Tuesday, January 28, 2014

Shortcomings of SAP Retail for Apparel and Footwear Companies - Trying to understand SAP


So how come SAP solution for Apparel and Footwear companies that sell their products to consumers is to implement two different systems (SAP Retail + SAP AFS)? Well, we have to go back a little in time to try to explain. It seems standard SAP R/3 was initially developed with a generic manufacturing industry in mind. Since there are so many manufacturing industries with unique requirements, the natural evolution was to enhance the R/3 system to create system flavors in order to fit better niche industries. That's why there are SAP industry solucions for the automobile, oil, pharma, oil, apparel and footwear industries, etc.

Following this strategy, SAP classified Retail as an industry as well, and went on to develop a solution for it which it named SAP Retail. However SAP missed the point that companies acting in manufacturing industries might as well decide to act as retailers as well in order to sell their goods directly to end customers. Classic example here are apparel and footwear companies that own stores and franchises.

Well, it seems SAP was paying attention. Following post from SAP (taken from this link) mentions that SAP is working on a single vertical solution for apparel and footwear companies with retail operations. This stuff will be a killer!!!:



SAP Brings Best Practices Back Into Fashion

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NEW YORK — SAP AG today announced plans to collaborate with key customers to better meet the challenges faced by apparel, footwear and accessory companies. Working with adidas, Luxottica and Tommy Hilfiger, SAP envisions bringing a new fashion solution to the marketplace that will better enable fashion brands to manufacture their products and sell them to retailers and consumers using one single, vertical solution. The announcement was made at the NRF 103rd Annual Convention and EXPO, being held January 12-15 at the Javits Convention Center in New York City.

Stay tuned for future posts about this new solution!

Wednesday, September 25, 2013

Shortcomings of SAP Retail for Apparel and Footwear Companies - The forgotten KISS Principle


In my previous post, I wrote about my past experience working for several Apparel and Footwear vertical companies that implemented SAP AFS for their manufacturing part of the business but refused to implement SAP Retail for their Retail part of the business. Now I plan to start giving some facts that support my belief that this has become the rule rather than exception.

The first important thing to mention is that when SAP is trying to sell a solution for a vertical Apparel and Footwear company, basically they offer following baseline solution:


That alone should explain by itself the whole point. The first thing that comes to my mind when I look at that solution is "Messy". SAP is telling us that we need to buy, license, configure, test and maintain two different flavors of R/3 in order to be able to fulfill the requirements of vertical Apparel and Footwear companies. Additionally, we will need to build and maintain following interfaces according to SAP:

1. Article Master Data (From Retail to AFS system).
2. AFS Material Master Basic Data (From AFS to Retail system).
3. Prices.
4. Initiation of the Listing Procedure Workflow, upon creation of a new Article or Variant.
5. Sending of a Purchase Order from SAP Retail to an AFS Sales Order via EDI.
6. Sending of a Shipping Notification from AFS to SAP Retail via EDI.
7. Sending of an Invoice from AFS to SAP Retail via EDI and executing Invoice Verification in Retail.

Well, that's miles away from the well known KISS principle (Keep it simple, stupid!). Common sense tells that when something is complex (like implementing an ERP system), you should not make it twice complex (like implementing 2 ERP systems) if there's not a huge trade-off!. And there isn't.

So why does SAP offer such a complex and complicated solution? I will elaborate in my next post.

Monday, September 9, 2013

Shortcomings of SAP Retail for Apparel and Footwear Companies - Introduction


Well, it's been quite a while since my last post. I have to start by saying that I decided to put off my certifications efforts in SAP Retail due to lack of time, but mainly due to the new insights I gained as SAP AFS (Apparel and Footwear Solution) Consultant in my last projects. During the last few years I worked in several full life cycle SAP AFS implementations projects which gave me a new understanding about how SAP really fulfill the requirements of Apparel and Footwear companies. This in turn discouraged my to pursue a SAP Retail certification.

Follows some facts:

- So far I have worked in 3 SAP AFS implementation projects.
- Average implementation time for each: 2 years.
- All vertical companies: produce the own brand and sell it through own stores to end customer.
- In only one of these companies was SAP Retail + SAP AFS implemented. In the other two only SAP AFS was implemented.
- This only company is now removing SAP Retail after 5 years of operation and implementing store stock management in SAP AFS and building interface to third party POS system.
- The other two companies kept the legacy retail/POS software and integrated it with SAP AFS via interfaces.

