IT5 S2 SAP Distribution Solution

(1)

Retail IBU

May 2012

SAP Distribution Management solution

(2)

Perfect

Instructions

Better insights

Perfect Execution

Higher Quality Feedback

Distribution Management system - Expectations

Orders

Stocks …

Retail Execution

Next Generation

DMS

Retailer

Information

Command & Control

• Support Growth through More Stores, Better Stores,

Better Service

• One repeatable scalable model

• Enable sustained leadership thru General trade and

Modern Trade

(3)

How will SAPDMS deliver benefits?

Standardized

Distributor Processes

Integrated with

CPG Principal

processes

Superior &

Consistent

execution

Better service to outlets

Less out of stock at outlet

Less wastage for CPG

Company

Better productivity of

distributor & salesman

Flexible business

Model allowing

Rapid expansion,

Merging, opening

Closing of

distributors etc

Better coverage

Stock Efficiency at

distributor & CPG

company

…and legacy systems may not be robust

enough to handle demands of the

business

Distributor Stock Management Distributor Order Generation(CRS) Distributor Order Fulfillment (Primary sales) Trade Promotions

Invoicing from CPG company PO and Payments in DMS

PO and Payments in DMS Outlet Servicing ( Secondary Sales) Claims Processing Standard Reporting Com munication Connectivity IT System Capabilities Financial m anagement capabilities Damage and shortage goods handling

Minimize information

losses during

changeovers

CPG Principal Processes

(4)

Technology for hosted DMS – Own Distributor ‘s / shared dealer network

Mandatory

Operational

link

Mandatory

Strategy links

SAP ECC

APO

Business

Planning

Systems

CRM

Cloud Hosting

CPG

Distributor

Management

system

Processes

SAP Retail on

ECC6.0

Claims/ Incentive

management

Sybase unwired

platform

S

A

P

I

SAP PI

Distributor

Good connectivity

Non Exclusive

Distributor

Offline

Inbound

Data

Warehouse

Third Party DMS

CPG Company

Processes

Distributor

Poor connectivity

TPM

(5)

Strictly Confidential

5

A Day in the Life Of…..

Master Data

Master data syn

via Pricat

D

a

ta

s

y

n

t

o

H

T

Promotions

Allocation

Sales Order

Inventory

Management

Data syn

Requirements

Planning

Reporting

Sales Pricing

Assortment

Management

SO

CPG

Company

(6)

Strictly Confidential

6

1. Master Data Management

• Design suits the requirements of FMCG Distribution business.

• Integration Frame work available (Principal, Distributor, Retailer- Pricat tools).

• Ease of maintenance thru reference data and mass maintenance tools.

• Terminology suits the Distribution business store or Distribution centre instead of plant,

and article instead of material.

• Article categories like Single, Generic, Sales set,Prepack, are suited to meet distributors

requirements to manage SKU’s to suit the needs of retailers

2. Assortment and Listing

• Assortment management helps manage the product or product range relevant for

different sets of distributors. Reference assortments makes it easy to maintain

• Listing enables easy on boarding of new distributors , Extend article ( Material)

master views for the new distributors .

3. Pricing

• Retail pricing engine suits the requirement of managing pricing calculation

• Ref pricing at Dist chain makes it easy to maintain prices

• Price lists, site specific / Dist chain are easy to manage and deploy

(7)

Strictly Confidential

7

4. Allocation for new products and Consumer promotions.

• Allocation tool available as part of the Retail fits the requirement of Allocating

stocks for new products, consumer promotions to customer, customer groups,

Salesmen.

5. Key Account Management – Category management

• Multiple hierarchies/ Version management/ Define Category goals evaluate their

performance in BW.

• Use the layout module to create model shelving plans for modern trade and

evaluate the compliance. Create competitor articles in the system to use them in

the shelving plan. Standard SOA packages available to integrate Layout modules

to Space management tools to deploy planograms.

6. Promotion management

• Bonus buys definition makes it easy to model special kind of promotions

7. SAP Retail store / In store Merchandise and Inventory Management

• Easy to use interface for the distributor users

8. Standard ECC6.0 functions – Lean WMS, Physical inventory, Consignment,

Advanced returns management ( Customer Vendor) are available

(8)

Strictly Confidential

8

(9)

Strictly Confidential

9

Site Master

Site Classification

Van Sales

Store

Distributor Branch

Store

Distribution Centre (HQ)

(10)

Grouping of Customers

Modern Retail

Store

Modern Retail Modern Retail Modern Retail

Store

(11)

Strictly Confidential

11

Assigning and extending customers to different

distributors and branches

customer A customer B customer C customer F customer H customer J customer L customer K CG Marketing Swastik customer D customer E customer G customer I

(12)

PJP

(13)

PJP

Delivery Permanent Journey Plan

Sending zone

Receiving zone

Route

Zone (Warehouse)

Zone1

Route1

Zone (Warehouse)

Zone2

Route2

Zone (Warehouse)

Zone3

Route3

Zone (Warehouse)

Zone4

Route4

The warehouse (site master) and the

customer (customer master) will

have zone codes assigned to it. The

zones will be used to determine the

route the delivery shipments will

take to deliver the stocks to the

customers

(14)

