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Identifying Key Capabilities of SAP Solutions for the Retail Industry

<div id="content"><p tabindex="0">In this video, you will look at the business capabilities of SAP for the Retail industry in more detail.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody">SAP employees and official SAP Partners can <a target="_blank" href="https://sap.sharepoint.com/:p:/r/teams/2024Industry101update-admin/_layouts/15/Doc.aspx?sourcedoc=%7B1735EB6F-AC4C-45A9-9517-A3C151783ECE%7D&amp;file=Unit%202%20-%20Lesson%201%20-%20SAP%20for%20Retail.pptx&amp;action=edit&amp;mobileredirect=true&amp;previoussessionid=2847298f-ccea-5af3-6e40-438b09dc56d9">download the slide deck</a>.</div></div><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_q8bksemt"></div></div><p tabindex="0"></p><div class="parentsection"><div class="section"><div tabindex="0"><h3>Lesson Summary</h3></div><p tabindex="0"><strong>Personalized Marketing and Customer Engagement:</strong> SAP's omnichannel marketing solutions enable retailers to provide personalized marketing experiences and build customer loyalty by understanding individual customer journeys.</p><p tabindex="0"><strong>Unified Customer Experience:</strong> A seamless omnichannel commerce platform integrates all sales channels, offering a unified customer experience, which is crucial but often complex to achieve. For example, Harrods uses SAP technology to deliver a smooth customer experience across multiple channels including e-commerce and international shopping.</p><p tabindex="0"><strong>Optimized Retail Operations:</strong> SAP's capabilities in planning, merchandising, and procurement help retailers make informed decisions, optimize inventory, and improve operational efficiency. Examples include Foodstuffs North Island using SAP for personalized marketing and Woolworths streamlining procurement processes.</p></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Related Resources</h3></div><p tabindex="0">If you are interested in learning more about SAP and Retail, please visit the following resources.</p><p tabindex="0"></p><ul style="list-style-type:disc"><li tabindex="0"><a target="_blank" href="https://dam.sap.com/mac/app/search?query=SAP1003294">https://dam.sap.com/mac/app/search?query=SAP1003294</a></li><li tabindex="0"><a target="_blank" href="https://content-discovery.int.sap/explore?mediaTypeIds=IVJ&amp;categoryItemIds=industry_99624789925257984685885">https://content-discovery.int.sap/explore?mediaTypeIds=IVJ&amp;categoryItemIds=industry_99624789925257984685885</a></li></ul></div></div></div>

