Enterprise Resource Planning, 1st Edition by Mary Sumner Chapter 4: ERP Systems: Sales and Marketing © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Objectives Examine the sales and marketing modules Understand the interrelationships among business processes © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Case: Atlantic Manufacturing Manufacturer of small motors Problems with current order acquisition, operations, distribution, and accounting systems Information supplied to sales force inaccurate Customers requesting reduced lead times Credit system inconsistent, producing collection problems Service calls lack warranty information Quality control system not integrated Competition has eliminated these problems © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Sales and Marketing Processes Operational-level processes Daily activities Prospecting, telemarketing, direct mail Contact management Databases, lists Support Sales order processing system POS systems © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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 © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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 © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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 © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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 © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Integration with Modules Sales model may be integrated with: CRM Financial Accounting Materials Management Human Resources Quality Management Controlling © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Featured Article: Staples and Integrated ERP How is technology helping Staples achieve a competitive advantage? Customers want full range of services Consistent Seamless Online kiosk Connected to e-commerce web site POS system, order management system, supply chain Access information about products and services View inventory Build PCs to order Multiple channel shoppers have greatly increased lifetime value Acquired Quill Implemented an integration level to connect two disparate systems © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Featured Article: Staples and Integrated ERP, continued Reduced number of direct linkages Standardized systems Web services Team review of systems, users, needs © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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. © Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner