update on sap’s portfolio strategy for retail

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Internal Dani Khalaf, October 2021 Update on SAP’s portfolio strategy for Retail Intelligent Suite and industry cloud solutions

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Page 1: Update on SAP’s portfolio strategy for Retail

Internal

Dani Khalaf, October 2021

Update on SAP’s portfolio strategy for RetailIntelligent Suite and industry cloud solutions

Page 2: Update on SAP’s portfolio strategy for Retail

2Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.

Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service

or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related

document, or to develop or release any functionality mentioned therein.

This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and

functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this

presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided

without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a

particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP

assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross

negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from

expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,

and they should not be relied upon in making purchasing decisions.

Disclaimer

Page 3: Update on SAP’s portfolio strategy for Retail

3Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Global megatrends and disruptions are reshaping the retail industry

Accelerating the need for sustainable business model innovation

Global megatrends Industry trends

Deliver solution that help shape the future

The COVID crisisCircular

economy

New levels

of consumer

value

Disruptive

business

models

Purpose-

driven retail

Acceleration in

use of technology,

digitalization

New forms of

working

Resilience

through portfolio

restructuring

Green as the

color of recovery

Page 4: Update on SAP’s portfolio strategy for Retail

4Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Retailers need to innovate along 5 strategic priorities to shape the future

Strategic view

Enterprise transformation

Customer

centricity

Digital supply chain

Redefined stores

New business models

• Growth and market share

• Shareholders and market

capitalization

• Sustainability and strategic longevity

CIOCDO CTOCEO

Value chain view

• Conversion rate and

cost per conversion

• New customers and

cost of acquisition

• Sales growth

Head of CX

• New product revenue

• Process efficiency in retail

operations and fulfillment

• Margin and sales

Head of merchandising

• Inventory turnover and

accuracy

• Delivery and shipment times

• Logistical costs and wastage

Head of supply chain

• Promo conversion rate

• Sales per square foot

• Employee efficiency and

customer service quality

• Average basket size

Head of store operations

Core end-to-end processes

Source to payIdea to market

Plan to fulfill Order to cash

• Product quality, pricing,

and margin

• Supplier performance

Head of purchasing

Segment of one

Omnichannel

marketing

Customer-centric

merchandisingProcurement excellence Digital supply chain

Omnichannel customer

experience

Page 5: Update on SAP’s portfolio strategy for Retail

5Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Retailers need to innovate along 5 strategic priorities to shape the future

Predictive

planning and

inventory

orchestration

Product

customization at

scaleCircular economy

processes

Experiential retail

Outcome-based

selling

Next practices Vertical edgeBest practices

Omnichannel

planning and

fulfillment

Strategic view

Enterprise transformation

• Growth and market share

• Shareholders and market

capitalization

• Sustainability and strategic longevity

CIOCDO CTOCEO

Value chain view

• Conversion rate and

cost per conversion

• New customers and

cost of acquisition

• Sales growth

Head of CX

• New product revenue

• Process efficiency in retail

operations and fulfillment

• Margin and sales

Head of merchandising

• Inventory turnover and

accuracy

• Delivery and shipment times

• Logistical costs and wastage

Head of supply chain

• Promo conversion rate

• Sales per square foot

• Employee efficiency and

customer service quality

• Average basket size

Head of store operations

• Product quality, pricing,

and margin

• Supplier performance

Head of purchasing

Omnichannel

marketing

Customer-centric

merchandisingProcurement excellence Digital supply chain

Omnichannel customer

experience

Customer

centricity

Digital supply chain

Redefined stores

New business models

Segment of one

Page 6: Update on SAP’s portfolio strategy for Retail

6INTERNAL© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Every retailer has

a unique starting point.

Early adopters of retail cloud

solutions ready to go further

Digitally driven retail businesses

that need to scale with speed

Edge innovators that need to

focus on their core

Established companies facing complex,

customized, on-premise systems

Page 7: Update on SAP’s portfolio strategy for Retail

7Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

CoreERP

TODAY FUTURE

AgilitySimplification

Time to Value

Hybrid Landscape

• Monolithic Core ERP • Selected capabilities

in the Cloud

Customer Challenges…

FragmentedIT- landscapes

RapidlychangingBusiness

environment

Integration & ExtensibilityComplexity

of BusinessTransformation

CustomerSpecific

Modifications

SAP S/4HANA Cloud – Our ERP Vision of the Future

Modular ERP

• AI driven LoB Innovations• Suite Qualities• Commercial flexibility

Page 8: Update on SAP’s portfolio strategy for Retail

8CONFIDENTIAL© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

APPLICATIONS

BUSINESS PROCESS

SUSTAINABILITY MANAGEMENT

EXPERIENCE MANAGEMENT

INTELLIGENT SUITE INDUSTRY CLOUD

BUSINESS NETWORK

ACROSS ALL FUNCTIONS

8

SAP DATA CENTER OR HYPERSCALERINFRASTRUCTURE

TECHNOLOGY BUSINESS TECHNOLOGY PLATFORM

BUSINESS PROCESS INTELLIGENCE

To solve the business challenges of retailers our strategy is to deliver

technologies that help– every business run as an Intelligent Enterprise

Page 9: Update on SAP’s portfolio strategy for Retail

9CONFIDENTIAL© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Customer Activity Repository

Applications Bundle (CARAB)

SAP S/4HANA Cloud for Retail

BUSINESS NETWORK

ACROSS ALL FUNCTIONS

EXPERIENCE MANAGEMENT

INDUSTRY CLOUD

SUSTAINABILITY MANAGEMENT

INDUSTRY CLOUDINTELLIGENT SUITE

Business Process Intelligence

BUSINESS TECHNOLOGY PLATFORM

Predictive Planning &

Inventory Orchestration

Retail Store Customer Order Management

Predictive Demand Planning

Predictive Replenishment & Allocation

Assortment Planning

Agile Merchandising

Predictive Services

SAP Order & Delivery Scheduling

Assortment Planning

Merchandise

Planning

Promotion

Management

Allocation

Management

Customer Activity

Repository

SAP Retail Store Order Fulfilment

SAP Retail Store Task Management

SAP Omnichannel Sales Transfer & Audit

SAP Retail Store Task Execution

Customer Service

SAP Retail Store Inventory Management

SAP Order Mgmt for sourcing & availability

SAP Order Management for Drop Shipping

SAP Intelligent Returns Management

SAP Order Management foundation

SAP Order Mgmt for OC promotion pricing

…RFID/Instore Food Production/Franchise …

Industry cloud solutions will continue to build on functionality found in theIntelligent Suite

ERP

• SAP S/4HANA for fashion and vertical business cloud, private edition

• SAP S/4HANA for Retail merchandise management cloud, private edition

• SAP ERP for fashion and vertical business cloud, private edition

• SAP ERP for Retail merchandise management cloud, private edition

• SAP S/4HANA cloud for retail, fashion and vertical business – planned for 08/2022

Retail specific applications

• SAP Customer Activity Repository cloud, private edition

• SAP Merchandise Planning for SAP Customer Activity Repository cloud, private edition

• SAP Assortment Planning for SAP Customer Activity Repository cloud, private edition

