R61 Merchandise & Assortment

Planning

Agenda
Overview Merchandise and Assortment Planning
Generic planning tool BW-BPS
Content SAP MAP

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Agenda
Overview Merchandise and Assortment Planning
Generic planning tool BW-BPS
Content SAP MAP

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Planning Process - Overview

SAP BW BPS

Plan Data

MAP

Actual Data

Store/POS System

Plan Data
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Actual Data

SAP IS Retail

Planning Process - Overview

Strategic Plan
Company, Distribution
Channel , Year (s), Season
Sales, Margin, Markdowns

Store Plan
Stores, Store Groups
Months, Weeks
Sales. Margin Markdowns,
Stocks, Turns

Merchandise Plan
Reconciliation

Article Hierarchy
Month, Weeks
Sales, Margin, Markdowns,
Stock, OTB

Assortment Plan
Store-Assortment-Assignments on
Article Hierarchy Level
Sales, Target Values for Initial Fix
and Variable,
Number of different Styles

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Agenda
Overview Merchandise and Assortment Planning
Generic planning tool BW-BPS
Content SAP MAP

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Plan/Actual Comparison - Example

Plan Cube

Actual Cube

Plan/Actual Comparison
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Model
Data Basis

InfoCube
(e.g. merchandise planning)

Data Selection

Planning level
(e.g. category and year)
Planning package
(e.g. category fashion for
2008)

Data Input

Planning layout
(e.g. planned sales at retail)

Data Manipulation

Planning function
and planning sequence
(e.g. distribution)

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Agenda
Overview Merchandise and Assortment Planning
Generic planning tool BW-BPS
Content SAP MAP

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Differentiation: Fashion and Basics

Fashion characteristics

High share of new products

Short life cycle
Normally not replenishable on
short term basis

Basics characteristics

Low share of new products

long life cycle
Normally replenishable on short
term basis

Push oriented

Procured and reordered based on

real customer demand (Pulloriented)

Importance of OTB,

Importance of shelf optimization,

markdowns

Category Management

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Strategic Plan
Main Objectives
Operating plan for the whole company
Analysis of market trends
Define cost-effective operatives
Roll down to store- and merchandise plan
Comparison of store-, merchandise and
strategic plan
Monitoring of total purchasing budget

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Strategic Plan
Planning level
Period year, month
Company
Sales organization / distribution channel
Merchandise hierarchy

Key figures
Sales
Margin

Strategic Plan

Markdowns
...

Store Plan

Merchandise Plan
Assortment Plan

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Store Plan

Main Objectives
Execution of the strategic plan
Analyze historical data by store
Store openings, closures, moves, renovation
Roll up to strategic plan for reconciliation against higher level targets

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Store Plan
Planning level
Period month
M011

Store

Sales organization/
distribution channel
Region, country
Store

M001

Strategic plan

Key figures
Sales
Sales forecast
Margin
Stock
Goods receipts
...

Store plan

Merchandise plan
Assortment plan

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Merchandise Plan
Main Objectives
Reconcile with Strategic/Store Plan
Sales/Markdown plan
Inventory plan
Compare product categories
Planning of OTB
Plan average retail
Contribution plan

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Merchandise Plan
Planning level
Division

Department
Category
Sub-cat.
Segment

Key figures
Sales
Margin
Markdowns
Planned receipts
Purchasing quota
Inventory data
OTB
...

Strategic Plan
Store Plan

Merchandise Plan

Assortment Plan

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Assortment Plan
Planning Levels
Strategic plan
Store plan

Merchandise plan

Assortment,
Assortment type
Segment

Assortment plan

Key Figures
Operational
Assortment
Planning and Control

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Sales
Goods Receipt at Cost
Average Retail
Target GR by Store
Number of stores
Number of different styles
Target Quantities by Store
...

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Assortment Plan -> OAPC

Assortment Planning

SAP BI

Release WB

OAPC

SAP ECC

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Operational assortment planning and control - process

pre-aged
processes

Reports

BW

targets from merchandise plan

ERP

capacity plan

strategic assortment planning

planning of the articles that should be

available in the stores

OAPC

Reports

planning of article shells

planning of the quantities
detailled planning of articles
quantity details at color/size level (prepacks)
prepack-assignment

masterdata

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allocation

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Purchase order
management

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Integration of Allocation, purchase order generation

and operational planning
preliminary planning processes

Scheduling

Status update

Operational Assortment Planning and Control

Purchasing List

Status update

Line Items
of Purchasing List

backwards

forwards

Order Processing

Allocation

Order List

Grouped Order Document

Generation of AT on basis
of POs with reference
to Purchasing List

OTB Check

Monitoring of
Procurement dates

Purchase Order creation /

maintenance

Allocation Table
Synchronisation

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