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Designing for omnichannel on S/4HANA Fashion: What to consider when designing a central DC for Wholesale, Retail and eCommerce

Wed, May 19, 2021

Designing For Ominichannel

How do you consolidate a central DC with the flexibility to handle unpredictable demand across all sales channels? Although the omnichannel model is now relatively well established, a challenge that retailers continued to grapple with is how to reconfigure their supply networks to achieve better alignment between delivery responsiveness, product variety, and convenience.

Here are a few things to keep in mind when designing a central DC on S/4HANA Fashion:

  • How do you ensure stock protection across different channels within a central DC? For example: Do you use 1:1 Segmentation of demand and supply so that there is strict stock protection or proceed with 1:M approach where there is a common pool of stock and define a strategy to ensure the consumption takes place based on certain priority as per business requirements?
  • How can a central DC service multiple subsidiaries across multiple channels? For companies, it is important to ensure the supply is protected for each channel and sales subsidiary. For example: The need to define a strategy that allows for both Horizontal (Channel level) and Vertical (Subsidiary level) with the required priorities.
  • How do you define the required priority? For example: Generally, ecommerce channel has the highest priority, so how do you ensure the ecommerce orders are always fulfilled? ecommerce ECOM orders from one subsidiary cross consume supply belonging to another subsidiary?
  • Using Product Allocation. Understand how the Product Allocation (PAL) function in S/4HANA can help in maintaining the priorities during order fulfilment when working within a central DC and a common pool of stock.

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