• SAP Allocation Management for SAP Customer Activity Repository cloud, private edition

• SAP Promotion Management for SAP Customer Activity Repository cloud, private edition

• SAP Replenishment Planning for SAP Customer Activity Repository cloud, private edition

• SAP Forecasting and Replenishment cloud, private edition

• SAP Omnichannel Promotion Pricing cloud, private edition

• SAP Customer Activity Repository cloud system extension, private edition

• SAP Customer Activity Repository Cloud, additional non-productive tier

Page 10: Update on SAP’s portfolio strategy for Retail

BUSINESS NETWORK

ACROSS ALL FUNCTIONS

EXPERIENCE MANAGEMENT

INTELLIGENT SUITE INDUSTRY CLOUD

SUSTAINABILITY MANAGEMENT

Business Process Intelligence

BUSINESS TECHNOLOGY PLATFORM

STORE INVENTORY

MANAGEMENTPRODUCT CUSTOMER

[…]SITE CO

MM

ON

DO

MA

IN

MIC

RO

SE

RV

ICE

S

ORDER MANAGEMENT

SYSTEM

SO

LU

TIO

NS

RETURNS

[…]

MACHINE LEARNING RAW DATA CURATED DATAAI/

ML

CIC

DA

TA

LA

KE

DATA INTELLIGENCE

CLOUD PLATFORM INTEGRATION

CUSTOMER ACTIVITY REPOSITORY

S/4HANA CLOUD FOR RETAIL

ENTERPRISE WAREHOUSE MANAGEMENT

[…]

MA

ST

ER

DA

TA

IN

TE

GR

AT

ION

BU

SIN

ES

S E

VE

NT

BU

S

API BUSINESS HUB

FIORI USER EXPERIENCE

ONE DOMAIN

MODEL

OP

EN

INT

EG

RA

TIO

N

APPLICATION PLANE

(UI5, ONE INBOX, …)CI SERVERDEVELOPER PORTAL […]

FOUNDATION PLANE

(IDENTIY SERVICE, AUDIT LOG, …)

DATA PLANE

(HANA, ANALYTICS, …)

Our Industry Cloud solutions are based on our vision for a “North Star Architecture”

Page 11: Update on SAP’s portfolio strategy for Retail

11Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Stepwise transformation and modernization from on-premise to cloud

Industry CloudIntelligent Suite

S/4H CARABPredictive Planning &

Inventory OptimizationIntelligent StoreOrder Management…

Native cloud – planned or in build phase – strategic investmentOn-premise or private cloud – mature & available now –

high customer adoption – continuous improvement

PredicticeDemand Planning

Order & Delivery

SchedulingReplenishment

Omnichannel Sales Transfer

and Audit

OmnichannnelOrder

Management

Digital Inventory

We will work with our customers on a stepwise transformation and modernizationfrom on-premise to cloud

Further planning applications and predictive services on the roadmap

Page 12: Update on SAP’s portfolio strategy for Retail

Intelligent Suite:

SAP S/4HANA Cloud for retail, fashion,

and vertical business

Page 13: Update on SAP’s portfolio strategy for Retail

13Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The future of SAP S/4HANA Cloud for retail, fashion & vertical business

13

• Lowest TCO

• Easy to configure, use, operate and extend

• No infrastructure investment

Innovations can immediately be used, e.g.

Store Manager Overview cockpit or new user

friendly Assortment Module Management

• Fast Time to Innovation

• Rapid implementation projects and

go-live

• Fastest Time to Value

• Pay as you go

• Pre-configured and ready-to-run Best

Practice Business Processes

• Pre-configured integrations

• Demo master data

• Managed Content Lifecycle

Retail Best Practices with pre-configuration

on top of generic Best Practices are leveraging

business process experience from many

customer projects.

Cloud qualities at the center ensure safe, consistent, scalable

and simplified cloud operations

Vision: Retail as part of S/4HANA Cloud shall offer customers deployment flexibility for core retail and fashion merchandise management

processes based on Retail best practices with fastest time-to value and lowest TCO

• Complete data security & protection

• Standard APIs and integration scenarios

• Self Service Configuration UIs

• Dynamic extensibility

• Reduced need of IT admin tasks

• On demand resources

• Agile with rapid innovation cycles

• The latest capabilities & best practices

• Keep up with regulatory changes

Page 14: Update on SAP’s portfolio strategy for Retail

14Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

2022(First Release 2208)

2023 (Releases 2302, 2308 and Continuous Improvements)

2024 (Releases 2402, 2408 and Continuous Improvements)

Retail Merchandise Management

Master Data Management for Merchandising

• Article Master Management* incl. Mass

Maintenance

• Site Master Management*

• Merchandise Category Management*

• Retail Price Management*

• Assortment Management and Listing*

• Business Partner Management*

• Promotion management

Merchandise Procurement

• Direct procurement*

• Invoice verification*

• Return to supplier*

Demand and Supply Planning

• Store Replenishment (Rapid Replenishment)*

• Distribution Center Replenishment*

• Merchandise Allocation Execution*

• Stock transport order

Retail Inventory Management and Valuation

• Retail Inventory Management*

• Physical Inventory Distribution Center*

• Sales Price Valuation*

Warehouse Management

• Inbound processing Distribution Center*

• Outbound processing Distribution Center*

• Return from store*

• Intercompany stock transfers

Retail Store Management

• POS Inbound and POS Outbound*

• In-store Merchandise and Inventory* Management

Omnichannel Retailing

• Sale from Distribution Center

• Customer order management in store (basic)

• Customer consignment

Cross processes and capabilities

• Data migration and data integration*

• CAR integration

• Endorsed generic scope items for Retail

Fashion Retail Foundation

• Season

• Value Added Services

Retail Merchandise Management

• Merchandise distribution

• Collective Purchase Order Management

• Empties management and processing

• Article hierarchy management

• Customer order management in store (extended)

• Vendor consignment, Retail consignment

• Support of two-tier scenarios with master data

integration

• Manage Third party Orders

• Sales Performance Management

Fashion Wholesale

• Supply Assignment

• Advanced management of sales orders

• Sales contract management

• Multi Ship-to-order

• Management Excess Requirements

• Third Party and Purchase-to Order Diversion

• Alignment of Purchase Requisitions

with Purchase Orders

• Segmentation Management

• Subcontracting

• PIR Management and Material requirement

planning

• Characteristic value conversion

Retail Merchandise Management

• Enhancements for out-of-the box integrations, self-

service configuration, extensibility, automation and

migration

• Layout listing

• Order and delivery schedule integration

Fashion Production

• Fashion Bill of Material

• Routing maintenance supporting generic article

• Prod. version maintenance supporting generic

article

• Manage master production order

• Manage master planned order

• Make-to-order

• Segmentation in production processes

SAP S/4HANA Cloud for retail, fashion & vertical business 2022 – 2024

* Already available as ⍺ version for external testing in SAP sandbox system upon request for customers / partners

Page 15: Update on SAP’s portfolio strategy for Retail

Intelligent Suite:

S/4HANA Retail for Merchandise

Management

SAP Customer Activity Repository

Page 16: Update on SAP’s portfolio strategy for Retail

16Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q1 2021 Q4 2021 Q1 2022 Q4 2022

SAP S/4HANA 2020 FPS01 Retail for Merchandise

Management

• Increase store operations through a Fiori app for

mass stock adjustments

New Assortment Module Management:

• Manage assortment modules Fiori App

• Assign products to distribution centers App

• Assign products to assortment modules App

• Monitor assortment postprocessing errors App

SAP S/4HANA 2020 FPS01 for Fashion and

Vertical Businesses

• Supply / Demand Situation within

SAP Analytics Cloud

• Supporting of additional documents like

subcontracting components in Supply Demand

Overview App

• Fashion Enhancements for Sales Order and

Purchase Order OData API

• Situation handling in Manage Excess

Requirements App

• Improvements for segmentation to provide a

flexible segmentation maintenance, supporting

variants of a configurable article

• Production Processing enhancements

• MTO/MTS Enhancements for Fashion and Vertical

Business

• ODATA API for Segmentation structure and

strategy

SAP S/4HANA 2021 Retail for Merchandise

Management

• Increase store operations through a Fiori app for

mass count stock

New Assortment Management Enhancements:

• Assign user to assort. modules Fiori App

• Enhancements of existing apps

SAP S/4HANA 2021 for Fashion and Vertical

Businesses

• Provisional Sales Contract

• Progress Monitor for Sales Orders supporting special

business processes

• Purchase Order Consolidation

• Integration with Product Lifecycle Costing (Pre-Order

Costing)

• Integration with Digital Manufacturing Cloud for

Insights

• Manage Master Production Order

• Feature enhancements in Production Control

Workbench

• Enhancements for production processes (Discrete

Manufacturing)

SAP S/4HANA 2021 FPS01 Retail for Merchandise

Management

• Assortment list with multiple languages

• POS Outbound via services – Round-offs

• Count mass stock – automatic posting of

documents

• New APIs for merchandise categories, etc.

SAP S/4HANA 2021 FPS01 for Fashion and

Vertical Businesses

• Manage Purchase Order – Consolidation PO

enhancements1)

• Mass Changes for Fashion fields through

Purchase Order Fiori App1)

• Manage Master Production Order -

enhancements1)

• Demand and Supply Segmentation - additional

flexibility1)

SAP S/4HANA 2022 Retail for Merchandise

Management

• App variant for consumer maintenance

• Promotion integration with Omnichannel Promotion

Pricing Service

• Migration object for articles and assortments

• Article mass maintenance via MDG

SAP S/4HANA 2022 for Fashion and Vertical

Businesses

• Manage Master Planned Order

• Capacity planning – PP/DS integration

• Rule based Feasibility Analysis

• Demand and Supply Segmentation - enhancements

• Segmentation in Process Manufacturing

• Supply selection rule flexibility in Supply Assignment

S/4HANA Retail for merchandise management on-premise

Native Cloud

1) Planned for S/4HANA 2021 FPS01

* Joint roadmap items with other LOB

Page 17: Update on SAP’s portfolio strategy for Retail

17Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q2 2021 Q4 2021 2022 Future

POS Data Transfer & Audit (incl. MSCA)

• Enhancements to the POS data transfer and

auditing process

Demand Data Foundation

• Master-data integration support for SAP

Replenishment Planning

Unified Demand Forecast

• Improved HPR performance by calculating priors

only when needed

• Ability to consider variable season definitions

• Maintain and assign threshold values per alert type

• Alert management extension concept for customer-

specific alerts

• Prioritization of alerts with automated scoring

• Control cockpit for forecast and control of demand-

driven KPIs

POS Data Transfer & Audit (incl. MSCA)

• Ability to set multiple tax segments for a single

article

• Integration with native storage extensions for warm

data aging of the TLOGF table

• Ability to use data life-cycle management tools for

TLOG data aging

• Integration via S/4HANA on Prem/Cloud SOAP

services

• Enhanced transaction traceability (WPUUMS,

WPUBON, WPUTAB)

• Support for Seasons category

• Report to display list of stores

Demand Data Foundation

• Automatic product similarity detection and

calculation of clusters into hierarchies

Unified Demand Forecast

• Forecasting of non-listed products for SAP

Assortment Planning

• Ability to use the results of similar product

searches for calculating hierarchical priors (HPRs)

• Stabilized demand model for promotion-focused

products

• Enhanced outlier detection and correction in

demand modeling

POS Data Transfer & Audit (incl. MSCA

• Provide new customizing entry to allowing the

ability to remove leading zeros from article No.

• Removal of FIORI scaffolding

• Integration with Smart Store

• Enhance tax integration allowing for segments 04

and 05

• Reduce dependency on HANA Activation Report

Unified Demand Forecast

• New Parallelization Framework (for UDF and SAP

Replenishment Planning)

• Consideration of user projections from SAP

Promotion Management as forecast corrections

• New Replenishment Type Filter for Modeling and

Forecasting

POS Data Transfer & Audit (incl. MSCA)

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Demand Data Foundation

• Location hierarchy improvements in demand data

foundation

Unified Demand Forecast

• Forecasting a digital selling location

SAP Customer Activity Repository

Page 18: Update on SAP’s portfolio strategy for Retail

18Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Plan All Merchandise Types with SAP Assortment Planning

Seasonal / Fashion Products

Continuous / Replenishable Products

Grocery & Drug FashionDept StoreHardlines Hypermarket

PUSH

▪ Short lifecycle products

▪ Categories refreshed each

season

▪ Longer lead times

▪ Single/limited buys

▪ Allocated

▪ Purchase budget (OTB)

▪ Clearance markdowns make

room for next season

PULL

▪ Long lifecycle products

▪ Stable categories

▪ Shorter lead times

▪ Replenished

▪ Promotions drive volume

& traffic

Assortment Mix

Current development

focus for SAP

Assortment Planning

Initial development

focus for SAP

Assortment Planning

Page 19: Update on SAP’s portfolio strategy for Retail

19Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

• Best-in-class user experience

• AI/ML

• Space-aware

• Weighted product rankings

• Recommendations & decision support

• Highly-automated

• Flexible

• Process-driven

Intelligent Suite for RetailCategory management in SAP Assortment Planning

CDT

Business Rules

RKI, KPI

Planogram

Recommendation

Assortment Decision

Economic factors

Customer factors

Strategic factors

Incrementality

Space

Location clustering

Page 20: Update on SAP’s portfolio strategy for Retail

20Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Intelligent Suite for RetailLess waste with SAP Replenishment Planning

Prediction and consideration of expected

spoilage

▪ Predict expected spoilage due to shelf life

restrictions

▪ For better accuracy the shelf life LIFO

preference parameter allows to configure which

percentage of customers would buy LIFO or

FIFO

▪ Avoid wrong stock assumptions and generate

more accurate orders

Cost-optimized ordering

▪ Determine order amount that leads to

lowest expected total costs

▪ Consider forecast distribution and

product specific situations

▪ Consider multiple KPI

Intra-day and real time replenishment

▪ Any planning data is considered down to the

date/time basis

▪ Replenishment can be run multiple times per

day to take most recent stock and sales figures

into account

▪ Optional use of CAR real time inventory

Enhanced monitoring and control

▪ “Review order plan items” app to

review and adjust order plan items,

filter for exceptions and insights into

traceability data

▪ Simulate replenishment using

different parameters and schedules

and obtain insights on associated

KPI

Page 21: Update on SAP’s portfolio strategy for Retail

21Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q2 2021 Q4 2021 2022 Future

