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Sales & Distribution(SD)
Overview
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People Hate to be Sold But Love
To Buy
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Marketing and Sales
The Role of Sales Front line with customers.
Generate orders.
Short- and medium-range (primary focus).
Identify and set up key accounts and other account
management strategies.
Build one-to-one business relationships.
The Role of Marketing
Creates leads for the sales team.
Develops messaging and brand image.
Short-, medium-, and long-range.
Informational and educational.
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10 Steps to Success in
Sales1.Be a goal setter2.Under Promise and Over Deliver
3.Be enthusiastic
4.Recognize that the magic word in sales is"ask.
5.Expect no's.
6.Schedule time wisely.7.Be positive in your attitude.
8.Dont compete Differentiate!
9.Be involved.
10. Learn to handle mone intelli entl .
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G.U.E.S.T Methodology
Greet The Customer!Understand His Needs!
Explain ProductFeatures!
Suggest Alternatives!Thank Him!
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Sales Management
PersonalSales Rep
SalesManagers
CustomerFirm
Value
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The Eight Roles of Selling
1. The Student - Learning2. The Doctor Diagnose Discontent, hitch
3. The Architect Shaping Intangible
concepts,Values4. The Coach- Creating Game Plan
5. The Therapist Remove preconceived
notions,fears
6. The Negotiator Win-Win
7. The Teacher Post Sales
8. The Farmer Cultivate, Nurture
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P.A.C.E.R
Process of
Acquiring
Customers
andEnhancing
Relationships
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Sales Forecasting Methods
Jury Method/Executive Opinion Method
Survey of Expert Opinion Method
The Delphi Method
Sales Force Composite MethodUser Expectation Method/End Use
Method/Survey of Buyer Market Share Method
Market Survey Method
Simple Projection methodTime Series Analysis
Moving Averages method
Regression Analysis
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Sales Promotion Tactics
1. Price markdown.2. Premium offers.
3. Banded packs.
4. Free sample offer.5. Coupon collecting schemes
6. Competitions.
7. Personality promotions8. In-store demonstrations.
9. Dealer Incentives
10.Sales Force Incentives
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POISE
Marketing
Strategy
PROFITABLE
OFFENSIVE
INTEGRATED
STRATEGIC
EFFECTIVE
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Sales Promotion Tactics (Contd)
11.Exhibitions12.Packaging
13.Character Merchandising
14.Sponsorship15.Newsletter
16.Sachetisation
17.Online sales letters18.Discounts and Allowances: Quantity Discounts:
Trade Discounts
Cash Discounts
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Sales Response Model
Threshold Effect
Saturation Effect
Sales
Adv Expenditures
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Sales Management Strategies
1. Appropriate Organization of the sales
force.
2. Insightful Selection of members of thesales team.
3. Effective and timely Training initiatives.
4. Development of Compensation
Programs which reward desiredperformance.
5. Creation of a culture which Motivates
exceptional individual and team
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Customers Expectations
Service
Quality
Reliability
Assurance
Communicatio
n
Empathy
Responsiveness
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S.No. Physical Goods Services1. Tangible Intangible2. Homogeneous Heterogeneous3. Product and distributionseparated from consumption Production, distribution andconsumption re simultaneous
process4. A thing A activity5. Core value produced in factory Core value produced in buyer-seller interaction6. Customers do not participate inthe production process Customers participate inproduction7. Can be kept in stock Cannot be kept in stock8. Transfer of ownership No transfer of ownership
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The Product Life Cycle
Time
Growth
Maturity
Decline
Introduction
Profit curve
Sales curve
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Price Quality Strategies
Super value High value Premium
Good value Medium value Overcharging
Economy False
economy
Rip off
Price
quality
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Distribution Channels: Tightly coordinated distribution channelsimproves operating
efficiency and marketing effectiveness. One channel member owns the franchise and has fullpower and control over others.
