In-Store Merchandise and Inventory Management. SAP Best Practices for Retail

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1 In-Store Merchandise and Inventory Management SAP Best Practices for Retail

2 Purpose, Benefits, and Key Process Steps Purpose These components of the SAPECC Retail System are used in the store. Together with the central SAPECC, they form a complete retailing system. Procurement, goods movement and sales postings make up the mass business of a store. With In-Store Merchandise and Inventory Management, these postings can be executed by employees directly in the store. Benefits Low running costs and hardware requirements Use of standard technologies Intuitive, easy-to-use user interface Business processes designed for store needs Integration into central merchandising & accounting system 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

3 Purpose, Benefits, and Key Process Steps Key Process Steps Purchasing Store to store stock transfer Physical inventory count Goods movements Goods receipt Inventory Lookup 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

4 Required SAP Applications and Company Roles Required SAP Applications SAP Enhancement Package 7 for SAP ERP 6.0 Company Roles Retail Store Manager Retail Warehouse Manager Retail Buyer (Invoice Verification) 2014 SAP SE or an SAP affiliate company. All rights reserved. 4

5 Retail Warehouse Manager Retail Store Manager Process Flow Diagram In-store Merchandise and Inventory Management Store order (direct) External Purchase order Return purchase order Create store order (stock transfer) Store order & vendor determined by system Stock transfer purchase order Post goods issue Post goods return Create Delivery for store order Change delivery Post goods issue 2014 SAP SE or an SAP affiliate company. All rights reserved. 5

6 Retail Store Manager Process Flow Diagram In-store Merchandise and Inventory Management Create goods receipt for PO Stock transfer Misc. goods movement Create goods receipt for delivery With reference (Article document) Initial entry of inventory data Sales order Create goods receipt without reference documents With reference (PO) Create document in in-store merchandise & inventory management Difference values - purchasing Create goods receipt with reference documents Create return delivery without reference doc. Entering count Editing differences 2014 SAP SE or an SAP affiliate company. All rights reserved. 6

7 In-Store Merchandise and Inventory management - Landscape MIM IDES Smart Retailer Inc. converter Sales data cashier statistics at night: article and price EAN purchasing activities inventory management customer order management promotion POS Server vendor 2014 SAP SE or an SAP affiliate company. All rights reserved. 7

8 Purchasing process of the store Order data Store Head Office Purchase requisition, purchase or delivery DC delivery picking goods issue invoice delivery Vendor 2014 SAP SE or an SAP affiliate company. All rights reserved. 8

9 Replenishment in MIM Head Office Replenishment run Purchase requisition SAP Retail Store Quantity Quantity proposal Stock Open receipts Material Store 10,00 10,000 0, ,000 R ,000 9,000 0,000 90,000 R ,00 8,000 0,000 0,000 R Planning by visual inspection 2014 SAP SE or an SAP affiliate company. All rights reserved. 9

10 Goods receipt in MIM Vendor Head Office DC delivery picking goods issue invoice delivery Store 2014 SAP SE or an SAP affiliate company. All rights reserved. 10

11 Goods movements in the store movement Store Head Office stock store 1 stock store 2 xxx xxx normal stock promotion stock Other Store 2014 SAP SE or an SAP affiliate company. All rights reserved. 11

12 Inventory in MIM counting articles Store inventory result inventory xxx Head Office =? book inventory xxx physical inventory count scanner inventory count 2014 SAP SE or an SAP affiliate company. All rights reserved. 12

13 Sales process sales order order Store Head Office Vendor delivery DC 2014 SAP SE or an SAP affiliate company. All rights reserved. 13

14 Promotion information free-goods discount conditions volume-rebate arrangements Price calculation additional bonus buy coupons external systems promotion Business Information Warehouse requirement s planning order goods receipt inventory management goods issue catalog processing assortments POS incoming outgoing order processing 2014 SAP SE or an SAP affiliate company. All rights reserved. 14

15 2014 SAP SE or an SAP affiliate company. All rights reserved. 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. 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. Please see for additional trademark information and notices. 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 SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE 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 platform 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, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. 15

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