Assortment & Merchandise Planning

• Advanced location clustering and cluster analysis

• More efficient planning of new product introductions and

planning by market

Promotion Management

• Integration with 3rd party vendor fund tools

• Faster response time for creating and maintaining large

offers

Replenishment Planning

• Replenishment calculation that considers minimum stock

as a constraint

• Additional exception indicating high spoilage for the order

plan review

• External order plan item review in the store, supported

using an interface for retrieving and updating order plan

items

• Performance data collection for performance monitoring

of critical processes

• Automation framework for parallel processing,

traceability, and monitoring of critical processes

• Replenishment calculation that considers time-

dependent minimum stock and maximum stock

• Control cockpit for orders, stock, exception monitoring,

and control of replenishment KPIs

• Maintain & assign threshold values per alert type

• Alert management extension concept for customer-

specific alerts

• Prioritization of alerts with automated scoring

• Additional order plan item candidate information for order

plan review

• Replenishment calculation that considers source of

supply plus related order unit changing over the planning

horizon

• Control cockpit for forecast and control of demand-driven

KPIs

Assortment & Merchandise Planning

• Ability to plan localized and space-aware

assortments for long lifecycle products

• Forecasting of non-listed products for SAP

Assortment Planning

Promotion Management

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Replenishment Planning

• Aggregated order plans for use in Multi-Echelon

Replenishment

• Performance optimizations for replenishment

calculations

• Advanced process control for parallelization and

packaging

• Inbound procurement-schedule assignments

• Consideration of time-dependent procurement-

schedule assignments

Allocation Management

• Maintenance and ongoing enhancements, to

be defined based on customer feedback

Assortment & Merchandise Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Replenishment Planning

• Multi-Echelon replenishment – integration with

SAP Forecasting and Replenishment

Assortment & Merchandise Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Promotion Management

• Enable financials for offer in FIORI

Replenishment Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

SAP Customer Activity Repository - planning applications

Page 22: Update on SAP’s portfolio strategy for Retail

Industry Cloud: Predictive Planning &

Inventory Orchestration

Page 23: Update on SAP’s portfolio strategy for Retail

23Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

AWARENESS TO CASH SOURCE TO PAY

Plan to optimize marketing & merchandising Plan to optimize fulfillment

Merchandise Financial

Planning

▪ Plan key financial metrics

▪ Plan channels & stores

▪ Plan product hierarchy levels

▪ Pre-season forecasting

Price Planning (incl.

markdown)

▪ Price lifecycle planning

▪ Price optimization

▪ Pricing rules

▪ Lifecycle visibility & planning

▪ Execution across channels

▪ Markdown strategies

▪ Markdown optimization

▪ Monitor effectiveness

Agile Merchandising

▪ In-season management

▪ Category management

insights

▪ Dashboard for monitoring &

early warning

▪ Root cause analysis

▪ Next best action proposals

▪ Link to execution of next best

action

Assortment / Category

Management

▪ Assortment planning for

fashion / seasonal

▪ Assortment planning for

category management

▪ Option planning

▪ Business rules

▪ New product introduction

▪ Assortment optimization

▪ Space-aware

▪ Sales & buy planning

▪ Pre-season forecasting

Promotion Planning

▪ Tactical promotion planning

▪ Promotion optimization

▪ Calendar

▪ Event and offer management

▪ Personalized offers

▪ Loyalty management

▪ Monitor effectiveness

SAP Predictive Demand

Planning

▪ Consider traditional & non-

traditional demand factors

▪ Everyday and fresh forecasting

▪ Pre-season forecasting

▪ Context-aware

▪ Consider order & fulfillment

channels

▪ Consider product

characteristics

▪ Refine demand forecast

▪ Granular & aggregated demand

▪ Additional predictive services

(clustering, size curve, similarity

analysis SAP Order & Delivery Scheduling

▪ Define order & delivery rhythms &

patterns for all nodes

▪ Internal supply network

▪ External supply network

SAP Predictive

Replenishment and Allocation

▪ Replenishment planning for

stores and distribution

centers in a synchronized

way

▪ Considering demands from

different channels, cost and

constraints

▪ Promotional buying

▪ Allocation planning (push)

The Predictive Planning & Inventory Orchestration End-to-End Customer

Journey

Predictive Planning & Inventory Orchestration

Page 24: Update on SAP’s portfolio strategy for Retail

24Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The future of Order and Delivery Scheduling

24

Integrates seamlessly into all relevant

consuming applications through Open

APIs delivering schedules in real-time

Definition of reusable

delivery patterns supporting intra-

day scenarios

Automated holiday and event

detection with simulation capabilities

to determine optimal plan

Efficient Scheduling improves delivery

performance by considering holiday and event

calendars

Create Order and delivery schedules to

prepare and respond quickly to changes and

constraints in the supply network

Streamlined merchandise flows

for ERP, replenishment and

supply chain execution systems

Monitoring and review of order and

delivery plans as well as system-

based optimization using

embedded intelligence

Offers a native cloud solution allowing

a holistic view of the supply network to

optimize merchandise flows

Automated creation of product

groups based on flexible

attributes and dynamic KPI's

Automated assignment of sources

of supply for internal and external

merchandise flows

The order and delivery plan provides optimal

day/time patterns for procuring and delivering

products across the entire supply network

Integration of optimized order and delivery

schedules into all relevant consuming systems

Vision: Improve fulfillment efficiency and on-time delivery performance by providing supply chain planners with a central tool to create

order and delivery patterns for all product flows within the supply network of a retailer

Page 25: Update on SAP’s portfolio strategy for Retail

25Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The future of Predictive Demand Planning in the Cloud

25

Vision: Cloud-native predictive service to provide ML based demand modeling and forecasting for applications driven by demand prediction.

Supporting demand data in fulfillment locations that originate from different order channels and consider all relevant influencing factors from

price over promotions to local events. Additional services such as similarity analysis shall extend the set of predictive cloud capabilities.

25

Benefits: Increase the precision and automation level of all applications that make use of a statistical forecast

Solution architecture: Built with cloud native architecture on SAP Business Technology Platform. Seamlessly integrating into S/4HANA Retail.

True day forecast - Precise results based on daily input - intraday possible as well

Bayesian Prior concept - for new product introductions and other missing demand data

Self-learning (ML): the system learns with each day and adaptsfast to new situations

Seasonality - With year over year variations

Trend and Weighting - Weighting (higher weight on most recent observations)

Promotion Uplift - Based on types and tactics of promotions

Price - True price elasticity

Recurring Holidays with ramp-ups and ramp-down periods incl. holidays on different weekdays

Model on aggregated data - to support weak signals on micro level like weather

Custom Influencers - like pandemics or external trends

User-centric applications:

• Monitor forecasting key figures or alerts and perform top-down analysis

• Analyze forecast in depth, adjust forecast, model enhancements with additional demand influencing factors

Page 26: Update on SAP’s portfolio strategy for Retail

26Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ 26

Vision: Business application leveraging AI to efficiently and accurately manage distribution center inventories for an optimized multi level

supply chain – supporting daily goods. It will use ML-based forecast and rolled-up cost-optimized store demands to precisely predict upcoming

DC demands across multiple channels. It will optimize order quantities regarding logistical constraints, cost factors and vendor agreements.

26

Multi-echelon and omni channel supply network By

aggregating store order plans up to DC levels (regional,

national) and adding demands from additional channels,

such as web

Supplier and logistical constraints

Such as minimum order quantities or multiples, discount

scales, contracts, etc.

Supplier information exchange

Cost-optimal ordering

Considering demand volatility, real and virtual costs

and constraints

Excellent user experience

Through execution and KPI-driven interaction capabilities with

detailed traceability in a highly automated environment

Easy configuration and responsibility definition

Benefits: Optimized ordering streamlines the supply chain, increases service levels for stores and customers, and reduces cost and waste.

Solution architecture: Built with cloud native architecture on SAP Business Technology Platform and seamlessly integrating into S/4HANA Retail and

SAP Replenishment Planning on Customer Activity Repository

The future of Replenishment for DCs in the Cloud

Page 27: Update on SAP’s portfolio strategy for Retail

27Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The future of Replenishment for Stores in the Cloud

27

Vision: Cloud business application that leverages ML forecasts, forecast probabilities, constraints and cost factors to determine order

quantities leading to lowest expected costs by considering shelf life, lost sales, shelf capacity and presentation stocks holistically for a product.

27

Cost-optimal ordering

Use ML-based consumer forecasting, probability

distributions and cost factors to determine order

amounts leading to lowest expected total costs

Intra-day and real-time replenishment

Any planning data is considered down to date and time

basis; replenishment can be run multiple times to take

most recent stock and sales into account

Prediction and consideration of expected spoilage

Predict expected spoilage due to shelf restrictions. Configure to which

percentage your customers would by LIFO or FIFO. Avoid wrong stock

assumptions to generate more accurate orders

Enhanced monitoring and control

Manage your order plan review process through smart alerts and simulate

the impact of parameter changes on revenue, out of stock and spoilage

Benefits: Increase service levels and turnover rates, while reducing waste, manual efforts and cost of spoilage & stock overages

Solution architecture: Built with cloud native architecture on SAP Business Technology Platform. Seamlessly integrating into S/4HANA Retail.

Page 28: Update on SAP’s portfolio strategy for Retail

28Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

LAB PREVIEW: SUBJECT TO CHANGE

2021

Intelligent Returns Management

Omnichannel Sales Transfer and Audit

Order Management Foundation

2023+

Retail Store – Customer Care

Retail Store – Task Execution Applications

2022

Order & Delivery Scheduling

Predictive Replenishment

Retail Store – Order Fulfillment

Order Management for sourcing and availability

Omnichannel Promotion Pricing Service –Promotion Maintenance UI

...

Roadmap for Industry Cloud innovation

Legend: *) - Planned first shipment of Minimum marketable product (MMP). Continuous innovation follows

SAP internal planning, may be subject to changes

Retail Store – Inventory Management

Retail Store – Task Management

Predictive Demand Planning

Page 29: Update on SAP’s portfolio strategy for Retail

Industry Cloud: Customer Order

Management

Page 30: Update on SAP’s portfolio strategy for Retail

30Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Omnichannel Journey with SAP Industry Cloud for Retail

Reverse

Logistics

Seamless Returns

Sourcing &

Availability

Omnichannel

Orchestration

Fulfillment

Execution

Financial

Execution

Commerce

Everywhere

Consistent

Process

Fulfill from

Anywhere

Finalize the

process

Retailers are increasingly looking to extend and connect their distribution and delivery

capabilities by leveraging all nodes across their network, including traditional

distribution centers, stores, dark stores, and third-party drop shipping.

Page 31: Update on SAP’s portfolio strategy for Retail

31Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

AWARENESS TO CASH

Invoice to cashPlan to optimize

marketing & merchandisingRequest to serviceOrder to fulfill

Deliver product

to fulfill

The Customer Order Management End-to-End Customer Journey

SAP Order Management for

Sourcing & Availability

▪ Intelligent suppression of

inventory to customers based on

margin and execution

considerations as well as

allocation to best route

of fulfilment once order is placed

(Intelligent order allocation to

profitability model)

SAP Order Management for

Omnichannel Promotion Pricing

• Cloud-native promotion pricing

for all channels

• Engage customers with

personalized promotions which

are consistent across

sales channels

• Central cloud service for

omnichannel promotion pricing

• Consistent price and promotion

information at all touchpoints

incl. Point-of-sale

• Multiple deployment options

SAP Order Management for

DropShipping

▪ Enables the back-end

functionality needed to connect

retailers to third party vendors

for drop shipping orders

▪ Integrates with the existing SAP

Mirakl partnership

SAP Intelligent Returns Management

• Omnichannel Return optimization

engine that outlines the best next

steps for a returned item to

maximize margin and sell-through,

and seamless Returns customer

experience

SAP Order Management Cloud

Foundation

• A system that provides retailers

with core must-have capabilities

to enable omni-channel retail of

the future with seamless

integrations and a consistently

great customer experience

across channels, with the

flexibility to adapt business

requirements without

overwhelming complexity and

lengthy IT projects.

SAP Order Management

Cloud Foundation

Omnichannel enablement

to execution

Page 32: Update on SAP’s portfolio strategy for Retail

32Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Order Management Foundation

32

Monitor KPIs, get alerts in case of

errors, Self-Healing Systems help

to resolve issues

Configure your individual process

flows, define how to handle

exception cases

Smooth Omnichannel Operations

Decoupled and integrated: One consistent

order across your enterprise

Predictive analytics help to trace

patterns which can be used to

prevent issues

Margin and Efficiency are optimized

through optimal inventory usage,

and prevention of returns, among

others

Optimize Processes

Gain a unified view of the individual order and

the order process.Provides one consistent order

across your omnichannel

enterprise, including fulfillment

updates and events

Delight your customers with

excellent services for

subscriptions or online orders

Satisfy Customers by keeping the

customer promise and offering additional

services

Optimizes the entire end-to-end

order journey with integration to Commerce,

S/4 and Subsciption

Provides foundation for a

comprehensive solution to support

omnichannel order processes.

Unifies customer experiences

across all channels and therefore

creates one omnichannel

experience

The SAP® Order Management Foundation provides omnichannel order orchestration, easily connecting your sales channels to each of your fulfillment systems

and locations. Benefit from streamlined integration, simplified access and additional fulfillment models.

Page 33: Update on SAP’s portfolio strategy for Retail

33Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

FulfillOrchestrate & MonitorCapture & ManageOrder From Anywhere

SAP Order Management Foundation One Consistent Order Across Your Business

Back OfficeCustomer & Front Office

In-Store

Commerce

SAP ERP (ECC)

SAP S/4HANA Cloud or On Premise

SAP

Subscription Billing

Master Data

Integration

Availability &

Sourcing

Pricing &

Promotions

Taxes

Re-Usable Business Services

(SAP or Ecosystem)

Sales & Service

Social Selling

Marketplaces, …

3rd Party (non-SAP) WMS, Dropship, Marketplace

BTP

Customer Promise

Cart & Checkout

Order Capture

Change & Cancellation

Returns

Fulfillment & Status Monitoring

Analytics

Orchestration

SAP

Retail Store

UI

AP

I / Even

ts

Demo

Page 34: Update on SAP’s portfolio strategy for Retail

34Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Take advantage of omnichannel opportunities

34

Dynamic inventory availability and order orchestration engine that optimizes your retail strategy from the moment a customer sees the item until the order has

been handed off to the fulfillment node, store or fulfillment center, managing the trade-off between margin and customer expectations

34

Profitable Availability Model optimizes

merchandise availability for customers in line

with your retail strategy

Mitigates margin destructive orders

before they are placed

Drives best-in-class customer experience

by ensuring customers see all available

products

Dynamic Fulfillment Optimizer identifies the

optimal fulfillment node(s) for all orders

Rebalances orchestration in real-time

Simulates changes on historical data to

ensure tradeoffs are being managed

The Analytics Engine introduces visibility and

recommendations into your order management

process

Tracks and optimizes KPIs at multiple

levels of granularity

Identifies operational gaps (e.g., vendor

SLAs)

Utilizes Artificial-Intelligence-driven

decisions

Efficiently integrates with your existing

architecture

Begins optimization even before an order

is placed

Optimizes your retail strategy instead of

a web of rules

Page 35: Update on SAP’s portfolio strategy for Retail

35Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customer Routing Example:

Retailer with 1500 stores

& € 30bn revenue

Losses associated with returns

€ 1.5bn

€ 75m

Revenue leakage avoided

because of “right” decision

Annual value of return

€ 6bn

Amazon: $700bn est. returns value by 2025

SAP Intelligent Returns Management

… intelligently recommends

return options to customers,

optimizing for customer

experience and retailer costs

… intelligently recommends

disposition decisions to

warehouse associates to limit

value leakage and improve

consistency

… introduces newfound

visibility into your end-to-end

returns processes to help

leaders make data driven

decisions

Predictive analytics

helps inform warehouse staffing

needs and identify emerging

returns trends

Form-factor-agnostic solution

ensures an easy-to-implement

seamless customer experience (i.e., APIs or white-label web app)

Advanced-analytics

dispositioning- engine helps

associates make better

decisions, faster

1 Returns Dispositioning Analytics Engine 2 3

Page 36: Update on SAP’s portfolio strategy for Retail

36Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Frictionless Customer Return Journey

• Provide a seamless returns process your

customers will love. Improve customer

retention and overall Customer Lifetime-

value (LVT)

• Retain revenue with incentives for

exchanges instead of refunds.

• Reduce environmental and financial costs

by promoting in-store returns.

Page 37: Update on SAP’s portfolio strategy for Retail

37Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Optimized Return Decisioning

• Fast and easy guidance for associates to make the right decision

• Limit value leakage with optimal dispositioning

• Boost associate productivity and consistency

Page 38: Update on SAP’s portfolio strategy for Retail

38Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Better Returns Insights

• Enhanced visibility into returns with embedded insights and analytics

• Track and maximize key KPIs

• Identify opportunities to limit future returns

• Decrease returns fraud

Page 39: Update on SAP’s portfolio strategy for Retail

39Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Omnichannel Promotion Pricing Service (OPPS)

WHY?

Customer Challenges

WHAT?

What is OPPS all about?

BUSINESS VALUE

What value does the service bring?

HOW?

Our approach, how the service works

Customers typically touch different sales channels on their buying journeys. A key expectation is a great customer experience and consistent promotional pricing information across the different channels they use (online, in store, app,…).

Companies that operate in an omnichannel environment recognize the key importance of providing a consistent promotional pricing across their different sales channels but often struggle to provide it. Key reasons are:

▪ Multiple repositories where prices are kept and persisted differently (typically one repository per channel)

▪ Different price calculation logics for different sales channels

▪ Complex offers/ pricing are not fully and consistently supported by all relevant sales channels

SAP Omnichannel Promotion Pricing

Service consists of multiple standalone

services (APIs) that can be used with any

solution, SAP or competitor, cloud or on-

premise:

▪ A promotion maintenance UI to

maintain promotions directly in OPPS.

▪ A calculation service to calculate

effective sales prices. It can be used in

different sales channel applications

like Web, POS, S/4HANA Sales

Order.

▪ A data upload service to upload

regular sales prices and promotional

rules. This data is the basis for the

calculation of effective sales prices.

▪ A business configuration service

maintain various parameters to

influence the behavior of the

Calculation service.

Whenever a sales channel needs

promotional price for a product or a set of

products, it will call the calculation service

which will calculate the price and send it to

the requesting sales channel. As all the

channels get the promotional price from a

single source, consistency is ensured.

OPPS helps enterprises to address the challenges mentioned here and to deliver a great buying experience with a consistent promotional pricing across their different sales channels. It does so by using ONE price calculation functionality in the different sales channel applications based on the SAME price and promotional data.

OPPS is a cloud based re-use-service. It is a standalone service that works with any SAP or 3rd party (cloud and on-premise) products that require a promotional price calculation. The service is pre-integrated with SAP Commerce Cloud, SAP Customer Activity Repository and the S/4HANA Sales Order.

Companies that provide a consistent customer buying experience with consistent price and promotion data across all sales channels experience:

▪ Significantly higher customer satisfaction

▪ Increased brand and customer loyalty

▪ And generate significantly higher revenues at reduced customer acquisition cost.

Page 40: Update on SAP’s portfolio strategy for Retail

40Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

LAB PREVIEW: SUBJECT TO CHANGE

2021

Intelligent Returns Management

Omnichannel Sales Transfer and Audit

Order Management Foundation

2023+

Retail Store – Customer Care

Retail Store – Task Execution Applications

2022

Order & Delivery Scheduling

Predictive Replenishment

Retail Store – Order Fulfillment

Order Management for sourcing and availability

Omnichannel Promotion Pricing Service –Promotion Maintenance UI

...

Roadmap for Industry Cloud innovation

Legend: *) - Planned first shipment of Minimum marketable product (MMP). Continuous innovation follows

SAP internal planning, may be subject to changes

Retail Store – Inventory Management

Retail Store – Task Management

Predictive Demand Planning

Page 41: Update on SAP’s portfolio strategy for Retail

Industry Cloud: Retail Store

Page 42: Update on SAP’s portfolio strategy for Retail

42Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

AWARENESS TO CASH

Manage customers & channels

Retail Store End-to-End Customer Journey

SAP Retail Store Inventory

Management

BOPIS and BOFFS order

management in retail stores,

including in-store inventory tracking,

hold time optimization modelling and

last-mile aggregator

SAP Retail Store Order Fulfilment

Optimized picking by location

scenario (backroom, in-store, dark

store and automated warehouse),

including optimized route, indoor

navigation / geolocation and multi-

order simultaneous picking

SAP Retail Store Task

Management

Dynamic task management that

enables store managers to react to

sudden changes in tasks needed in

store through intelligent prioritization

based on ROI

SAP Retail Store Task Execution

Assist store associates with

execution of manual in-store tasks

performed regularly in the store

(including moving products, printing

labels, counting products, receiving

products, etc.)

