Business Process Management in Retail

(1)

Business Process

Management in Retail

Dieter Becker

Business Development

Field Services Trade Hub - Global

Dr. Dieter Scheerer

Industry Solution Management Trading Industries

SAP AG

(2)

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

3. Summary

(3)

Challenge

-Innovating in Complex Business Networks

Consumers Retail Store

Distribution Center Consumer

Products Sourcing Agent

Factory/ Sourcing Critical Component Raw

Material Vendors

Consumer Direct Brand

Wholesalers

Retail Customers 3PL/4PL

Domestic Shipping 3PL

Freight Consolidator

Retail Company

Distribution Center

(4)

When to use SAP NetWeaver BPM?

To extend and complement

best practices

Business

IT

Standard

software

Custom

software

We need to

adjust this

process

!

We can

either buy

standard

or build

custom software

(5)

Pay

Receive

Order

Consider the following process steps regarding typical retailing activities:

Pay

Receive

Order

Receive

Pay

Order Receive Pay

Services

Pay

Receive

Classic Retailing

Pay

Receive

Order

Auction

Pay

Receive

Catalogue Retailing

Present

_Receive

Business Process Layer Made Simple

Reusable business processes steps allow the same 3 steps,

assembled differently to support 5 different business models

(6)

Examples

People-centric processes

Paper and approval-intensive

processes

Processes spanning across

multiple systems

Processes interacting with

external parties

Business Suite and SAP NetWeaver BPM

Leverage Industry Best Practices And Define Your Own

SAP NetWeaver BPM

(delivered with SAP NetWeaver CE)

SAP NetWeaver

3

rd

_party

SOA-enabled

SAP Business Suite

Enhancement Packages

Leverage

best practices

with service-enabled SAP

Business Suite

Create

own practices

(7)

SAP NetWeaver Business Process Management

Embedded in SAP NetWeaver Composition Environment

Comprehensive process management

Unifying human and system automation processing steps

Business Process is more than just service orchestration

Composition of event-driven processes

Seamless combination of service, event and human task

Enterprise services consumption

Tightly integrated with SAP NetWeaver Business Rules Management

Benefits of an integrated composition environment

Model-driven development

Integrated toolset

Out-of-the-box ESR integration

Lifecycle management

Process Server

Process

Composer

Process

Desk

Process

Desk

SAP NetWeaver

Business Process Management

(8)

SAP NetWeaver

Business Process Management

Composite Applications

SAP

Demand

Managem.

Home

Grown/

ISV

RFID Embedded

Duet Mobile Forms Widgets

RSS Portal Dashboard Project Muse Voice

SAP

MAP

Biz

partner

SAP

ERP

SAP GUI

SAP

ERP

SAP

CRM

SAP

SRM

Business object BO BO

Exposed as

Enterprise Services

(9)

Retail Relevant Service Enablement:

1340 Enterprise Services

407

512

475

180

18

8

9

10

13

85

79

68

34

28

156

104

28 Because of multiple

assignments of an Enterprise

Service, totals per Business

Scenario Group can be smaller

than the sum of the Scenario

Group level. Same is true for

the overall total.

12

163

144

64

245

27

9

34

(10)

Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

(11)

Inefficient replenishment demands planning

Is costly and time-consuming

ChicagoHQ Buyer

Bostonsales outlet Store Manager

Retail Headquarters

New York sales outlet Store Manager

Miamisales outlet Store Manager Inefficient Process

How much

Ketchup

(12)

Determining replenishment demands

Sample process description

Process End

Process Start

Estimates sales outlet demand & verifies with store

managers Chicago HQ

Buyer

Finalizes orders: optimizes quantities

& triggers logistic execution Chicago HQ Buyer Adjusts suggested replenishment quantities New York sales outlet

Store Manager Adjusts suggested

replenishment quantities Boston sales outlet

Store Manager

Adjusts suggested replenishment

quantities Miami sales outlet

Store Manager Timer automatically

tracks task deadlines & sends reminders

Initiates necessary corrective actions

Process Supervisor

(13)

Determining replenishment demands

(14)

Determining replenishment demands

No need to re-invent, simply extend!

