Business Process

Management in Retail

Dieter Becker
Business Development
Field Services Trade Hub - Global

Dr. Dieter Scheerer

Industry Solution Management Trading Industries
SAP AG

January, 13th 2011

 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
3. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 2

 Challenge -
Innovating in Complex Business Networks

Critical Component Raw Sourcing Agent

Material Vendors

Factory/
Sourcing ecommerce

Retail
Company

Consumer
Products
Retail Store
3PL
Freight Consumers
Consolidator

Distribution
3PL/4PL Center
Domestic Shipping
Distribution Consumer
Center Direct
Brand
Wholesalers

Retail Customers

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 3

 When to use SAP NetWeaver BPM?
To extend and complement best practices

We need to We can either buy standard

adjust this or build custom software
process!
IT

Business

Standard Custom
software software

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 4

 Business Process Layer Made Simple

Consider the following process steps regarding typical retailing activities:

Order Receive Pay

Order
Order Receive Pay
Pay

Services Order Receive Pay

Auction Order Pay Receive

Classic Retailing Receive Pay

Catalogue Retailing Pay Receive

Present Receive

Reusable business processes steps allow the same 3 steps,

assembled differently to support 5 different business models
© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 5
 Business Suite and SAP NetWeaver BPM
Leverage Industry Best Practices And Define Your Own

SAP NetWeaver BPM Create own practices

(delivered with SAP NetWeaver CE) with SAP NetWeaver BPM
Examples
People-centric processes
Paper and approval-intensive
processes
Processes spanning across
multiple systems
Processes interacting with
external parties

Enhancement
Packages

SOA-enabled
3rd party
Leverage best practices
SAP Business Suite with service-enabled SAP
Business Suite
SAP NetWeaver

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 6

 SAP NetWeaver Business Process Management
Embedded in SAP NetWeaver Composition Environment

SAP NetWeaver
Business Process Management

Process Process
Process
Composer Desk
Desk

Process Server

Comprehensive process management

Unifying human and system automation processing steps
Business Process is more than just service orchestration

Composition of event-driven processes

Seamless combination of service, event and human task
Enterprise services consumption
Tightly integrated with SAP NetWeaver Business Rules Management

Benefits of an integrated composition environment

Model-driven development
Integrated toolset
Out-of-the-box ESR integration
Lifecycle management
© SAP 2008
2011 / Page 7
SAP NetWeaver Business Process Management in Retail, Page 7
 SAP Business Suite Service Enablement

Exposed as
Enterprise Services

Duet Mobile Forms Widgets Portal Voice

SAP SAP SAP

ERP CRM SRM
RSS Embedded Project Muse Dashboard RFID SAP GUI

Business Process Management Business

object
Composite Applications
BO BO

SAP NetWeaver

Home SAP
Grown/ Demand SAP Biz SAP
Managem. ERP partner MAP
ISV

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 8

 Retail Relevant Service Enablement:
1340 Enterprise Services
34
9
18
8
9 180
10
13
407
85
79

68
34
28
156
104
28
Because of multiple 475
assignments of an Enterprise
Service, totals per Business 12
Scenario Group can be smaller 163
than the sum of the Scenario 144
64
Group level. Same is true for 245
the overall total. 27

512

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 9

 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
4. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 10

 Inefficient replenishment demands planning
Is costly and time-consuming

How much
Ketchup
should I order?

Boston sales outlet

Store Manager

Chicago HQ
Buyer

Retail Headquarters

New York sales outlet

Store Manager

Inefficient Process

Miami sales outlet

Store Manager

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 11

 Determining replenishment demands
Sample process description

Process
Supervisor

Initiates necessary
corrective actions

Boston sales outlet

Store Manager
Adjusts suggested
replenishment
quantities

Chicago HQ Chicago HQ
New York sales outlet
Process Start Buyer Buyer Process End
Store Manager
Adjusts suggested
Estimates sales Finalizes orders:
replenishment
outlet demand & optimizes quantities
quantities
verifies with store & triggers logistic
managers execution

Miami sales outlet

Timer automatically
Store Manager
tracks task deadlines
Adjusts suggested & sends reminders
replenishment
quantities

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 12

 Determining replenishment demands
Business Process Model

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 13

 Determining replenishment demands
No need to re-invent, simply extend!

