SAP SE (SAP) recently disclosed its novel application, SAP Assortment Planning for Retail. The application has been designed such that the retailers can efficiently cluster the stores on the basis of selected attributes. This way, they can choose the optimal mix of items in each store cluster, so as to maximize their returns.
SAP Assortment Planning for Retail will also enjoy benefits from the company’s flagship platform – SAP HANA – in order to leverage the analytics capabilities for optimal and speedy determination of store clusters. Additionally, the aforementioned application is likely to be equipped with SAP Fiori user experience, while the transactional data will be integrated by the SAP Customer Activity Repository application.
SAP Assortment Planning for Retail will deploy analytics techniques using some specified attributes and metrics to form the location cluster. The clusters, thus formed, will be considered along with the product group for planning the assortments and the optimal quantities of sales and purchase.
The application will also draw insights regarding product performance from metrics like sales history. This will equip the retailers with crucial information that will come handy while introducing new products. Furthermore, the option of creating placeholder products, the pre-launch version of a product, will be critical for new product introductions. Another key feature of the application will be its ability to balance the depth and width of assortments with the use of option planning.
Rapid developments in a marketplace, coupled with the limited budget and space structures, make it necessary for retailers to plan their assortments efficiently for a given period so as to realize maximum sales and profits.
This application from SAP will greatly simplify the process for retailers by offering integrated yet efficient and reliable solutions to strengthen their businesses.
SAP currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Imperva Inc. (IMPV), Nuance Communications, Inc. (NUAN) and Adobe Systems Inc. (ADBE). While both Imperva and Nuance Communications sport a Zacks Rank #1 (Strong Buy), Adobe Systems carries a Zacks Rank #2 (Buy).
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