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Diana Nedelcu
July 30, 2024
AROBS Transilvania – custom software development company
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Retail Automation: Efficiently Managing Inventory with SAP Retail Assortment Planning
In the fast-paced retail world, efficiently managing inventory is necessary to meet consumers’ demands. Thanks to software development, retail automation assists enterprises in streamlining operations, reducing mistakes, and enhancing overall efficiency. An excellent example is the deployment of SAP Retail Assortment Planning, which provides a strong base for generating purchase order recommendations within the SAP ERP system.
Grand View Research has estimated that the world’s retail automation market was valued at USD 24.12 billion in 2023 and will grow at a CAGR (compounded annual growth rate) of 9.3% from 2024 to 2030.
Understanding Retail Assortment Planning
Retail assortment planning is a strategic process retailers use to determine the optimal selection of products to offer. This involves planning merchandise categories down to the most granular level, such as style, colour, and size for fashion items and SKU (stock-keeping unit) for non-fashion items. The primary goal is to ensure that the right products are available in the right quantities at the right time, maximizing sales and minimizing excess inventory.
Efficiently managing inventory: The Role of SAP in Retail Automation
SAP Retail Assortment Planning is a powerful tool that aids retailers in achieving precise assortment plans. By leveraging SAP ERP, retailers can generate detailed purchase order recommendations based on historical sales data, market trends, and inventory levels. This not only simplifies the planning process but also enhances accuracy and efficienc
Retail Assortment Planning Example
Retail Assortment Planning is the foundation for the initial creation of purchase order recommendations in SAP ERP. An assortment planning process results in an assortment plan for seasonal and non-seasonal merchandise. This process includes planning merchandise categories down to the option level (style – colour – size) for fashion merchandise and SKU (article) for non-fashion merchandise. The planner will determine the number of options to plan and assign these options to a particular assortment.
We exceeded the client’s high expectations by seamlessly integrating cross-technology solutions. Our approach combined SAP Fiori development, efficient data handling, and customized smart controls to enhance functionality and the user experience.
Retail Assortment Planning Example:
Client: Multinational software corporation (enterprise software), >100,000 employees, Germany
Business Case: Creation of purchase order recommendations, retail assortment planning, retail automation
Industry: Retail
Services: Custom software development
Project Type: SAP Fiori
Read more here.
Benefits of Efficiently Managing Inventory with Retail Automation
There are many advantages to implementing SAP Retail Assortment Planning and other automation technologies in retailing:
- Efficiency: Automation improves workflow, which leads to reduced manual work.
- Accuracy: Automated systems reduce human errors and, thus, make more accurate data and decisions.
- Inventory Management: Precise assortment planning helps maintain the right amount of inventory at any given time, resulting in less stockout and carrying costs.
- Decision-Making: Better strategic decisions can be made with advanced tools for analyzing data.
- Scalability: Automated systems can grow faster when businesses expand or have increased data volumes.
Berg Software for Retail Automation
For over 30 years, Berg Software has developed bespoke software solutions for clients such as multinational retailers. We have positioned ourselves well to help businesses thrive in a competitive and ever-changing retail environment. We have researched the question, ‘What is sustainability in business?’ especially around retail automation. Our primary focus is to provide our customers with the necessary tools and strategies to enable them to succeed in this dynamic industry.
Automation turns out to be the answer during challenging times in retail. If you seek a reliable partner with expertise in catering to the demanding needs of the retail sector, capable of streamlining your processes seamlessly, do not hesitate to contact us.
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