value chain analysis and sales logistics r/3 text chapters 4 & 5
TRANSCRIPT
Value Chain Analysis and Sales Logistics
R/3 Text Chapters 4 & 5
Strategic Significance (1)Strategic Significance (1)
– “Value Chain”, the company’s activities are divided into the technologically and economically distinct activities that the company performs in doing business
– “Value Activities”, are nine generic activities (split in two categories: primary and support) which value is the amount that buyers are willing to pay for a product or service
– “Primary activities” are those involved in the physical creation of the product or service
– “Support activities” provide the inputs and infrastructure that allow the primary activity to take place
The Value ChainThe Value Chain
InboundLogistics
Operations OutboundLogistics
Sales &Marketing
Service
Firm Infrastructure
Human Resources ManagementTechnology Development
Procurement
Primary VC Activities Inbound logistics
– inventory control, vehicle scheduling, returns to supplier, etc.
Outbound logistics– collecting, order processing, delivery, etc.
Operations– machining, packaging, assembly, etc.
Marketing & sales– advertising, promotion, quoting
Service– installation, repair, training
VC Support Activities
Procurement Technology development Human resource management Firm infrastructure
Transforming the Value Chain (2)Transforming the Value Chain (2)
InboundLogistics
Operations OutboundLogistics
Sales &Marketing
Service
Firm Infrastructure
Human Resources ManagementTechnology Development
Procurement
Automated Warehousing
Computer-Controlled Machine
Automated Shipment Scheduling
Computerized ordering
Equip. Maintenance
Office Automation
CAD
EDI
Work Force Planning Systems
Mapping R/3 Text to VCMapping R/3 Text to VC
InboundLogistics
Operations OutboundLogistics
Sales &Marketing
Service
External Accounting/Treasury Mgt
Human Resources ManagementControlling
Procurement
Chapter 5
Chapter 6 and 7Chapter 5
Chapter 5
Chap 11 and 13
Chapter 8 and 12
Chapter 10
Chapter 7
Chapter 9
Strategic Significance (2)Strategic Significance (2)
– A company’s value chain is a system of interdependent activities
– A value chain for a company in a particular industry is embedded in a larger stream of activities that it is called “Value System”
– Linkage among activities not only connect value activities inside a company but also create interdependence between its value chain and those of its suppliers and channels
Firm VC Channel VC Buyer VCSupplier VC
Interaction between opportunities and threatsInteraction between opportunities and threats
Threat of new entrants
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
Threat of Substitute Products or Services
Rivalry Among Existing Competitors
Porter’s Five Forces Model
Individual Company VCIndividual Company VC
Every company activity can be categorized into primary or support activity– start with generic VC and subdivide into discrete
activities– categorize those activities that contribute best to a
firm’s competitive advantage– can compare company VC to industry VC
R/3 and the VC
Allows company to restructure activities on VC Business reference scenarios are structured
around primary and support VC activities Text is organized around VC activities See VC examples
– copier machine, AMCC, Dell computer
Standard Order Handling Scenario
Mailing campaign Monitor sales activity Possible customer
inquiry Customer RFQ
processing Order entry
Delivery processing Goods issue processing Billing Possible rebate
processing
VC for Direct Sale to Industrial Customer
Sales Support
Sales inquiry/Quotation proc Sales Order
CustomerOutline
Agreement
Personnelselection
CreditManagement
WarehouseManagement
ShippingQuality
ManagmentTransportation
CustomerRebate
Processing
Billing InformationSystem
ForeignTrade
Standard Order Handling Scenario (1)Cust mailCampaign toBe carried out
Sales activityIs to be prepared
Sales activityIs agreed upon
Direct mailCampaignIs sent
CustomerInquires aboutproducts
InquiryItems rejectec
Quotation toBe createdFrom contract
Quotation toBe created From inquiry
QuotationReasonoccurred
Mailing Campaignprocessing
Sales Activityprocessing
CustomerRFQ processing
XOR
XOR
XOR
^
Standard Order Handling Scenario (2)
XOR
XOR
XOR
XOR
^
^ ^^
Stand Order w/o Quote refreceived
Customer Quotation Processing
QuotationIs Valid
QuotationIs sent
Stand. Orderw/ref to quotereceived
FrameworkAgreement isTo be created
FrameworkAgreement IsAgreed w/ref
QuotationItems arerejected
FrameworkAgreementProcessing
StandardOrderProcessing
Standard Order Handling Scenario (3)
^
^ ^
XOR
XORRejectionNotice sent tocustomer
SalesRequirementscreated
Order Confirmationsent
Order isreleased
Make-toOrderProduction
DeliveryProcessing
ProductionFor LotSize
RepetitiveManufacturing
Cash Management
DeliveryCannot becreated
ProcessManufacturing
Standard Order Handling Scenario (4)
^
^
XOR
XOR
Transportationprocessing
ShipmentIs determined
MaterialFor qualityCheck is available
Shipping papersAre created/transmitted
ShippingNotificationgenerated
Goods issueProcessing forStock material
Goods issueIs posted
TransportationPlanning
QualityManagement
Delivery isRelevant forshipment
Delivery isNot relevantFor shipment
Delivery isRelevantFor billing
COGLAS GmbH - Logistics Solutions
Standard Order Handling Scenario (5)
^
^
Billing docIs releasedFor billing
CashManagement
Billing docIs sent
ProfitabilityAnalysis w/Overhead cost
ProfitabilityAnalysis w/Flex. Standcosting
ProfitabilityAnalysis w/Allocationcosting
ProfitabilityAnalysis w/Static standcosting
Customerprocessing
Billing
Export papersAre created/sent
More Complex Sales Scenarios
Contract handling & agreements
Third party order handling
Customer consignment handling
Cash orders Rush orders Make-to-order Returns handling
Buy/Sell Overview
Marketplace
BBPBBP
R/3 Buy R/3 Sell
RequisiteCatalog
RequisiteCatalog • Select catalog item
• Access Marketplace via BBP
• Create Purchase Order
• Create Sales Order
• Pick• Pack• Ship
• Goods Receipt• ERS• A/P
• EFT Payment
B/C
XMLIDoc
BC
XMLIDoc
B/C
• Create Purchase Order Confirmation
•Receive Order Confirmation
B/C BC
• Send Purchase Order
BCBC
Let’s Try Some XML!