Support Sale Process with SAP

CASE: GLOBAL BIKE

Review
 Peter Drucker: “there are no results that matter inside the
company; only result that matters is a SATISFIED CUSTOMER”
Content
Fundamentals of Sale Process (Sale &
Distribution (SD)
Major Activities of Sale Process
Simplications:
+ Business to Business
(B2B) not B2C
+ Sale of products (not
service)
How Sale Process at CBI work BEFORE SAP?
This process has 6 roles:
+ 3 performed by human actors (Sue,
Wally, and Ann)
+ 3 by computer

Pre-Sales -> Create Sales Order ->

Accounting for approval -> Pick -> Pack ->
Ship -> Send invoice -> Receive Payment.

LOST SALES: from Sue due to:

+ sales data in inventory 55
Stream bikes (10 were sold to
other customers Sue did not
know
+ Ann could not get the extra
frame from suppliers

Problem: NOT sharing data and integrate

activities
Before SAP: Sale Order (PO) form

Customer?
Materials?
Quantity?
Price?
Delivery Date?
Transportation?
What were the Problems with the Sale Process before SAP?

Overselling

Cannot communicate
inventory forecasts to
the sales force

Receive payments from

customers with inncorrect
or missing invoices

Customer data must be entered in

2 different deparments (sales &
accounting)
 How does CBI Implement SAP?
ERP systems are implemented not only to overcome problems
but also to achieve strategy (eg. High-end bikes)
How does Sale Process work at CBI After
SAP?
2 years later:
+ 3 computer
actors are reduced
to the sinlge SAP
system to track to
sales data
+ Inventory & Price
data are now
current (55 bikes
are available and
10 of the 55 have
been sold, real-
time price discount
available)
Create Sale Order (SO) Subactivity in
SAP of 50 Stream Bikes to Heartland
by Sue
Sue made the sale and input the
sales data into SAP in the Create
Sales Order activity, including
+ Hearland customer number
(25056)
+ date of the transaction (PO
date, 06/20/2011)
+ transaction number (PO
number 05432)
+ Material number for Stream
bikes (TXTR1001)
+ numer ordrerd (50)

Sales Order (SO) is

created
Picking Subactivity Screen in SAP by Wally
Once Sale is approved -> finished goods
are picked and packed
+ SO number needed -> Outbound
Deliver screen
+ Confirms data provided by SAP if
correct (50 is picked)
+ Inventory table is updated
Posting Subactivity Screen (by Ann)
Ship goods acctivity occurs when the
delivery truck leaves the warehouse
with the shipment.
+ sales order has been picked and
packed -> Post Goods Issue
+ Posting: legal ownership of the
materials has changed (bikes are no
longer owned by CBI, belong to
Heartland.
Send Invoice
SubActivity by Ann

Wally posted goods issue

 Ann can bill Heartland for the
50 Streams with
+ Heartland’s number in the Sold-
to Party (25056)
Post incoming
Paytments

Customer: Heartland
Accoutning number: 25056
Amount paid: $15,000
Account number: 100000
REVIEW DOCUMENT FLOW
 Benefits of SAP for the CBI Procurement
Process
2 benefits
+ address Sales
process
problems
+ achive sales
objexctive

NO MORE
INFORMATION
SILOS
 How SAP Improve Customer-Facing
Processes at CBI?

After-Sale
Service
Improving Customer-Facing Process by
Sharing Data
Eg: sharing receipt
electonically instead of
paper

Eg, Customer call for

sevice? how to
reponse?
Improving Customer-facing Processes with Integration & Challenges

Increase synergy between

different proceses

Production process
times are consistent,
aseembly of bikes is on
time-> delivery of a
sale is rarely late.
How does E-Commerce improve Processes in
an Industry? ERP is not only way
to improve
processes among
organization.

E-commerce is multi-
firm process of buying
and selling goods and
services using Internet
technologies. (Amazon,
Apple)
What New IS Will Affect the Sales Process in
2024?
• Wearble Tech
• Smartphone Payment
• Social CRM MagicBands by Walt
• Cloud-based CRM (run Disney
online CRM)