MAP Financial Planning Implementation REI

8/18/2019 MAP Financial Planning Implementation REI

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MAP Financial Planning

Implementation/ REITom Kimmet and Kelly Hasty

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Real Experience. Real Advantage.

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Learning Points

Successful implementation of theMAP Financial Planning tool

Benefits seen in using SAP MAP

Best practices


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[ Who is REI?

Outdoor SpecialtyRetailer

Co-op structure

Established in 1938

Based in Seattle, WA

$2.0B in sales 11,000 employees

125 Stores/robust online

business

2 DC’s

Private Brand

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[ REI Footprint

Process Integration

Merchandise &AssortmentPlanning

Business Warehouse

POSDMECC 6

FI CO

MM SD

Enterprise Portal

SCM

Forecasting &

Replenishment

SAP IS-Retail Solution

* REI also owns the BusinessObjects tool suite (Crystal, WebI, Xcelsius)


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[ Scope of SAP Retail Footprint/Roadmap

2010 implemented ECC, FICO, POSDM, BW, netweaver,handheld scanning

2011implemented MAP Financial planning

2011 executed substantial hierarchy reclassification

Future: F&R 5.2

Future-Future: MAP Assortment planning

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[ Why SAP MAP

Legacy system unstable Legacy system would not support a

hierarchy reclassification

Change from Retail method of

accounting to Cost method ofaccounting

Leverage the SAP ECC/BW

platform

Include Private Brand planning Supports location, product and

strategic planning levels

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7/16Real Experience. Real Advantage.

[ Implementation

Started in May 2010- went live in

September 2011

Karabus as a consult for

development of planning process

SAP as implementation team

Total team: 2 SAP/4 REI Full greenfield effort

Product: Monthly, class level,

Sales/Turn/ Margin/ Inv

SAP support for Calculation

Engine rebuild

Inconsistent performance using

portal interface

Web Application Designer

(WAD) used to develop UI front

end.

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[ REI Product Hierarchy

Total Specialty Shop

Department

Class: Lowest level of product planning

Merch-Cat

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[ Product Planning KPI’s

Sales Inline, Clearance, Promo

Inventory

Inline, Clearance, Promo

Gross Margin Average Unit Retail (AUR)

Average Unit Cost (AUC)

Monthly at class level

Number of Departments: 52

Number of Classes: 238

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[ Planning Layouts/Reports

Open to buy Preseason

Strategic

Location

Private Brands

3 plan versions

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[ Channel Hierarchy

TotalRetail/Direct

Region

District

Store: Lowestplanning level

DMA

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[ Location Planning KPI’s

Line of Business Planning (Retail,Online)

Region, District, Location

Sales only

Monthly Total Store (created to go to

Specialty Shop)

Created concepts for planningComp Stores, New Stores and

non-comp stores

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Benefits

Stable platform Less Administration

Allowed for Hierarchy reclass

Better management of perishable inventory due to CMA

Integration of Private Brand planning System Flexibility



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Key Learnings

Define future planning process before starting implementation

Pick a good time in the planning cycle to go live

Spend more time understanding CMA impacts

Think twice about the triple play: CMA, Hierarchy, new System

Be more thoughtful on strategy for transition on Retail vs.CMA reporting KPI’s

EOP$ don’t equal BOP$

Developed reporting last



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Best Practices

Define planning process prior to start of implementation

Layout/Tab management

Leadership level support (REI)

Executive alignment REI-SAP

Agile development


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] Thank you for participating.

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3502

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MAP Financial Planning Implementation REI

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