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Promotion Management SAP Best Practices for Retail
©2011 SAP AG. All rights reserved.2 Purpose, Benefits, and Key Process Steps 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 Steps 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)
©2011 SAP AG. All rights reserved.3 Required SAP Applications and Company Roles Required SAP Applications SAP SAP enhancement package 3 for SAP ERP 6.0 Company Roles Retail Promotion Planner Retail Warehouse Specialist Retail Store Manager Retail Sales Person Retail Non-Seasonal Purchaser
©2011 SAP AG. All rights reserved.4 Process Flow Diagram Promotion Management - Version 1 – Retail Retail Promotion Planner Create promoti on with budget check? Create purchasing conditions Create promotion Select price plan in tree Create discount Ret. Pricing Manager Retail Markdown Planner Retail Warehouse Clerk Display promotion Save price plan Create coupon Create article grouping Create bonus buy Create promotions w/ budget check Step 1: Create promotions price plan Step 2: Release price plan Step 3: Price plan approval Step 4: Create conditions Check promotion sales prices Step 5: Activation of price plan Change validity period of promotion
©2011 SAP AG. All rights reserved.5 Process Flow Diagram Promotion Management - Version 1 – Retail (contd.) Retail Promotion Planner Carry out listing Subsequent Processing Supply source determination Ret. Pricing Manager / Store Manager Retail Seasonal Purchaser Retail Warehouse Specialist Subsequent processing: Price activation Activate prices Check promotion sales price Deliver merchandise to stores Subsequent processing in distribution center Goods receipt in stores (optional) Standard retail promotion Announcing promotion Generate allocation table Subsequent processing: Allocation table Subsequent processing: Announcemen t Subsequent processing: Closing confirmation of promotion in ERP Subsequent processing: Activate allocation table Evaluations
©2011 SAP AG. All rights reserved.6 Process Flow Diagram Version 2 – Wholesale Promotion Management Retail Promotion Planner Create promotion without budget check Retail Sales Person Retail Non- Seasonal Buyer Assign further sales agreements to a promotion Activate prices Create sales order Retail Warehouse Specialist Create Billing Document Create delivery Create transfer order Confirm TO and post goods issue Evaluations Display Outbound Delivery
©2011 SAP AG. All rights reserved.7 Promotion Creation Options - Coupons, free-goods discounts and bonus buy - One price list Budgetart Budgetebene - Promotion budget - Several price lists Markdowns Man. Price changes Promotions …. Price plan overview Selection Price Planning Workbench Create promotion …. Subsequent processing Announcement Background processing Archiving Master Data without budget check with budget check Promotion Planning
©2011 SAP AG. All rights reserved.8 Subsequent processing Create promotion Assign site groups Additional assignments Enter promo- tion data Enter planning data Quantity planning Price planning Period-base d Higher-level? Article Planned currency Promotion periods Within the promotion For all promotions Discounts Bonus buy Reference promotion Promotion type Promotion Planning Coupons Process Flow for Promotion Creation
©2011 SAP AG. All rights reserved.9 Promotion Planning Announce- ment Alloc. table Supply source determ. Additionals Promotion subsequent processing Price activation Listing Assortment list POS data Retail price calculation Subsequent Processing for Promotions
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