Today we launched the new version of SAP HANA Customer Activity Repository for SAP Customer Activity Repository 2.0 based on SAP CARAB 1.0, FP3.
What can you expect from this new version? A lot of established content, enhancements to existing stuff, but also brand new content:
- Proven functionality and automated configuration for POS Data Transfer and Audit
- Enhancements to the Analyze Forecast SAP FIori App (e.g. new decomposition view to analyze the calculated forecasts by influencing factors)
- New SAP Lumira report to visualize the on-shelf availability KPIs
- New SAP Lumira report showing inventory details of consignment stock
- New SAP Lumira report for affinity insight to identify driver/drag products
- A new scope item introducing Omnichannel Promotion Pricing.
Let me focus in this blog on the new content for this version.
On-Shelf Availability Report
SAP Customer Activity Repository includes on-shelf availability algorithms (OSA) that you can use to detect and visualize potential lack of sales in stores. With that you can observe on-shelf availability KPI’s from the past to determine hot spots related to stores, suppliers or weekdays to be able to derive appropriate measures targeting improved on-shelf availability.
Probably you’ve heard this already from a former version of the CAR RDS. The older versions provided the configuration of the OSA algorithm and explained the results. But now the RDS provides in addition pre-built SAP Lumira reports to visualize the results of the OSA algorithm, so that you can take further actions to optimize your business.
In the new reports lost revenue, lost sales, lost transactions and number of alerts are shown in relation to merchandise category and product, stores, vendors and time. So it’s now easy to identify potential issues and reasons regarding out-of-stock situations.
On-Shelf Availability Overview Chart
On-Shelf Availability by Time
A new report has been added to SAP Lumira for Inventory and Sales Reports: Inventory Details with Consignment stock. In case you are dealing with consignment stock in your stores, this report shows you four more stock types: unrestricted vendor consignment stock, blocked consignment stock, quality inspection stock and restricted vendor consignment stock.
SAP Lumira Report: Inventory Details with Consignment Stock
When considering how to manage products that interact with each other, it is important to understand how an action on one product (such as an offer) affects the sales of another. Understanding these interactions can help make smarter and more profitable decisions. The affinity analytics feature in Demand Data Foundation (DDF) allows you to identify such relationships between your products based on transaction log (TLOG) data available in SAP Customer Activity Repository. Two new SAP Lumira reports visualize the results of this analysis: Product Affinity by Driver Product and Product Affinity by Drag Product.
What is a driver and what is a drag product? The driver product is the primary product – the drag product is the associated one. Let me give you an example: A high-end camera and the batteries needed to use the camera. If you buy a high-end camera, you most probably also buy some batteries, but not the other way round. So the camera is the driver product, and the batteries are the drag products.
The reports are showing three important KPI’s helping to judge on the intensity of the affinity: Support, Confidence and Lift (Ratio). Support shows the ratio of number of times, two or more items occur together to the total number of transactions. It indicated the popularity of the product or product bundle in the transaction set. A high value here means that it’s applicable to a large number of transactions – and with that an offer or promotion including the driver product could have a big effect.
The conditional probability that a randomly selected transaction will include item A given item B is shown in the KPI Confidence. A high value here means also a greater return rate – and it’s used for product placement strategy to increase profitability. The third KPI, Lift (Ratio) shows the ratio of the probability of items A and B occurring together to the multiple of the two individual probabilities to for item A and item B. It indicates the strength of an association rule over the random co-occurrence of item A and item B given their individual support. If the value is greater than 1, it means that the existence of the driver product in the transaction increase the probability that the drag product can also be found in the same transaction.
Product Affinity by Driver Product
Omnichannel Promotion Pricing (OPP)
Retailers have the challenge that different sales channel applications (POS systems, webshops, …) calculate the effective sales prices differently. Often complex offers are not fully and consistently supported by all relevant sales channels, which makes it on the one hand difficult and expensive to introduce a new offer type company wide. On the other side the buying experience for end-consumer is not seamless and consistent across all sales channels. We are talking here about offers like „buy one, get one free“, „buy one, get one with discount“, „Show a coupon and get 2$ off“, „buy 3 and get the cheapest for free“ and so on.
With the latest SAP Customer Activity Repository release, SAP offers the first version of a central sales price repository for price calculation purpose and distributing this information to all channels. With that a retailer can use the same price calculation logic in all sales channels. It’s planned to deploy this repository in two different ways – centrally and locally. In the central deployment, the data is stored in CAR and services are calling into CAR to get the latest, customer specific price information. This wouldn’t work if connecting thousands of POS systems directly to CAR to retrieve price information – therefore also a local deployment, e.g. in the store is possible.
In the current version of the rapid-deployment solution, the following process steps are covered:
- Create Offer with the new SAP Fiori Offer UI
The new SAP Fiori App has two different views, depending whether a SAP Promotion Management for Retail License is available or not. Without the SAP Promotion Management for Retail License, the user only have restricted functionalities to create new offers, e.g. vendor funds are not considered.
- Approve Offer
The approval of the offer results in the creation of a so called OPP Promotion. What happened here is the conversion of the offer to an ARTS (Association for Retail Technology Standards) format that is widely accepted for defining promotional rules.
- Transfer Offer
If you want to move the offer to SAP ERP, e.g. to follow up on logistic processes, you can use the transfer functionality. In SAP ERP, a new promotion and a new bonus-buy is going to be created. Revoke will remove the offer from a previous transfer to ERP.
- Export Offer You can use the export offer functionality to create Idocs’s with the price and promotion information
- Detect Collisions
If you are creating several offers, it might happen that you potentially create overlaps. Perhaps you have created an offer valid for a whole merchandise category, but with the same time frame also an offer for an individual article belonging to this category. With the functionality of collision detected, these types of overlaps are checked and displayed, so that you can easily see and decide about the collisions.
Screenshot Offer List
Screenshot Create New Offer
Please check out here for more details and feel free to download the content!