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Price and Revenue Management – Markdown Planning SAP Best Practices for Retail (US)

Price and Revenue Management – Markdown Planning SAP Best Practices for Retail (US). SAP Best Practices. Overview. Scenario – Price and Revenue Management- Markdown

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Price and Revenue Management – Markdown Planning SAP Best Practices for Retail (US)

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  1. Price and RevenueManagement – MarkdownPlanning SAP Best Practices for Retail(US) SAP Best Practices

  2. Overview Scenario – Price and Revenue Management- Markdown This scenario is made up of several building blocks containing the preconfiguration required for the Price and Revenue Management – Markdown scenario (Slow Seller Management). Building blocks can help to implement the solution and put into production quickly. Component View The component view shows the processes and technical components that are involved in the Price and Revenue Management - Markdown scenario. Business View The business view shows the business partners participating in the Price and Revenue Management –Markdown scenario, the entire scope of the business processes.

  3. Scenario Overview 1 Purpose and Benefits: • Purpose • In rule-based markdown controlling, markdown proposals that have been created in slow seller management in SAP BI are processed and then transferred to SAP ECC in a special work list. The list can be checked and revised in the Price Planning Workbench (PPW), a uniform working environment for price planning. • Benefits • Automated Markdown Management – The system can monitor the sales of an article according to a profile assigned and automatically recommend markdowns, if sales are not inline with expectations. • Budget functionality for price changes – Planned budget(s) can be considered to allow the user to monitor the financial impact of his activities in the Price Planning Workbench and align with planning. For budgets overrun, a subsequent approval procedure can be set up. • Key process flows covered • Slow Seller Analysis – Comparison of sales targets to recent sales history according to profiles assigned to articles and recommendation of markdowns. • Creation of a price plan that allows the user to check and optionally revise the system recommended price changes. • Release and activation of the new sales prices.

  4. Scenario Overview 2 SAPApplications Required: • Required • SAP EHP3 for SAP ERP 6.0 • Company roles involved in process flows • Retail Markdown Planner • Retail Markdown Planner – Manager • Retail Markdown Planner – Power User

  5. Process Flow Diagram Retail Markdown Planner 5.1 Markdown Profiles – SAP BI 5.2 Assign Articles to markdown profiles – SAP ECC 5.3 Perform slow seller analysis 5.3.1 Slow seller analysis – price activation level distribution chain 5.3.2 Slow seller analysis – price activation level price list 5.3.3 Slow seller analysis – price activation level site 5.4 Display worklist 6.4 Activate the price plan 6.3.1 Create condition in SAP ERP 6.0 6.3 Release a price plan 6.2.1 Create a price plan 5.5 Release markdown proposals Retail Markdown Planner - Manager 4 Assign price planner group in SAP EHP3 for SAP ERP 6.0 Retail Markdown Planner –Power User 6.1 Enrichment of the markdown proposals

  6. Component View - Price and Revenue Management - Markdown System 1 System 2 BI ECC POS Creation and Maintenance of a markdown profile Assignment of markdown profile Slow Seller Analysis Enhancements of Markdown Proposal Release of Markdown proposals Creation of a markdown price plan Release of the price plan Creation of conditions Activation of the price plan Price update

  7. Price and Revenue Management/ Slow Seller Management Concept

  8. Business Process Overview Following steps are involved in the process 1. Step: Creation and maintenance of a markdown profile in BI 2. Step: Assignment of a markdown profile to articles in ECC 3. Step: Slow Seller Analysis in BI and display of worklist in BI 4. Step: Release of markdown proposals in BI 5. Step: Enhancement of markdown proposals in ECC 6. Step: Creation of a markdown price plan in the Price Planning Workbench in ECC 7. Step: Release of the price plan in ECC 8. Step: Creation of conditions in ECC 9. Step: Activation of the price plan ECC

  9. Price and Revenue Management - Analysis

  10. Master Data: Use Pricing Reference Article

  11. Markdown Profile

  12. Markdown budget Process Overview RetailPlanning/Plan revision BI Operational pricing processes ECC Planning step 1 Permanent markdown, manual price changes, promotion ... Planningstep N ... Budget check Budget planning Actual PPW pools Planned markdown pools Target PPW pools Budget planningdata transfer

  13. Budget-Check Positive ECC PPD €18.000 Price planning document € 98.000 € 80.000 € 100.000 € 100.000 Budget-Check: >= 0? Negative PPD €24.000 Target values Current used values € 80.000 € 100.000 € 80.000 € 100.000

  14. Status of a Price Plan

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