Strictly Confidential

14

Van sales – Van as a storage location of the site

customers that are covered by salesmen and outlets covered by Vans are mutually

exclusive

Based on the running rate of the outlet, for the outlets to be visited the goods are

loaded from the warehouse into the trucks

Once the visits to all the outlets are over the van returns to the warehouse where are all

the orders are entered into the system

Stocks that could not be sold during the visits are unloaded from the van and are either

moved to the ‘sales’ storage location or the ‘damaged’ storage location

Site

Sales

Scrap

Loss

Van

WM active

VAN

1 VAN

2 VAN

3 Site

Storage

location

Storage

bin

Damaged

(15)

Strictly Confidential

15

Allocation – New product Launch, Promotions

- PUSH

Principal

Distributor

Art

Salesman

Allocation Table Purchase Order Art Art

(16)

Strictly Confidential

16

(17)

Strictly Confidential

17 © SAP 2010 / Page 17

Pricing Structures

Pricing Hierarchy:

Company

Regional Grouping

Zone

Store

Validity Date Triggered

Customer Specific Prices

(18)

Strictly Confidential

18

Price Methods & Rules

Price Methods:

Quantity based

BOGO – Buy One Get One

% Off

Scaled Retail Pricing

Coupons

Rules Based Pricing/ Promotion

Family /Spread Family Pricing

Competitive Pricing

Planned Margin

Rounding

(19)

Strictly Confidential

19

Closed Loop Process

Reconcile

and Settle

Approve

Contract

Record

Marketing Event

Calculate

Claim

Send Claim

to P&G

Create

Contract

Set Claim

Terms

Analyze

Profitability

Portal provides

capability to have

Principal create

Contracts

Workflow based

Approvals

Record Marketing

Event in SAP

Real-time Tracking of

Claims

Send Claim to

Principal electronically

Inbound Response

Analyze Balances

against Marketing

Activities

(20)

Strictly Confidential

20

SUP Connecting to SAP Applications

Mobile

business

objects

Container

applications

Native

applications

Sybase

Unwired

Platform

SAP CRM Marketing

SAP mPayment

SAP HANA for Analytics

Segmentation etc.

Precision Retailing

SAP Loyalty/Couponing

SAP Web Channel

Create

Eclipse

BlackBerry

iPhone

iPad

Windows

Windows Mobile

Consume

heterogeneous

mobile devices

Control

Device and server management and security

Management console

SAP Distribution

Management solution

(21)

(22)

Strictly Confidential

22

(23)

Strictly Confidential

23

In-Store Merchandise and Inventory Management – Guided Procedure

Business benefits:

It guides the user throughout the business processes,

such as Store Order or Cycle Counting, back and forth

in simple steps that makes the solution easy to learn

and to train.

(24)

Strictly Confidential

24

Challenges:

• Master data migration.

• Change management and

training

Goals:

• Increase customer service

• Improve Sales team productivity

• Drive volume & margin with

greater up sell

Benefits:

• Online tracking of the distributor

fill rates

• Effective promotions

• Better turnaround of Claims

• Single source of truth

(25)

Thank You!

Contact information:

Bharani Krishnan

Trade Industries

(26)

Strictly Confidential

26

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes,

BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®_, World Wide Web Consortium, Massachusetts Institute of Technology.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an

SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

(27)

Strictly Confidential

27

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 AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden. Die von SAP AG oder deren Vertriebsfirmen angebotenen Softwareprodukte können Softwarekomponenten auch anderer Softwarehersteller enthalten. Microsoft, Windows, Excel, Outlook, und PowerPoint sind eingetragene Marken der Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes,

BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli und Informix sind Marken oder eingetragene Marken der IBM Corporation.

Linux ist eine eingetragene Marke von Linus Torvalds in den USA und anderen Ländern.

Adobe, das Adobe-Logo, Acrobat, PostScript und Reader sind Marken oder eingetragene Marken von Adobe Systems Incorporated in den USA und/oder anderen Ländern.

Oracle und Java sind eingetragene Marken von Oracle und/oder ihrer Tochtergesellschaften.

UNIX, X/Open, OSF/1 und Motif sind eingetragene Marken der Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame und MultiWin sind Marken oder eingetragene Marken von Citrix Systems, Inc.

HTML, XML, XHTML und W3C sind Marken oder eingetragene Marken des W3C®_{, World Wide Web Consortium, Massachusetts Institute of Technology.} SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork und weitere im Text erwähnte SAPProdukte und

-Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und anderen Ländern.

Business Objects und das Business-Objects-Logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius und andere im Text erwähnte Business-Objects-Produkte und Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der Business Objects Software Ltd. Business Objects ist ein Unternehmen der SAP AG. Sybase und Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere und weitere im Text erwähnte Sybase-Produkte und -Dienstleistungen sowie die entsprechenden Logos sind Marken oder eingetragene Marken der Sybase Inc. Sybase ist ein Unternehmen der SAP AG.

Alle anderen Namen von Produkten und Dienstleistungen sind Marken der jeweiligen Firmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte können länderspezifische Unterschiede

aufweisen.

Die in dieser Publikation enthaltene Information ist Eigentum der SAP. Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, nur mit ausdrücklicher schriftlicher Genehmigung durch SAP AG gestattet.