SALES AND DISTRIBUTION-MM
MADE BY-
BHAIBHAB NATH
DEEPSHIKHA BANSAL
JIGNESH JOSHI
MEHAK OBEROI
RASHI JAIN
SONAL SMRITI
Introduction
Manufacturing and distribution companies are
experiencing considerable changes in their business
environments.
The competition is becoming more global.
Product life cycles -getting shorter and customer
preferences are changing rapidly.
Reduced delivery lead times are a prerequisite to
compete.
Increased efficiency in distribution is a key factor to
ensure that companies retain a competitive edge and
improve both profit margins and customer service.
Modules in Sales and Distribution
1.Quotation
2.Made-to-Order
3. Price List
4. Discounts
5. Sales campaign and promotion
6. Sales Order
Quotation
Sales quotations are created through a manual entry.
All information required to confirm a sales order are
captured and validated by the system .
It can also create a sales quotation by copying a
previous quotation and changing it as needed.
On confirmation of the quotation you can select all
or part of the quotation to a sales order with a
reference to the quotation.
Made –To-Order
A Product Configuration helps you and your
customer define and verify make-to-order .
Assemble-to-order requirements, ensuring accurate,
buildable orders.
The Information is made available to every member
of your sales force.
Price List
It supports the concept of differential pricing by
maintaining multiple price lists for a given item.
On order placement it selects the price list based on
the rules defined in the system.
These tools also help your agents, dealers and
stockist to generate their price list based on pricing
policies.
Discounts
Discount models define the discounts that are
automatically entered for a customer order line.
They are defined in the price list and can configured
to market segments on limit values in the discount
scale (eg. quantity, amount, etc.).
The size of the discount can be varied based on an
order size or based on quantity or volume scales
achieved over a predefined period.
Sales campaign and promotion
Sales promotions can be defined by capturing
critical components of the sales campaigns like
discounts,
period of the campaign,
eligibility criteria,
target achievements.
Sales Order
Sales Order Management ensures order accuracy
as it captures, maintains, and shares product and
distribution information across your enterprise.
It meets the order processing requirements from
rapid, repetitive order entry to complex, detailed
orders with multiple shipping schedules.
Order Generation
Orders can be generated by any of the following
methods:
Direct Entry
Sales agreement
Auto replenishments
Channel partner replenishments
Direct Entry
• Order lines can be entered using different panel
layouts.
• A detailed panel can be used where all information is
editable.
• A panel for quick entry can also be made in which
only item number and quantity need be entered in
each line.
Sales Agreements
Customers can place sales orders on terms and
conditions defined in an agreement.
• It maintains details of the sales contracts such as
price lists,
payment terms,
items and validity of the agreement,
minimum order,
maximum order per period and
total order value of the contract.
Auto Replenishment
Orders are generated automatically for
replenishment at customer warehouse.
They are managed by either generating an order at
specific time intervals or on reduction of stock to
pre-determined re-order level.
Through this integrated approach purchase
requirements are planned to satisfy the orders at the
earliest and at the lowest cost possible.
Channel Partner Replenishments
Allows you to dispatch goods based on requirements
and demands received by the channel partner from
their customers, eliminating the need of the channel
partner to stock inventory at its own location.
Invoicing
It allows you to create invoices automatically on completion of
order acceptance.
Provides the flexibility to allocate stock by expiry date, lot
number or FIFO methods.
It is possible to have separate invoices for trading,
consignment sales etc.
The system can be configured to accept a minimum value per
invoice. These can be further specified for each division
individually.
The invoicing process is completely integrated with the
Accounts Receivable, Sales Commission, Customer discounts,
General Ledger, Taxation, inventory management,costing and
Sales Analysis modules.
Inventory Control
It provides real-time information about inventory
levels across the enterprise.
The system facilitates physical count of inventory
without disrupting dispatches by logically blocking
and holding a storage area in a location.
The system tracks expiry and shelf life of items
across the entire inventory structure.
It makes items, which have expired or approaching
expiry date unavailable to issue.
Inventory Structure
Facility
Warehouse
Location
Stack zones
Containers / Bins
Allocation Of Inventory
Allocation is the process by which a specific quantity
of an item of batch/lot are blocked or made
unavailable for further transactions.
It allows the user to select the lot or batches to be
allocated.
It also allows the user to allocate the order partially
leaving some quantity "open" for later allocation.
Auto allocation executed from the sales order
automatically allocates the stock based on a pre-
defined method.
Forecasting
• A rolling forecast can be created for stock items
based on lead times required to procure raw
materials.
• In addition, Demand Planning provides bottom-up,
top-down forecast editing to enable key users to
manually adjust to system-generated forecast
numbers.
Requirement Planning
Based on this forecast, one can accurately determine
when and where to produce and distribute finished
products.
It creates a requirement plan for procurement,
manufacturing and dispatch of goods across the
supply chain.
This is possible only when Materials and
Manufacturing are integrated with Sales and
Distribution.
MM Overview
The functions supported by MM - Materials
Management include the following sub-modules:
Material Requirements Planning (MRP)
Purchasing
Inventory Management
Material Valuation
Invoice Verification
MM Overview: Procurement Cycle
Forecast
Material Requirements
Stocks Planning Demand
Requirement
Production Purchasing
(Internal Procurement) (External Procurement)
Invoice
Inventory Management
Invoice
Goods Receipt
Verification
Warehouse
Management
Goods Transfer
Issue Posting
Accounting
Sales and Distribution
