Promotion Management

SAP Best Practices for Retail (India)

SAP Best Practices

Scenario Overview – 1

Purpose Promotions provide retailers as well as wholesalers with a key opportunity to

position their merchandise in a competitive, aggressively-priced environment

Benefits Reduce existing stock levels Boost sales and the success of a company Test new products on the market Sell articles at a lower price than the standard price

Key process flows covered Create promotion without budget check (standard retail promotion) Create additional conditions for the promotion Create promotion with budget check (Price Planning Workbench) Subsequent processing of the promotion Create promotion without budget check (Wholesale) Assign further sales agreements to the promotion (Wholesale) Activate prices, create sales order, create delivery and billing document

(Wholesale)

Purpose and Benefits:

Scenario Overview – 2

Required SAP EHP3 for SAP ERP 6.0

Company roles involved in process flows Retail Promotion Planner Retail Promotion Planner – Power User Retail Promotion Planner - Manager Retail Seasonal Purchaser – Power User Retail Warehouse Clerk Retail Store Manager Sales Person Retail Non-Seasonal Buyer

SAP Applications Required:

Process Flow Diagram

Version 1 – Retail Promotion Management

Re

tail

Pro

mo

tio

n P

lan

ne

r

Create promotio

n with budget check?

Create promotion price

plan

Release promotion price

plan

Post Processing

Yes

Create promotion

Create promotion

No

Price Plan Approval

Budget exceede

d? No

Creation of conditions

Check promotion

sales prices

Activate promotion price

plan

Create additional conditions

Supply source determination

Generate allocation table

Yes

Announce promotion

Subsequent Processing

Carry out Listing

Activate prices(only WAK1)

Man

ager

Ret

ail

Sea

son

al

Pu

rch

ase

r

Ret

ail

War

eho

us

e C

lerk

Ret

ail

S

tore

M

an

ag

er

Deliver merchandise to

the stores

Subsequent Processing in

the DC

Goods receipt in the stores

Display promotion in SAP Retail

Store

Change planned

quantities

Close confirmed

quantities of the promotion in

ERP

Activate allocation table

Process Flow Diagram

Version 2 – Wholesale Promotion Management

Re

tail

Pro

mo

tio

n

Pla

nn

er

Create promotion without budget

check

Sa

les

Pe

rso

nR

etai

l N

on

-S

easo

nal

Bu

yer

Assign further sales agreements

to a promotionActivate prices

Create sales order

Ret

ail

War

eho

use

C

lerk

Create Billing Document

Create delivery Create transfer order

Confirm TO and post goods issue

Evaluations

Display Outbound Delivery

- Coupons, free-goods discounts and bonus buy- One price list

Budgetart

Budgetebene

- Promotion budget- Several price lists

MarkdownsMan. Price changesPromotions….

Price plan overview

Selection

Price PlanningWorkbench

Create promotion….Subsequent processingAnnouncementBackground processingArchiving

Master Data

Promotion Creation Options

without budget check with budget check

PromotionPlanning

Subsequentprocessing

Createpromotion

Assign sitegroups

Additionalassignments

Enter promo-tion data

Enter planningdata

Quantity planningQuantity planning

Price planningPrice planning

Period-basedPeriod-based

Higher-level?Higher-level?

ArticleArticle

Planned currencyPlanned currency

Promotion periodsPromotion periods

Within the promotionWithin the promotion

For all promotionsFor all promotions

DiscountsDiscounts

Bonus buyBonus buy

Referencepromotion

PromotiontypePromotion

Planning

CouponsCoupons

Process Flow for Promotion Creation

Promotion PlanningPromotion Planning

Announce-ment

Announce-ment Alloc. tableAlloc. table

Supplysourcedeterm.

Supplysourcedeterm.

AdditionalsAdditionals

Promotion subsequent processingPromotion subsequent processing

Priceactivation

PriceactivationListingListing

Assortment listAssortment listAssortment listAssortment list POS dataPOS data

Retail price calculationRetail price calculationRetail price calculationRetail price calculation

Subsequent Processing for Promotions