Anda di halaman 1dari 32

Chapter 3

Chapter 3 Learning Objectives

Describe the unintegrated sales processes of Fitter Snacker

Explain why unintegrated Sales and Marketing information systems lead to company-wide

inefficiency, higher costs, lost profits, and customer dissatisfaction

• Discuss sales and distribution in SAP’s R/3

system, and explain how integrated data sharing increases company-wide efficiency

Chapter 3 Learning Objectives

Describe how SAP R/3 processes a standard sales order

Describe the benefits of Customer Relationship Management software, a useful extension of ERP

software

Marketing Personnel make

decision on:

What products should we produce?

How much of each product should we produce?

How are our products best promoted and advertised?

How should our products be distributed? What price should we charge?

Problems with Fitter Snacker’s

Sales process:

Sources:

Three unintegrated systems

Sales Order System Warehouse System Accounting System

Manual handling of transactions – Information not available in “real time”

Fitter Snacker’s Sales Process

Warehouse Sales Order Pick, Quote Pack and Sales Ship Fitter Snacker’s Sales Process Receiving Returns Accounting
Warehouse
Sales
Order
Pick,
Quote
Pack and
Sales
Ship
Fitter Snacker’s
Sales Process
Receiving
Returns
Accounting
Invoice
Payment

Sales Quotations and Orders

Sales call

Hand-written quote on 3 sheet form faxed to sales office

Customer calls 800 number to place order

Sales Quotations and Orders

Problems

Salesperson error in preparing quote manually

Customer call reaches sales office before faxed quote

Faxed copy is illegible Delivery data requires call to warehouse Warehouse provides delivery date estimate

Sales Quotations and Orders

Problems

Initial credit check uses paper process

Credit check for established customers using accounting printout that may be a week old.

Warehouse/Order Filling

Packing lists/shipping labels manually sorted Small order process and large order process Inventory managed by Access database

Warehouse/Order Filling

Problems

Picker may not report breaking case down for small order

Perishable product requires low inventories Out of stock decision:

Partial shipment Change production schedule Wait until full order can be shipped

Accounting and Invoicing

Sales order data transferred by disk to PeachTree program 3 times per week

Clerks must make manual adjustments for partial shipments and other errors.

Invoices may not always match actual product shipped

Payment and Returns Problems

• Customers don’t always include copy of

invoice with payment

Invoice may not match payment- reconciliation required

Returned Material Paper process, sometimes no RMA #

• Improper “dunning” letters

Sales and Distribution with ERP

SAP Sales and Distribution Process

Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities

Sales Order Processing

Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities

Pre-Sales Activities

Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities

Inventory Sourcing

Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Payment
Payment
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Sales and Distribution with ERP • SAP Sales and Distribution Process Sales Order Processing Pre-Sales Activities
Billing
Billing
Delivery
Delivery

Pre-Sales Activities

Inquiry or Quote (binding) Marketing Activities

Tracking Contacts

Sales Calls Visits Mailings

Sales Order Processing

Activities required to record a sales order Incorporate data from inquiry or quote Automated Pricing and Discounting Automate Credit Check

Inventory Sourcing

Check of inventory, orders and production to see if order can be delivered when customer desires

Includes shipping and considers weekends/holidays

Delivery

Releasing documents to warehouse to initiate pick, pack and ship

Sequenced and grouped for warehouse operation efficiency

Materials Management module carries out picking, packing and shipping

Billing

Sales order data copied to invoice

Can be printed and mailed, faxed or transmitted electronically

Accounting records updated

Payment

Payment may be physical check or electronic

Cash debited and customer account credited Quick processing avoids credit check problems

Sales Order Entry in SAP R/3

Sold-to party P.O. Number Required Delivery Date Material Order Quantity
Sold-to party
P.O. Number
Required Delivery Date
Material
Order Quantity

Master Data

Master data is stored in a central database that is accessed by all modules

Customer Master Data and Material Master Data are primary data sources for Sales Order Processing

Organizational Structures

Organizational structures allow the R/3 system to control the sales order process pricing, minimum orders, etc.

Distribution Channel defines the way that materials move between the company and customers

Wholesale Distribution Channel Direct Sales Channel

Document Flow in SAP R/3

All documents related to original sales order
All documents related to
original sales order

Document Flow

Sales order process creates numerous documents

  • - Sales Order

  • - Delivery

  • - Goods Issue

- Invoice - Payment - RMA

Document Flow links all documents related to a sales order

Discounts in SAP R/3

Sold-to party P.O. Number Required Delivery Date Material Order Quantity
Sold-to party
P.O. Number
Required Delivery Date
Material
Order Quantity

Discount Pricing in SAP R/3

R/3 system can be accommodate various discounting schemes

Calculates correct discount based on customer and material

Integration of Sales and

Accounting

Sales order processing transactions make appropriate accounting entries at time of transaction-automatically

Customer Relationship

Management (CRM)

ERP provides means to manage all data relating to a customer to improve the quality of the interaction

CRM Activities include:

One-to-One Marketing Sales Force Automation Sales Campaign Management Marketing Encyclopedias Call Center Automation

CRM Benefits

Lower Costs due to better use of sales and marketing resources

Higher Revenue by improving the effectiveness of marketing efforts

Improved strategy and performance measurement by changing management and

staff focus

Chapter Summary

• Fitter Snacker’s unintegrated information

systems lead to inefficiencies and reduced customer satisfaction

• An ERP system like SAP’s R/3 views sales

as a process, providing timely, accurate data and automating error-prone tasks

Chapter Summary

Configuration decisions must be made during installation to match the company’s

practices and policies

• The ERP system’s central database

maintains master data used by all areas of the company

CRM software builds on ERP data to improve marketing effectiveness