Sales Outlets

Retail Headquarters

SAP for Retail

(standard core process)

Estimates sales

outlet demand &

verifies with store

managers

SAP NetWeaver BPM

(process extension)

Chicago HQ Buyer

Boston sales outlet Store Manager

Adjust suggested

replenishment quantities

New York sales outlet Store Manager

Miami sales outlet Store Manager

Finalizes orders:

optimizes

quantities &

triggers logistic

(15)

Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

(16)

Inefficient handling of claims

Resulting in dissatisfied customers

Customer

Boston sales outlet Store Manager

Manufacturer

Logistics service provider Inefficient Process

What is the status

of my broken

TV

?

(17)

Creates claim

Streamlining handling of claims

Sample process description

Process

Start

Process

End

Confirms pick-up of returned product Logistics service provider Confirms receipt of product Manufacturer Repairs, replaces or refunds product Makes claim (via store) Customer Receives repaired/replaced

product or refund Agrees to maximum potential cost for

repair

Verifies claim (receipt, initial product check) Clerk @ Sales Outlet

Forwards product to manufacturer

Confirms pick-up of repaired/replaced

product

All process participants can check the status of the claim at any time

(18)

Streamlining handling of claims

No need to re-invent, simply re-use!

SAP NetWeaver BPM

(process extension)

Makes claim via store

Get Supplier

Get Customer

Create Quality Notif.

Update Quality Notif. Get Sales Order

SAP CRM & SAP for Retail

(re-use standard core functionality)

Retailer

Process controlled by the Sales Outlet

Manufacturer

Customer

Read Claim Status Creates claim and

forwards to manufacturer

Clerk @

Sales Outlet

Confirms pick-up of returned product

Repairs/replaces or refunds product

Logistics service

provider

Confirms pick-up of repaired/replaced

product

Receives repaired/replaced product or refund

Customer

Logistics service

(19)

Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims

by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

(20)

Inaccurate product master data

Is a major issue for Retailers and Suppliers

Supplier Account Manager

Retailer

Retailer

Master Data Team Member

Retailer Category Manager

Inefficient Process

Do you want to

stock our

new Drill

?

Please

update

your

master data records

for our

Ketchup

!

Do you want to

stock our

(21)

Streamlining product master data maintenance

No need to re-invent, seamlessly extend!

SAP NetWeaver BPM

(process extension controlled by the Retail Headquarters)

SAP for Retail

(standard core process)

Update

product master

data

Retailer

Master Data Team Member

Augment

product master

data

Retailer Category Manager

Select and

approve

products for

assortment

Update

product master

data

SAP for Consumer Products

(standard core process)

Read and send

product master

data

Supplier

Retail Headquarters

Select and

transmit products

to offer to the

retailer

Supplier Account Managers

Create and enrich

product master

(22)

Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

3. Summary

(23)

Real-World Scenarios From SAP Customers

EDEKA Minden

Proactive and event based analytics of potential upcoming

problems in the supply chain. Role based reporting and follow

ups.

Large German Online and Mail Order Retailer

Cross company interaction for new product introduction and

vendor related master data maintenance.

Large World Wide Shoe Retailer

Interactive Article Lifecycle Process across SAP and non-SAP

solutions.

Large European Grocery Cooperative

Article Request and Maintenance Process across various

company entities.

(24)

Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied

2.1 Determining replenishment demands by retailers & sales outlets

2.2 Handling of claims by sales outlets & manufacturers

2.3 Collaborative product master data maintenance by suppliers & retailers

2.4 Real-world scenarios from SAP customers

(25)

Your process looks slightly different?

Simply adjust the process according to your needs

Process owner

End user

Line of Business user

But our

process is a little

bit different

!

I would like to use a

different UI

?

What if we need to change

a

business rule

?

How does it

integrate

with

our other solutions

Process expert

… change the

process model

… create and assign

new UIs

… allow business users

to take control of rules

… integrate applications

via web services

(26)

© SAP

2009 /

Page

26

Thank you!

Dr. Dieter Scheerer

Solution Management

ISM Trading Industries

[email protected]

Dieter Becker

Business Development Manager

Field Services Trade Hub - Global

[email protected]

(27)

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