Retail & Consumer Goods

The origin of the term “trade” can be found in early primitive societies as an exchange of goods for goods. This form of trade – exchange of goods – developed into a commercial transaction with the establishment of a generally accepted means of payment. The purchase and sale of goods for money opened a new chapter in the history of trade. Although today’s retail business essentially consists of buying and selling, economic and economic factors – such as the increasing globalisation of companies, the close competition and the continuously rising expectations of consumers – have transformed buying and selling.

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Today more than ever, retailers are faced with growing competition and new challenges. Therefore, planning is becoming more and more important, which, however, also leads to an immense increase in complexity. A flexible and integrated planning system is essential for the success of a company. SAP MAP provides our customers with a fully integrated planning solution with comprehensive real-time performance metrics and a powerful planning and simulation function.

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Only when the retail processes have been effectively implemented can the company’s performance be measured, monitored and, if necessary, post-optimized. For successful and future-oriented corporate management, management relies on intuitive, decision-relevant and visualizable information in the form of reports. Delivering reports is not easy and almost impossible without retail knowledge.

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Against the background of the rapid economic development and the continuously increasing importance of market globalization, customer demands have risen significantly. In order to meet this requirement, suitable measures must be taken promptly and implemented in good time. A rapid and flexible response to market changes requires a timely infrastructure designed for flexible and real-time-based responses. This infrastructure encompasses all of a company’s business areas.

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The fashion industry has undergone a radical revolution in recent years. The industry turnaround has triggered the rapid increase in demands for innovative, flexible and optimally coordinated strategic approaches in order to be able to meet the increasing demands of fashion-conscious and brand-interested consumers more exquisitely and precisely.

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As successful as the vertical approach may be, its optimization potential is huge. Verticalisation creates new horizons and by no means barriers. Smaller or even medium-sized fashion companies that do not have the necessary means will not starve but benefit from the larger ones. Although the large companies gain a transparent insight into the end customer’s business, in some respects they are inferior to the multi-label stores. Multilabel stores serve a broad spectrum of consumer demands and offer great attractiveness in their diversity.

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“Never out of Stock” (NOS) is a term from the merchandise management and stands for articles that are always available and are never taken out of the assortment. The goal of the introduction of NOS articles is to increase the turnover, and thus also the profit margin. The increase in profit is given by the fact that costs for product planning, prototypes, design, market analysis, etc., are not included in the cost of the product. Non-recurring effects remain. This increases the return on investment (ROI) with a lower stock investment. The basic idea behind NOS is very close to the approach of a central warehouse management system. The NOS principle is based on a central warehouse with access to current sales information for a final real-time POS distribution.

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Despite its highly competitive margins, the market for consumer goods is more difficult to sell than any other. The progressive advance of discounters is also causing headaches for established retailers in this country. At the same time, consumers are increasingly demanding sustainable and fresh products, delivery that meets their needs, a growing range of products and, last but not least, acceptable quality for every purse. The purchasing behaviour of consumers has changed drastically in recent years. This change has set new standards in the food industry and created a kind of industry innovation.

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The rapid technological development has spoiled the customers. Customers only want products that meet their requirements more efficiently and precisely. The industry has come up with new strategies to meet customer requirements. The manufacturers have tried to respond more specifically to customer wishes by introducing niche products.

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An outstanding characteristic of a generic merchandise category hierarchy is the fact that individual leaves contain the information about the levels above them in their structure. This implementation approach is characterized by an impressive transparency and allows a flexible arrangement of the hierarchy levels.

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The merchandise category hierarchy must be unique company-wide. In practice, it happens time and again that the hierarchy levels have to be restructured due to new business strategies. Nevertheless, evaluations based on data before the key date of the changeover must still be carried out on the old hierarchy.

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Entrepreneurial strategies and tactics lead to companies merging or even being acquired. The question now is how to harmonize business processes. The merging of product group hierarchies is one of the central themes.

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Competent advice ensures more turnover and profit for wholesalers. In order to be able to provide them professionally, a context is required for establishing a suitable infrastructure for the smooth integration of the corresponding business processes. Only when the business processes have been well thought out and efficiently implemented can the information gain be used to create the basis for consulting.

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