Vertical marketingchannels
Corporate VMS Administered VMS Contractual VMS
Wholesalersupported Voluntary
chains
Retailerco-operatives
Franchisee org
Manufacturesponsored
retailer franchise
Manufacturersponsored
wholesaler franchise
service firmsponsoredretailer franchise
E.g.. Maruti, Ford, Hyundai license dealers
to sell their carsE.g.. Coca Cola License Bottlers in various
markets Who buy its syrup concentrates
and then carbonates sell retailers
local marketsE.g.. McDonalds, Pizza hut
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1. Theoretical: Expert, Patient, Incisive
2. Aesthetic: Creative, Artistic, Observant
3. Social: Benevolent, Empathetic, TeamPlayer
4. Political: Competitive, Desirous,
Passionate
5. Structural: Honest, Systematic,Hardworking
6. Economic: Dedicated, Goal oriented,
Profit Oriented,
Six Core Internal Motivators of a Sales
Executive
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Ten ways to increase prices
without increasing price
Revise the discount structure
Change the minimum order size
Charge for delivery and special services
Invoice for repairs on serviced equipmentCharge for engineering, installation
Charge for overtime on rushed orders
Collect interest on overdue accounts
Produce less of the lower margin models in the
line
Write penalty clauses into contracts
Change the physical characteristics of theroduct
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SD: Functionality
Sales Support
Sales
Shipping and Transportation Billing
Credit Management
Foreign Trade
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Sales & Distribution
Org Structure & Master Data
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SD: Organizational Structures
S&D Structure
Client
Company Code
Sales Area Sales Organization
Distribution Channel
Division
Plant
Shipping Point
Loading Point
Internal Sales Structure
Sales Offices
Sales Groups
Salesperson
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SD: Structure for Sales Order Processing
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Client 410
Company CodeC100
Plant P100 Plant P101
Sales Area
Sales OrgS100
Distribution
Channel (RE)
Division
(01)
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SD: Internal Sales Structure
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US Sales Office
S100
Western Sales
Office
Northwest Sales
Group
Southwest Sales
Group
Salesperson 1
Eastern Sales
Office
Northwest Sales
Group
Southwest Sales
Group
Salesperson 2
Salesperson 3
Salesperson 4
Salesperson 5
Salesperson 6 Salesperson 7
Salesperson 8
Salesperson 9
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SD: Structure for Distribution
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Client 410
Company Code
C100
Plant P100 Plant P101
Shipping Point
Express Dock
Loading Point
LP01
Shipping Point
Freight Dock
Shipping Point
Rail Dock
Loading Point
LP02
Loading Point
LP03
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SD: Master Data
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Customer Master Data
Material Master Data
Cust/Mat Info Record
Output Master Data
Condition Master Data
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SD: Customer Master Data
Customer Master Contains all of the information
necessary for processing orders,
deliveries, invoices and customer
payment
Every customer MUST have a
master record
Customer Master Data is
created by Sales Area Sales Organization
Distribution Channel
Division
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SD: Material Master Views
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Material Master
Basic Data
Sales Data
Controlling Data
Forecasting Data
Purchasing Data
Mat. Plan. Data
Accounting Data
Storage Data
Quality Data
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SD: Customer-Material Information Record
Data on a material defined for aspecific customer is stored in a
Customer material info record.
Info Records contain:
customer-specific material number
customer-specific material description
customer-specific data on deliveries
and delivery tolerances
You can also maintain default text to
appear on sales orders for that
customer
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SD: Condition Master (Pricing)
Condition master data includes: Prices
Surcharges
Discounts
Freights
Taxes
You can define the condition master to
be dependent on various data:
Material specific
Customer specific
Conditions can be dependent on any
document field
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SD: Output
Output is information that issent to the customer usingvarious media, such as:
EDI Fax
XML
Output examples:
Quotation
Confirmation Invoice
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Sales & DistributionSales
Sales Order Process
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Sales: The Process
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Sales OrderEntry
Post Goods
Issue
Invoice
Customer
Pick
MaterialsReceipt of
Customer Payment
PackMaterials
Check
Availability
Pre-salesActivities
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SD: Pre-Sales Activities (CRM Light) Sales Support is a component of SD that assists in the sales,
distribution, and marketing of a companies products and services toits customers. It contains the following functionality:
Creating and tracking customer contacts and communications (salesactivity)
Phone call records
On-site meeting Letters
Campaign communication
Implementing and tracking direct mailing, internet, and trade faircampaigns based on customer attributes
Pre-sales documents need to be managed within the presalesactivities: Inquiries and Quotations. These documents help identifypossible sales related activity and determine sales probability.
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( )
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SD: Pre-Sales Activities (CRM Light)
The ultimate goal of all pre-
sales activities is to equip thesales technician with all theinformation necessary tonegotiate and complete thepotential sale.
Information needed: Past sales activity
Past communication
Contact information
General Company info
Credit limits and usage
Current backorders
360 view of your customer
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SD Process: Inquiry
An inquiry is a customers request to a company
for information or quotation in respect to theirproducts or services without obligation topurchase.
How much will it cost
Material/Service availability
May contain specific quantities and dates
The inquiry is maintained in the system and aquotation is created to address questions for thepotential customer.
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SD P Q i
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SD Process: Quotation
The quotation presents thecustomer with a legally
binding offer to deliver
specific products or a
selection of a certain amount
of products in a specified
timeframe at a pre-defined
price.
