Scenario Name SAP Best Practices Baseline

Perishables Buying
SAP Best Practices for Retail (US)
SAP Best Practices
Scenario Overview – 1
Purpose and Benefits:
Purpose


The fresh items procurement scenario describes the procurement and
distribution of perishable products, such as issue to stores. It requires
considerable experience, is subject to strict time constraints, and must align with
business management criteria or processes.
The special functions and processes described herein for planning, procuring
and issuing enable streamlined, optimized logistics for perishable products.
Benefits


SAP Retail’s offers special planning, procurement and issue functions and
streamlined, optimized logistics for perishables.
Speedy analysis of requirement and the current market situation.
Key process flows covered






Pull Variant: Perishable Selection
Generate Collective Purchase Order
Post Goods Receipt in the DC
Adjust Distribution and generate a delivery
Confirm Transfer Order / Post Issued Goods
Post Goods Receipt in the stores
Scenario Overview – 2
Key process flows covered









Push Variant: Generate Stock Transport Order / Vendor PO
Create Direct Delivery for Stores
Post Goods Receipt in the stores
Vendor Evaluation
Compare Market Prices
Execute Automatic Reevaluation
Execute Evaluation Comparison
Display Ranking Lists
Execute Evaluation of Article/Merchandise Category
Scenario Overview – 3
SAP Applications Required:
Required

SAP EHP3 for SAP ERP 6.0
Company roles involved in process flows



Retail Perishable Buyer
Retail Perishable Buyer - Manager
Retail Warehouse Clerk
R. Warehouse
Clerk
Process Flow Diagram
Post Goods
Receipt in the
Distribution
Center
Retail Perishable
Buyer - Manager
Retail Perishable Buyer
Perisahbles Planning in the Store (PULL) – Variant 1
Perishables
Selection
Adjust
Distribution
and Generate a
Delivery
Generate
Collective
Purchase Order
Confirm
Transfer Order /
Post Issued
Goods
Post Goods
Receipt in the
Store
Perisahbles Planning in the Distribution Center (PUSH) – Variant 2
Generate Stock
Transport
Order / Vendor
Purchase Order
Create Direct
Delivery for
Stores
Post Goods
Receipt in the
Store
Ranking List
Initial
Maintenance of
Vendor
Evaluation
Execute
Automatic
Reevaluation
Maintain
Vendor
Evaluation
Compare
Market Prices
Execute
Automatic
Reevaluation
Execute
Evaluation
Comparison
Display
Ranking Lists
Execute
Evaluation of
Article /
Merchandise
Category
Perishables Planning
Definition: Perishables
Articles with short shelf-life, very often in
connection to special handling requirements
(e.g. cooling).
Fruit, Vegetables
Fish, Seafood
Dairy Products
Meat, Sausages
Convenience Products
Flowers
Special Requirements of Perishables RP

Quality and Appearance are
determining sales factors !!!

Short time period between harvest and
selling requires optimized logistics processes.

Fluctuating procurement data, e.g. required
amount, price, delivery quantity, need a highly
flexible procurement process.

Procurement with several vendors.
Perishables Planning: Procedure
ISSUE
PROCUREMENT
•
Quality?
• Price?
• Quantity?
Vendor
Wholesaler
Importer
Purch. order
Collective
PO
Store
Filiale11
Allocation table
(Push)
Distribution center
Store orders
(Pull)
Store
Filiale22
Store
Filiale33
Perishables Planning: Prerequisites

Article Master Data

Perishables article as generic article with variants
 Article
type 'FRIP'
 Assortment
list type '6'
Store: M001 - Perishables assortment
Time period: 01.07.03-15.07.03

Site Master Data
 Assortment

Article
PCS-05-ART311
PCS-05-ART312
PCS-05-ART313
list profile with perishables
Vendor Master Data

Partner function PE for SAPphone
Description
Peaches, 1kg
Ananas, HKL I
Braeb. apple,6pc
Price
$2,99
$3,49
$2,99
Perishables Planning List: Initial Screen
Processing method:
Purch. order
Alloc. table
Collective PO
Assortment list
Store or DC:
VZ01
Assortment list type
6
Delivery date 01.03.
Procurement period:
01.03.- 02.03.
POS sales period:
: 01.02.- 01.03.
Perishables Planning List
Article
Vendor
Order qty
Net price
Apples
PCS-V311
10 CT
$1.29
PCS-V312
20 CT
$1.43
PCS-V311
15 CT
$2.13
Oranges
...
...
Vendor Evaluation
Functions in Vendor Evaluation
Regular vendor
for
Article 1
Vendor A
?
Vendor C
Vendor B
Quality audits
Vendor Evaluation
Vendor C
Automatic Subcriteria: Overview
Main Criteria
Subcriteria
Price
Price level
Price development
GR inspection
Complaints
Audit
On-time delivery
Quantity reliability
Shipping instructions
Confirmation
Quality
Delivery
Service
Analyses for Vendor Evaluation
HIT LIST
General Vendor Evaluation
Total
Price
Preis
Qual .
Dlvy.
Lief .
Service
Vendor
B
90
92
90
93
85
Vendor
A
84
75
92
88
81
Vendor
C
81
90
76
74
84
Analysis for Article/ Merchandise category
Vendor Evaluation Evaluation
Total
Price
Preis
Qual .
Dlvy.
Lief
Vendor
A
88
81
93
92
86
Vendor
C
81
90
76
74
84
Evaluation Comparison
General Vendor Evaluation
Total
Vendor A
Service
84
Price
Preis
Qual .
Dlvy.
Lief
75
92
88
Service
81
Evaluation for Article 1
Total
88
Price
Preis
Qual .
Dlvy.
Service
81
93
92
86