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".