheduling
Special Retail/Fashion use cases,
To control logistical processes in e.g. support of article and variants, Replenishment Planning
regards to season, collection, theme season information, order
scheduling, PO Workbench Vendor Managed Inventory
Value Added Services

SAP for Core Retail
Process Overview (incl. CAR add-on)
Cross Processes
Invoice Verification, Merchandise Store Operations

Pricing Promotions Procurement DC Logistics Sales Orders
Settlement Supply
Organizational Structures & Master Data
Org. Structures / Master Data Conditions / Pricing / Merchandise Supply Store Operations IoT Demo Case
Organizational Structure Promotions Replenishment Run Master Data for Store Operations Dedicated link to SAP
Article Master Valuation / Purchasing conditions Supply & Billing to Franchise Stores Receive Products owned SCP instance linked
Hierarchies Retail pricing & Mark Downs Unified Demand Forecast, Analyze Adjust Stock to sensor based store
Forecast* Look up Retail Products manager dashboard and
Business partners (vendor / customer) Promotion Management
Transfer Products integrated to customers S/4
Assortments / Listing / Layout WB
Print Labels instance
Site master Invoice Verification & Perform Store Walk-Through
Direct Store Delivery Manage Sales Orders
Settlement Sales Order Management
Physical Inventories Store
Invoice verification Order Products
3rd party ordering
Store Reply for Promotions
SAP Fiori
Procurement Vendor billing document Customer Returns Full use of SAP Fiori
Contracts Store Reply for Allocation
Contract based Settlement Performance Analysis Launchpad for all roles.
Point-of-Sales (POS) Inbound*
Requirements Planning / Forecasting Business roles include more
Inventory Visibility*
Purchase Order Creation DC Logistics than 50 native Fiori apps.
Sales Data Reporting**
Allocations Cross Processes And Embedded Analytics
Goods Receipt in DC Basket Analysis**
Vendor Management Inventory Goods Issues from DC Consignment (Depot Business)
Collective Purchase Orders Merchandise Distribution Subcontracting
Return management to vendor Physical Inventory DC Empties Handling
Documentary Batch Management
Stock Transfers
* Pre-Requisite CAR add-on
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ** Pre-Requisite CAR add-on and SAC subscription 19
Intelligent Enterprises power the experience economy

Reference Architecture Retail and Vertical Consumer Industries
SAP Analytics Cloud
SAP BW/4HANA SAP Ariba
SAP C/4HANA SAP Integrated

Marketing, Commerce, Business Planning
Customer Data, Sales, Service SAP Supply Chain
Management
SAP S/4HANA SAP Customer Activity

- Retail for merchandise mgmt. Repository,
- Fashion and vertical business application bundle
SAP Cloud Platform

SAP HANA

qualtrics + SAP +
Powering the Experience Economy, Together.
80%
OF CEOs
BELIEVE THEY
DELIVER A
SUPERIOR
EXPERIENCE
THE EXPERIENCE GAP
8%
OF THEIR
CUSTOMERS
AGREE
© 2019 SAP SE or an SAP affiliate company. All rights reserved. Experience Matters 22
Fusing X and O data to unleash the full potential of People Analytics
Employee Experience Sales

Customer Experience Production
Brand Perception Finance
User Experience SKUs
Product Satisfaction HRIS
Emotions – Attitutes – Beliefs – Needs Transactions – Processes – Demographics
Operational Data (O-Data™) tells you what is happening.

Experience Data (X-Data™) tells you why.
Optimize Assortment Management & Product Launches
Industry: Retail
Persona: Head of Merchandising
Business Outcome: Increased Sales and Brand Value
O
Operations Data, “What?”
X
Experience Data, ”Why?”
XM
Faster Insight to Action
With Qualtrics, retailers can now trigger Through insights form combined data
Merchandising managers can track customer feedback to better understand sets, merchandise planners can get key
sales & profitability in real time, but the emotions and sentiments related to insights on what drives product
can’t understand why sales exceed product offerings. uptake for the target customer
or don’t meet forecast expectations. segments. E.g. Category growth
Feedback for new product could include: targeted for millennials is dependent on
For e.g. metrics like below indicate the quality and low environmental footprint
need to act: • “Product quality • “It was only
was terrible!” Based on insights they can take action to
offered in black, drive business outcomes:
• Sales are BELOW FORECAST and I wanted it in
“It was too • Switch to eco-friendly suppliers
• Returns rate are HIGH red.”
expensive.” • Engage consumer during design
process
“I heard about “The product
• Improve quality management with
it but couldn’t wasn’t ethically
sub-contractors
find it in the sourced”
store.” • Improve store layout and signage
Differentiate Through Responsive Commerce Capabilities
Industry: Retail
Persona: Head of Digital Commerce
Business Outcome: Sales and Margin Growth, Improved Conversion Rate and Shortened Shipment Lead Time
O
Operations Data, “What?”
X
Experience Data, ”Why?”
XM
Faster Insight to Action
Digital Commerce managers can With Qualtrics, retailers can now trigger By combining the insights from both data
identify challenges using operational customer feedback to better understand sets, leaders can get quick and
metrics, benchmarking, trends, from the emotions and sentiments after the accurate insights on key experience
business systems. digital experience. drivers influencing commerce
platform success by customer
For e.g. metrics like below indicate the
Feedback could include: segments.
need to act:
• Cart Abandonment is HIGH • “The coupon didn’t work and my They can acts on insights and implement
items weren’t available once the programs like driving key business
• Order Value is AVERAGE outcomes:
issue was resolved”
• Bounce Rate is HIGH • Demand driven insights based
“The site was fine, I
• Conversion Rate is LOW “Shipping time inventory planning
bought the item in
is too long & store” • Optimal checkout & payment
Understanding “Why?” is more cost is too high” processes
complex and often requires • “I can find most • Adopt omnichannel pricing &
significant effort and time. items for much less promotion capabilities
on another site”
Reference Architecture Retail and Vertical Consumer Industries
Experience – SAP Experience Management Customer, Employee, Product*, Brand* Experience
Analytics – SAP BW/4HANA – SAP Analytics Cloud SAC: Model Company Stories BW4: Industry services, e.g. Inventory Diagnostics
Customer Experience – SAP C/4HANA