So what's the reason for these companies deciding not to implement SAP Retail together with SAP AFS or even removing SAP Retail after a few years of usage? I will try to elaborate on this in my following posts. Stay tuned!.

Thursday, October 7, 2010

Sample Exam Questions - SAP for Retail Certification C_ISR_60

Questions

1. You post goods to storage location A. You notice that documents are missing, so you decide that the goods should not be used any further for the time being. The missing documents turn up at a later stage and you proceed with the respective posting. The goods are subsequently moved from storage location A to storage location B, which you also record in the system. In what sequence are the three goodsmovements carried out?

Select the correct answer.

a) Goods receipt – transfer posting – stock transfer
b) Goods receipt – stock transfer – transfer posting
c) Goods receipt – transfer order – goods issue
d) Goods receipt – transfer posting – goods issue

2. Within a store, you want to be able to track inventory independently at a department level. What would you use to define the department within a store?
Select the correct answer.

a) Shop
b) Store
c) Customer
d) Site

3. Each store must have an EDI Partner Profile before data can be transmitted outbound or inbound. The EDI Partner Profile requires a partner type to be defined. Which partner type is required for the EDI Partner Profile?
Select the correct answer.

a) KU – Customer
b) LI – Vendor
c) US – User
d) AP – Contact Person

4. One store in your company is supplied from a distribution center that is located in a neighboring country. For which organizational structures do you need to create the store master data?

Select true or false for each possible answer.

Note: There are 2 true answers to this question.

True False

a) You must create the store and the distribution center in different company codes.
b) You must assign the distribution chains in such a way that the issuing distribution chain of the distribution center is the same as the receiving distribution chain of the store.
c) You must create the store and the distribution center in different clients.
d) You must assign the store to a separate purchasing organization.

5. A fashion retailer uses seasonal procurement for purchasing in SAP Retail. In conjunction with this, they also want to use cross-docking with prepacking so that the vendors deliver the goods to the distribution center ready for the recipients. What settings do you need to make in SAP Retail?

Select true or false for each possible answer.

Note: There are 3 true answers to this question.

True False

a) You flag the vendors as relevant for collective numbering
b) In Customizing for seasonal procurement, you activate the option for creating a separate vendor order for each recipient.
c) You assign a distribution profile to the article in the logistics data of the distribution center. The profile must contain the processing method cross-docking.
d) You set a delivery split for inbound deliveries in Customizing.
e) In the additional data of the article, you assign an additional without a procedure.

6. Which of the following can be used (among others) to define sales prices for articles in SAP Retail?

Select true or false for each possible answer.

Note: There are 3 true answers to this question.

True False

a) Promotions
b) Competitor pricing
c) Markdown pricing
d) Product catalog
e) Article monitor

7. In your customer's SAP Retail system, when a purchase order was created from a purchase requisition, the system incorrectly converted a text item into an account assignment-relevant item. What must you do to permanently correct this error?
Select the correct answer.

a) Delete the assignment of item category T (=Text) to account assignment categories.
b) Define a new account assignment key.
c) Flag item category T (= Text) as "not allowed" for purchase requisitions.
d) Delete item category T (=Text) for the document type "Purchase order".

8. Which in-store processes can you perform using SAP Retail Store?

Select true or false for each possible answer.

Note: There are 3 true answers to this question.

True False

a) Carry out store physical inventory.
b) Make transfer postings.
c) Do Web reporting.
d) Create allocation tables.
e) Trigger sales forecasts.

9. You are expecting a slowdown in sales for the coming season.
In SAP Retail, how can you reduce a purchasing volume that has already been ordered for the coming season?

Select the correct answer.

a) You cancel purchase orders in the active purchase order monitor.
b) You cancel purchase orders via e-mail in the reactive purchase order monitor.
c) In the activities profile, you specify that the activity "Cancel" should be executed automatically.
d) You cancel purchase orders or purchase order items in the SAP Event Manager.

10. You are responsible for creating customer master records in SAP Retail. You select the appropriate ‘template' for creating the customer master record that determines the number range to be used and which data fields are required. What is the ‘template' for creating customer master records?

Select the correct answer.

a) Account Group
b) Partner Function
c) Material Type
d) Industry Sector

11. What type of Assortments can be shared by multiple sites?

Select the correct answer.

a) General Assortment
b) Assortment Module
c) Local Assortment Type A
d) Local Assortment Type B

12. Supplementary logistics services (SLS) specify how an article is to be processed in the distribution center. Which document allows for the generation of the SLS sub items?
Select the correct answer.

a) Collective Purchase Order
b) Group Purchase Order
c) Standard Purchase Order
d) Stock Transport Order

13. Business Planning and Simulation is used to map your planning scenarios. InfoCubes contain the actual and planned data required for the analysis. Which object corresponds with the planned and actual infoCubes?

Select the correct answer.

a) Planning Area
b) Planning Method
c) Planning Level
d) Planning Package

14. As part of the implementation of SAP Retail in your company it has been decided that new article master records created require a unique sequential number to be assigned for the article number. Where would this control option be set?

Select the correct answer.

a) Article Type
b) Site Master
c) Merchandise Category
d) Article Category

15. The article master record consists of multiple views of information. Organizational data may be mandatory or optional for the creation of a view. Which view can be created optionally for a Sales Organization and Distribution Channel?

Select the correct answer.

a) Listing View
b) Logistics: DC View
c) POS View
d) Sales View

16. What sequences are possible during multi step replenishment planning?

Select true or false for each possible answer.

Note: There are 2 true answers to this question.

True False

a) Load sales data with stock posting – Determine requirement calculation data – Calculate requirements – Generate follow-on documents
b) Determine requirement calculation data – Load sales data with stock posting – Calculate requirements – Generate follow-on documents
c) Calculate requirements – Load sales data with stock posting – Determine requirement calculation data – Generate follow-on documents
d) Load sales data with stock posting – Generate follow-on documents – Determine requirement calculation data – Calculate requirements

17. In price determination, the condition basis for a discount should be determined dynamically as the difference between two subtotals. What settings do you need to make in SAP Retail so that this request can be implemented?

Select true or false for each possible answer.

Note: There are 2 true answers to this question.

True False

a) The two subtotals must be assigned in the calculation schema above the discount condition type.
b) The condition basis is determined using a basis formula.
c) No mathematical operations can be carried out with the subtotals of the calculation schema.
d) The condition basis of the discount condition must correspond to one subtotal.
e) The percentage discount condition type must have a from-reference step.

18. A retailer wants to use the allocation table function regularly to distribute merchandise evenly from the DC to multiple stores. What do you need to do in SAP Retail to prepare for this process?
Select true or false for each possible answer.

Note: There are 2 true answers to this question.

True False

a) You create an allocation table type that contains the allocation strategy "Equal Distribution". b) You create a site group for the stores.
c) You create a notification category that contains the business transaction "Stock Reduction".
d) You create an allocation rule type in which storage location determination is activated for the distribution center.
e) You set up an item category that, among other things, controls the generation of vendor orders as follow-on documents.

19. What data do you need to optimize the sales price of articles in SAP Demand Management?

Select true or false for each possible answer.

Note: There are 3 true answers to this question.

True False

a) Article master data
b) Sales data
c) Price changes
d) Restriction profiles
e) Article list

20. Which components belong to the SAP POS solution?

Select true or false for each possible answer.

Note: There are 3 true answers to this question.

True False

a) POS Xpress
b) POS Manager
c) POS Configurator
d) Mobile POS devices
e) Converter

Solutions
1 a) Correct, b) Incorrect, c) Incorrect, d) Incorrect
2 a) Correct, b) Incorrect, c) Incorrect, d) Incorrect
3 a) Correct, b) Incorrect, c) Incorrect, d) Incorrect
4 a) Correct, b) Correct, c) Incorrect, d) Incorrect
5 a) Correct, b) Correct, c) Incorrect, d) Incorrect, e) Incorrect
6 a) Correct, b) Correct, c) Correct, d) Incorrect, d) Incorrect
7 a) Correct, b) Incorrect, c) Incorrect, d) Incorrect
8 a) Correct, b) Correct, c) Correct, d) Incorrect, e) Incorrect
9 a) Correct, b) Incorrect, c) Incorrect, d) Incorrect
10 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
11 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
12 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
13 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
14 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
15 a) Correct,b) Incorrect, c) Incorrect, d) Incorrect
16 a) Correct,b) Correct, c) Incorrect, d) Incorrect
17 a) Correct,b) Correct, c) Incorrect, d) Incorrect, d) Incorrect
18 a) Correct,b) Correct, c) Incorrect, d) Incorrect, d) Incorrect
19 a) Correct,b) Correct, c) Correct, d) Incorrect, d) Incorrect
20 a) Correct,b) Correct, c) Correct, d) Incorrect, d) Incorrect

Wednesday, September 16, 2009

SAPIRT - Overview of Functions in SAP for Retail

I just finished studying the first book of the SAP for Retail academy, "SAPIRT - Overview of Functions in SAP for Retail". This book aim is to present an overview of SAP's solutions offer to retailers.

