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Procurement of Non-Replenishable Merchandise

Procurement of Non-Replenishable Merchandise. Best Practices for mySAP Retail. Planning. Bottom Up. Top Down. Bottom Up. Top Down. Planning Steps. Store Planning. Top Down. Strategic Planning. Merchandise Planning. Assortment Planning. Strategic Planning. Historical Data.

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Procurement of Non-Replenishable Merchandise

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  1. Procurement of Non-Replenishable Merchandise Best Practices for mySAP Retail

  2. Planning

  3. Bottom Up Top Down Bottom Up Top Down Planning Steps Store Planning Top Down Strategic Planning Merchandise Planning Assortment Planning

  4. Strategic Planning Historical Data Strategic Targets Market Analyses Strategic Planning Plan Version: 1 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel Key Figures: Sales at cost, Sales at retail, Markdown

  5. Store Planning Plan data from Strategic Planning (Plan Version 1) Store Planning Plan Version: 2 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel, Site Key Figures: Sales at cost, Sales at retail, Markdown

  6. Merchandise Planning Plan data from Strategic Planning (Plan Version 1) Merch. Planning(value) Plan Version: 3 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel, Merch. Category2, Merch. Category1, Merchandise Category Key Figures: Sales at cost, Sales at retail, Markdown Merch. Planning(Qty) Plan Version: 4 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel, Merch. Category2, Merch. Category1, Merchandise Category Key Figures: Stock at beginning of period, Sales, Receipts, Stock at end of period (value and quantity)

  7. Assortment Planning Plan data from Merchandise Planning (value, quantity Assortment Planning Plan Version: 7 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel, Merch. Category2, Merch. Category1, Merchandise Category, Assortment, Store Group, Article Key Figures: Sales at cost, Sales at retail, Markdown, Sales quantity Create New Article Create Listing conditions Allocation Table

  8. Alignment Strategic Planning Store Planning Strategic Planning Merch. Planning Alignment Strategic Planning Plan Versions: 1,5,6 Characteristics: Season, Purch. Organization,Sales Organization, Distribution Channel Key Figures: Sales at cost, Sales at retail, Markdown

  9. Markdown Planning

  10. Markdown planning: Definition Markdown planning involves defining planned price reductions (and in some cases price increases) for articles for sale within a specified period. The planned sales quantities and sales values can be taken into account in the markdown plan.

  11. Markdown planning: Procedure Markdown plan Markdown type Markdown rule

  12. Percentage of source price 100% 70% 50% 33,5% Time 01.March 01.May 10.May 10.June Markdown rule Mardowns are planned on the basis of truly defined rules.

  13. Fil. 1 Fil. 2 M M M M M M M M M M M M VZ Fil. x M M M M M M M M M M M M Markdown type Markdown are assigned to specified distribution channels. Markdown type Markdown rule Sales org. Distribution chnl. 005 006 007 008 Special. Special. Discount Discount D UK D UK V1 V1 V2 V2

  14. Markdown Planning: Price Development Markdowns refer to special articles and stores. Markdown rule Days SPChng Sales% 0 100 65 90 75 20 120 50 10 Markdown plan Markdown plan: Valid from: Distribution chain: Summer season 2003 markdowns 03/01/2003 V001 V1 Article Plnd sales SPrice Valid from Markdn% Gr.marg. Active Men's suit, blue 38 Men's suit, blue 40 Men's suit, blue 42 Men's suit, blue 44 1000 500 300 150 496,- 496,- 372,- 248,- 01.03.03 01.03.03 30.05.03 29.06.03 44,4 50,3 33,7 0,5 X 0 25 50 Ladies' blouse, size 10 Ladies' blouse, size 12 Ladies' blouse, size 14 Ladies' blouse, size 16 200 75 75 20 150,- 150,- 135,- 75,- 01.03.03 01.03.03 30.05.03 29.06.03 37,4 44,0 25,4 -12,0 X X 0 10 50

  15. Markdown Planning: Procedure Planning of markdowns • Selection of articles and sites • Article • Price phase • Sales prices • Markdown in % • Quantities (plnd sales qty, remaining stocks) • Calculation of margins rel. Price 80% 50% 30% 100% Price activation Time • Generation of conditions records • Updating of price calculation Markdown rule Sale of articles • Reply via POS Analysis of sales Any adjustments necessary to markdown planning • Comparison of planned/actual sales • Remaining stocks • Range of coverage • Shifting of price phases • Markdown increase in %

  16. Markdown Planning: Overview Markdown plan Distribution chain Header Site Markdown type Items Selection options Article details Price phases Information- system

  17. Vendor Selection

  18. Requisition Vendor A Quotation .... Inquiry .... Vendor C Vendor C Inquiry Quotation .... .... Article Menge Preis Article Vendor B Vendor B Price 4711 100ST 99.90 Supply Source ? 4711 Inquiry .... Quotation .... ... ... ... Article Article Menge Preis Vendor A comparison Vendor A Vendor B 4711 4711 100ST 99.90 Rejection Purch. order ... ... ... Article Quantity Article Quantity Price 4711 100PC 4711 100PC 99.90 ... ... ... ... Vendor C Master data Bidding process: Inquiry and Quotation ? ! Best quote

  19. Rejection Purch. order Quotations with price comparison 1 Determine price and conditions Vendor A Quotation for Inquiry 1 Item 10Gross price: $400 Discount: $5 Vendor BQuotation forInquiry 2Item 10Gross price: $400 Surcharge: 20% Vendor CQuotation forInquiry 3Item 10Gross price: $500Fixed costs: $40 2 Compare quotations with price comparisons Color TVPrice 395 480 540 472 Quotation 1 Quotation 2 Quotation 3 Quotation average 3 e.g. Create info record or reject quotation Piece % Conditions $ Market price Info record

  20. Order Processing

  21. Purchase Order: Planning Workbench Manual planning Select worklist - Site Start variant - Vendor Material selection - Stock planner - Merchandise category Internet services Default data General settings - Item category - Account assignment - Hide processed worklist category - Expand levels with one Control data WWW element - Sort algorithms Application settings - Display symbols - Display e-mail Worklist settings - Sequence

  22. PurchaseOrder: Manual Planning Planning workbench with integrated manual planning l § Worklist personalization Simple display navigation in tree format n Display of additional information, for example, site or vendor n master data Direct access to the Internet or mail system n Worklist view personalization n • Manual planning Display of consumption and/or forecast data n Use of restriction profiles n Automatically generated purchase requisitions n ã SAP AG 2001

  23. Order Optimizing

  24. According to customer or vendor agreements and internal facts it might be necessary to adjust quantities in purchase or sales documents. Quantity Optimizing Target

  25. Quantity Optimizing: Rounding Profiles Dynamic Rounding Profiles 0 No rounding 1 Round up to a multiple of the order units/sales units 2 Round up to order/sales/logistical units of measure 3 Round up to order/sales/logistical units of measure, or log. unit of measure, zero qty for order units only Dynamic profile • Rounding method • Rounding rule • Unit of measure group AUn % Up % Down CAR 70.0 10.0 LAY 80.0 10.0 PAL 90.0 10.0 Check the permitted units of measure used by vendors or recipients

  26. Load Building Definition • Load building is a process used to group together purchase orders and other requirements, while taking account of procure- ment restrictions, and thereby reduce procurement costs.

  27. Purch. Req. . ... Purch. req . ... Purch. Req. . ... Purch. order ... Lieferant PCS ... Purch. Order Vendor PCS Load Building: Overview Investment buying Promotion Req. Planning process orders other order processes Without existing Purchase orders Purchase requisitions requirementelements Automatic load building process Simulation list process Manual load building EDI to vendor

  28. Vendor Evaluation

  29. Functions in Vendor Evaluation Regular vendor ? for Article 1 Vendor C Vendor B Vendor A Complaints Quantities Quality audits Delivery dates Prices GR checks Vendor Evaluation Vendor C

  30. Automatic Subcriteria: Overview Subcriteria Main Criteria Price Price level Price development Quality GR inspection Complaints Audit Delivery On-time delivery Quantity reliability Shipping instructions Confirmation Service

  31. Analyses for Vendor Evaluation HIT LIST General Vendor Evaluation Total Price Qual . Dlvy . Service Preis Qual . Lief . Service Vendor B 90 92 90 93 85 Vendor A 84 75 92 88 81 Vendor C 81 90 76 74 84 Analysis for Article/ Merchandise category Vendor Evaluation Evaluation Total Price Qual . Dlvy Service Preis Qual . Lief . Service Vendor A 88 81 93 92 86 Vendor C 81 90 76 74 84 Evaluation Comparison Evaluation for Article 1 General Vendor Evaluation Total Price Qual . Service Total Price Qual . Dlvy Service Preis Qual . Dlvy . Service Preis Qual . Lief . Service Vendor A 84 75 92 88 81 88 81 93 92 86

  32. Process Overview

  33. Process Overview

  34. Process Overview

  35. Process Overview

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