Retail — Retail Promotions
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Performing Promotion Planning and Subsequent Processing
1. SAP Promotion Management (PMR) Overview
SAP PMR is the strategic tool (built on SAP CAR) that retailers use to:
- Plan promotions (events, campaigns, offers).
- Model and simulate impact (sales uplift, margin impact).
- Integrate with execution (pricing, allocation, POS).
Key Concepts:
- Campaign = group of events (e.g., “Back-to-School” campaign across 3 weeks).
- Event = one channel execution (e.g., flyer, web ad, TV spot).
- Offer = specific deal for a product/group (price cut, discount, free goods, bonus buy).
- Vendor Funds = rebates/incentives (lump sum, scan back, accruals) provided by suppliers to finance promotions.
2. Promotion Creation in SAP Retail
Promotions can originate from:
- PMR → SAP Retail (via interface).
- Directly in SAP Retail (Create/Maintain Promotion, or Price Planning Workbench (PPW)).
Key data in promotion:
- Promotion Header: type, validity, org units, lead/follow-up times (for purchasing conditions, article listing, goods receipt, announcements).
- Promotion Sites: participating stores (via site groups — classification-based or promotion-specific).
- Promotion Conditions:
- Promotion price (distribution chain / price list / site level).
- Discounts (absolute or %).
- Free goods.
- Bonus buys (complex rules like “Buy 2, get 1 free”).
- Quantity Planning: planned sales or allocation quantities for each article.
- Vendor Funds: settlement logic via condition contracts (linked to Promotion Mgmt).
Different validity per site group is possible (e.g., earlier in warmer regions).
3. Subsequent Processing of Promotions
This is the execution phase: how planning translates into live operations.
- Listing (if promo articles not already listed in sites).
- Supply Source Determination (vendor or DC).
- Allocation Table generation (if promo stock must be centrally procured/distributed).
- Price Activation (creates condition records so promo prices are valid at POS).
- Announcement Messages (notify stores/DCs of promo details).
- Assign Additionals (e.g., display material).
👉 Important: not all steps are always required.
- If selling existing stock → no allocation table needed.
- If promo prices needed → price activation is mandatory.
4. Allocation Table in Promotions
Allocation Table (AT) is the core tool for distributing promotional merchandise.
Purpose
- Link procurement (vendor PO) with distribution (STO / sales order).
- Define how promo stock is split among sites.
- Trigger logistics follow-on documents.
Structure
- Header: AT number, purchasing org/group, text.
- Items: articles, planned qty, item category, site groups, allocation rule/strategy.
- Site Group View: list of sites with quantities and rules.
- Site View: details per store (qty, delivery date, source of supply).
- DC View: if DC is involved, shows vendor supplying DC + DC’s planned qty.
Allocation Rules / Strategies
- Fixed qty per site.
- Relative shares (percentage).
- Rules generated from BW data (historical sales, stock, capacity).
- Allocation strategies → flexible calculation using planning/statistical key figures.
Follow‑on Documents from AT
- Vendor POs (procurement).
- STOs / outbound deliveries (distribution).
- Sales Orders (customer supply).
- For returns → Returns POs/STOs.
Item Category in AT defines which docs are created:
- Third Party Order → vendor delivers directly to site.
- Stock Reduction → DC supplies stores from existing stock.
- Purchase Order via DC → 2‑step: vendor → DC → store.
- Merchandise Distribution (CD/FT) → uses item categories CA (cross‑docking) or CB (flow‑through).
5. Cross‑Docking with Promotions
- Pre‑picked Cross‑Docking: vendor gets store‑level quantities via SLS (Supplementary Logistics Services).
- Two options:
- Standard PO with sub‑items (store quantities).
- Multiple single‑recipient POs (each store separate).
- At DC GR → stock moved directly to GI zone → outbound deliveries auto‑generated → goods issue posted → stores receive.
👉 Interview tip: SLS is critical for promo cross‑docking, because it ensures vendor knows exact recipient quantities before delivery.
6. Notifications to Stores/DCs
- Stock Allocation Notification (HQ → stores).
- Request Notification / with confirmation.
- Change Notification (adjusted quantities, delivery dates).
- Sent via print, mail, or EDI IDocs.
7. Business Transactions Supported by AT in Promotions
- Third‑party Order (vendor → store directly).
- Stock Reduction (DC reduces its stock → stores/customers).
- Purchase Order via DC (vendor → DC → stores).
- Purchase Order via DC with MD (vendor → DC with cross‑docking/flow‑through).
- Customer Allocations (AT generates sales orders).
- Returns Allocation Table (e.g., product recall → returns POs/STOs).
8. Interview‑Ready Summary
“Promotion planning in SAP Retail combines marketing and logistics. We plan promotions in SAP PMR or SAP Retail, assign sites and prices, and optionally create allocation tables to control merchandise flow. Subsequent processing includes listing, source determination, price activation, and allocation table generation. The allocation table connects vendor POs with site STOs, defines how stock is split, and supports methods like cross‑docking (with SLS for pre‑picking), flow‑through, or putaway. Notifications keep stores informed. This ensures promotions are executed consistently across all stores, from pricing at POS to stock flow in DCs.”
People also ask
What’s the difference between Campaign, Event, and Offer in SAP Promotion Management?
A Campaign groups multiple events over a time period (e.g., Back‑to‑School). An Event is a specific channel execution (flyer, web ad). An Offer is the actual deal (discount, free goods, bonus buy).
How are Vendor Funds handled in promotions?
They’re managed via Condition Contracts in Promotion Management. Vendors provide lump sums, scan‑backs, or accruals to finance promotions, which are linked to settlement logic.
When is an Allocation Table required?
If promotional stock must be centrally procured or distributed. If you sell from existing stock, no allocation table is needed; but price activation is always mandatory for promo pricing.
How does cross‑docking work for promotions?
Vendors receive store‑level quantities up front (via SLS). At DC goods receipt, stock moves directly to the GI zone, outbound deliveries auto‑generate, and stores receive without putaway.
What are the key follow‑on documents from an Allocation Table?
Vendor POs, STOs with outbound deliveries, Sales Orders for customer allocations, and Returns POs/STOs for recalls.
How do stores get informed about promotions?
Via Notifications — Stock Allocation, Request, or Change Notifications — sent as print, mail, or EDI IDocs.
Interview soundbite for promotions?
“Promotion planning in SAP Retail bridges marketing and logistics. We plan in PMR or Retail, activate prices, and use allocation tables for distribution. Execution includes listing, source determination, cross‑docking, and notifications to stores.”
