Improve Promotion Execution with Responsive Promotion Management in SAP SNCResponsive

  • by Christian Butzlaff, Senior Director, Value Prototyping, SAP
  • V. Krishna Anaparthi, Process Architect, SAP Labs India Pvt. Ltd.
  • February 17, 2010
SAoexperts/SCM
Learn how using dynamic or reactive promotion management — rather than static promotion management — can reduce the risk for stock-out situations and overstocking at the retailer. This approach directly contributes to the success of a promotion and therefore to the company’s top-line results.
Key Concept
As part of the Responsive Replenishment scenario, the SAP Supply Network Collaboration (SAP SNC) includes a responsive promotion planning process. It automatically adjusts the promotion shipments from the manufacturer to the retailer based on the actual store shipments reported by the retailer. SAP SNC is part of SAP SCM as of SAP SCM 4.1.

Retailers and product manufacturers alike heavily invest in promotions such as coupons, special displays with price discounts, “buy one, get one free” deals, and other promotional techniques. A high percentage of the overall marketing budget is linked to promotions, which have a significant effect on the top line of consumer product companies and retailers.

Imagine a promotion with a price reduction during the holiday season, the busiest shopping time of the year. A retailer who runs out of stock during the promotion would suffer a major loss of sales. With sufficient supply, the promotion would have run successfully.

We will describe how SAP Supply Network Collaboration (SAP SNC) responsive promotion management can react to the actual sales data in a timely and automated fashion, adjust promotion replenishment dates or quantities, prevent out-of-stock situations, and increase product sales at the store. For more information on SAP SNC, see our article Improve Forecast Quality with Sales Forecast Collaboration Using SNC and APO published in the November 2008 SCM Expert.

Christian Butzlaff

Dr. Christian Butzlaff is responsible for SAP Value Prototyping services at SAP America. Before that he held various positions in the SAP Development Organization. In particular, he was Development Manager for SAP Supply Network Collaboration (SAP SNC). In his current role he works with customers on prototype engagements, for example, in the area of SAP Integrated Business Planning.

Christian holds a PhD from the University of Hamburg, Germany. He is PMI certified and is currently pursuing a specialization in machine learning.

 

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V. Krishna Anaparthi

V. Krishna Anaparthi has vast experience in the field of enterprise consulting. Playing the roles of project manager and solution architect, he is instrumental in the successful implementation of multiple SAP projects across the consumer goods, pharmaceutical, and high-tech industries. He is currently serving as the process architect at SAP Labs India Pvt. Ltd. and is a part of the SAP Business By Design development team.

Krishna holds an MBA from NITIE, Mumbai, India. He has PMP, CPIM, and CSCP certifications and is proficient in supply chain and project management processes.

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