What’s new in 5.2 plus customer innovations SAP F&R Forumfm.sap.com/data/UPLOAD/files/SAP...

SAP Forecasting and ReplenishmentWhat’s new in 5.2 plus customer innovationsSAP F&R ForumJune 2012

© 2011 SAP AG. All rights reserved. 2RKT

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Solution Enhancements Key Benefits Investment Buying

Enhanced capabilities for truck load optimization

Forecast improvements

Enhancements in order forecast (order forecast for aggregation)

Consider time-dependent information for promotions

More detailed information about automated calculation steps

Improved management of unknown DIFs

Improved usability of DataAnalyzer

Solution today

Reduce purchasing costs and take advantage of supplier promotions

Reduction of purchasing and logistical cost

Increased forecast accuracy leads to better order proposals

Improved support of multi echelon scenarios with the new Order Forecast for aggregation

Improved accuracy of promotional forecasts

Improved traceability of automated processes

Higher degree of automation

Increased efficiency

Release 2.2 of SAP Forecasting and Replenishment Open Integration provides more sophisticated functionality for DC replenishment as well as usability improvements.

SAP Forecasting & ReplenishmentLatest innovations


Key BenefitsSolution EnhancementsUsability improvements Order Lists Table enhancements Fast Actions buttons User preferences as tabs, with small button Configurable widths of columns Extended screen resolution and browser compatibility Customer specific exception descriptions Display polling time, polling dayPerformance improvements Pre-calculation of active predictors in B Pre-calculation of demand in BIFunctional improvements Completion of order review process Filtering / sorting by customer specific info Exception acknowledgement for order lists Reporting API

Planned innovations

Increased flexibility and configurability of user interface

Better response times Valuable customer specific enhancements added to

standard product

SAP Forecasting & ReplenishmentPlanned enhancements for F&R stand-alone


Solution Enhancements Key Benefits

SAP Forecasting & ReplenishmentLatest innovations

Enhanced capabilities for truck load optimization

Forecast improvements

Enhancements in order forecast (order forecast for aggregation)

Consider time-dependent data for promotions

More detailed information about automated calculation steps

Improved user interfaces, e.g. within the replenishment workbench

Improved exception handling

Enhanced connectivity of SAP F&R with SAP ERP for Retail, e.g. source list integration and transit stock consideration

Solution today

Reduction of purchasing and logistical cost

Increased forecast accuracy leads to better results

Improved support of multi echelon scenarios with the new Order Forecast for aggregation

Improved accuracy of promotional forecasts

Improved traceability of automated processes

Better usability for increased efficiency

Reduced TCO through better integration with SAP ERP for Retail

Release 5.2 of SAP Forecasting and Replenishment Standard Integration provides more sophisticated functionality for DC replenishment as well as usability improvements.


Solution Enhancements Key Benefits Consideration of customer sales

orders as exceptional demand Enhanced integration of SAP

PMR with SAP F&R

Planned innovations

Reduction of out-of-stocks due to unplanned orders

Improved transparency and visibility in F&R

Aligned promotional forecast quantities in promotion planning and replenishment.

Significant reduction of data maintenance for promotional periods

Release 5.2, SP03 of SAP Forecasting and Replenishment Standard Integration provides improvements in transparency and integration.

SAP Forecasting & ReplenishmentPlanned enhancements for F&R integrated


Enhancements Optimization: Transport Load Optimization

Sophisticated capabilities for transport load optimization (TLO) Features with respect to the algorithm: Save transportation resources through reduced number of loads Fill-up to full loads regarding weight and volume Achieve similar range of coverage for the freight Consider user-defined minimum fill thresholds (for weight and volume)

Features with respect to order proposal management Assignment of order proposal items (or subsets of it) to transportation units (such as trucks or

containers) can be reviewed and changed in the Replenishment Workbench Purchase orders in SAP Retail can be automatically split by transportation unit

Key Benefits Reduction of purchasing and logistical cost Increase sustainability factor Ease goods receipt

Optimization


Transport Load Optimization - The Algorithm, Simplified

1) Initial load

2) Consolidation and TU saving

3) Fill-up, dropping or leaving

Weight and volume thresholds not reached and dropping possible

Dropping and filling-up not possible

Fill-up allowed and possible

Key Benefits Reduction of purchasing and logistical cost Increase sustainability factor

Optimization


Transport Load Optimization – The Result

Key Benefits of Order Proposal split Ease goods receiptOptimization

F&R Order ProposalVendor: V1

DC: DC West

Product Qty. TU assignm.

Product A 34 PAL Truck 1

Product B 10 CAR Truck 2

Product C 8 PAL Truck 2

Etc.

Purchase Order 1

Product Qty.

A 34 PAL

Purchase Order 2Product Quantity

B 10 CAR

C 8 PAL

Etc.