MARKETING CLOUD COMMERCE CLOUD CUSTOMER DATA CLOUD SALES CLOUD SERVICE CLOUD
Contextual intelligence Omnichannel commerce Trusted relationships High touch experience Customer for life
Integration and Intelligence – SAP Cloud Platform / C4HANA Foundation Pricing and Promotions Partner add-ons
Extensibility & Integration Platform Services Business & Master Data Services Customer Order Sourcing • Mobile Consumer
Assistance by GK
End-to-End CX Processes Open Ecosystem (Business Partner, Product, …*) Consumer Sales Intelligence
• Dynamic Pricing by
GK
Core – SAP S4/HANA Retail and vertical – SAP CARAB and Supply Chain – SAP IBP – SAP Ariba • Omnich. POS by GK
• GK POS Cloud*
SAP S/4HANA, Retail / Fashion & vertical SAP Customer Activity Repository & apps SAP Ariba
• Loyalty by Annex
Finance, Sales, Commerce, Service, HR, Sales Audit, Unified Forecast, Omnichannel
Sourcing, Procurement, R&D/Manufacturing, SAP Integrated Business Planning • Clienteling by
Promotion pricing, Art. Availability & Sourcing S&OP, Demand, Supply, Response, Keytree
Store, Merchandise, Supply Chain…
Inventory
• Agreement profitab. &
Master Data Governance CRM Merchandise Assortment Allocations
SAP Supply Chain Management negotiations by gicom
Product Lifecycle Costing EWM / TM Promotions Store Replenishment* (Forecasting &) Replenishment • MDG RFM by Utopia
People Engagement – SAP Fieldglass – SAP Success Factors and Spend Management – SAP Concur
© 2019 SAP SE or an SAP affiliate company. All rights reserved. * Roadmap https://roadmaps.sap.com 26
Industry specific
Reference Architecture Retail and Vertical Consumer Industries Cross-industry
* Upcoming
** Future https://roadmaps.sap.com
Experience
Management
SAP Experience Management Product Experience Customer Experience Brand Experience Employee Experience
SAP Analytics Cloud Business Intelligence Predictive Analytics Planning Digital Boardroom Model Company Stories
Analytics
Meta Data Manager Data Warehousing Analytical Engine Workspaces Industry content services, e.g. Invent. Diagnostics
SAP BW/4HANA
Customer
Experience
SAP C/4HANA Marketing Cloud Commerce Cloud Customer Data Cloud Sales Cloud Service Cloud
Business Services Platform Services Extension Factory (Kyma) Master Data Services (Product, Business Partner)
Business SAP Cloud Platform
Technology Consumer Sales Intelligence Promotion Pricing Service Customer Order Sourcing Order Mgmt.* Global Track & Tr.
Platform SAP HANA Partner Add-ons Dynamic Pricing by GK Mobile consumer assistance by GK GK POS Cloud**
Core Finance Sales Commerce Service Sourcing & Procurement R&D / Manufacturing Warehouse …
Add-ons Master Data Governance Prod. Lifecycle Costing Supply Chain (EWM/TM) Customer Managmt*
SAP S/4HANA
Digital Core
Industry packages Retail for merchandise management Fashion and vertical business
Partner add-ons MDG RFM by Utopia Agreement Profitability & Negotiation by gicom Omnichannel POS by GK
& POS DT&A Unified Demand Forecast & Plan Availability and Order Sourcing Omnichannel Pricing
SAP Customer Activity Repository,
application bundle Merchandise Planning Assortment Planning Promotion Mgmt. Allocation Mgmt. Store Replenishment**
Supply Chain SAP Integrated Business Planning Sales and Operations Planning Demand Planning Supply Planning Response Inventory
Replenishment (F&R)
SAP Supply Chain Management
People Networks & Spend

Engagement Management
Intelligent + Integrated + Modular + Omnichannel Planning Foundation &
Suite
SAP SAP SAP SAP Custom Apps

Merchandise Assortment Allocation Promotion Analytics / Partner
Planning Planning Management Management Apps
SAP S/4HANA Master data Size curve analytics

SAP Forecasting &
Attributes POS data transfer & audit Replenishment
(for merchandising, fashion, or
vertical business)
Real-time inventory visibility
Location & customer clustering
SAP CAR Omnichannel sales history
On-shelf availability algorithms SAP C/4HANA
Order sourcing & product availability UNIFIED DEMAND FORECASTING
(Marketing, Commerce, …)
POS (TLOG) Omnichannel pricing engine & repository Sales insights & merchandising analytics
High performance in-memory database

Planning engine
SAP HANA Predictive analytics

SAP CAR – Omnichannel
SAP SAP SAP SAP SAP Store

Promotion Merchandise Assortment Allocation Replenish-
Management Planning Planning Management ment
Partner Apps Fiori / SAC Tightly Integrated
Loosely Coupled
POS Customer Activity Repository
TLOG SAP HANA Live Analytic Content SAP
Forecasting &
Replenishment
SAP HANA -In-Memory computing
S/4HANA
SAP Commerce
Product POS Data Unified Demand (SAP C/4)
Master Transfer & Audit Forecast
Customer SAP Marketing

Multichannel Demand Data
Master sales analytics Foundation (SAP C/4)
Sales Order Omnichannel Omnichannel

Stock OSA
Article Promotion
Visibility Algorithms
Availability Pricing SAP
Inventory
BW/4

SAP CAR – Omnichannel, Real-time Consumer Insight Platform
Cloud version planned
* Optional (not required anymore)

SAC = SAP Analytics Cloud
SAP SAP SAP SAP

Promotion Merchandise Assortment Allocation
Management Planning Planning Management Tightly Integrated
Partner Apps Fiori / SAC
POS Customer Activity Repository Loosely Coupled
SAP
TLOG
SAP HANA Live Analytic Content * (Forecasting &)
Replenishment
SAP HANA -in-memory computing
S/4HANA
SAP
Product POS Data Inventory Order Sourcing and Commerce
Master Transfer and Visibility Product Availability
Audit (TLOG) Unified
Customer Promotional Offer Offer Repository Demand SAP
Master Omni Channel Management (ARTS like format) Forecasting Marketing
Sales &
Sales Order Merchandise Omnichannel Price
Location Clustering and Promotion Offer
Analytics Demand Data Foundation
Execution SAP
BW/4
Inventory

Customer Activity Repository – Application Bundle (CARAB) *Upcoming or future innovation
Customer Activity Repository, application bundle
Store Consumer Sales

Merchandise Promotion Assortment Allocation
Replenish-
S/4HANA Planning Management Planning Management
ment*
Intelligence
for Retail
Analytics Cloud
or SAP Customer Activity Repository
for Fashion and Vertical
Inventory Visibility + Omnichannel BW/4HANA
business Omnichannel Promotion Pricing
Article Availability and Sourcing
• Product data
• Sales Orders Location Product Promo Offer Forecast Anal. Demand Infl.
Cluster Attributes Management & Adjust Factors
Commerce Cloud
• Inventory
• Customer Data
• Hierarchies On-Shelf
Size Curve
Availability
Unified Demand Forecast Marketing Cloud
• Prices
• …
Demand Data Foundation Integrated Business
Planning
POS or GK POS* Multichannel Transaction Data
POS Data Transfer & Audit (Forecasting and)
Transactions (TLOG) Management
Replenishment
HANA (in-memory DB, predictive analytics)

Customer Activity Repository – Application Bundle (CARAB) *Upcoming or future innovation
Sales, Forecast, Sales & Retail Supply Chain Planning and Integration
Integration with
• S/4HANA
Perform business • Analytics Cloud
analysis and • Integrated Business Planning
interactions • Marketing & Commerce…
• Merchandise Planning
• Assortment Planning
Run planning • Promotion Management
scenarios E2E • Allocation Management
• Store Replenishment*
• Omnichannel Article
Manage prices, Availability & Sourcing
inventories & supply • Omnichannel Promotion
sources Pricing
• Multichannel Sales
Repository
Collect all sales & • Unified Demand Forecast
forecast demands • Size curve, on-shelf etc.
Customer Activity Repository, appl. bundle

Store Merchandise and Inventory Processes
Fiori for In-Store Merchandising and Inventory Management
Headquarter S/4HANA
Store

SAP Fiori apps for store management – Available Today & Planned
Assign Associates to Stores Receive Products with RFID
Click & Collect / Click & Ship Transfer Products with RFID
Move Products
Count Products with RFID
Print Labels
Move Products with RFID
Adjust Stock Move Products - Work List
Task Management On-Cloud version of Fiori apps
Count Products Store Employees Perform Task with Augmentation

(available as PoC & demo only)
Receive Products Laser Scanning, Camera Scanning,
RFID Reading
Transfer Products & Rebalance Stock
Role based Launchpad
Review Order Proposal
Responsive, New Interaction
Technologies
Lookup Products
Always online and Realtime, data persistent 34
Process Overview
Org. Conditions,
Invoice
Structure & Verification & Merchandise Manage Cross
Pricing & Procurement DC Logistics Store Operations
Master Data Promotions Vendor supply sales orders Processes
Billing
Valuation / Invoice Manage Sales Retail

Goods receipt Replenishment
Material Master Purchasing Contracts verification in Article List Print Labels Orders Consignment
in DC run
Conditions Dialog
Invoice Supply & Billing Perform store Manage Sub-

Hierarchies Retail pricing Requirements
verification in Goods issues to Franchise Receive Customer
planning DC Stores from DC Products walkthrough contracting
background Returns
Promotion Purchase Supplier Article Physical Sales Empties

Business order Merchandise Performance
partners management Settlement Substitution in Adjust Stock Inventory Handling
creation document Distribution stores Management
STO
Assortment – Conditions Documentary

Allocations Contract Physical Transfer Order Batch
Listing – Products Products
Layout WB based inventory DC Management
settlement
Vendor
Site master managed Stock Look Up Retail
inventory Transfers Products
Direct Store Store Reply

Collective PO for
Delivery
Promotions
Return
management Store Reply
to vendor for Allocation

SAP S/4HANA On-Premise Intelligent ERP Innovation
Roadmap for Retail for Merchandise Management & for Fashion and Vertical Business
1610 – Innovations* 1709 – Innovations* 1809 – Innovations*
Retail Retail and Fashion Retail and fashion foundation

• Harmonized Retail and Fashion Foundation • Wholesale Fashion Enablement ▪ Store Fiori apps
• Season processes ▪ In-store task management
• Supply Assignment (Order Allocation Run)
• Distribution curve ▪ RFID enablement of transfer products
• Demand and Supply Segmentation
• Value added services ▪ RFID enablement for counting products
• Logistic enhancements (Multi-Ship to Order with
• Transportation chains ▪ Handling of empties in EWM integration
Collective Shipment)
• Characteristic value conversion ▪ Single-recipient purchase order for cross-docking
• Harmonized screen sequences
• Merchandise management – Master data scenarios
• Enhance material/article harmonization ▪ Machine Learning for Global Data Synchronization
• Co-Existence of Retail with selected industries
(“Industry to Core”) • Enhanced distribution scenarios for generic article and ▪ Stock separation using logistical products:
site master ▪ Basic scenarios
• Harmonization of Site master and Business Partner, ▪ Special scenarios
and of Retail article and material • Merchandise management – Logistics
 Structured articles with full products ▪ Automatic material ledger enabling for sites
• Efficient and extended store merchandise and Wholesale fashion enhancements
inventory processes with Fiori 2.0 – Master data maintenance
– Support in logistical processes ▪ Fiori app for supply assignment
• Generic articles, variant-creating characteristics using ▪ Simulation and analytics for supply assignment
 Support MRP areas for special processes
configuration class
▪ Different segmentation strategies in the supply chain
• Extended article/material number • Merchandise management - In-Store Merchandising
▪ Enhanced maintenance for seasons management
• Transfer Products app
• Role-based access to business transactions via Fiori ▪ Insight to better align the flow of fashion products with
Launchpad • Fiori app enhancements for the selling season
• Order Products ▪ Purchasing contract for retail and fashion processes
• Improved usability of key Retail transactions in SAP
Fiori Themes for classical transactions • Lookup Retail Products ▪ Flexible purchase order adjustments
• Support of Material Ledger with valuation at Retail and • Merchandise management – User interface ▪ Specific functional support for wholesale processes
value only articles • Improved usability of selected key transactions in Fiori Enable manufacturing functionality for vertical retail
for classical GUI and wholesale
• Retail Easy Access TX: W10U
• Object Pages for product, site, allocation table ▪ Enhancing production capabilities for personalized
products 36
*) Feature highlights for SAP S/4HANA 1610, 1709, 1809 and 1909. See Feature Scope Description (http://help.sap.com/s4hana)
SAP S/4HANA On-Premise
Roadmap for Retail for Merchandise Management & for Fashion and Vertical Business
1909 – Recent Innovations* 2020 – Planned Innovations** 2021 – Product Direction** 2022 – Product Vision**
Retail and fashion foundation Retail and fashion foundation Retail and fashion foundation Retail and fashion foundation
▪ Point-of-sale outbound ▪ RFID enablement of goods receipt ▪ Support for digital store processes, ▪ Optimize assortment through
communication using an enterprise ▪ POS inbound communication with using technologies such as Augmented intelligent product lifecycle
service enterprise services Reality, Natural Language Processing management
▪ In-store transfers based on RFID ▪ Provide retail business process ▪ Providing the exact geolocations of ▪ Increase profit through innovative retail
▪ Enterprise Search for sites, capabilities by converting materials to products in stores sales price planning
promotions, allocation tables retail articles3) ▪ Insight to Action capabilities through a ▪ Increase customer satisfaction through
▪ PP-DS parameters in article master ▪ Support for click-and-collect scenarios store merchandising cockpit intelligent store processes
maintenance ▪ Enterprise service for sending product ▪ Fiori based in-store customer order
information management Wholesale fashion enhancements
Wholesale fashion enhancements ▪ RFID triggering and monitoring of in-store ▪ Enhanced omni-channel processes ▪ Improve customer satisfaction by
▪ Automated processes for seasons movements1) ▪ New assortment management and fulfilling customer requirements with a
▪ Assign store associates1) listing detailed action plan
▪ Avoid overstocking with flexible
purchasing commitment ▪ New solution for industry specific ▪ Improve efficiency for Make-To-Order
Wholesale fashion enhancements terminology Production (MTO) across the supply
▪ Enhanced supply-assignment
▪ Supply Assignment Overview Page1) ▪ Retail BW/4HANA content (first phase) chain
capabilities
▪ Monitor supply assignment demand1) Wholesale fashion enhancements
▪ Supply protection in supply assignment ▪ Situation handling in supply assignment
▪ Meeting customer requirements for ▪ Integration of mill products2)
personalized products ▪ Accurately calculating costs for samples
▪ Managing excess requirements1) ▪ Taking orders using SAP Intelligent
▪ Enhanced Value added services (VAS)1) Robotic Process Automation (SAP
▪ Additional flexibility during direct-ship Intelligent RPA)2) 1) planned for S/4HANA 1909 FPS01
alignment1) ▪ Optimized distribution of supply within a 2) planned for S/4HANA 2020 FPS01
3) planned availability Oct 2019 via note
Back-Order-Processing run by Fair 4) joined roadmap items with advanced ATP
Share logic4)
Status: November 2019
**) This is the current state of planning and may be changed by SAP at any time without notice.
Unmatched Retail Expertise – SAP Coverage across all Retail Sub-Segments
208 of the 250 top retailers in the world run SAP:
18 of the 25 24 of the 25 18 of the 20 top

fastest growing top food retailers in apparel and footwear
retailers in the world the world retailers in the world
2,000+ customers using End-to-end Deep, Clear

retail processes industry- Embedded,
IS Retail / SAP Retail for Industry
preconfigured
Merchandising in 121 on a real-time specific best practices road map
countries platform capabilities
86% of the Retailers in the Forbes Global 2000

are SAP customers.
© 2019 SAP SE or an SAP affiliate company. All rights reserved. Source: SAP Performance Benchmarking 2017. 38
The Intelligent Enterprise – Whitepaper & Value Paper
The Intelligent Enterprise for the Retail Industry, Edition 2019 S/4HANA Retail Value Paper
https://www.sap.com/documents/2016/03/2e5a77d0-627c-0010-82c7-eda71af511fa.html https://www.sap.com/documents/2016/12/cab8a592-9a7c-0010-82c7-eda71af511fa.html
https://www.sap.com/documents/2016/03/2e5a77d0-627c-0010-82c7-
eda71af511fa.html

Thank you.
Private vs Public

One SAP S/4HANA: the right solution for each customer cloud journey
Cloud ERP* ERP in the Cloud ERP on Premise
SAP S/4HANA SAP S/4HANA

SAP S/4HANA Cloud SAP S/4HANA Cloud, on premise
single tenant edition (Private cloud managed by SAP)
Managed by customers
Greenfield with data and Greenfield or conversion of existing

Implementation Greenfield with data migration ▪ On-premise functional scope
configuration migration implementations
▪ All industries supported
Business configuration of standardized core ERP and select Full functional S/4HANA scope of core ERP and Full functional S/4HANA scope of core ERP and
Functional Scope ▪ Customize, modify, and extend
LOB processes extended LOB and industry processes extended LOB and industry processes
In-depth support for professional services and component ▪ Annual release cycle, speed of
Industries adoption on customers’ schedule
manufacturing; All industries supported All industries supported
Supported
more industries on road map ▪ Best-in-class deployment/upgrade
efforts
S/4HANA Extensibility Framework and extensions via SCP, S/4HANA Extensibility Framework and Customization, modification, and extensibility for on-premise ERP
Extensibility
using whitelisted APIs extensions via SCP, with full extensibility option possible
▪ Perpetual licensing
Annual;
Innovation Cycle Quarterly Up to 2 upgrades a year
speed of adoption on customers’ schedule ▪ Runs on customer preferred
infrastructure
Deployment Multi-tenant environment, Single-tenant environment Customer controlled deployment and
Benefits Lowest TCO and fastest time to value Low TCO and fast time to value implementation efforts
Licensing Subscription licensing Subscription licensing BYOL + infrastructure subscription
Dedicated system landscape on cloud Customer specific system landscape

Infrastructure Shared public cloud
infrastructure Runs on SAP HANA Enterprise Cloud

*according to Gartner Cloud (SaaS) Definition 42
Single-tenant Offering for Retail and Fashion
8005595 SAP S/4HANA Retail for Merchandise Management, single tenant edition
8007139 SAP S/4HANA for fashion and vertical business
Other Retail applications
8005833 SAP Customer Activity Repository for SAP S/4HANA Cloud, single tenant edition
8007824 SAP Promotion Management for SAP Customer Activity Repository Cloud
8007825 SAP Assortment Planning for SAP Customer Activity Repository Cloud
8007826 SAP Merchandise Planning for SAP Customer Activity Repository Cloud
8007827 SAP Allocation Management for SAP Customer Activity Repository Cloud
© 2019 SAP SE or an SAP affiliate company. All rights reserved. Status: November 2019 43
How Did a Leading Swiss Retailer Improve Its Supply Chain
Agility Through Digitalization?
Migros Aare Ensuring product freshness and a better shopping experience for supermarket customers
▪ Urtenen-Schönbühl,
▪ Migros has been the leading retailer in Switzerland for the past 20 years with its wide portfolio of supermarkets,
Switzerland
▪ www.migros.ch
shopping centers, specialty stores, restaurants, and fitness centers. To keep up with large order quantities and
(German) short throughput times within its retail logistics ecosystem, Migros Aare – the largest of the 10 Migros cooperatives
– needed an effective solution to distribute fresh products to its stores. It also needed a new warehouse
Industry management system and cutting-edge technologies to achieve greater transparency into the flow of goods
▪ Retail and information, setting the foundation for digitalizing its entire logistics system in the future.
By implementing the SAP® Extended Warehouse Management application on the SAP HANA®
Employees
▪ 12,000 platform they could:
▪ Achieve a timely, consistent, and transparent goods and information flow from the receipt of goods at the
Revenue perishables distribution center to the arrival of goods at the stores
▪ CHF 3.4 billion ▪ Improve the quality of store demand forecasting by accessing correctly timed store inventories with the
▪ (US$3.3 billion) SAP Forecasting and Replenishment application
▪ Balance peak load, leading to the increased availability of goods both in the warehouse and in stores
Featured Solutions and ▪ Align planning and control of the logistical processes to store needs
Services: ▪ Streamline warehouse distribution processes while significantly reducing time and errors
SAP Extended Warehouse ▪ Become independent from warehouse plant builders with direct control of an automatic warehouse system using
Management,
SAP Extended Warehouse Management, eliminating the need for an additional warehouse control unit
SAP HANA, and SAP
Forecasting and ▪ Enable a transformation of the supply chain into more-iterative forecasting
Replenishment ▪ Lay the foundation for future digitalization initiatives
“Each digitalization initiative at our company must either generate added value for our customers or
reduce costs while increasing efficiency. SAP Extended Warehouse Management represents a major
milestone in digitalizing our supply chain and ultimately creating a better shopping experience for our
customers.”
▪ Manuel Melliger, Head of Logistics Projects, Migros Aare
Picture Credit | Migros Aare, Urtenen-Schönbühl, Switzerland. Used with permission.
ULTA Beauty: Providing “all things beauty, all in one place”
with help from SAP® solutions
Company OBJECTIVES
ULTA Salon, Cosmetics ▪ Simple shopping experience grounded in trust and product expertise 300%
& Fragrance Inc. ▪ Fulfilling work environment for associates Increase in revenue since
(ULTA Beauty) ▪ Community support through job growth and charitable initiatives the first deployment of the
SAP ERP application
WHY SAP
Headquarters
Bolingbrook, Illinois
▪ Long-term relationship with SAP Simple
▪ Scalable solutions that keep up with growth Presentation of
▪ Cloud and on-premise options for fast, flexible deployments information to help
Industry customers choose what
Retail products are best for
RESOLUTION
them
▪ SAP® Business Warehouse application powered by SAP HANA® for real-time data access and analytics
Products and Services ▪ SAP Point-of-Sale application for real-time inventory visibility
Beauty products; salon ▪ SAP Mobile Platform to support custom-built mobile apps that enhance the shopping experience Consistent
and skin care services ▪ Procurement solutions from Ariba, an SAP company Customer experience,
▪ HR solutions from SuccessFactors, an SAP company, to support a rapidly growing network of stores whether online, via mobile
▪ Travel and expense management solutions from Concur, now part of SAP app, or in the store
Employees
19,000 FUTURE PLANS Personalize
▪ Increase personalization with the SAP Customer Activity Repository application d
Web Site ▪ Further connect stores and salons for even greater convenience and consistency Interactions with
www.ulta.com associates to meet every
customer’s needs made
possible by automating
“The term ‘connected beauty’ means a consistent view of information for our guests, whether via mobile backroom activities
Partner
Service & Support
app, our Web site, or in the store. It's difficult to know which brand or product to choose. Our SAP solutions
make it simple for our customers and associates to navigate all that data.”
organization
Diane Randolph; Senior Vice President and Chief Information Officer; ULTA Salon, Cosmetics & Fragrance Inc.
Connected
Touch points to maintain
the customer relationship
through every step of the
shopping process
dm-drogeriemarkt: Optimizing the customer experience with
real-time sales and inventory data
Company OBJECTIVES
dm-drogerie markt (dm), ▪ Centralize and streamline retail merchandise management 70%
FILIADATA GmbH ▪ Simplify service and support processes Fewer interfaces
▪ Simplify new store openings with central system blueprint
▪ Accelerate the launch of new functionality to further optimize the customer experience
Headquarters
Karlsruhe, German 2.6
RESOLUTION
Industry
▪ Integration of the SAP® Customer Activity Repository application as a real-time platform with SAP for
Retail solutions
million
Receipts processed daily
Retail ▪ Real-time access to comprehensive, inventory and sales data for planning and forecasting during peak periods
▪ Automated replenishment planning that provides order proposals to stores
Products and Services
Cosmetics, healthcare BENEFITS
▪ Faster response through a more agile supply chain based on real-time store sales and inventory data centrally maintained in
3 minutes
and household products, Instead of hours to
and health food one system transfer data from
▪ Simplified IT infrastructure resulting from significant reduction in interfaces 200 stores
▪ Reduced support requests and service effort with the elimination of in-store database operations
Employees
52,587 FUTURE PLANS
Faster
Rollout of innovations
▪ Deliver new innovations and processes such as unified demand forecasting and other complex forecasting methods
Revenue ▪ Simplify use of solution on mobile devices with larger displays, more functionality, and enhanced user interface
€8.32 billion
(FY 2013/2014)
Lower
IT support and
“The introduction of SAP Customer Activity Repository, powered by SAP HANA®, was strategically significant for us. maintenance costs
Web Site
As our central technology platform, SAP HANA is an investment in our future.”
www.dm.de Roman Melcher, Managing Director of Information Technology, dm-drogerie markt GmbH + Co. KG
Stronger
Future-proof foundation
for next-generation
retailing

