ECR Compliant Procurement Processes
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Transcript of ECR Compliant Procurement Processes
ECR Compliant Procurement Processes
SAP Best Practices for Retail
© 2011 SAP AG. All rights reserved. 2
Purpose, Benefits, and Key Process StepsVersion 1 - Buyer-Managed Inventory
Purpose The scenarios presented in SAP Best Practices for Retail deal with the retailer`s procurement
processes, which include buyer-managed inventory and vendor-managed inventory.
Benefits efficient merchandise control which fulfills the requirements of ECR-compliant procurement
processes more efficient communication between retailer and manufacturer/vendor
Key Process Steps Process purchase order in the retailer system Process sales order in the vendor system Check purchase order confirmation in the retailer system Process delivery in the vendor system Perform goods receipt with reference to shipping notice in the retailer system Create billing document in the vendor system Carry out invoice verification in the retailer system
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Purpose, Benefits, and Key Process StepsVersion 2 - Vendor-Managed Inventory
Purpose The scenarios presented in SAP Best Practices for Retail deal with the retailer`s
procurement processes, which include buyer-managed inventory and vendor-managed inventory.
Benefits efficient merchandise control which fulfills the requirements of ECR-compliant procurement
processes more efficient communication between retailer and manufacturer/vendor
Key Process Steps Transfer the stock data of the retailer to the manufacturer Carry out replenishment planning with resulting sales order in the manufacturer system Generate the purchase order automatically in the retailer system with a report to the
manufacturer
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Required SAP Applications and Company Roles
Required SAP Applications SAP SAP enhancement package 5 for SAP ERP 6.0
Company Roles Retail Purchaser Manufacturer
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Process Flow DiagramECR Compliant Procurement Processes - Buyer-Managed Inventory
Create Purchase Order
Purchase order confirmation
Display incoming invoice
Create Sales Order
Perform goods receipt with reference to
shipping notice
Create Invoice
Man
ufac
ture
rR
etai
l Non
-Sea
sona
l Pu
rcha
ser
DESADV
Ret
ail P
eris
habl
es
Buy
er
Inbound processingORDRSP
Process deliveryInbound
processing of Idoc DESADV
Inbound processing of INVOIC Idoc
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Process Flow DiagramECR Compliant Procurement Processes - Vendor-Managed Inventory
Transfer the stock data of the Retailer to the manufacturer
Outbound Idoc: ORDCHG
Replenishment planning in the manufacturer
system
Inbound processing of Idoc
ORDRSP
Inbound processing of
ORDSP
Man
ufac
ture
rR
etai
l Pur
chas
er
Display Sales Order
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ECR Compliant Procurement ProcessesIntroduction
Between Retailers and Manufacturers of the German textile and apparel industry, cooperative concepts within the framework of procurement, marketing and using of information and communication technology are developed.
Collaboration concepts, like Efficient Consumer Response (ECR), earn on importance. The new technologies open small and middle companies the possibility to accomplish the structure change and also to reinforce their competitive strength.
SAP offers a software solution within the framework of the SAP Best Practices Version, which reflects the new requirements of ECR conformable procurement processes.
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ECR Compliant Procurement ProcessesIntroduction
With SAP software you have the possibility to build up the manufacturer and also the retailer side. We will show you here the procurement processes on the retailer side.
The ECR conformable procurement processes embrace the price catalog, the buyer managed inventory and also the vendor managed inventory.
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Price catalog: PRICAT
PRICATIs an EANCOM standard message type
Area of master data
Enables pricing and catalog-related data for goods and services to be transferred from a vendor to a buyer
Complete listing of all productsNotification of changes Information relevant for all customers Customer-specific informationData supplied to a central article database
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Price catalog: Supply of a data pool
Vendor Retailer
Master Data
Data Poolf. e. Sinfos
XI Inbound processingof PriceCatalogue Idoc
BAPI/ALE
Generate of PriceCatalogue Idocs
Sender Recipient
XI
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Price catalog inbound: process flow
Simulation of IDoc Inbound processing
Display Header Data(catalog)
List of article
Adopt Profile
Process Price catalog manual / automatical
Process not existing article data in the Customer system (EAN‘s) /Creating article
Process available article data in the customer system (EAN‘s) / Update of article
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Price catalog inbound: catalog creation
The catalog is stored on the database as a separate business object PriceCatalogue
EANCOM fields that do not correspond to R/3 fields are transferred to the system
It is possible to select articles to be updated Transfer can be controlled at field level
If an EAN exists uniquely in the system, article assignment is carried out
If errors occur, an application log containing all messages is created (transaction PRICATLOG)
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Price catalog inbound: preparation
Preparation before catalog transfer
• Assignment of ILN to SAP vendor, purchasing group• Assignment of merchandise categories to SAP merchandise categories (for
each ILN)• Assignment of SAP merchandise categories to purchasing groups
Workflow preparation
• Assignment of buyers (SAP users) to organizational units, to which the relevant purchasing groups are assigned (transaction PFOM)
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Price catalog inbound: accessing catalog maintenance
Header data•Set catalog status
• After processing, the catalog status is automatically set to 'processed'• Catalog status can be manually set to 'closed'
•Set test indicator•If you want to process the catalog you have to enter always the purchasing group •Price catalog could be processed manually or automatically
