idea incubation

M0254 - ERP (Enterprise Resources Planning)
Session 5
Sales and Marketing Information System



Ir. Ekananta Manalif, MM, MKom (D2664)
Jurusan Sistem Informasi Universitas Bina Nusantara


Marketing and Sales
Determine pricing
Take customer orders
Create sales forecast


Learning Objectives
Describe the unintegrated sales processes of company (Fitter Snacker’s).
Explain why unintegrated Sales and Marketing information systems lead to company-wide inefficiency, higher costs, lost profits, and customer dissatisfaction
Discuss sales and distribution in ERP system, and explain how integrated data sharing increases company-wide efficiency
Describe the benefits of Customer Relationship Management software, a useful extension of ERP software
Marketing Personnel make decision on:
What products should we produce?
How much of each product should we produce?
How are our products best promoted and advertised?
How should our products be distributed?
What price should we charge?
Problems with Fitter Snacker’s Sales process:
Sources:
Three unintegrated systems
Sales Order System
Warehouse System
Accounting System
Manual handling of transactions
Information not available in “real time”
Fitter Snacker’s Sales Process
Sales Quotations and Orders
Sales call
Hand-written quote on 3 sheet form faxed to sales office
Customer calls 800 number to place order
Sales Quotations and Orders Problems
Salesperson error in preparing quote manually
Customer call reaches sales office before faxed quote
Faxed copy is illegible
Delivery data requires call to warehouse
Warehouse provides delivery date estimate
Sales Quotations and Orders Problems
Initial credit check uses paper process
Credit check for established customers using accounting printout that may be a week old.

Warehouse/Order Filling
Packing lists/shipping labels manually sorted
Small order process and large order process
Inventory managed by Access database

Warehouse/Order Filling Problems
Picker may not report breaking case down for small order
Perishable product requires low inventories
Out of stock decision:
Partial shipment
Change production schedule
Wait until full order can be shipped
Accounting and Invoicing
Sales order data transferred by disk to PeachTree program 3 times per week
Clerks must make manual adjustments for partial shipments and other errors.
Invoices may not always match actual product shipped

Payment and Returns Problems
Customers don’t always include copy of invoice with payment
Invoice may not match payment-reconciliation required
Returned Material –Paper process, sometimes no RMA #
Improper “dunning” letters
Sales and Distribution with ERP
Sales and Distribution Process
Pre-Sales Activities
Inquiry or Quote (binding)
Marketing Activities
Tracking Contacts
Sales Calls
Visits
Mailings

Sales Order Processing
Activities required to record a sales order
Incorporate data from inquiry or quote
Automated Pricing and Discounting
Automate Credit Check


Inventory Sourcing
Check of inventory, orders and production to see if order can be delivered when customer desires
Includes shipping and considers weekends/holidays
Delivery
Releasing documents to warehouse to initiate pick, pack and ship
Sequenced and grouped for warehouse operation efficiency
Materials Management module carries out picking, packing and shipping
Billing
Sales order data copied to invoice
Can be printed and mailed, faxed or transmitted electronically
Accounting records updated
Payment
Payment may be physical check or electronic
Cash debited and customer account credited
Quick processing avoids credit check problems
Sales Order Entry in ERP
Master Data
Master data is stored in a central database that is accessed by all modules
Customer Master Data and Material Master Data are primary data sources for Sales Order Processing
Organizational Structures
Organizational structures allow the ERP system to control the sales order process – pricing, minimum orders, etc.
Distribution Channel defines the way that materials move between the company and customers
Wholesale Distribution Channel
Direct Sales Channel
Document Flow in ERP
Document Flow
Sales order process creates numerous documents
Sales Order - Invoice
Delivery - Payment
Goods Issue - RMA
Document Flow links all documents related to a sales order
Discounts in ERP System
Discount Pricing in ERP
ERP system can be accommodate various discounting schemes
Calculates correct discount based on customer and material
Integration of Sales and Accounting
Sales order processing transactions make appropriate accounting entries at time of transaction-automatically

Customer Relationship Management (CRM)
ERP provides means to manage all data relating to a customer to improve the quality of the interaction
CRM Activities include:
One-to-One Marketing
Sales Force Automation
Sales Campaign Management
Marketing Encyclopedias
Call Center Automation
CRM Benefits
Lower Costs due to better use of sales and marketing resources
Higher Revenue by improving the effectiveness of marketing efforts
Improved strategy and performance measurement by changing management and staff focus
Chapter Summary
Fitter Snacker’s unintegrated information systems lead to inefficiencies and reduced customer satisfaction
An ERP system like SAP’s R/3 views sales as a process, providing timely, accurate data and automating error-prone tasks
Chapter Summary
Configuration decisions must be made during installation to match the company’s practices and policies
The ERP system’s central database maintains master data used by all areas of the company
CRM software builds on ERP data to improve marketing effectiveness