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ERP Course- S&D Module Handouts

Thiagarajar School of Management, Madurai - CIRCULATION RESTRICTED - ONLY FOR ACADEMIC PURPOSES. 1

ERP SystemsSales and Marketing

BALAJI.M

Faculty, TSM

Objectives

• Examine the sales and marketing modules• Understand the interrelationships among

business processes



? For monitoring the efficiency and effectiveness of the distribution of their products and services, sales managers need information to plan and monitor the sales force

?Management needs information on the performance of specific products, product lines, or brands

? Price, revenue, cost and growth information can be used for pricing decisions, for evaluating the performance of current products and for predicting the performance of future products

Role Of Marketing Information Systems

Sales and Marketing Processes

• Operational-level processes– Daily activities

• Prospecting, telemarketing, direct mail

– Contact management• Databases, lists

• Support– Sales order processing system– POS systems









• Sales activities and promotions are documents for sales support in pre-sales.

• Sales documents are documents that are entered during pre-sales and sales order processing.Inquiries, quotations, contracts, scheduling agreements and standard orders are examples of sales document types.

• Outbound deliveries, transfer orders and shipments are documents in shipping processing.The goods issue document contains changes involving stock and is

the basis for the relevant accounting documents.• The billing document is a document in billing and is the

basis for the relevant accounting documents.



Sales Management Control Processes

• Designed to allocate resources to achieve maximum revenues

• Decisions made on analysis of sales– Comparison of sales – Analysis of revenues against benchmarks– Listing of most profitable products, sorted by territory and

salesperson– Software often used

• Allows for quicker analysis• Able to identify trends • Analyze salesperson performance• Identifies both strong and weak products• Can signal potential shortfalls or excesses in stock levels

Additional Sales Management Applications

• Sales forecasting– Predicts trends– Determine customers’ needs in different market segments– Based on sales history, customer demands, demographic trend,

competitor information• Advertising

– Identifies channels that will be most effective• Product pricing

– Decision supported by pricing models– Examines CPI, expected consumer disposable income, production

volumes, labor costs, costs of raw materials



Sales and Marketing Modules

• ERP systems differ from traditional systems– Allow for integrated marketing support systems– Provide integrated CRM software

• Purpose– Identify sales prospects– Process orders– Manage inventory– Arrange deliveries– Handle billing– Process payments

• Benefits– Standard codes and documents– Common database– Provides audit trail – Allows for data Integration

CRM• Front-end interface with customer to sales and marketing• Comprehensive approach• Developed from sales force automation software• Provides sales force with management tools

– Sales activity– Sales and territory management– Contact databases– Leads generation and monitoring – Product-specific configuration support– Knowledge and information resource management

• Needs an underlying Sales and Marketing ERP module for operational- level data

• CRM data accessible through data warehouse



Integration with Modules

– Human Resources

– Quality Management– Controlling

– CRM

– Financial Accounting– Materials Management

• Sales model may be integrated with:

Information Systems that support the Marketing Cycle



• Systems which support the operations of the sales

and distribution channel are known as channel

systems

• An all encompassing information system which

helps informate the supply chain from the customer

side to the supplier side is a supply chain

management (SCM) system

Channel Systems

• The traditional supply chain establishes long term

relationships with vendors, distributors and retailers, with

multiple inventory sites, long lead-times and fixed margins

• A traditional supply chain has limited visibility into true

customer demand, and as a result, it is plagued with buffer

inventories, which managers build up as protection against

uncertainties and risks in the supply chain

Traditional Supply Chain



?Keep Goods Moving - provides you visibility to inventory levels at your suppliers, and visibility to inventory in-transit to you – as well as how long it takes to get there and why

?Managing Supplier Performance - SCM quantitatively tracks the performance of your suppliers – who delivers on-time, who delivers partially, who has the best invoice accuracy –so that you can identify the best trading partners and give them the majority of your business ?Measuring Channel Effectiveness - keep track of your customers’ buying habits across increasingly more complex channel mixes ?Providing Customer Service - SCM can help assemble the information needed, across your supply chain, to answer the seemingly simple question, “Where is my order?” and explain a delay or provide an alternative option, such as shipping a par tial order or finding an alternate source for a back-ordered item?Managing co-ordination and uncertainity through dynamic scheduling of sales and distribution

Role of Channel Systems

Flow of data from point of sale terminals to suppliers



• Sales support systems are applications that facilitate the interface between the sales force and the corporation in the support of the customer

Sales Support Systems

?e-mail

?Forms

?Dynamic information sharing

?Reports distribution and analysis

?Multimedia

?Sales reporting

Information Technology Tools for SFA



Summary

• The sales and marketing modules for ERP systems are designed to support the sales order processing systems, control daily activities like prospecting and manage contacts.

• This system produces sales forecasting, identifies advertising channels, and helps to maintain competitive pricing scales.

• The CRM module serves as a front-end interface between the customer and the sales and marketing departments.

Documents

ERP Systems - FREE LEARNING ERP - study materialserpstudymaterial.weebly.com/uploads/9/6/3/0/963038/sd_module... · ERP Systems Sales and Marketing BALAJI.M ... – Provide integrated