Following the content and my comments:

Unit 1 - Navigation: this unit basically explains how to log on to the system and use the SAP GUI. If you have used a SAP system before, you will be familiar with most of the content here and might well skip it.

Unit 2 - Introduction: SAP Retail Solution Map is explained here. Concepts such business scenario group, business scenario and business process are described, as well as mySAP ERP architecture and key technological terms in the SAP environment such as ALE, RFC ans BAPI. At the end of the unit you will be presented with a section about international standards (ARTS, GLN/ILN, EAN, UCC, UPC, GTIN, etc.). Basically general purpose information is presented here that will be probably useful in future books/units.

Unit 3 - Basic Concepts: a brief overview of master and organizational data is presented here. Following concepts are explained:

  • Organizational structures: client, company code, purchasing organization, purchasing group, site, storage location, sales organization, distribution channel, distribution chain.

  • Master data: merchandise categories, merchandise category hierarchies, article hierarchy, stores, distribution centers, department store/shop, customers, vendors, article master (single articles, generic articles, structured articles), article list, price catalogue and assortments.
The organizational structures are basically the same you find in SAP R/3, with some differences like for example the concept of distribution chain and the fact that stores and distribution centers are created as plants in SAP Retail and as customers and vendors (in the case of DC's) as well.

Regarding master data, there's a bunch of new concepts and terminology that might seem confusing at the beginning, specially regarding the hierarchies. I don't mean difficult, just confusing.

Unit 4 - Promotion Process: here an end-to-end process is explained, namely the promotion process. It this scenario, articles are "pushed" (push process - very common in fashion articles) to the stores. Very interesting since it covers planning, procurement and stock allocation using the promotion functionality and the Allocation Table tool. The Allocation Table tool is a central instrument for monitoring and controlling procurement and/or distribution of merchandise among stores and customers in the push process. What I like about this unit is that you get familiar very soon with a complete logistic process in SAP Retail without entering in too much detail.

Unit 5 - Planning: this unit introduces the most important planning options. Planning is carried out mainly using the solution SAP MAP (Merchandise and Assortment Planning) which is based on SAP NetWeaver BI. Strategic Planning is the top planning level which then is subdivided into Merchandise and Store Planning. Further planning levels include OTB (Open to Buy) planning and assortment planning. Slow Seller Management and Price Planning Workbench are covered as well. From my understanding, SAP MAP makes the most sense when planning fashion articles.

Unit 6 - Requirements Planning & Stock Allocation: this section describes requirements planning procedures that are typical in retail, both for distribution centers and for stores. Interesting to note is the fact that the functionality for requirements planning in SAP Retail is basically the same you find in SAP R/3, namely consumption-based planning, only with some minor enhancements for store replenishment. Additionally, SAP offers a more robust option for requirements planning namely Forecast and Replenishment solution. There's also a section about sales price calculation which explains briefly how to calculate the purchase and sales price for a group of articles, which is new functionality in SAP Retail.

Unit 7 - Purchasing: this unit is about purcharse order management, order optimizing, collective purchase order, perishables planning, invoice verification, vendor relationship and foreing trade. Purchasing in SAP Retail is based basically on the functionalities found in SAP R/3. However it has been enhanced to support the push (mainly fashion articles) and pull (mainly basics) processes in SAP Retail, in scenarios like cross-docking, flow-through and putaway.

Unit 8 - Logistics: this unit describes the most important process flow at the warehouse, such as goods receipt posting and accessing a stock overview. Value- and quantity-bases inventory management is explained. If you are a WM consultant, you will be already familiar with most of the content.

Unit 9: Multi-Channel Retailing: this unit provides an overview of the most important forms of store connection (SAP Retail to POS system). It also introduces the component SAP Retail Store. The solutions SAP Workforce Management and SAP CRM are briefly explained. Those are all external systems that must be interfaced/connected with SAP Retail.

