SAP Forecasting and Replenishment for Retail, Fact Sheet

November 2016
add-on for fresh products
Solution Description
Product categories with ultra-fresh products such as
vegetables and fruits, meat, fish or convenience food,
have special requirements . Highly volatile daily sales
patterns and strong seasonal influences make sales of
fresh products difficult to predict. This calls for extremely
accurate daily forecasts as well as fast reactions to
unforeseen sales trends. Waste is another consideration
in replenishment for fresh products with very short shelf
life. You must know where write-offs are likely to occur in
order to calculate precise order amounts.
The solution SAP Forecasting & Replenishment for Retail,
add-on for fresh products addresses these key points of
an otherwise cost intensive process.
Business Needs
• Fresh products are crucial for grocery retailers to attract
and retain customers. Fresh quality is a large factor in a
customer’s decision to shop at one store or another.
• If there are out of stocks or the product is not fresh
enough for the consumer, this negative impression can
have an impact on the image of the entire company.
• Products that do not sell because the shelf life has
expired lead to costly write-offs and waste of resources.
• Often there are products that are not available at the
beginning of the day but later during the day or even
need to be delivered multiple times per day
Business Value
 With an automated replenishment for fresh products,
customers can achieve reduced labor costs because
this process is still in most cases a manual process
 An increased availability of products leads directly to
a reduction of the out of stock situation as well as an
overall reduced stock can be expected
 An achieved reduced spoilage leads to less wasted
money and food which has a global impact and a
direct ROI for the retailer
 Intraday capabilities will result in more accurate
order amounts as well as reduced safety amounts
and thus positively impact as well the overall stock

Key Product Elements Service and Support Technical Requirements (or higher)
 Forecasting: (selected topics)  Consulting Proof of Value-Service available  SAP F&R 5.2 (SCM 7.02) with FRP-Version 5.4.0
– Real day forecast  Full complement of support services are available (SAF-Version)
– Current tendency predictor for fast adjustments of forecasts  JAVA Version 7.1 on application server
to current trends
– Weekday DIF to determine whether the weekday itself has  Languages available: English, German, Spanish,
an influence on sales Dutch, Danish and Swedish (the language has less impact
for a direct user interaction, it is more related to customizing)
 Replenishment: (selected topics)
– Consideration and estimation of future waste based on
shelf life, shrinkage and a configurable mixture between
FIFO and LIFO
– NEW Intraday availability and multiple deliveries per day: Contact
Demand and replenishment calculation is based on sub- Please contact your account manager or SAP representative to get more
daily availability times instead of full days. Two order
information and details related to this product. Link: http://www.sap.com/customdev
proposals per day are possible if stores are delivered twice
a day.

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