Discount Tire: Making life simpler for customers
by running simply with SAP® solutions
Company OBJECTIVES
Discount Tire Company ▪ Use technology to actively build an omnichannel experience with customers >20%
▪ Build an IT foundation on the back end to grow positive customer experiences at the front end Growth as a goal for
Headquarters ▪ Move from a multiplatform system built over two decades to one comprehensive solution that connects disparate data with organic traffic through
ease improved customer
Scottsdale, Arizona search functionality
WHY SAP
Industry
Automotive and retail
▪ Offers a foundation of the SAP® Business Warehouse and SAP ERP applications as well as SAP Master Data Services
software to grow and stay relevant within the marketplace
85%
▪ Enables a contextual and engaging omnichannel customer experience through the SAP hybris® Commerce solution Of customers go online
before making a
Products and Services ▪ Improves business responsiveness with the SAP Customer Activity Repository application and other solutions based on the purchase
Automotive tires SAP HANA® platform
and wheels retailer
BENEFITS
▪ Will enable a consistent online and in-store experience to drive frictionless sales and service interactions
>900
Employees Neighborhood stores in
▪ Will enable revenue growth through uniform selling and fulfillment by providing relevant and up-to-date information the United States, each
16,000 ▪ Will provide a foundation to “drive” the customer to their closest location serving customers within
a 5-mile radius
Web Site
www.discounttire.com “We know hybris software will let us consolidate information throughout our company and create the ultimate
customer experience. Customers will get unbiased and transparent data in an easy manner and their
experience will be the same whether online or in the store. SAP helps us Run Simple.”
Steve Fournier, Chief Customer Officer, Discount Tire Company

Brookshire Grocery Company: Personalizing the customer
shopping experience in real time with SAP® solutions
Company OBJECTIVES
Brookshire Grocery ▪ Build upon Brookshire’s reputation for legendary customer service by optimizing the shopping experience Real-
Company ▪ Communicate with customers in real time based on an in-depth knowledge of their shopping history
▪ Increase the number of digitally engaged customers who shop more frequently and spend more Time
Headquarters Promotions and
WHY SAP communications with
Tyler, Texas
▪ SAP® Promotion Management for Retail application for managing and analyzing personalized promotions customers based on
▪ SAP Customer Relationship Management application for consolidating valuable customer master data their shopping history
Industry ▪ SAP Audience Discovery and Targeting analytic application for customer segmentation
Retail ▪ SAP POS Data Management application for deep insight into customer buying patterns and behaviors
▪ SAP Customer Activity Repository application for a 360-degree view of each customer Optimize
▪ SAP HANA® platform for real-time computing and decision making
Regional grocery chain
d
with 155 stores in Texas, BENEFITS In-store shopping
▪ Know everything there is to know about customers in real time experience to drive
Arkansas, and Louisiana sales
▪ Empower category managers to see what customers are buying (and what they’re not buying)
▪ Offer real-time promotions to customers that build loyalty and incent them to buy more
Employees
14,000
▪ Improve the effectiveness and lower the cost of promotions Greater
Insight to get the right
FUTURE PLANS product on the shelf at
Web Site ▪ Utilize the current SAP software landscape as a growth platform to expand from 155 stores to 400 stores the right time and at
www.brookshires.com ▪ Migrate all transactional, reporting, and analytical needs to SAP Customer Activity Repository and SAP HANA the right price
“In the last four years, we’ve had record profits year over year. A lot of that has to do with our people, who are 1
the best in the industry. But a big part is because SAP software provides them with the right information at the Version of the truth for
right time so they can get the right product on the shelf at the right price for our customers.” sound decision making
John D’Anna, Senior Vice President and Chief Information Officer, Brookshire Grocery Company

HSE24: Cutting lead time for campaigns from weeks to
hours with SAP® hybris® marketing and SAP HANA®
Company BUSINESS CHALLENGES
Home Shopping Europe ▪ Increase sales by running more highly focused marketing campaigns aimed at specific customer segments 20x
GmbH (HSE24) ▪ Equip marketers to plan and run campaigns without dependence on business intelligence experts Faster campaign
execution
Headquarters TECHNICAL IMPLEMENTATION
▪ Implemented the SAP® Hybris® Marketing solution, which is powered by the SAP HANA® platform, for self-service target
Munich
group selections 4%
▪ Integrated with the existing SAP Customer Relationship Management application and a third-party data warehouse Increase in repeat
Industry ▪ Received honorable mention for the SAP HANA Innovation Award purchasers
Retail – omnichannel
home shopping KEY BENEFITS
▪ Ramped up sales through more frequent and focused campaigns 30%
▪ Empowered marketers to design and run their own campaigns More net sales to
Products and Services these customers
Fashion, beauty, wellness, ▪ Learned behavior patterns that can help improve target group selections
jewelry, home and living,
household, and do-it-
yourself “Our marketing staff can now drill down into millions of customer records in seconds, using current data from
a variety of sources. There is no need for the business intelligence department to get involved.”
Christian Schnetzer, CRM Team Lead, HSE24
Employees
810, supported by
2,500 external staff
Revenue
€626 million
Web Site
www.hse24.de

Foodstuffs: Improving the customer experience
with SAP forecasting and replenishment
Company OBJECTIVES
Foodstuffs South Island ▪ Improve forecast quality during promotions
Efficient
The right stock in the
Limited ▪ Reduce the number of out-of-stock occurrences right place
▪ Ensure the right stock is in the right place
▪ Enable supply chain planning with calculations for future orders
Headquarters
Christchurch,
▪ Reduce inventory days at the store Exact
▪ Simplify the ordering process Accurate and automated
New Zealand ordering, resulting in
▪ Improve supply chain efficiency
fewer than 5% of orders
requiring adaptation
Industry WHY SAP
Retail ▪ Proven success of the SAP Forecasting and Replenishment application among industry peers
▪ Open integration for a simplified and independent implementation Effective
▪ Automation of the replenishment process and accurate forecasting and ordering during promotional and seasonal periods Better promotions
Products and Services through more-accurate
Full-service supermarkets ▪ Ability to include future display stock quantities in order forecasts
forecasting
and retail food
warehouses BENEFITS
▪ Faster processing through automation Economical
▪ More efficient stock placement Lower operating costs
Employees ▪ Accurate and automated ordering, resulting in fewer than 5% of orders requiring adaptation through reduced
>1,200 inventory
▪ Better promotions through more-accurate forecasting
▪ Lower operating costs through reduced inventory
Web Site
www.foodstuffs-si.co.nz
“Deploying SAP Forecasting and Replenishment using open integration has been tremendous and has
exceeded our business expectations. It is one of the best software solutions we have implemented.”
Phil Wright , General Manager, Information Technology, Foodstuffs South Island Limited

