Post on 28-Oct-2014
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PROMOTION MANAGEMENTIN SAP IS-RETAILJAE KUMAR
WHAT & WHY (S) OF PROMOTION
• Purpose • Promotions provide retailers as well as wholesalers with a key opportunity to
position their merchandise in a competitive, aggressively-priced environment• Benefits
• Reduce the stock existing • Boost revenue of a company• New product pilot test• Bringing Brand awareness
• Key Process in this presentation• Plan promotion for the launch of a new article through promotion. • Create article master ,Site master • Create promotion configuration for this scenario• Create a promotion in sap system• Subsequent processing of the promotion• Merchandise distribution using PUSH process for of the promotional article.
PRESENTATION AGENDA
• To create promotion.• Perform subsequent processes.• Execute promotion.• Check promotion price for stores.
Company Roles
Retail Promotion Planner
Retail Warehouse Specialist
Retail Store Manager
Retail Sales Person Retail Non-Seasonal Purchaser
Stake holders for promotion operation
Process Flow in Retail PromotionRe
tail
Prom
otion
Pla
nner
Create promotion
with budget check?
Create purchasing conditions
Create promotion
Select price plan in tree
Create discount
Ret.
Pric
ing
Man
ager
Reta
il M
arkd
own
Plan
ner
Reta
il W
areh
ouse
Cl
erk
Display promotion
Save price plan
Create coupon
Create article grouping
Create bonus buy
Create promotions w/ budget check
Step 1: Create promotions price
planStep 2: Release
price plan
Step 3: Price plan approval
Step 4: Create conditions
Check promotion sales prices
Step 5: Activation of
price plan
Change validity period of
promotion
Process Flow in WholesaleRe
tail
Prom
otion
Pl
anne
r Create promotion without budget
check
Reta
il Sa
les
Pers
onRe
tail
Non
-Se
ason
al B
uyer
Assign further sales agreements to a
promotionActivate prices
Create sales order
Reta
il W
areh
ouse
Sp
ecia
list
Create Billing Document
Create delivery Create transfer order Confirm TO and post goods issue
Evaluations
Display Outbound Delivery
Subsequentprocessing
Createpromotion
Assign sitegroups
Additionalassignments
Enter promo-tion data
Enter planningdata
Quantity planningQuantity planning
Price planningPrice planning
Period-basedPeriod-based
Higher-level?Higher-level?
ArticleArticlePlanned currencyPlanned currency
Promotion periodsPromotion periods
Within the promotionWithin the promotionFor all promotionsFor all promotions
DiscountsDiscountsBonus buyBonus buy
Referencepromotion
PromotiontypePromotion
Planning
CouponsCoupons
Process Flow for Promotion
Promotion Planning
Announce-ment Alloc. table
Supplysource
determ.Additionals
Promotion subsequent processing
PriceactivationListing
Assortment list POS data
Retail price calculation
Subsequent Processing for Promotions
TODAY’S PRESENTATION SCENARIOTo plan and activate a promotion for retail stores
&To distribute the article using an Allocation Table(Push Process)
BASIC ASSUMPTIONS :
1. Retail company is using SAP IS-Retail as an ERP tool for Master data/ Promotions /Pricing.
2. A new Article is about to be launched/purchased within the retail company.
3. The article has already been purchased by the company and kept in stock at the warehouse
using the PUTAWAY process.
4. Promotion is planned and processed with reduction on price .
5. Country is India and Currency is INR.
6. No budget is considered.
Master data used in this promotion• New Single article no – 582 • Vendor -98• DC – XXD1 • Stores- XXS1,XXS2,XXS3 • Promotion – xxx5• Merchandise distribution-Push process • Docs generated – Stock transport order from DC to stores
Promo business Scenario •Promo offer : Provouge shirts at JUST RS1000•Article’s normal price : 582 = 1413 INR•Promo price –Rs1000•Promo date – 1.08.2012 to 10.08.2012•Pricing 2-steps •Mark up DC Chain – 10%•Mark up Store Chain – 60%
Site Structure
DC: XXD1
Internal Distribution Channel :XD
Stores: xxs1 xxs2 xxs3
Consumer external
Store distributional channel: XS
Article -582
Basic Data
Listing and purchasing data
Logistics data : DC and Store
Site Master :
Price Calculation before promotion: VKP5
Promotion Configuration SPRO-> IMG
1.Promotion type
2.Promotion category 3.Promotion Theme
Path for promotion in SPRO
Creation of promotion: WAK1
Promotion Fast entry /Planning:
Price and Quantity Planning for the whole promotion
Internal site group creation only for this promotion
1.Supply source determination and Price activation
Subsequent processing
1.1 Sales price calculation for stores after price activationT-Code : VKP5
2.Site groups and quantities
3.Allocation table
4.Price Conditions
5.Free goods
• Coupons is an Article in ISR• Sales transaction in which special conditions
are granted when certain products are bought together.
• The conditions can be special prices, fixed discounts, percentage discounts or free-goods discounts. Quantity-based and value-based scales can be created for the conditions.
• A bonus buy can either be a multi-deal or a combination deal.
6.Coupons & Bonus Buy
Discount : Based on article selection KA02 Percentage DiscountKA04 Absolute discount
7.Discounts
Follow on Document creation :STO (UB) Using allocation Table:
Post promotion process • Delivery /Goods Issue docs are created in DC is done as per the dates mentioned.• Good receipt is done at stores and articles are sold at promotional prices.• Stocks are adjusted in Allocation table as per the receipt at stores correspondingly.
Implementation process
Promotion execution using a closed loop BI system
Summary
• Promotion management basics.• Step by step configuration for promotion based on
an example.• Discussion about other conditions in promotions.• Closed loop BI system integration for effective
promotion planning and execution.
THANK YOU!
Resources
• SAP BEST PRACTICES SAP Best Practices for - SAP Help Portalhelp.sap.com/.../735_Scen_Overview_EN_FR.ppt - United States
• Sap IDES – IS RETAIL.