Company structure

The company structure describes the retailer's company setup and the legal entities involved in the Replenishment process. Depending on the structure, different models for Replenishment calculation have to be applied.

We differentiate between four main models:

  • Single company
  • Multiple companies - HQ driven
  • Multiple companies - entity driven
  • Mixed models

 

Single company

In the single company model the HQ and stores reside in one legal entity and Business Central company.

In this scenario the HQ is in full control of purchase and store replenishment.

Multiple companies - HQ driven

In this model the retailer operates multiple legal entities. LS Replenishment support scenarios, where purchase replenishment is performed in a central supply chain company (HQ) and the stores reside in sales companies. The sales companies are replenished from the supply chain company, which is calculating the demand and pushes the items to the stores.

In this scenario the HQ is in full control of purchase and store replenishment.

Multiple companies - store driven

In this model the retailer operates multiple legal entities. LS Replenishment support scenarios, where purchase replenishment is performed in a central supply chain company (HQ) and the stores reside in sales companies. The sales companies are replenished from the supply chain company, but the sales companies calculate the demand by themselves and decide which items and quantities they want to order.

In this scenario the HQ is in control of purchase replenishment and the stores are in control of store replenishment.

Mixed model

Scenarios with mixed models are also supported. A retailer can replenish stores in the HQ company and stores in other companies in parallel.

 

Goal

The goals of this step:

  • Get a detailed understanding on the retailers company structure
  • Create a topology drawing
  • Select right model in LS Central
  • Set up LS Central to cover the requirements

 

Key questions / considerations

Questions

  • Number of legal entities (companies)
  • If multiple companies:
    •  Which entity drives Replenishment?
      • Headquarter (Push)
      • Other companies (Pull)
    • How is intercompany handling covered?
      • LS Retail Franchise module
      • Other tools

 

Output

Topology drawings, see examples is detail sections.

 

Scenarios See
Single Company Single Company
Multiple companies - HQ driven Multiple Company (HQ driven)
Multiple companies - store driven Multiple Company (Store driven)
Mixed models Mixed Models

 

Go back to:

Topology

Overview