Groupe Auchan: Gaining control over spend with
ariba® procure-to-pay and ariba sourcing solutions
€3 billion
Company OBJECTIVES
Groupe Auchan ▪ Drive efficiencies by gaining control of indirect spend
▪ Centralize and standardize spend processes across thousands of sites with disparate needs Annual indirect spending
Headquarters ▪ Improve supplier management and onboarding managed by Ariba
solutions
Croix, France
RESOLUTION
▪ Deployed the Ariba® Sourcing, Ariba Supplier Information and Performance Management, and Ariba
Industry Procure-to-Pay solutions to effectively manage all of the indirect spend for all business units 100%
Retail ▪ Ensured standardized Ariba solutions were used to manage both buyers and sellers throughout the Estimated single-year
purchasing cycle rise
in sourcing events
Products and Services ▪ Used the Ariba Network to better manage Auchan’s global network of 15,000 suppliers
Discount stores, specialty
electronics, hypermarkets,
supercenters,
BENEFITS
▪ Increased savings from standardization and better-quality information for purchasers
15,000
Suppliers managed
supermarkets, ▪ Managed all indirect spend effectively
superstores, e-banking, ▪ Established a consistent and common approach for all buyers and users
and real estate
FUTURE PLANS 12,000
Auchan users of Ariba
▪ Deploy electronic transactions to suppliers across the Ariba Network
Employees solutions globally
▪ Roll out the Ariba Supplier Information and Performance Management solution to more users
330,700
Revenue “Ariba solutions are very complete and handle the entire purchase cycle, allowing us to start an event 3,050
€53.5 billion with sourcing and end it by receiving the goods, so much so that our mantra is ‘no Ariba, no business.’
Ariba helps us do business the right way.” sites
Using centralized,
Web Site Pascal Delval, Chief Purchasing Officer, Groupe Auchan standard processes
www.groupe-auchan.com

Tata CLiQ: Transforming the digital marketplace with
SAP® solutions for improved customer satisfaction
Company OBJECTIVES
Tata CLiQ, part of Tata Group • Build an omnichannel marketplace that delivers a proper marriage between online and brick-and-mortar stores Hassle-free
• Enable online store inventory reconciliation and visibility to the customer at the product-attribute level Secure, and simple
Headquarters • Provide ease of mind by allowing a cash-on-delivery payment option shopping and delivery
Mumbai, India • Enable insight into customer data to ensure all customers feel special options for valued
customers
Industry WHY SAP® HYBRIS® SOLUTIONS
Retail • 20-year relationship with Tata companies
• Proven SAP® BusinessObjects™ Business Intelligence suite and SAP CRM powered by SAP HANA ®
• Agile, scalable, cloud-based SAP® Hybris® Commerce solution; SAP Hybris Commerce, order management services;
Real-time
Full-scale tracking of
Apparel, footwear, electronics, and the SAP Hybris Product Content Management solution that meet unique omnichannel marketplace requirements, purchases
watches, and accessories implemented by Tata Consultancy Services
Employees
>150
RESOLUTION
• Catalog authority that provides customers with the best options based on interests and past behaviors
Agile
• Ability for customers to buy from a much larger collection of brands while enabling the brands to have a much closer Solution that meets the
Web Site relationship with customers evolving needs of an
www.tatacliq.com omnichannel marketplace
FUTURE PLANS
Partner • Gain insight into enhanced analytics to better understand customer behaviors, tastes, likes, dislikes, past purchases, and
Tata Consultancy Services preferences
www.tcs.com • Continue to innovate and evolve with a digital transformation journey
• Achieve 100% customer satisfaction
“Every customer experience is important. We have the mastery of trying to make customers happy through our offering, through
our service, and through our end-to-end experience that we provide. SAP Hybris solutions allow us to achieve these goals.”
Ashutosh Pandey, Chief Executive Officer, Tata Unistore Limited

MEMEBOX: Increasing revenue 100% with SAP® S/4HANA finance
Company OBJECTIVES
MEMEBOX Inc. • Improve the accuracy of inventory 100%
• Increase insight into logistics information Increase in revenue since
Headquarters • Create a secure foundation for global business expansion the launch of SAP
Seoul, South Korea (MEMBOX S/4HANA Finance
Inc.) WHY SAP
San Francisco (MEMBOX Corp.) • High visibility and strong control of financial and logistics information in real time with the SAP ® S/4HANA Finance
Industry
solution
• Support for the entire application lifecycle from implementation to operation
30%
Shorter delivery lead time
Retail to customers
RESOLUTION
Products and Services • Deployed SAP S/4HANA Finance using the SAP HANA® Enterprise Cloud service in just five months
Beauty products • Minimized deployment risk and eased change management with greater visibility of processes and functionality using a
system based on the “best model company” and SAP Application Management services
50%
Increase in sales
Employees • Improved competitive advantage, accelerated growth, and penetrated new markets with stronger logistics governance
productivity with on-the-go
300 and supply control
data access
• Enhanced insight into customer interactions at every touch point, providing sales real-time visibility into stock information
Revenue
US$24 million (MEMEBOX Inc.)
US$40 million (MEMEBOX Corp.)
FUTURE PLANS
• Roll out the SAP ERP application in China and other markets to support global business expansion
100%
• Deliver best-fit customer insight solutions with marketing analytics, performance management, customer insights and Improvement in inventory
Web Site segmentation, and merchandising analytics accuracy
us.memebox.com
Partner
“With this stable platform and approach, the Korea team is able to support MEMEBOX in developing innovative
business processes using SAP S/4HANA Finance, which is highly valuable as a quickly growing company. We 50%
Global Service & Support look to SAP as a strategic partner that can guide us toward digital transformation.” Reduction in the closing
organization period
Rio Kim, CFO, MEMEBOX Inc.

NTUC FairPrice Co-Operative: Gaining agility from real-
time retailer-supplier collaboration
Company OBJECTIVES
NTUC FairPrice
Co-Operative Ltd.
• Develop a new portal for supplier collaboration
• Communicate with suppliers more quickly and with greater ease
Increased
Productivity and efficiency
• Launch new products more quickly and ease maintenance of articles
Headquarters • Enhance storage of diverse document formats
Singapore
WHY SAP
Better
Visibility of process and
Industry • Real-time SAP® Cloud Platform Portal service time to market
Retail • SAP Fiori® launchpad for improved access for the mobile workforce
• Existing SAP software landscape and familiarity with SAP solutions
Supermarkets, hypermarkets,
• Expertise in retail industry
• Global 24x7 support with platform availability
Higher
Level of supplier satisfaction
and convenience stores and effective collaboration
RESOLUTION
Employees • Rapidly developed and deployed a supplier portal on SAP Cloud Platform
9,500 • Automated manual forms and processes to facilitate effective collaboration with suppliers
• Provided mobility to the workforce and thus improved productivity
Revenue • Improved process efficiency and faster time to market
US$2.3 billion • Implemented additional SAP software, such as SAP Web IDE and the SAP Cloud Platform Document service
Web Site FUTURE PLANS

www.fairprice.com.sg • Connect to on-premise workflows running on SAP software
• Integrate with existing business process management software
• Use SAP BusinessObjects™ Lumira software to help users explore and analyze data better
"SAP Cloud Platform enables our huge supplier network to collaborate in real time and helps us drive revenue. With the SAP Cloud Platform Portal
service and the SAP Fiori user experience, we transformed the user experience, improved accessibility, and accelerated application development."
Zhang Yan, Deputy Director, NTUC FairPrice Co-Operative Ltd.