Franchise Management

Franchisees and Franchisers have

additional requirements like

managing the assortment of a

Franchisee where there might be

articles Franchisees have to add to

their assortment, as well as optional

articles they are open to add.

Instore Food Production

Retailers are baking buns, bread

and pastries but also producing

more complex food like

sandwiches, sushi, salads and

other finger foods. This requires

proper preparation based on the

demand considering replenishment,

recipes, production shift planning,

ingredient handling and proper

stock updates (ordered frozen buns

will be moved to sellable buns once

they have been prepared).

RFID

RFID to perform relevant inventory

and merchandizing processes

bringing inventory accuracy to

serialized items.

Module includes adoptions of key

inventory processes like: receiving,

restocking, counting or transferring

products, it also enables new

innovative processes like cashierless

checkout with automated scanning,

blocking articles which are in the

dressing area, increased theft

control or finding missplaced articles.

Customer Service

Online and offline view of individual

customer preferences and

information (Intelligent clienteling)

and allowing sales associates in

stores to automatically form

customized / offers and pricing per

customer

Plan to optimize workforce

Page 43: Update on SAP’s portfolio strategy for Retail

43Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Our Vision for the store of the futureProductive and happy employees, intelligent processes and excellent customer experience.

Leverage Machine Learning and

IoT sensor data to dynamically

create and update tasks and

update inventory to ensure on shelf

availability

2

3Access all relevant information to

provide best of class customer

service

Receive notifications when

something requires attention5

Increase efficiency by optimizing

tasks based on product location

and additional attributes4

1

2

3

4

Task

List1

5

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

3

47

6

5

2

6Intelligent and automated

processes increase customer

satisfaction and automation

7Enable intelligent and adaptive Buy

Online Pickup from Store and Buy

Online Fulfill From Store

1View and process all tasks a user

responsible for in a single,

integrated task list

Page 44: Update on SAP’s portfolio strategy for Retail

44Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Vision: Maximize store operation efficiency by providing store associates with granular product location, accurate stock quantity of the products, ability to track product

movement in the store, and intelligent recommendations for store execution.

The future of Retail Store Inventory Management in the Cloud

44

Integrates seamlessly with your current IT

landscape through Open APIs delivering updates in

real-time

Get all tasks, from the headquarter or

created in the store in one list

Intelligent ranking of tasks pending their

overall importance

Centralized Task List one place to see all tasks that need

to be done in a store, increasing task execution and

overview of employees

Provides foundation for a comprehensive solution to

support omnichannel fulfillment and Smart store. The

improved stock tracking will include all new available

information in your best current view

Streamline store operations through

intelligent sequencing of store tasks

Reduce TCO by leveraging this content to

drive inventory insights for existing retail

applications

Offers a technology-agnostic solution

that consumes data from multiple

hardware and software sources

View products locations and

accurate stock on hand

Accurate tracking of product

movements within the same store

and storage locations

The store layout module provides accurate

real-time representation of the on-hand stock

count and its location in the store

Optimized sequencing based on product location for

order picking, DC to store shipments, etc.

Page 45: Update on SAP’s portfolio strategy for Retail

45Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Business

Processes

Core Cloud

Services

Q1/22: Inventory Mgmt. Q2/22:Order Fulfillment Task Execution

Cross App

Services

Success FactorsOMS

Future Scope

S/4HANA, ECC, 3rd Party IOT & Sensors (Camera, ESL, …)

Store Inventory

How the SAP Retail Store Becomes RealityQ4/22: Task Mgmt.

Commerce

Customer

Service

Ship Orders

Handover

Orders

Pick Orders

Order Status

Overview

Layout Management

Maintain

Locations

Assign Products

to Locations

Basic Task Management

Maintain Task

Types

Assign

Associates

Extended Task Management

Roles DepartmentsWorkflows Notifications SkillsSmart Task

Assignment

Sensor Event Repository

Transfer

Products

Adjust Stock

Receive

ProductsPrint Labels

Move Products

Worklist

Order Products

Mark Down

Move Products

Lookup

Products

Process Tasks

Count

Products

RFID AddOnIn-Store Food

Production

Franchise

Management

Perpetual

Inventory

Plan Cycle

Count

Master Data Services Offline SupportReuse Services

Integrations

Push Event API Analytics API

LAB PREVIEW OF PLANNED RELEASES

SUBJECT TO CHANGE

Page 46: Update on SAP’s portfolio strategy for Retail

4646

Let’s co-innovate to restore confidence in

store sales data through intelligent automation.

Automated checks can be

configured and executed by your

personal rule set.

Reduction in errors and

regulatory inconsistencies

Improved

productivity resulting in cost

reductions

Rule-based error routing ensures

that each error get forwarded and

processed by the responsible person.

Improved efficiencies and

collaboration

Simplified

reconciliation processes

The error push-notification lets you

know whenever there is an error which

needs to be processed manually.

Track and maximize key KPIs

(e.g., error turnaround rate)

Real-time insight highlighting

store sales and inventory

information

Utilizes AI-driven recommendation and

correction process

Seamless integration into any internal or

external ERP system for financial and

inventory postings

Unlike other solutions, SAP Omnichannel

Sales Transfer and Audit –

Optimizes the entire end-to-end

sales auditing journey

Error solving recommendations

based on historical patterns.

Reduction in time spending

for error solving

Mitigation of risks that sales

transaction is changed wrong

Vision: Transform raw sales transactions into valuable validated data. Omnichannel Sales Transfer and Audit is a sales transaction validation engine

solution that receives, audits and ensures the completeness of sales transactions to give you more confidence in sales data and accurate reporting

The future of Omnichannel Sales Transfer and Audit

Page 47: Update on SAP’s portfolio strategy for Retail

47Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

2021

Intelligent Returns Management

Omnichannel Sales Transfer and Audit

Order Management Foundation

2023+

Retail Store – Customer Care

Retail Store – Task Execution Applications

2022

Order & Delivery Scheduling

Predictive Replenishment

Retail Store – Order Fulfillment

Order Management for sourcing and availability

Omnichannel Promotion Pricing Service –Promotion Maintenance UI

...

