[

MAP Financial Planning

Implementation/ REI
Tom Kimmet and Kelly Hasty

[ Learning Points
Successful implementation of the
MAP Financial Planning tool
Benefits seen in using SAP MAP
Best practices

Real Experience. Real Advantage.

[ Who is REI?
Outdoor Specialty
Retailer
Co-op structure
Established in 1938
Based in Seattle, WA

Real Experience. Real Advantage.

$2.0B in sales
11,000 employees
125 Stores/robust online
business
2 DCs
Private Brand

[ REI Footprint
SAP IS-Retail Solution
ECC 6
FI

CO

Merchandise &
Assortment
Planning

POSDM

SCM

Forecasting &
Replenishment

MM

SD

Business Warehouse

Process Integration
Enterprise Portal

* REI also owns the BusinessObjects tool suite (Crystal, WebI, Xcelsius)
Real Experience. Real Advantage.

[ Scope of SAP Retail Footprint/Roadmap

2010 implemented ECC, FICO, POSDM, BW, netweaver,
handheld scanning
2011implemented MAP Financial planning
2011 executed substantial hierarchy reclassification
Future: F&R 5.2
Future-Future: MAP Assortment planning

Real Experience. Real Advantage.

[ Why SAP MAP

Legacy system unstable
Legacy system would not support a
hierarchy reclassification
Change from Retail method of
accounting to Cost method of
accounting
Leverage the SAP ECC/BW
platform
Include Private Brand planning
Supports location, product and
strategic planning levels

Real Experience. Real Advantage.

[ Implementation
Started in May 2010- went live in
September 2011
Karabus as a consult for
development of planning process
SAP as implementation team
Total team: 2 SAP/4 REI
Full greenfield effort

Real Experience. Real Advantage.

Product: Monthly, class level,

Sales/Turn/ Margin/ Inv
SAP support for Calculation
Engine rebuild
Inconsistent performance using
portal interface
Web Application Designer
(WAD) used to develop UI front
end.

[ REI Product Hierarchy

Total
Specialty Shop
Department
Class: Lowest level of product planning
Merch-Cat

Real Experience. Real Advantage.

[ Product Planning KPIs

Sales
Inline, Clearance, Promo

Inventory
Inline, Clearance, Promo

Gross Margin
Average Unit Retail (AUR)
Average Unit Cost (AUC)

Monthly at class level

Number of Departments: 52
Number of Classes: 238

Real Experience. Real Advantage.

[ Planning Layouts/Reports

Open to buy
Preseason
Strategic
Location
Private Brands

3 plan versions

Real Experience. Real Advantage.

10

[ Channel Hierarchy
Total
Retail/Direct
Region
District
Store: Lowest
planning level

DMA

Real Experience. Real Advantage.

11

[ Location Planning KPIs

Line of Business Planning (Retail,
Online)
Region, District, Location
Sales only
Monthly
Total Store (created to go to
Specialty Shop)
Created concepts for planning
Comp Stores, New Stores and
non-comp stores

Real Experience. Real Advantage.

12

[ Benefits

Stable platform
Less Administration
Allowed for Hierarchy reclass
Better management of perishable inventory due to CMA
Integration of Private Brand planning
System Flexibility

Real Experience. Real Advantage.

13

[ Key Learnings
Define future planning process before starting implementation
Pick a good time in the planning cycle to go live
Spend more time understanding CMA impacts
Think twice about the triple play: CMA, Hierarchy, new System
Be more thoughtful on strategy for transition on Retail vs.
CMA reporting KPIs
EOP$ dont equal BOP$
Developed reporting last

Real Experience. Real Advantage.

14

[ Best Practices

Define planning process prior to start of implementation

Layout/Tab management
Leadership level support (REI)
Executive alignment REI-SAP
Agile development

Real Experience. Real Advantage.

15

Thank you for participating.

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evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc

Real Experience. Real Advantage.

SESSION CODE:
3502

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