SAP Retail Overview SAP Retail is a completely integrated retailing system. It maps the complete set of business processes required for competitive assortment strategies, different retail formats, and ECR driven logistics and distribution. It provides all the functions necessary for modeling business processes in a retail company. !ith SAP Retail, SAP has endeavored to model the full "#alue Chain," all the lin$s in the logistics pipeline from consumer to vendor. Retailers can thus optimi%e the &hole array of business processes and control chec$s in managing the flo& of merchandise and information among vendors, retailers and consumers.
'he business process area "Retailing" comprises the procurement, storage, distribution, and sale of merchandise. SAP Retail supports both &holesale and retail scenarios. 'he Retail Information System (RIS) enables goods movements to be planned, monitored and trac$ed throughout the &hole supply chain. 'he $ey retailing processes include*
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'he retailing processes enable you to control and coordinate the &hole value chain, and thus react s&iftly to changes in consumer behavior. 0e& trends, such as electronic commerce or ECR, flo& continually into ongoing development cycles. SAP Retail also allo&s for changes in legal structures or business practices 1 franchising, for e2ample. 'his ensures that retailers not only have a futureproof investment but are able to adapt s&iftly to a changing mar$et. 'he gro&th of your company is not hampered by system constraints, and you can incorporate changes in the real &orld smoothly and efficiently into the system.
Areas of Application of SAP Retail SAP Retail integrates all the $ey areas of retailing and &holesaling, all the various stages in the supply chain and ta$es into account the differing requirements of different types of goods, from food and dairy to fashion and hardlines. It provides you &ith the tools necessary to model all the business processes in the retail sector.
Retail Switch Use 'he requirements placed by retailers on I' solutions in the areas of planning and distribution, in particular, differ from the requirements of industrial companies &ith their productionoriented targets. !hen you are installing the SAP R34 component or &hen you upgrade to a ne& release you can configure your system as SAP Retail. 5ou do this by setting the "retail s&itch".
Integration -nly after you have configured your SAP R34 system as an SAP Retail system can you ma$e use of all the functions in SAP for Retail, SAP6s retail solution. Configuring your system in this &ay and using specific Retail functions may restrict your use of other R34 functions from other areas. 5ou cannot use all e2isting functions fully at the same time. 'he reason for this is that the article master for an SAP Retailconfigured SAP R34 system differs from the article master of a nonSAP Retailconfigured SAP R34 system. 5our SAP Retail system uses either standard terms or Retail terms (for more information, see Retail 'erminology ). 7o&ever, for the sa$e of clarity this part of the documentation uses the term material for master data records that &ere created &ith maintenance transactions in the SAP R34 system (manufacturing system),
and article for master data records that &ere created using maintenance transactions from SAP Retail. Prerequisites 5ou should only configure SAP R34 as SAP Retail if you have a valid SAP Retail license. If you configure your system as an SAP Retail system, you cannot reverse the setting later.
Activities 'he Installation uide and the 8pgrade uide for SAP R34 specify ho& to configure your system as an SAP Retail system. 5ou can use the program GETSYSDEF to chec$ ho& your SAP R34 system has been configured.
Retail Terminology SAP R34 is developed and delivered using standard SAP terminology. In the retail industry, ho&ever, some terms are used in some languages that differ from the standard terms used in the standard SAP system. SAP therefore offers customers &or$ing in these languages a tool for replacing the standard terms used in R34, &ith the terms specific to the retail industry throughout the entire user interface. 'his tool is used for &hat is referred to as 9Short 'e2t Replacement:. 'he SAP Retail documentation is based on the assumption that you have replaced the short te2ts in your SAP systems. !hen you follo& lin$s from the Retail documentation to other parts of the SAP documentation, note that standard SAP terminology is used and not the terms specific to the retail industry. 'he follo&ing terms differ depending on &here you are in the documentation* SAP Retail Article
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Organizational Structure !"ample 'he follo&ing e2ample illustrates ho& the structure of a company could be reproduced in SAP Retail and e2plains &hat the various organi%ational units mean. 'he fictitious company has several subsidiaries, &hich themselves comprise several distribution chains.
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'he organi%ational structure of the company in the e2ample graphic &ould be modeled in SAP Retail as follo&s* #entral purchasing 'he highest element in the &hole corporate group hierarchy is the client. All the organi%ational units in a client are sub>ect to the same control mechanisms. ata valid across the &hole corporate group is stored at client level. In the e2ample, the central purchasing department of the company is located in the SAP Retail structure at client level.
$ocal purchasing ;ocal purchasing departments are assigned to central purchasing. Each local purchasing department is responsible for a different distribution chain. Each local purchasing department corresponds to a company code or a purchasing organi%ation in SAP Retail. Specific purchasing activities are assigned to individual purchasing groups. %istri&ution chains ;ocal purchasing procures merchandise for different distribution chains centrally. istribution chains in SAP Retail are a combination of sales organi%ation and distribution channel. 'he sales organi%ations are assigned to different company codes. %istri&ution center' Store istribution chains consist of distribution centers (C) and stores. 'he generic term for Cs and stores in SAP Retail is "site." Sites are also managed as customers in the system. Storage location' Storage section' %epartment Sites can also be seen as a combination of one or more locations in close pro2imity to each other &here stoc$s of merchandise can be found (e2amples are storage locations and storage sections). Stores can also be subdivided into departments, &hich in turn can be understood as cost centers. Each department can be assigned a receiving point. #ustomer 'he value chain concludes &ith the customer or consumer. If the customer is recorded in the system (and is therefore an identifiable customer), natural persons can be defined in the customer master as the contact persons at that customer.
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