Key SAP Solutions

Introducing the Retail Industry

Identifying Key SAP Solutions

Welcome to the second part of this session. In this session, we will look at the business capabilities of SAP for retail in more detail. Omnichannel marketing solutions from SAP enable retailers to know their customers as a segment of one and to help them design campaigns that are tailored to individual needs. Personalized marketing and customized experiences build loyalty and lasting relationships that essential to increase profitability and market share. It involves a thorough understanding of each customer journey. Retailers need to anticipate customer needs, personalize their experience, and provide excellent service across all touch points. By optimizing this engagement cycle, retailers are able to create loyal customers. A true omnichannel commerce platform seamlessly integrates all sales channels, providing a unified customer experience. It's easy to say customer experience is your number one priority, but offering a truly seamless journey is often brutally complicated on the backend. London-based luxury retailer Harrods uses SAP technology with retail and CX capabilities to ease that backend burden and deliver a silky smooth customer experience across all its channels, which include a growing e-commerce site, private shopping in China, and more. Our planning and merchandising capabilities enable retailers to generate incremental revenue by aligning pricing, promotions, and assortments with current and future customer demands. Creating profitable plans across all channels and ensuring to offer the right product at the right time in the right place is the core of retail. With comprehensive planning, retailers make informed inventory decisions, optimizing turnover and reducing markdowns. Based on a centralized master data management, retailers have real-time insights and the ability to instantly adapt and react to changes in the market. Visibility into product design and development enables retailers to stand out with high-quality private label products that allow for a competitive edge in the competitive market. Based on all sales, data valuable insights into merchandising performance can be provided in real time. Retailers can find the answers to product performance enabled to predict better and make profitable merchandising decisions. Predict, plan, and optimize promotion and pricing across all channels allows retailers to consider customer behavior, competitors' actions, and market trends to offer the right price at the right time in the right channel. Foodstuffs North Island is a grocery retailer in New Zealand. They are capturing and analyzing data at a detailed level, including transactions made at self-checkouts to modes of payment. With highly granular data, the retailer can drill down to key insights and use this knowledge to build personalized experiences. With a new understanding of customer habits, the company is using personalized marketing techniques and gathering transactional insights around alternative payment options. By unifying more data and relationship information, Foodstuffs can now meet customer needs more proactively. Our capabilities for procurement excellence and negotiation are designed to efficiently source, buy, or produce products by collaborating with a global network of business partners, decreasing the risk of errors or missed saving opportunities, and increasing sourcing efficiency. By effectively managing sourcing and contracts, retailers can minimize risks and costs associated with their supply chain. By carefully selecting suppliers and negotiating favorable contracts, best value for their money and minimizing the risk of disruptions in their supply chain can be ensured. In the retail, it is crucial to have a robust system in place to manage suppliers and mitigate risks. By leveraging a global business network, retailers can access a wide range of suppliers, increasing competition and driving down costs. An effective procurement process is key to further reduce costs and improve overall operational efficiency. With the right tools and strategies, retailers can make best decisions about what products to buy, when to buy them, and from which suppliers. This ultimately helps meeting the customer's demand, increase sales, and drive business growth. Further, it improves operational efficiency and source determination for so-called indirect products, which is essential in reducing costs and freeing up resources to focus on the core business of retail. Integrating invoice processing and accounts payables with invoice management capabilities will streamline financial operations. Automating these processes eliminates manual errors, reduces processing time, and improves cash flow management. Woolworths wanted to establish a strong foundation to simplify non-trade purchasing transactions. To get there, Woolworths needed an end-to-end procurement solution to help to deliver strategic value and to ensure the buying process is compliant with procurement policies to minimize risk. With the help of SAP, they streamlined and standardized procurement processes, enhancing the user experience for stakeholders and realized efficiencies through automation, digitalization, and integration. By optimizing forecasting, allocation, and replenishment with our digital supply chain capabilities, retailers create transparent and customer-driven supply networks that anticipate demand and will get the right products to stores and to customers at the right time. For example, by managing initial push processes for products as well as their automatic fill-ins within the season with predefined allocation strategies, or by replenishing the right quantities for stores and distribution centers, or by anticipating customer demand, considering logistical and cost optimization aspects, and so streamlining the supply chain planning process. Our capabilities for all-me channel inventory and order response helps retailers to manage their inventory accurately across locations and provides full visibility into inventory values and performance. Inventory costs can be minimized while customer satisfaction is improving by virtually pooling all inventory to be enabled to respond and fulfill customer demand from the best locations, stores or warehouses. Inventory can be reserved and promised during the processing of customer orders. And retailers can monitor margin, inventory turns, sell-through, and other metrics at any level of the merchandise hierarchy to identify top performers and issues that need attention. To improve customer satisfaction, retailers need to manage the complete transportation management lifecycle, considering all requirements. By planning, optimizing, tendering, and selling freight. By booking carriers. By managing forwarding orders. And by complying with international trade regulations and requirements. Running warehouses and distribution centers more efficiently by automating inbound and outbound processes, storage, and inventory management is key for every retailer. Our supply chain management capabilities can gain full control of warehouse operations, improving asset utilization, increasing logistics throughput, and filling orders accurately and on time. This also includes a yard management with real-time visibility. Faster gate-in and gate-out processes lead to a significant reduction in processing time, which finally improves customer service. How does our customer  benefit from our solutions? Let me give you an example from Schwarz IT. Schwarz IT is the technology partner and central service provider for the Schwarz Group, one of the leading retail groups around the world. To further improve demand and replenishment planning, Schwarz IT and Kaufland decided together to innovate and improve their demand forecasting and product replenishment processes with our ML and AI based capabilities. The intelligent forecasting helps Schwarz Group to better anticipate and deliver on customer demands, which finally results to better customer service and greater customer satisfaction. Our capabilities for store operations and omnichannel sales order management are critical for real omnichannel retailing. Successful retailers are able to identify their customers, provide a targeted marketing, offer personalized promotions, and provide a consistent experience consistently through all channels. Connecting people and devices will allow the optimization of assortments, pricing, and promotions for customers as well as for store employees. A seamless, omnichannel and consistent customer service is at the heart of every retailer, from intelligent order-sourcing, inventory visibility, and stringent pricing, to processing payment and handling returns. Having access to the information as well as real-time collaboration is key to solve complex cases, improving customer satisfaction and loyalty. Real-time access to information and seamless collaboration are vital for optimizing customer satisfaction and streamlining operations. One of our customers, Tchibo GmbH, leverages SAP advanced omnichannel retail platform to ensure a smooth and consistent customer experience. The integration of SAP solutions provides Tchibo with real-time stock availability and accurate pricing across its vast network of stores and e-commerce channels. This capability is crucial for delivering a reliable and cohesive shopping experience. By integrating SAP Customer Activity Repository with SAP S4 HANA, Tchibo has modernized its retail management system. This has enabled intelligent inventory planning, efficient stock replenishment, and the ability to offer click and collect services, enhancing flexibility for customers. The SAP Omnichannel Promotion Pricing Solution ensures consistent promotional pricing across all channels, fostering customer trust and loyalty. Tchibo now maintains high operational efficiency and adaptability, positioning the company to meet evolving market demands and customer expectations effectively. Concluding, let me underline how our retail capabilities are meeting today's and future business needs, highlighting on four key areas where technology is making a big impact. Digital storefronts, intelligent ERP, product returns, and omnichannel retail. It's more important than ever to create engaging digital storefronts that work seamlessly across all devices. And with the help of AI, we can now deliver hyper-personalized e-commerce experiences that are tailored to each individual customer. By using real-time insights to improve in-store operations, we can transform core processes to improve the shopping experience for customers. Our intelligent ERP enables retailers to streamline everything from inventory management to customer service. Returns can be a pain point for both retailers and customers. With AI-assisted routing, dispositioning, and analytics, we can offer a seamless, transparent returns process that benefits everyone involved, reducing costs, improving customer satisfaction. Today's retail landscape is all about breaking down the barriers between channels. From in-store digital displays to online marketplaces and pop-up stores, we offer capabilities to enable a seamless shopping experience that meets customers wherever they are. Retailers can build stronger relationships with their customers and finally drive more sales. This was an example on how you can provide our retail message to your retail customers. I highly encourage you to utilize this as a starting point and further familiarize yourself with all the rich content, the customer stories, and interactive value journeys we have embedded, and more on SAP Content Discovery page. Thank you all, and take care!