Hari |Srikanth |Subha |Gowtham | Ashish |Naga Karthik |Nilendu |Santosh |Sayan

Marketing of Taking Sales

Products Order

Customer
Customer
Relationship
Support
management

Sales
Advertising
forecasting
 Request to Product
Per unit
Purchase/ availability Cost-profit
cost
Customer and data analysis
checked
Data order status

Customer
Hiring
Satisfaction
Order needs and Sales Product
and
Status personal forecast pricing
Dissatisfact
info
ion
Fitter Snacker
 A company that makes healthy snack bars
 NRG-A: “advanced energy”
 NRG-B: “body building proteins”
 Does not have an integrated information system
 Marketing and Sales (M/S) is the focal point of many of
activities
 Has organized its sales force into two groups, known
as divisions:
 Wholesale Division
 Direct Sales Division
 Fitter Snacker’s have three different information
system

Sales order Warehouse Accounting

system system system
Company-wide use of transaction data is
inefficient

The two sales divisions differ in terms of

quantities of orders and pricing terms

Packages the bars in store-brand wrappers for

some chain stores

Brand name of FITTER SNACKER is affected

 s

WAREHOUSE
SALES

Fitter Snacker

RECEIVING ACCOUNTS
SALES ORDER PROBLEMS:
 Incorrect pricing
 Excessive calls to the customer for information
 Delays in processing orders
 Missed delivery dates

REASONS OF PROBLEMS:
 FS has separate information systems throughout the
company for three functional areas:
 Sales order system
 Warehouse system
 Accounting system
 High number of transactions that are handled manually
 Information stored in the three systems is not available in
real time
 Giving a customer a price quotation and then taking the
customer’s order at FS

Sales call

Prepares handwritten
quotation (2copies)

Original=Customer
Middle copy=faxed and
mailed to sales office

Salesperson
keeps the bottom
copy
Giving a customer a price quotation and then taking
the customer’s order at Fitter Snacker

Problems can
• Not checking with the accounts
occur with this department for the price
process

Inefficiencies in • Determining the delivery date

• Checking customer’s credit status
the rest of the • Entering customer’s order into the current
ordering process order entry system
 Packing lists and shipping labels
 Printed twice a day
 Hand-carried to the warehouse
 At warehouse, hand-sorted into small orders and
large orders
 Warehouse
 Small-order packing area
 Large-order packing area
 FS uses a PC database program to manage inventory
levels in the warehouse
FS keeps inventory levels fairly low,
and inventory levels change rapidly
during the day
• Picker might go to the shelves to pick an order
and discover that there are not enough of the
desired type of snack bars to fill the order
• To determine what to do in this situation, order
picker might have conversations with
warehouse supervisor, production supervisor,
and sales clerks
Sales clerks send the Accounting department
the sales order data for customer invoices

Accounting department loads the data into

PC-based accounting program

Clerks manually make adjustments for partial

shipments and any other changes
Invoicing the customer is problematic

Sometimes, order corrections are delayed

and don’t catch up to the invoicing process
• Results in late or inaccurate invoices
Problems with procedure for processing payments
• If any errors have occurred in the sales process, customer will receive an incorrect
invoice
• Many customers don’t return a copy of the invoice with their payment; errors can
result

FS’s returns processing is flawed

• Many customers do not call for the RMA number, or fail to include it with their
returned material
• Makes it more difficult for Accounting department to credit the appropriate account
• Poor penmanship on the returned material sheet can create problems for Accounting

If a customer’s account has not been properly credited, customer

may receive a dunning letter in error
 Sales forecast
and
Sales order
Sales orders

Customers
Product
SALES
availability data/
Order status &
order status
MARKETING

Cost/profit
Sales order data
analysis and credit
history
Accounting & Finance
ERP systems can minimize data entry errors and provide accurate
information in real time to all users

ERP systems can track all transactions (such as invoices, packing lists,
RMA numbers, and payments) involved in the sales order

SAP ERP Pre-sales activities

Sales and
Distribution Sales order processing
module treats
the sales Inventory sourcing
order process
as a cycle of Delivery
events:
Billing
Payment
Customers can get Through an inquiry or a price
pricing information quotation
about the company’s
products:

Marketing activities such as

tracking customer contacts,
including sales calls, visits, and
mailings

Company can maintain data about customers

and generate mailing lists based on specific
customer characteristics
 Sales order processing: series of activities that must
take place to record a sales order
 Sales order can start from a quotation or inquiry
generated in the pre-sales step
 Information collected from the customer to support the
quotation is immediately included in sales order
 Critical steps in sales order processing:
 Recording the items to be purchased
 Determining the selling price
 Recording the order quantities
 Users can define various pricing alternatives in the
SAP ERP system
 SAP ERP system checks the Accounts Receivable
tables in the SAP ERP database to confirm the
customer’s available credit
 If customer has sufficient credit available
 Order is completed
 If customer does not have sufficient credit available
 SAP ERP system prompts sales personnel to take
one of the possible appropriate actions
 Available-to-Promise (ATP) check
 SAP ERP system checks company’s inventory records
and production planning records to see whether:
 Requested material is available
 Requested material can be delivered on the date the
customer desires
 Includes expected shipping time
 System can recommend an increase in planned
production if a shortfall is expected
 Delivery in SAP ERP system
 Releasing the documents that the warehouse uses
to pick, pack, and ship orders
 Delivery process allows deliveries to be created so
that the warehouse and shipping activities are carried
out efficiently
 Once the system has created documents for picking,
packing, and shipping, documents are transferred to
Materials Management module
BILLING
 SAP ERP system creates an invoice by copying sales
order data into the invoice document
 Accounting can print this document and mail it, fax it,
or transmit it electronically to the customer
 Accounting records are updated at this point
PAYMENT
 When the customer sends in a payment, it is
automatically processed by the SAP ERP system
 Debits cash and credits (reduces) customer’s
account
 Timely recording of this transaction has an effect on
the timeliness and accuracy of any subsequent credit
checks for the customer
 SEARCH
ORDER UNIQUE
SCREEN
ENTRY NUMBER IS
FOR
SCREEN GENERATED
CUSTOMERS
 Master data: data
that remain fairly
stable
Customer • Maintained in the
master data central database and
available to all SAP
ERP modules

Organizational
structures
• SAP ERP system
Material master allows the user to
data define various ways
to group customers
and salespeople
• Distribution Channel
When a company
installs an ERP
Various kinds of
system, it can
discounts can be
configure it for a
allowed
number of pricing
strategies

Condition
As a safeguard, technique
system can • Control mechanism
enforce limits on developed by SAP to
accommodate
the size of various ways that
discounts companies offer
price discounts
ERP systems integrate Accounting with all business
processes
When a sales order is recorded, related accounting
data are updated automatically
Companies without a good connection between their workers and their
customers run the risk of losing business

Customer relationship management (CRM) software can help

companies streamline their interactions with customers

On-demand CRM: software and computer equipment reside with CRM

provider

ACTIVITIES like One-to-one marketing

Sales force automation (SFA)
Sales campaign management
Marketing encyclopedias
Call center automation
Employing a separate CRM system that communicates with the ERP
system
 SAP ERP system processes business transactions and provides much of the
raw data for CRM
 SAP’s Business Warehouse: system for reporting and analysis of
transactional data
 Advanced Planner and Optimizer (APO): system that supports efficient
planning of the supply chain
 SAP’s view of CRM is to provide a set of tools to manage the three basic
task areas, or jobs:
 Marketing, sales, and service
 Four phases of the cultivation of customer relationship:
 Prospecting
 Acquiring
 Servicing
 Retaining
 Contact Channels
 Marketing and Campaign Management
 Campaign Execution Activity Management
 Campaign Analysis tool
Giving a thorough knowledge of what is ERP
and how it can help and why is it being
implemented

Giving a demo on what to do and how to do

Creating awareness and clarifying all doubts

Probing to know what employees think

Convincing the sales force for the SAP ERP

System implementation

Giving training for the process

Going Live and attending to problems which

may arise

Solving them accordingly

 • Including: taking orders, setting prices, checking
An ERP system such product availability, checking the customer’s credit
as SAP ERP treats a line, arranging for delivery, billing the customer, and
sale as a sequence of collecting payment
related functions • In SAP ERP, all these transactions, or documents,
are electronically linked

Installing an ERP
system means making • Configuration decisions reflect management’s view
of how transactions should be recorded and later
various configuration used for decision making
decisions

• Tables of master data: relatively permanent data

ERP system’s central about customers, suppliers, material, and inventory
database contains: • Transaction data tables: store relatively temporary
data such as sales orders and invoices