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SD Process: Sales Order
Sales order processing can originate from a variety ofdocuments and activities
Customer contacts us for order: phone, internet, email
Existing Contract
Quotations
The electronic document that is created should contain thefollowing basic information:
Customer Information
Material/service and quantity
Pricing (conditions) Specific delivery dates and quantities
Shipping information
Billing Information
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SD P S l O d
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SD Process: Sales Order
The sales document is madeup of three primary areas:
Header Data relevant for the entire sales
order: Ex: customer data, totalcost of the order
Line Item Information about the specific
product: Ex: material and quantity,cost of an individual line
Schedule Lines Uniquely belongs to a Line Item,
contains delivery quantities anddates for partial deliveries
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SD Process: Sales Order
The sales order contains all of the informationneeded to process your customers request, thefollowing information is determined for eachsales order:
Delivering Schedule
Shipping point and route determination
Availability Check
Transfer of requirements to MRP
Pricing
Credit limit check
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Sales Order: Delivery Scheduling
When an order is created the you must enter a
requested delivery date for the order or each line
item.
The system will then determine a deliverytimeline, this will be used when determining our
material availability, or ATP (Availablity to
Promise) date. The system will determine this date using forward
and backward scheduling rules you have defined.
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Sales Order: Backward Scheduling
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Requested
Delv. Date
GoodsIssueLoading
Material
Availability
OrderDate
Transp.
Sched.
TransitTime
(2 days)
LoadingTime
(1 day)
Pick & PackTime
(2 days)
Transp.Sched.Time
(1 day)
2nd 3rd 4th 5th 6th1st
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Sales Order: Forward Scheduling
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Transit
Time
(2 days)
Loading
Time
(1 day)
Transp.Sched.Time
(1 day)
New
Delv.
Date
1st 3rd 4th 5th 6th2nd
Pick & Pack
Time (2 days)
7th
Requested
Delv.
DateGoodsIssueLoading
Material
Availability
OrderDate
Transp.
Sched.
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Sales Order: Shipping & Route Determination
During the creation of the sales order the system must determinethe shipping point from which the material will be shipped and
the route the material will take to get from your warehouse to
your customers location.
A shipping point is determined for each line item within the
order.
The route determination will is used to define the transit time of
the material that we used in scheduling.
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S l O d A il bilit Ch k
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Sales Order: Availability Check
Availability Check Determines the material
availability date
Considers all inward andoutward inventorymovements
Proposes 3 methods ofdelivery
One-time delivery
Complete delivery
Delayed proposal
Rules are created by YOU
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S l O d C dit Ch k
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Sales Order: Credit Check
Allows your company to manage its credit exposure and risk for eachcustomer by specifying credit limits.
During the sales order process the system will alert the sales rep about the
customers credit situation that arises, if necessary the system can be
configured to block orders and deliveries.
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SD Process: Shipping & Transportation
The shipping process begins when you create the
delivery document for the sales order. This
document controls, supports, and monitors
numerous sub-processes for shipping processing: Picking
Packing
Post Goods Issue
Integrated with the Material Management (MM)
and Finance (FI) modules
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SD Process: Delivery Creation
Checks order and materials to determine if a
delivery is possible delivery block (hold),
completeness
Confirms availability
Confirms export/foreign trade requirements
Determines total weight & volume
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SD Process: Delivery Creation
Generates packing proposal Calculates weight and volume
Checks scheduling
Considers partial deliveries
Updates route assignment
Assigns picking location
Determines batches
Quality check (if needed)
Updates sales order
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SD Process: Delivery Document
The Delivery Document initiates the deliveryprocess and is the control mechanism for this
process Picking
Packing
Loading
Posting Goods Issue
Changes to delivery are allowable - products,
quantities
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Delivery: Picking
Quantities based on delivery note
Assigned date when picking should begin
Automated storage location assignment
Supports serial number/lot number tracking
and batch management
Integrated with Warehouse Management(WM)
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Delivery: Loading and Packing
Identifies which packaging is to be used forspecified products (customer preference andUCC-128 considerations)
Identifies and updates accounts associated withreturnable packaging
Tracks the packed product by container
Insures weight/volume restrictions are enforced
All packed items are assigned to the requiredmeans of transportation
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Delivery: Goods Issue
Event that indicates the legal change in
ownership of the products
Reduces inventory and enters Cost of Goods
Sold
Automatically updates the General Ledger
(G/L) accounts
Ends the shipping process and updates the
status of the shipping documents
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SD Process: Billing
The billing document is created by coping data
from the sales order and/or delivery
document.
Order-based billing
Delivery-based billing
The billing process is used to generate the
customer invoice.
It will update the customers credit status.
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SD Process: Billing Documents
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SD Process: Billing Documents
The billing document willautomatically create a debit
posting to your customer sub-
ledger account and credit your
revenue account.
It is at this point that the sales
process is passed over to
Financial Accounting to await
payment.
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SD Process: Payment Payment is the final step in the sales order process, this step
is managed by the Financial Accounting department.
Final payment includes:
Posting payments against invoices.
Reconciling differences between payment and invoice.
Payment will create a posting clearing the liability in the A/R
account and decreasing your bank account.