Roadmap for Industry Cloud innovation

Legend: *) - Planned first shipment of Minimum marketable product (MMP). Continuous innovation follows

SAP internal planning, may be subject to changes

Retail Store – Inventory Management

Retail Store – Task Management

Predictive Demand Planning

Page 48: Update on SAP’s portfolio strategy for Retail

Intelligent Suite:

S/4HANA Retail for Merchandise

Management

SAP Customer Activity Repository

Page 49: Update on SAP’s portfolio strategy for Retail

49Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q1 2021 Q4 2021 Q1 2022 Q4 2022

SAP S/4HANA 2020 FPS01 Retail for Merchandise

Management

• Increase store operations through a Fiori app for

mass stock adjustments

New Assortment Module Management:

• Manage assortment modules Fiori App

• Assign products to distribution centers App

• Assign products to assortment modules App

• Monitor assortment postprocessing errors App

SAP S/4HANA 2020 FPS01 for Fashion and

Vertical Businesses

• Supply / Demand Situation within

SAP Analytics Cloud

• Supporting of additional documents like

subcontracting components in Supply Demand

Overview App

• Fashion Enhancements for Sales Order and

Purchase Order OData API

• Situation handling in Manage Excess

Requirements App

• Improvements for segmentation to provide a

flexible segmentation maintenance, supporting

variants of a configurable article

• Production Processing enhancements

• MTO/MTS Enhancements for Fashion and Vertical

Business

• ODATA API for Segmentation structure and

strategy

SAP S/4HANA 2021 Retail for Merchandise

Management

• Increase store operations through a Fiori app for

mass count stock

New Assortment Management Enhancements:

• Assign user to assort. modules Fiori App

• Enhancements of existing apps

SAP S/4HANA 2021 for Fashion and Vertical

Businesses

• Provisional Sales Contract

• Progress Monitor for Sales Orders supporting special

business processes

• Purchase Order Consolidation

• Integration with Product Lifecycle Costing (Pre-Order

Costing)

• Integration with Digital Manufacturing Cloud for

Insights

• Manage Master Production Order

• Feature enhancements in Production Control

Workbench

• Enhancements for production processes (Discrete

Manufacturing)

SAP S/4HANA 2021 FPS01 Retail for Merchandise

Management

• Assortment list with multiple languages

• POS Outbound via services – Round-offs

• Count mass stock – automatic posting of

documents

• New APIs for merchandise categories, etc.

SAP S/4HANA 2021 FPS01 for Fashion and

Vertical Businesses

• Manage Purchase Order – Consolidation PO

enhancements1)

• Mass Changes for Fashion fields through

Purchase Order Fiori App1)

• Manage Master Production Order -

enhancements1)

• Demand and Supply Segmentation - additional

flexibility1)

SAP S/4HANA 2022 Retail for Merchandise

Management

• App variant for consumer maintenance

• Promotion integration with Omnichannel Promotion

Pricing Service

• Migration object for articles and assortments

• Article mass maintenance via MDG

SAP S/4HANA 2022 for Fashion and Vertical

Businesses

• Manage Master Planned Order

• Capacity planning – PP/DS integration

• Rule based Feasibility Analysis

• Demand and Supply Segmentation - enhancements

• Segmentation in Process Manufacturing

• Supply selection rule flexibility in Supply Assignment

S/4HANA Retail for merchandise management on-premise

Native Cloud

1) Planned for S/4HANA 2021 FPS01

* Joint roadmap items with other LOB

Page 50: Update on SAP’s portfolio strategy for Retail

50Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q2 2021 Q4 2021 2022 Future

POS Data Transfer & Audit (incl. MSCA)

• Enhancements to the POS data transfer and

auditing process

Demand Data Foundation

• Master-data integration support for SAP

Replenishment Planning

Unified Demand Forecast

• Improved HPR performance by calculating priors

only when needed

• Ability to consider variable season definitions

• Maintain and assign threshold values per alert type

• Alert management extension concept for customer-

specific alerts

• Prioritization of alerts with automated scoring

• Control cockpit for forecast and control of demand-

driven KPIs

POS Data Transfer & Audit (incl. MSCA)

• Ability to set multiple tax segments for a single

article

• Integration with native storage extensions for warm

data aging of the TLOGF table

• Ability to use data life-cycle management tools for

TLOG data aging

• Integration via S/4HANA on Prem/Cloud SOAP

services

• Enhanced transaction traceability (WPUUMS,

WPUBON, WPUTAB)

• Support for Seasons category

• Report to display list of stores

Demand Data Foundation

• Automatic product similarity detection and

calculation of clusters into hierarchies

Unified Demand Forecast

• Forecasting of non-listed products for SAP

Assortment Planning

• Ability to use the results of similar product

searches for calculating hierarchical priors (HPRs)

• Stabilized demand model for promotion-focused

products

• Enhanced outlier detection and correction in

demand modeling

POS Data Transfer & Audit (incl. MSCA

• Provide new customizing entry to allowing the

ability to remove leading zeros from article No.

• Removal of FIORI scaffolding

• Integration with Smart Store

• Enhance tax integration allowing for segments 04

and 05

• Reduce dependency on HANA Activation Report

Unified Demand Forecast

• New Parallelization Framework (for UDF and SAP

Replenishment Planning)

• Consideration of user projections from SAP

Promotion Management as forecast corrections

• New Replenishment Type Filter for Modeling and

Forecasting

POS Data Transfer & Audit (incl. MSCA)

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Demand Data Foundation

• Location hierarchy improvements in demand data

foundation

Unified Demand Forecast

• Forecasting a digital selling location

SAP Customer Activity Repository

Page 51: Update on SAP’s portfolio strategy for Retail

51Internal© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Q2 2021 Q4 2021 2022 Future

Assortment & Merchandise Planning

• Advanced location clustering and cluster analysis

• More efficient planning of new product introductions and

planning by market

Promotion Management

• Integration with 3rd party vendor fund tools

• Faster response time for creating and maintaining large

offers

Replenishment Planning

• Replenishment calculation that considers minimum stock

as a constraint

• Additional exception indicating high spoilage for the order

plan review

• External order plan item review in the store, supported

using an interface for retrieving and updating order plan

items

• Performance data collection for performance monitoring

of critical processes

• Automation framework for parallel processing,

traceability, and monitoring of critical processes

• Replenishment calculation that considers time-

dependent minimum stock and maximum stock

• Control cockpit for orders, stock, exception monitoring,

and control of replenishment KPIs

• Maintain & assign threshold values per alert type

• Alert management extension concept for customer-

specific alerts

• Prioritization of alerts with automated scoring

• Additional order plan item candidate information for order

plan review

• Replenishment calculation that considers source of

supply plus related order unit changing over the planning

horizon

• Control cockpit for forecast and control of demand-driven

KPIs

Assortment & Merchandise Planning

• Ability to plan localized and space-aware

assortments for long lifecycle products

• Forecasting of non-listed products for SAP

Assortment Planning

Promotion Management

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Replenishment Planning

• Aggregated order plans for use in Multi-Echelon

Replenishment

• Performance optimizations for replenishment

calculations

• Advanced process control for parallelization and

packaging

• Inbound procurement-schedule assignments

• Consideration of time-dependent procurement-

schedule assignments

Allocation Management

• Maintenance and ongoing enhancements, to

be defined based on customer feedback

Assortment & Merchandise Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Replenishment Planning

• Multi-Echelon replenishment – integration with

SAP Forecasting and Replenishment

Assortment & Merchandise Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

Promotion Management

• Enable financials for offer in FIORI

Replenishment Planning

• Maintenance and ongoing enhancements, to be

defined based on customer feedback

SAP Customer Activity Repository - planning applications

Page 52: Update on SAP’s portfolio strategy for Retail

Questions

Page 53: Update on SAP’s portfolio strategy for Retail

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