sales and distribution (sd)

7/30/2019 Sales and Distribution (SD)

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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:

E-mail

Mail

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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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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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.