SAP Forecasting and Replenishment (F&R) for retail enables retailers to anticipate and adapt to consumer demand with its advanced demand forecast calculation.This tool provides a powerful set of functionalities whose main objective is to keep store shelves always full without generating overstock.
SAP F&R allows you to adjust different forecasting methods to achieve a forecast that precisely matches the actual demand of each of the different items. The forecast calculation takes into account possible increases in demand due both to the existence of promotions and seasonal periods (ice cream, nougat, etc.). It is also capable of ruling out occasional sales peaks so that the forecast is not distorted.
In addition, with the SAP F&R Fresh Product add-on, it is possible to obtain an improved forecast for perishable products, as well as a forecast of the decrease according to their expiration date.
The procurement process for stores and distribution centers is fully automatic in SAP F&R. This allows you to reduce the number of manual activities that employees must perform, giving them more free time to devote to other value-added activities in the business.
In addition, SAP F&R adapts to different company distribution scenarios and allows you to define multi-stage scenarios where provisioning in distribution centers is based on the result of procurement in stores.
SAP F&R incorporates different methods to determine the safety stock of items. Thus, it is possible to obtain a dynamic calculation of these stocks according to the curve of the forecast or the increase of the forecast demand due to a promotion. In addition, SAP F&R offers several advanced functionalities to optimize the flow of goods, for example:
- Order balancing: SAP F&R allows to balance the weekly order load, advancing the demand within the same week to avoid an overload of store orders at the end of the week.
- Pre-allocation of demand: this process allows the demand to be anticipated in future weeks in order to avoid, for example, bottlenecks in the reception of goods in periods of high sales, such as Christmas.
- Optimization of the transport load: this function allows to define the capacity of the trucks and to consider this definition during the provisioning. Thus, the system can anticipate the demand for an article to fill a truck and thus reduce transport costs. It also allows to consider the stacking of the goods inside the truck to maximize its filling.
Management of orders
Order proposals generated by SAP F&R are automatically transferred to SAP Retail, without the need for company staff to intervene. In addition, it is possible to define multiple order split criteria; SAP F&R can generate different proposals for items with different delivery dates, or have the order proposal split into multiple orders, each of which represents a transport truck.
Thanks to the native integration of SAP F&R with SAP BW, it is possible to have all the information of the procurement process in standard reports that help to make operative and strategic decisions. Thus, it is easy to identify problems in the supply network thanks to the report of stock shortages or carry out a detailed analysis of how the forecast adjusts to the actual demand of the items with the quality report of the forecast.
Benefits of SAP Forecasting and Replenishment
Overall, SAP F&R provides all the tools necessary to optimize the procurement process and improve the supply chain, as it is based on mathematical models of demand forecasting. The direct benefits that SAP F&R provides include:
- Increased availability of the articles in the store and distribution center.
- Tighter inventory and, consequently, lower shrinkage losses.
- Higher staff productivity thanks to the automation of the entire procurement process.
- Reduced order and delivery costs thanks to the system’s advanced features.
- Improved forecasting for fresh products as well as intraday functions with SAP Forecasting and Replenishment, Fresh Product Add-on.
Are you interested in optimizing the procurement processes in your company or do you need more information about the SAP Forecasting and Replenishment solution? Get in contact with us! As a certified SAP partner (SAP Silver Partner) and thanks to our proven experience working in the Retail sector, we offer a portfolio of specialized SAP Retail services , designed to help customers in the retail and large distribution sectors to optimize processes in all your areas.
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