University of Southern California Enterprise Wide Information Systems Motor Sports International Case Company Background Instructor: Richard W. Vawter

University of Southern California Motor Sports International Motor Sports International (MSI) has one sales organization in the United States responsible for negotiating sales and distributing products. MSI Unites States sells two product lines: Motorcycles they manufacture and related components. Accessories such as apparel purchased for resale. MSI distributes products through retail motorcycle dealers in the United States. Two plants service the US sales organization. The plant in New York services and manufactures products; the plant in Seattle is a distribution center.

University of Southern California MSI - US Corporate Sales

University of Southern California Definitions In the SAP R/3 System: Organizational elements are structures that represent the legal and or organizational views of an enterprise. You can design your company structure based on your business processes. The organizational elements form a framework that supports all business activities.

University of Southern California Organizational Elements For example, MSI uses the following organizational elements in customer order management: Company Code Plant Storage Location Purchasing Organization Purchasing Group

University of Southern California Company Codes A company code represents an independent accounting unit, for example, a company within a corporate group. Balance sheets and Profit & Loss statements, required by law, are created at the company code level. MSI has a US and Canadian company in North America to keep two balanced sets of financial books. United States# 3000 Canada# 4000

University of Southern California Sales Organizations A sales organization: Is responsible for distributing goods and services. Is responsible for negotiating sales conditions. Carries out each business transaction. Each sales organization is assigned to a company code and is responsible for sales in its country and sets its own distribution and pricing policies.

University of Southern California Distribution Channels Distribution channels are the means through which sales material reach the customer. Distribution channels can include: Retail trade Wholesale trade Direct sales MSI distributes its products through retailers in the US and through direct sales in Canada. Tele-marketing E-commerce etc.

University of Southern California Division A division can be used to segment a business into product lines. In sales and distribution, the division allows you to make customer-specific agreements such as: Partial deliveries Pricing agreements Special payment terms MSI has 2 divisions in the US which allows MSI to run different promotions for motorcycles and accessories.

University of Southern California Sales Area: A sales area is the combination of three elements: Sales organizations Distribution channels Divisions (product-related) The sales area is used for reporting and pricing. MSI’s sales area structure for North America is:

University of Southern California Plant A plant is an organizational element within a company. A plant produces goods, renders services, or makes goods available for distribution. A plant can be one of the following types of locations: Manufacturing facility Warehouse distribution center In the US, MSI has two plants that support the US sales organization. Most of MSI’s products are manufactured and stored in plant Plant 3400 is available to meet demand for products in the area and serves other areas when needed. Regional sales office Corporate headquarters

University of Southern California Shipping Point A shipping point is a fixed location that carries out shipping activities. Each delivery is processed by only one shipping point! MSI has shipping points, one for each plant location. For example, in the US: