R/3 Merchandise and Assortment Planning 

SAP BW contains Business Content for Best Practice Scenario 1_SAP that is delivered with Merchandise and Assortment Planning (MAP) and which is to be used as a reference for similar planning scenarios. This enables Planned and Actual Reporting based on the planning figures previously entered in R/3. The main features of the Business Content are listed below:

·        The three InfoSources for planning data match the three planning data information structures that are used in the Best Practice Scenario.

·        The InfoCubes are created in close connection with the planning steps in the Best Practice Scenario for MAP. InfoCubes exist for both actual data and planning data. The two data types are compared in the MultiCubes.

The actual data InfoCubes are filled with actual data from existing extractor info structures in R/3.

The planning data InfoCubes are filled with planning data from existing extractor info structures in R/3.

·        Queries are structured in the same way as the planning layouts for Best Practice Scenario and are based on MultiCubes.

Information about the Best Practice Scenario

This document maps a typical, simplified process flow for Merchandise and Assortment Planning using Best Practice Scenario 1_SAP.

Process Flow

You can use Merchandise and Assortment Planning in your company as follows:

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       1.      Begin the planning process by stating your objectives as defined by management. For example, sales are to increase by 5% over the next two years. Five new stores are also to be opened.

       2.      Initially, you want to implement your strategies as values according to Season, Purchasing Organization, Distribution Chain in Objective planning. You can plan your key figures using Target planning, for example, sales, shrinkage, markdowns, and returns. You want to see gross revenue and calculated sales as the result. You want to compare your planning data with your actual data, at a later date.

       3.      You want to use the results from your Objective planning in the detailed Merchandise planning and Store planning. To do this, the target planning data is broken down according to levels (Merchandise Category or Store), to be used in more detailed planning processes. You plan for the same key figures at these levels just as you did in target planning, and calculate gross revenue. As merchandise planning and store planning can influence existing target planning, you should compare the gross margin that is calculated in the different planning steps.

After planning the gross margin, plan your stock in Merchandise planning andStore planning. Although you can only plan your stock on a value basis in store planning, you can plan your stock on a quantity basis in stock planning. You can use the average retail key figure (average price at merchandise category level) to convert stock calculated on a value basis into stock calculated on a quantity basis. You can use the following key figures when running stock planning: opening balance (stock), additional purchases, sales, returns, and initial budget. You can also calculate the range of coverage, load transfer, and GMROI. You should also compare your planning data with your actual data at this stage.

       4.      You can run an external space management program directly from your planning scenario, in the Space management planning step.

       5.      You can improve your stock planning on a quantity base at price band level in merchandise planning by using Price band planning. You can also use this function to compare the price bands with your planning and actual data.

       6.      The stores that you have grouped according to sales are included in Store group planning. You can use Store group planning to run planning using price bands, store groups, assortment levels, assortment width, and assortment depth to determine the total number of articles (assortment width * assortment depth). The number of articles (total number of articles in each store group and assortment level) in the price bands should match the additional purchases for the price bands. You can compare the results of price band planning and store group planning and then adjust your key figures accordingly.

       7.      The results of the store group planning are included in assortment planning. To do this, the data from store group planning is broken down for detailed planning at article level. You use the same key figures for this as in store group planning. Running assortments planning can strongly influence previous data generated in store group planning. This allows you to compare planning data from the two planning steps.