Allocation (SAP Library - Merchandise Logistics)

Allocation

Purpose

Retailers often have to centrally distribute merchandise among a large number of recipients (for example, stores). One example would be fashion merchandise or promotional items. Using allocation tables, you can plan the distribution of this type of merchandise and then trigger the necessary goods movements.

You can have the merchandise delivered directly from the vendor to the recipient, from the vendor to a distribution center and then to the recipient, or from a distribution center to a recipient. You use notifications to coordinate communication between headquarters and the recipients. After you have completed the planning stage, you can then have the system automatically create documents for procuring or delivering the goods.

Normally in SAP Retail, a site can either be a store or a distribution center. In allocation tables, however, a distinction is made between sites and distribution centers. A site is the recipient of merchandise. This is usually a store but can also be a distribution center.

Distribution centers in allocation tables are important when goods are not delivered directly from the vendor to the sites but to the distribution center. The distribution center then splits it up among the sites.

Implementation Considerations

To use these functions, you require SAP ERP configured as SAP Retail, and you must activate the enterprise extension Retail.

Fore more information, see Configuration as SAP Retail and Retail.

Integration

Desired Function	Required Component
Generation of allocation rules based on data in the Retail Information System	Retail Information System
Listing check and listing in allocation tables	Assortment
Generation of an allocation table for a promotion in subsequent processing for a promotion	Promotion
Generation of an allocation table from merchandise and assortment planning	Merchandise and Assortment Planning
Generation of purchase orders as follow-on documents for an allocation table	Ordering
Generation of deliveries as follow-on documents for an allocation table	Logistics Execution
Generation of (single-recipient) vendor purchase orders as follow-on documents for an allocation table during cross-docking with prepacking	Seasonal Procurement

Features

● Allocation rules as a reference for the stock split

You can define allocation rules and then use them as a reference when subsequently creating allocation tables. An allocation rule can be valid for an article or for a whole merchandise category. It contains the sites and the proportion of the merchandise each is to receive. This information is then used in the allocation table to calculate the quantity each site is to receive.

SAP Retail enables allocation rules to be generated automatically. This is based on key figures you select from the Retail Information System (RIS). You can include either planning or statistics data in the allocation.

● Allocation tables for planning merchandise distribution

You create an allocation table in SAP Retail to split up a specific quantity of merchandise. The allocation table contains all the important information on the how the merchandise is to be distributed, such as the articles to be allocated, the source of supply, the recipients, the quantity each is to receive and the delivery dates.

You also determine the goods movements (for example, direct-store-delivery) at this point. You can have the system propose the sites. To do this, you enter an allocation rule or a site group. You can include your own allocation strategy via a user exit. You can change any default data suggested by the system.

● Notifications

The allocation function also enables information to be exchanged between the head office and sites and distribution centers. Data is exchanged in the form of notifications; these are used by head office to let the sites know to expect a goods receipt, and by the stores to make their requests known to head office.

● Generation of follow-on documents

After you have completed planning merchandise distribution in an allocation table, you can have the system automatically generate documents for procuring or delivering the stock. The type of documents created depends on the type of goods movements planned.

● Updating merchandise distribution data

If you plan goods to be delivered from a vendor to the distribution center and then to the recipients in an allocation table, the system updates the merchandise distribution data when follow-on documents are generated. This data is later used for the merchandise to be distributed in the distribution center.

Constraints

You can use the Allocation functionality with SAP Retail only.