Follow us
www.sap.com/contactsap
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP
SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See https://www.sap.com/copyright for additional trademark information and notices.

SAP folgen auf
www.sap.com/germany/contactsap
© 2019 SAP SE oder ein SAP-Konzernunternehmen. Alle Rechte vorbehalten.
Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer,
ohne die ausdrückliche schriftliche Genehmigung durch SAP SE oder ein SAP-Konzernunternehmen nicht gestattet.
In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden. Die von SAP SE oder deren
Vertriebsfirmen angebotenen Softwareprodukte können Softwarekomponenten auch anderer Softwarehersteller enthalten. Produkte
können länderspezifische Unterschiede aufweisen.
Die vorliegenden Unterlagen werden von der SAP SE oder einem SAP-Konzernunternehmen bereitgestellt und dienen ausschließlich
zu Informationszwecken. Die SAP SE oder ihre Konzernunternehmen übernehmen keinerlei Haftung oder Gewährleistung für Fehler
oder Unvollständigkeiten in dieser Publikation. Die SAP SE oder ein SAP-Konzernunternehmen steht lediglich für Produkte und
Dienstleistungen nach der Maßgabe ein, die in der Vereinbarung über die jeweiligen Produkte und Dienstleistungen ausdrücklich
geregelt ist. Keine der hierin enthaltenen Informationen ist als zusätzliche Garantie zu interpretieren.
Insbesondere sind die SAP SE oder ihre Konzernunternehmen in keiner Weise verpflichtet, in dieser Publikation oder einer
zugehörigen Präsentation dargestellte Geschäftsabläufe zu verfolgen oder hierin wiedergegebene Funktionen zu entwickeln oder zu
veröffentlichen. Diese Publikation oder eine zugehörige Präsentation, die Strategie und etwaige künftige Entwicklungen, Produkte
und/oder Plattformen der SAP SE oder ihrer Konzernunternehmen können von der SAP SE oder ihren Konzernunternehmen jederzeit
und ohne Angabe von Gründen unangekündigt geändert werden. Die in dieser Publikation enthaltenen Informationen stellen keine
Zusage, kein Versprechen und keine rechtliche Verpflichtung zur Lieferung von Material, Code oder Funktionen dar. Sämtliche
vorausschauenden Aussagen unterliegen unterschiedlichen Risiken und Unsicherheiten, durch die die tatsächlichen Ergebnisse vo n
den Erwartungen abweichen können. Dem Leser wird empfohlen, diesen vorausschauenden Aussagen kein übertriebenes Vertrauen
zu schenken und sich bei Kaufentscheidungen nicht auf sie zu stützen.
SAP und andere in diesem Dokument erwähnte Produkte und Dienstleistungen von SAP sowie die dazugehörigen Logos sind Marken
oder eingetragene Marken der SAP SE (oder von einem SAP-Konzernunternehmen) in Deutschland und verschiedenen anderen
Ländern weltweit. Alle anderen Namen von Produkten und Dienstleistungen sind Marken der jeweiligen Firmen.
Zusätzliche Informationen zur Marke und Vermerke finden Sie auf der Seite https://www.sap.com/corporate/de/legal/copyright.html.

1 - Introduction 2019-12-12 09 - 17 - 08

Uploaded by

Copyright:

Available Formats

1 - Introduction 2019-12-12 09 - 17 - 08

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1 - Introduction 2019-12-12 09 - 17 - 08

Uploaded by

Copyright:

Available Formats

SAP S/4HANA Retail for Merchandise Management

© 2018 SAP SE or an SAP affiliate company. All rights reserved. 2

Customer Serving the Digital Smart stores New customer

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 3

Be immersed in consumer lives

Leverage deep ▪ Tailored assortments, offers and services

Identify moments of need ▪ Mass-customization

Experience centers with ▪ Unified digital experiences

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 4

Customer-centric Digital Omnichannel customer

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 5

Will I catch my train, if

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 6

© 2019 SAP SE or an SAP affiliate company. All rights reserved. https://www.isnz.ch/avec-x-und-avec-box/ 7

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 8

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 9

The new shopping mall in the heart of

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 10

The H&M Garment Collecting programme is

REWEAR - Clothing that can be worn again is

REUSE - Clothing that is no longer wearable

RECYCLE - Clothing that can’t be reused is

Adidas has moved closer to fully

Futurecraft Loop is the brand’s first

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 12

Supply Customer Promise Demand

Dropship Order Management

Problem Statement Retailers’ Goals Our Approach

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 14

❖ POS solutions are designed for store operations. So how about

❖ How do you drive a true omni-channel strategy where you need to

❖ How do you drive E2E promotion campaigns (e.g. custom promotions

© 2019 SAP SE or an SAP affiliate company. All rights reserved.

The “Standard version” of SAP is not designed to manage:

© 2019 SAP SE or an SAP affiliate company. All rights reserved.

physical separation) in sales and stock logistic documents

SAP S/4HANA for fashion and vertical business

Master Data Management Demand Forecasting Inventory Management

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 18

Invoice Verification, Merchandise Store Operations

Organizational Structures & Master Data

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 20

SAP Analytics Cloud

SAP BW/4HANA SAP Ariba

SAP C/4HANA SAP Integrated

SAP S/4HANA SAP Customer Activity

SAP Cloud Platform

© 2019 SAP SE or an SAP affiliate company. All rights reserved. 21

THE EXPERIENCE GAP

Employee Experience Sales

Emotions – Attitutes – Beliefs – Needs Transactions – Processes – Demographics

Operational Data (O-Data™) tells you what is happening.

Experience – SAP Experience Management Customer, Employee, Product*, Brand* Experience

Customer Experience – SAP C/4HANA

Reference Architecture Retail and Vertical Consumer Industries Cross-industry

People Networks & Spend

SAP SAP SAP SAP Custom Apps

SAP S/4HANA Master data Size curve analytics

High performance in-memory database

Experience – SAP Experience Management Customer, Employee, Product, Brand Experience