Transfer to SAP Retail

Optional Split

Configuration and definition

of vendor restrictions

Automatic Replenish-ment run including

TLO


Enhancements Optimization: Absolute Vendor Discounts

Absolute vendor discountsDefine absolute values for discount scales (before, only percentage values could be maintained)

Key Benefits Reduction of purchasing and logistical costOptimization


Enhancements Visibility: Corrected Consumption History

Output of corrected (= pre-processed) consumption history:Background: Before the actual forecast calculation, FRP executes a data preprocessing of the consumption history including, among other things, outlier correction and correction of lost sales. Moreover, the consumption history used for forecasting can be originate from other data (for example reference product/module or substitution). This is done in order toimprove the forecast quality.

New: The corrected consumption history created by the Forecasting and Replenishment Processor (FRP) and used for forecast calculation can be displayed on the Times Series screen together with the reasons for correction.

Key Benefits Improved visibility of results from automated forecasting and replenishment processes Better user acceptance

Visibility of results


Enhancements Visibility: Pre-allocation and Optimization

Output of pre-allocated forecast and intermediate values of order optimization steps (see calculation details of order proposal items)

Key Benefits Detailed information about automated calculation steps Better user acceptance

Visibility of results


Enhancements Forecasting

Alternative determination of zero stock days for correction of lost salesSo far, zero stock days were identified if the stock at the end of the day was zero. Now, there is the option to count zero stock days only if the sales/goods issues were zero too. (Background: there could have been goods receipts later the day covering the demand for that day even if stock was zero at the beginning of day).

Elimination of collinear DIFs and multi-step noise suppressionStatistical enhancements with respect to filtering out DIFs that are either unsignificant or always occur at the same time than other DIFs.

Improved handling of first-time DIF occurrences using default correction factorsYou can define a default correction factor for each Boolean DIF related to the forecast. The system applies this factor for occurrences of the Boolean DIF if the effect of the Boolean DIF could not be determined for different reasons (e.g. first-time occurrence).

More flexible definition of Ignore DIFsYou can now define more than one Ignore DIF. As an example, you can change an existing DIF into an Ignore DIF if needed.

Trend component in regression method with dampening factorFor location products with a linear upwards or downwards trend, the regression forecast can now continue the trend with a configurable dampening factor. This further improves the forecast quality, particularly with respect to DIF effects.

Display zero forecast for non-listing periodsDepending on configuration, the system can either display forecast values for future non-listing periods (default) or can set the forecast to zero in order not to confuse users.

Key Benefits Increased availability of product and further reduction of inventories through improved forecasting

capabilities Forecasting


Enhancements Replenishment: New Order Forecast Mode

New: ‘Order Forecast with Variable Reorder Point’Situation: standard order forecast provides the most likely order projection for an individual location productHowever: there are special circumstances in which the aggregation of all ‘most likely’ order forecasts into a

higher level does not represent the most likely situation at that level: Location products with very small consumption values (ultra slow sellers)

Location products with stock or open orders clearly exceeding the demand of the next demand period

Solution: A new order forecast mode specifically designed for aggregation purposes and the option to calculate the classical and the new order forecast in parallel

Key Benefits Increased availability of product and further reduction of inventories

Used whenever individual location products are regarded

Always used for order balancing

Can be used for:

Aggregated order forecast (multi echelon or DIF)

Various CPFR scenarios

Replenishment


Example: Consider an item sold in 10 stores On average, we sell 0.2 unit per store each week We start with stock 1 unit in each store Order forecasts were until now calculated based on most likely stock projections:

Sto

ck

1

1 2 3 4 5 6 7 8 9 10Week

Order one in week 5

Order one in week 10

Enhancements Replenishment: New Order Forecast Mode – Situation before this Enhancement


Classic Order Forecast (left) and new Order Forecast (right)

Source: Stephan Kolassa (March 2011); Order Forecast for Slow Sellers, (SAF Best Practice No. 09)


Custom Solution: Daily Forecast for Fresh Items

Fresh products are difficult to forecast due to: highly volatile sales patterns seasonal products with discontinued sales time series short replenishment cycles require forecasts on daily

granularity

Objectives Increase availability Enable automated order process Reduction of spoilage

Scope Advanced forecast methodology, disruptive step forward in

forecasting approach Provide forecasts with daily granularity Demand and order calculation are performed in the existing

F&R modules


Custom Solution: Daily Forecast for Fresh Items

Approach at Coop (CH) Close collaboration with Coop to design and validate the new

solution Currently developed as Add-On (Project Solution) for SAP

F&R for Retail Results of the pilot are being expected soon

Interim solution approach till the availability of UDF and replenishment at HANA Suitable for Fresh Items and other assortments that benefit

from daily forecast Suitable for F&R Open Integration (less integration effort)

and F&R Standard Integration (higher integration effort)

Interested? Please contact the F&R Consulting Team (David Elias, [email protected]) for possible next steps Assessment Effort estimation and contractual offer Implementation


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