Final comment: If you are new to SAP for Retail, this book might prove difficult to master at the beginning mainly because of the bunch of new terms, topics and concepts, all packaged in a somehow sloopy way. However, since it's an overview of a broad topic, that's probably the only way to do it. My advice is to read the book through without being too much concerned about not understanding everything. Then read it again but this time doing the exercises after each chapter. Finally check the test section at the end of the unit where you will find exam like questions.

Next post will be about the second book, "IRT310 - Master Data in SAP for Retail".

Monday, August 24, 2009

SAP Retail and SAP for Retail

At this point I find useful to explain the terms "SAP for Retail" and "SAP Retail", and to mention the different solutions that SAP offers to retailers. This will provide you with more context to understand better future posts.

SAP uses the terms "SAP for Retail" and "SAP Retail" with different meanings. "SAP for Retail" covers the entire SAP solution offering for the retail sector. According to SAP, "SAP for Retail" is an end-to-end set of solutions that supports merchandise management and planning, workforce management, point-of-sale data management, demand forecasting and replenishment, merchandise and assortment planning, master data management, and even radio frequency identification (RFID).

"SAP Retail" in contrast, which relates specifically to SAP Enterprise Resource Planning (ERP) system, is one of several solutions that is included in SAP's industry solution "SAP for Retail".

The solutions included in "SAP for Retail" are:
  • SAP MDM (Master Data Management)
  • SAP MAP (Merchandise and Assortment Planning): comprises Strategic Planning, Store and Merchandise Planning, Assortment Planning, Slow Seller Management, OTB (Open to Buy) Planning
  • SAP Demand Management: is made of SAP Price Optimization, SAP Promotion Optimization and SAP Markdown Optimization. It was developed by a company called Khimetrics, acquired by SAP in 2006
  • SAP Retail (SAP Enterprise Resource Planning -ERP- system): this is basically a SAP ECC system with enhancements for the retail industry
  • SAP Global Trade Services
  • SAP EWM (Extended Warehouse Management)
  • SAP Forecast and Replenishment: was developed by a company called SAF AG which is currently being acquired by SAP
  • SAP POS / SAP Enterprise POS: was developed by a company called Triversity, acquired by SAP in 2005
  • SAP Retail Store
  • SAP Workforce Management
  • SAP CRM (Customer Relationship Management)
Other SAP SCM (Supply Chaing Management) solutions that are useful for the retail sector are the following:
  • SAP Transportation Management
  • SAP Event Management
  • SAP Supply Network Collaboration

Saturday, August 1, 2009

SAP for Retail Certification

So I have just started preparing myself for the SAP for Retail certification exam. I decided not to enroll in an academy but to prepare myself for the exam. For SD/MM consultants I don’t think the academy is necessary.

So what’s my plan? Get the books, buy access to a SAP Retail system and start studying and testing the concepts in the system!.

The SAP for Retail academy is made of 6 modules which correspond to following 6 books:

SAPIRT - Overview of Functions in SAP for Retail: is a prerequisite for all further SAP for Retail courses (621 pages, 45% weighting).

IRT310 - Master Data in SAP for Retail: covers the specific master data in SAP for Retail. This course is a prerequisite for all other detailed courses for SAP for Retail (405 pages, 18% weighting).

IRT320 - Prices, Promotions and Markdowns: explains how prices and promotions can be maintained and configured in SAP for Retail (543 pages, 19% weighting).

IRT330 - Planning, Purchasing and Warehouse Distribution: covers merchandise procurement and the settings of the related parameters (641 pages, 16% weighting).

IRT360 - Store Connection: covers the processes involved in supplying stores with data, and processing the data sent from a store to a central SAP retailing system (261 pages, 2% weighting).

IRT370 - SAP Retail Store: explains the configuration options and functions of SAP Retail Store (197 pages, 2% weighting).

The weighting % is a rough calculation based on information from this SAP site.

Course SAPIRT replaced course IRT100. There are 2 other courses related to SAP for Retail that are not part of the academy/certification exam:

IRT340 – Supply Chain Execution
IRT350 – Merchandise and Assortment Planning

Now I’m studying the first book, "SAPIRT - Overview of Functions in SAP for Retail", it’s a huge one, 621 pages, but a big part are exercises that can be tested on an IDES system. My next post will be about it.