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Price catalog inbound: accessing catalog maintenance
List of article• In the list of article you will find now the article (items) of the new
price catalog• Items are distributed among several views according to their status • New items have no entry in the ‘article’ field and you can find these
items in the ‘to be processed’ tab, (article can not be assigned) and ‘all entries’
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Price catalog inbound: assignment of EAN to an article
• The assignment of EAN to an article occurs automatically when a catalog is created (unique EAN)
• Manually in catalog maintenance• Assigned article is stored in price catalog• Can be entered at a later date• If the EAN is not unique, all possible EANs are displayed• For assignment, articles are also displayed with the vendor article
number from the catalog• New articles need template articles (proposed from the merchandise
category)
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Price catalog inbound: transferring catalog data to article data
Adopt profile• The transfer of catalog data to article data could be done with an
adopt profile• The adopt profile enables the simultaneous display of catalog data
and article data (or in the case of new data, the template article)
• Required data must be explicitly transferred from the catalog to the article side, either manually or by using a transfer profile
• Adopt profiles could be stored and used again• The article fields can be edited
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Price catalog inbound: assignment of EAN to unit of measure
•Automatically • By mapping the EANCOM packaging type to alternative unit of measure in the
converter• During R/3-R/3 data interchange
•Manually in catalog maintenance• Can be changed at a later date
•New units of measure must be explicitly transferred • It is possible to transfer all units of measure from the catalog
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Price catalog inbound: updating to article
•What can be updated:• Basic data• Texts• BOMs (new)
•What cannot be updated:• Characteristics• Generic article/prepack• BOM changes• Conditions• Material
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Buyer managed inventory (BMI)
SAP ERP offers for communication the possibility of the generation of so called IDoc’s. An IDoc is an electronic document in SAP standard format.
SAP offers furthermore the possibility, with help of XI (open integration technology of SAP) to process all notification formats (like SEDAS, UN, EDIFACT, XML …).
For the more efficient communication between the retailer and the vendor, documents like purchase orders, order confirmations, delivery notifications and invoices are relayed electronically.
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Scenario BMI: process flow
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Scenario BMI: process flow
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BMI: process flow
Lieferant
Retailer
1. Purchase order
Filiale Verteilzentrum2. PO confirmation 3. Shipping notif.4. Invoice
Store DC
Manufacturer
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BMI: purchase order handling
Create Purchase
Order
Check PO confirmation
Retailer
Generation ofIDoc
ORDRSP
ORDERSCreate Sales Order
Generate PO confirmation
Manufacturer
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BMI: goods processing
DESADVShipping
notification
Post goods receipt
Retailer
Create Deliveries
Articles to Retailer
ManufacturerEDI-Interface
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BMI: payment transactions
Generation of IDoc
INVOICVerify and
post invoice
Retailer
Invoicing
Manufacturer
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BMI: conclusion
Retailer system IDoc IDoc Vendor system
Create purchase order ORDERS
Customer order is created
ORDRSP Process customer order
Order is entered into pur-chase order.
DESADV Create delivery
Delivery note is created
Process goods receipt fordelivery note
INVOIC Create invoice
Create incoming invoice,invoice ferification takesplace
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Vendor managed inventory (VMI)
Vendor managed inventory means, that the manufacturer will make the disposition of his products (as a service for the retailer), which are represented in the stores of the retailer
This requires, that the manufacturer knows the actual stock and sales data of his products in the retailer stores. The manufacturer could then make a prognosis of the sales data of his products and also an effectives replenishment would be possible.
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VMI: process flow
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VMI: transfer of stock data
Manufacturer
• Maintains stock data of his products at the retailer site
• Tracks sales history
Retailer
• Sends stock and sales data at a regular basis to the manufacturer
Stock Data
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VMI: transfer of stock and sales data
Sending of stock and sales data
Retailer
Generation of IDoc Actual Sales data will be
updated in the information
structure S130
Stock data will be written in the table
WRPT
Manufacturer
PROACT
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VMI: sending stock and sales data to the manufacturer
Done by report for selected supplier and storesinteractiv or in batch processing
Generation of IDoc PROACT
Article and data selection is controlled by profiles in the vendor masterstock and on-order quantitysales history
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VMI: planning of replenishement
Manufacturer
• calculates replenishment requirements
• generates sales order
Order Response
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VMI: planning of replenishment
Retailer
Generation of IDoc Via
replenishmentPlanning a
customer order will be created
Manufacturer
ORDRSP
Purchase orderwill be created
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VMI: Planning of replenishment
Manufacturer
• updates sales order with PO number from retailer system
Order changes
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VMI: planning of replenishment
Retailer
Generation of IDoc
Purchase order number from the
retailer will be insert into the
customer order
Manufacturer
ORDCHG
Purchase order change notice will be
created
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