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At the Retail Systems 2002 conference in Chicago, USA, the software company announced that it would introduce new merchandise management and planning functions for its mySAP Retail application and more tightly integrate planning processes within the inventory management function. The application will also offer an ability to integrate style and colour planning, along with other business indicators, when deciding on what mix of products to market.
SAP has also announced that it will resell technology from SAF and eventually embed the technology into its retail application to improve and automate forecasting and replenishment functions.
That represents a slightly new tack, according to Joshua Greenbaum, an analyst at Enterprise Applications Consulting. Typically, companies have approached the issue by squeezing fat out on the supply side of the supply chain, as opposed to focusing on the demand forecasting side. "Poor forecasting means too much product, too much inventory and too much waste in a retail market that lives and dies by the thinnest of margins," Greenbaum said.
MySAP Retail can be purchased as a stand-alone application connecting to any retail system without other SAP modules in place, said Hunter Harris, vice-president of retail business development at SAP. It will allow users quick access to data and the ability to make changes across an entire product hierarchy with less manual intervention.
For example, if a company wants to change the price on blue shirts throughout its product line, it can do so automatically without first having to call up each individual category, such as men's shirts or women's shirts, and making the price changes individually to each category.
Although the SAF forecasting tool is available now, other enhancements to the retail suite will not be available until the third quarter. Pricing has not yet been disclosed.