Focus On

Best Practice

Integration of category management within the SAP Netweaver landscape

In practice Category Management processes too frequently receive insufficient support from IT. CM employees work autonomously with tools such as Excel and shelf space optimization software. Category managers spend most of their project time on clearing and data management of scanner and market research data. This time-consuming process keeps CM employees from focusing on tasks actually assigned to them: the optimization of product ranges and retail shelf space.

THE CHALLENGE

In the area of Category Management leading name brands work closely with retail partners in order to be able to present their customers the best possible product range on the store shelf. Optimized procurement, integration and processing of data such as budget and trade panel data from market research institutes and POS scanner data are decisive to business success. In practice, Category Management processes frequently receive insufficient support from internal IT departments. The area of category management works independently, using tools such as Excel or software from market research data suppliers. An elaborate process which leaves the category manager insufficient time for the work actually assigned to him – optimizing product ranges:

  • Poorly organized shelf space confuses potential shoppers as they make purchasing decisions.
  • Because of a stock-out a consumer cannot find his product and therefore buys a different product.
  • Category managers are caught up with procurement, integration and processing of data from various sources and are thus unable to focus on their primary tasks.
  • Monitoring the success of CM projects does not take place because of the high level of effort required for updating data after completion of projects.
  • The information from various sources available in Category Management can be used in other areas of the company to increase efficiency.

THE SOLUTION

Mapping Efficient Consumer Response to an integrated SAP system landscape In the CM area, 4brands Reply follows a close-loop approach based on an eight-step ECR process. Efficient Consumer Response defines how the manufacturer and retailer work together in an ongoing process, adding value to the consumer along the entire supply chain. ECR starts with automated updating of information from various data sources such as Nielsen market research data or retail trade partner scanner data in the manufacturer's BW system:

  • This data is not only available during an ongoing CM project so that the optimal range can be identified for stocking, but can also be analyzed afterwards to measure success.
  • A Web interface ensures that the retail partner can access the information.
  • Your category managers thus gain time for their primary tasks and for other CM projects.
  • The information gained can be made available to other functional areas within the enterprise – such as product managers and those involved in sales planning.
  • Integration with your CRM system ensures market transparency. At the press of a button you – and your retail partner – can see which outlets have implemented your shelf layout at what level of quality.
  • You can objectively show your trade partner potential revenues not being captured due to insufficient implementation of requirements.
  • You can track the success of product introduction campaigns – by your company and by the competition – and use this information to take targeted action.
  • Data procurement and aggregation is handled professionally by the company IT department.

Your IT benefits from integration within the SAP landscape:

  • Your IT benefits from complete integration of our solutions in your SAP landscape. Time-consuming interfaces and dependence of system experts of individual manufacturers are dispensed with.
  • Total cost of ownership for the applications due to rapid implementation and low maintenance overheads.
  • No licensing fees are required for proprietary solutions and servers.
  • The solution can be adapted at any time by your IT to meet future business requirements.
  • SAP solutions undergo constant further development. The SAP NetWeaver platform offers substantial flexibility and scalability.

THE BENEFITS

Consumers, trade partners and your company all benefit equally:

  • You can present yourself to your retail trade partner as a competent category captain.
  • You deliver greater convenience to more shoppers and end consumers. This increases customer satisfaction and brand loyalty.
  • The shelf position at the POS is optimally utilized.

OUR SERVICE

The 4brands Reply consulting team is highly qualified and possesses extensive industry-specific knowledge and IT expertise. We are an authorized SAP Special Expertise Partner for the consumer goods industry. With our innovative solutions we have made a name for ourselves as a reliable and competent IT partner for well-known players in the consumer goods industry. Our approach is customer-centric. Instead of focusing on individual business processes, we place a strong emphasis on holistic integration of the solution into your company's processes. At the same time we are not dependent on one IT platform because of our close partnership with Accenture CAS AG on the CPWerx Demand Side Management application suite.