The retail industry’s business practices have evolved as a result of the digital revolution. It is difficult for retail organizations to manage copious information in paper format, and there may be costs associated with document loss, misfiling, and storage.
The answer for all the above issues is digital transformation. The following are the causes for the rising demand for retail and brands to engage in creative business models and new methods of providing value for their ecosystem:
- Consumers are demanding higher levels of value
- Retail with a purpose
- Changes in the Sustainability Paradigm
- Market entrants
- Leading retailers establish the following strategic goals to develop their businesses and prepare to meet the demands of tomorrow’s consumers.
- Customer-centric mindset across the value chain
- Serve the “one-segment”
- Create digital supply chains
- Rethink shops
- Develop innovative business models
This writing entails the industry-specific features for the Retail industry offered by RISE with SAP’s business transformation service. Let’s begin by with SAP’s solution for the digital transformation of the Retail industry!
SAP’s Digital Transformation Solutions for Retail Industries
New business capabilities enabled by the intelligent suite and industrial cloud solutions provide flexible, sustainable, and responsive delivery as well as value-added service for consumers.
Intelligent demand database
○ Orders from many channels provide a shared foundation for omnichannel demand planning, coupled with transactional data.
○ Embedded intelligence to detect integration issues.
Unified demand forecasting
○ Forecasting using intelligence.
○ To manage forecasting exceptions, use the Analytical Cockpit.
○ Intelligent services to identify comparable items for reference and usage in relevant applications (assortment planning, replenishment planning).
○ Cannibalization effects must be determined.
Planning merchandise and assortments
○ Retail and wholesale omnichannel planning.
○ Option planning that is optimized.
○ Clustering of intelligent stores.
○ External information for product rating.
○ Hierarchies of flexible planning and a business rule framework.
○ Tools for closed-loop shelf optimization.
Planning for allocation
○ Smart allocation is based on assortment or promotion plan outcomes.
○ The first surge will be followed by a demand-driven in-season replenishment.
○ Allocation of cross-products for end-of-season distribution.
Though the Retail industries are highly benefitted through SAP’s intelligent enterprise solution, it’s important to know what the Retail industries think about their digital transformation guided by SAP.
Retail Industry’s views on Digital Transformation:
- Engaging, relevant, and convenient customer experiences personalized to each customer’s mood, knowledge, and preferences are vital to 73% of retail firms.
- 79% of retailers believe it is critical to modify assortments and adjust prices across channels quickly and effectively based on current trends and customer information.
- Having comprehensive insight into spend categories across all lines of business and regions of their retail operations is critical to 72% of retail firms.
- 70% of merchants believe having visibility into the global inventory pool and optimizing it for a “source anywhere, fulfill anywhere” approach is critical.
- To better serve customers, 74% of retailers believe it is critical to provide store staff with real-time product and inventory information.
(Note: Data was taken from SAP’s statistics)
Now we do have a clear-cut view of the provider’s offering and the implementer’s requisites; well how do we blend them?
Before jumping in, we should also know what the Retail industry is planning for the sustainable industry 4.0 implementation in the years ahead, let’s decode RISE with SAP for the Retail Industry;
What’s RISE with SAP all about?
Enterprises of the digital era have been seeking to operate their business computations through the cloud as digital transformation’s expedition has started for most enterprises.
Many small and midsize enterprises have already transformed into intelligent enterprises, while large businesses with multiple ERP systems and other corporate applications are still in the process of transformation.
SAP RISE initiative offers you “business transformation as a service.” More than its basic ERP features, RISE with SAP is about ERP as a service powered by SAP S/4HANA, combined with other intelligent business services to create value. RISE with SAP’s strategy is designed to help you transition to an intelligent enterprise running on SAP S/4HANA Cloud, with access to SAP Business Network and services to meet your unique business requirements, including best practices, business process intelligence, transformation program planning, and a range of industry-specific cloud-based solutions.
Looking into the future of the Retail Industry with RISE
- Omnichannel retailing: e-commerce: Today’s multichannel retail blurs the barriers between channels, from in-store digital displays to online marketplaces and pop-up stores. Retailers must deliver seamless shopping experiences that exceed customer expectations in order to compete and grow.
- Customer satisfaction: Customers may browse and collect items conveniently with curbside pickup, “buy online, pick up in-store” (BOPIS), “scan and go,” and “simply walk out” alternatives. Micro fulfillment centers and collaborations with last-mile firms like Uber and Lyft provide more customer-pleasing alternatives, all of which are made feasible by smart technology.
- Personalization in marketing: Every retail organization must be able to recognize shifting trends and individual client preferences to succeed. Retail analytics may assist businesses to understand their consumers’ present and future demands, allowing them to better tailor their products. Customer loyalty and, ultimately, profitability are built through personalized marketing and experiences based on agreement and trust.
- Sustainable Shopping: Consumers today want to buy from businesses that are committed to long-term success. Fortunately, sustainable business is good business, and circular economy concepts and zero waste can make a significant improvement to the bottom line with improved planning.
RISE with SAP equips the Retail sector with established industry best practices, and uninterrupted, real-time analysis and transactions allow more efficient processes by streamlining the corporate processes and delivering critical industry features such as;
- Store administration and management
- Customer Relationship management
- Employee morale
- Long-term product innovation
- Manufacturing and distribution
- Supply chain responsiveness management
- Marketing, sales, and after-sales services
Time to look into the innovations offered by RISE with SAP for the Retail industry;
Innovations of RISE with SAP for the Retail Industry
To give a flawless consumer experience, integrate your digital and physical channels in a smooth end-to-end process to deliver commerce everywhere. You can add value to your RISE with SAP solution by increasing company innovation with the following:
- SAP Customer Activity Repository: To enhance productivity and the consumer experience, connect retail operations throughout the whole value chain.
- SAP S/4HANA Retail for Merchandise Management: With a real-time picture of consumer behavior, optimize your planning apps and orchestrate omnichannel order management.
- SAP Commerce Cloud: Grow to your full potential and provide a flexible e-commerce experience based on extensive, real-time consumer information.
- SAP Omnichannel Point-of-Sale by GK: Increase customer loyalty and drive exceptional in-store customer experiences while lowering your total cost of ownership.
- SAP Omnichannel Promotional Pricing: Ensure promotional pricing is consistent across all of your sales and engagement channels.
The RISE with SAP Value
- Increase income by optimizing your product and service portfolio with deeper consumer and shopper data and driving hyper-personalized upsell and cross-sell suggestions for new revenue sources.
- Reduce expenses by reducing inventory levels, store operating and shipping costs, and markdowns through intelligent and autonomous merchandising processes, faster-planning cycles, and employee empowerment.
- Reduce waste and emissions through implementing more robust supply networks, circular value chains, and replenishment planning that focuses on waste reduction.
To sum up, RISE with SAP can accelerate the pace of digital transformation and your transition to green energy, optimize the environmental impact, increase asset utilization, reduce wastes, build sustainable products and increase compliance.
Own your tomorrow with a guided journey and outcome-driven practices of RISE with SAP, to know more about the industry-specific solution, do get in touch with us!