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SAP Price Optimization

SAP Customer Insight includes a set of solutions that enable retailers to clearly understand their shoppers and convert this knowledge into price and markdown strategies that will meet their financial goals and their shoppers' demands. The solutions under the lifecycle pricing area include SAP Price Optimization and SAP markdown Optimization.

SAP Customer Insight Solutions include: 

  • SAP Price Optimization
  • SAP Markdown Optimization

Today's shopper expects more!  Shoppers today are nothing like the "consumers" of yesterday and they demand higher levels of service, quality, and inventory availability.  Today's shoppers register deeply with the retailer's brand and what they expect of that brand.  Many times price or promotion are key brand alignment elements for the shopper so the retailer must clearly understand their shopper "sensitivity" areas, like pricing, promotion, and markdowns and know more than they did in the past about how the shopper will react to changes in these areas.  SAP's Merchandise Lifecycle solutions help retailers understand shopper sensitivity areas within the context of the changing economy and incorporate this knowledge into their strategic and tactical performance plans. 

 SAP Customer Insight Solutions BPX - we welcome your input!

We're using this wiki on BPX as a platform where you can collect and provide information on SAP Customer Insight Solutions so that you can begin taking advantage of the solution. Whether you are looking into designing business process, implementing management or optimization solutions, custom development or optimizing runtime, you will find that this page bundles information from the standards documentation (SAP Help Portal), to release dependent information from the SAP Service Marketplace (SMP), articles, blogs or how-to guides.
This is also the ideal starting point for you because not only will you be able to find background information and overview documentation on SAP Customer Insight solutions.  You will also find training information that will help you to map training courses and e-learning programs with your project implementation plans.
For our expert users, this is a great resource for detailed and direct access to a specific Customer Insight topic. If you have expert knowledge you want to disseminate, please check out the Trading Industries forum or contribute with a blog or article or write something within the wiki. Keep in mind that it is you who makes the BPX community thrive. We welcome your input!
Note: For brevity, the SAP Marketplace will be referred to as SMP. Special login details are required to access documents on SMP.

Getting Started: To get you started in the exciting Merchandise Lifecycle space we have prepared a selection of retail industry papers and SAP Solution related media. Take a few moments and read up on one of the top priority areas in retail!

  • SAP Customer Insight Solution Briefs - these briefs provide the reader with a general overview of the SAP Customer Insight Solutions.  Similar briefs are added to this area regularly so check back for more merchandise lifecycle material regularly.
  • Retail Price Management Business Scenario in the Solution Map: Price and Revenue Management allows retailers to stay profitable in highly competitive markets, faced with the challenge of low margins and broad assortment breadth. To better manage product lifecycles, in season performance of merchandise dictates the pricing strategies needed to best achieve profitable goals, often at the store level.
  • Markdown Management Business Scenario in the Solution Map: Markdown Planning and Optimization identifies the optimal frequency, timing, and depth of price reductions to insure the most profitable liquidation of merchandise, thereby maximizing sales and margins.

Business Scenarios - Look no further for an overview of SAP Merchandise Lifecycle Solutions process flow diagrams. 


  • SAP Price Optimization for Retail Workshop (SMP credentials required) - this workshop gives you an introduction into the business topics and scope which are addressed by SAP Demand Application Suite. You get a closer look to the concepts which are used, how the price optimization process flow is during a run, understand the process flow of data, system configuration and demand model creation. The themes are supported with several exercises to get a feeling for this application and enable hands on training for all participants.
  • SAP Price Optimization for Retail Configuration Details (SMP credentials required) - this workshop shows you the direct way of setting up a Demand Management Application. Beginning with the technical needs embracing data management - loading, cleansing and modeling - the participants understand the application configuration requirements and parameters.

SAP Demand Management - Features, Capabilities & Best Practices


Demand Management ES bundle - this bundle provides services that connect SAP Demand Management with the treasure trove of information stored in SAP ERP 6.0 and SAP NetWeaver BI. The enterprise services in the Demand Management ES bundle have been designed in a generic way so that they can be used to interface demand management tools if desired.

 Run SAP for Retail - Best Practices for Solution Operation

For retailer's global end-to-end solutions with typically high data volumes, an optimized operational concept is key for lowering operating costs, proactively avoiding incidents, ensuring a stable system performance and enabling growth and innovation. "Run SAP for Retail" provides Best Practices for Solution Operations helping you to set up an operational concept for Retail solutions like SAP Price Optimization. Find more information on "Run SAP for Retail" on our "Run SAP for Retail" Wiki page

Release-specific Information for SAP Demand Management 6.4

Release Information

  • SAP Demand Management 6.4 Service Pack 13 is now available (Download-Support Packages and Patches-Entry by application group-SAP Industry specific components-SAP Demand Management- SAP Demand Management 6.4 (SMP credentials required)
    This service pack contains: new translations for Russian and Portguese and option to control markdown price not going lower then cost in Markdown Optimization.

Release Notes|] (SMP credentials required) -  Release Notes for SAP Demand Management 6.4

Maintenance & Availability


  • Installation Guide (SMP credentials required) - From the site, navigate -> Download -> Installations and Upgrades -> Entry by Application Group -> SAP Industry-specific components -> SAP Demand Management -> SAP Demand Management 6.4 -> Installation -> Download
  • Installation Notes (SMP credential required)

Online Knowledge Products

SAP Demand Management 6.4 (SMP credentials required)-  Learning Map for Solution Consultants

Consulting Notes

Please check the consulting notes below for relevance to your projects. (SMP credentials required).

1007801 Post processing of Files

1007802 Hierarchies Across Articles

1007610 Integration Demand Management: Determining promotion

100663 SAP DM Integration composite note

998871 composite note after corrections of BI Content Add-On 03 (FP2)

  • BAdis: 977915 BAdi definitions for functional enhancements