Sales Outlets

SAP NetWeaver BPM

(process extension)

Boston sales outlet New York sales outlet Miami sales outlet
Store Manager Store Manager Store Manager

Adjust suggested
replenishment quantities

Finalizes orders:
Estimates sales
optimizes
outlet demand &
quantities &
verifies with store
triggers logistic
managers
execution

Chicago HQ
Buyer SAP for Retail
(standard core process)
Retail Headquarters
© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 14
 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
3. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 15

 Inefficient handling of claims
Resulting in dissatisfied customers

What is the status

of my broken TV?

Boston sales outlet

Store Manager

Customer
Inefficient Process

Logistics service
provider

Manufacturer

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 16

 Streamlining handling of claims
Sample process description

Customer Clerk @ Sales Outlet Logistics service Manufacturer

provider
Makes Verifies claim
Process claim (receipt, initial
Start (via store) product check)

Confirms pick-up
Agrees to Confirms receipt
of returned
maximum of product
product
potential cost for
repair

Creates Repairs, replaces

claim or refunds
product

Forwards product
to manufacturer
Receives
Confirms pick-up of
repaired/replaced
Process repaired/replaced
product or
End product
refund

! All process participants can check the status of the claim at any time

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 17

 Streamlining handling of claims
No need to re-invent, simply re-use!
SAP NetWeaver BPM
(process extension)
Process controlled by the Sales Outlet

Customer Clerk @ Logistics service Manufacturer Logistics service Customer

Sales Outlet provider provider

Creates claim and Confirms pick-up of Receives

Makes claim Confirms pick-up of Repairs/replaces or
forwards to repaired/replaced repaired/replaced
via store returned product refunds product
manufacturer product product or refund

Get Sales Order Get Supplier Create Quality Notif.

Read Claim Status Get Customer Update Quality Notif.

SAP CRM & SAP for Retail

Retailer (re-use standard core functionality)

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 18

 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
3. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 19

Inaccurate product master data
Is a major issue for Retailers and Suppliers

Do you want to
stock our
new Drill?

Supplier
Account Manager

Please update your

master data records
for our Ketchup!
Retailer
Category
Manager Retailer
Supplier Master Data
Account Manager Team Member

Retailer

Do you want to
stock our
Inefficient Process
new Mobile?

Supplier
Account Manager

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 20

 Streamlining product master data maintenance
No need to re-invent, seamlessly extend!

SAP NetWeaver BPM

(process extension controlled by the Retail Headquarters)

Supplier Retailer Retailer

Account Managers Category Manager Master Data Team Member
Select and Select and
Augment
transmit products approve
product master
to offer to the products for
data
retailer assortment

Read and send Create and enrich Update Update

product master product master product master product master
data data data data

SAP for Consumer Products SAP for Retail

(standard core process) (standard core process)
Supplier Retail Headquarters

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 21

 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
3. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 22

 Real-World Scenarios From SAP Customers

EDEKA Minden
Proactive and event based analytics of potential upcoming
problems in the supply chain. Role based reporting and follow
ups.

Large German Online and Mail Order Retailer

Cross company interaction for new product introduction and
vendor related master data maintenance.

Large World Wide Shoe Retailer

Interactive Article Lifecycle Process across SAP and non-SAP
solutions.

Large European Grocery Cooperative

Article Request and Maintenance Process across various
company entities.

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 23

 Agenda

1. Why take a BPM approach in retail?

2. Sample of collaborative retail processes where BPM can be applied
2.1 Determining replenishment demands by retailers & sales outlets
2.2 Handling of claims by sales outlets & manufacturers
2.3 Collaborative product master data maintenance by suppliers & retailers
2.4 Real-world scenarios from SAP customers
3. Summary

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 24

 Your process looks slightly different?
Simply adjust the process according to your needs

With SAP NetWeaver BPM you can …

But our process is a little … change the

bit different! process model

Line of Business user

I would like to use a … create and assign

different UI? new UIs

End user

What if we need to change … allow business users

a business rule? to take control of rules

Process owner

How does it integrate with … integrate applications

our other solutions via web services

Process expert

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 25

 © SAP
2009 /
Page

Thank you! 26

Dr. Dieter Scheerer Dieter Becker

Solution Management Business Development Manager
ISM Trading Industries Field Services Trade Hub - Global

dieter.scheerer@sap.com dieter.becker@sap.com

© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 26

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© SAP 2011 / SAP NetWeaver Business Process Management in Retail, Page 27