1. The Fulfillment Process
Chapter 5
The Fulfillment Process
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2. Learning Objectives
Describe the organizational levels associated with the fulfillment process.
List and explain the master data associated with the fulfillment process.
Identify the key steps in the fulfillment process and the data, documents, and information associated with each step.
Discuss the role of the credit management process in fulfillment.
Effectively use SAP® ERP to execute the key steps in the fulfillment process.
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3. Learning Objectives (Continued)
Explain how and why fulfillment is integrated with other processes.
Utilize SAP ERP to extract meaningful information about the fulfillment process.
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4. A Basic Fulfillment Process
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5. Organizational Data Client Company code Sales organization
Distribution channel
Division
Sales area
Plant (shipping plant)
Storage location
Shipping point
Credit control area
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6. Sales Organization Responsible for
Distributing goods and services
Negotiating sales conditions
Product liability and rights of recourse
Used to divide the market based on geographic regions
Highest level of aggregation in sales-related reporting
A company code must have at least one sales organization
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7. GBI Sales Organizations
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8. Distribution Channel Responsible for getting materials to customers
Used to
Differentiate distribution strategies or approaches
Different pricing, responsibilities
Wholesale sales, retail sales, Internet sales
Statistics and reporting at the DC level
A sales organization must have at least one distribution channel
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9. GBI US Distribution Channels
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10. Division Used to consolidate materials with similar characteristics
Different sales strategies, pricing agreements
Statistics and reporting at the DC level
Associated with product lines
A sales organization must have at least one division
Can be assigned to multiple sales organizations
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11. GBI US Divisions
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12. GBI DE Divisions
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13. Sales Area Made up of three other organizational elements
Sales organization
Distribution channel
Division
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14. GBI Sales Areas
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15. Distribution Chain
A unique combination of sales organization and division
Some master data are maintained at this level
Material master
Pricing conditions
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16. Plant
Plant
Manufacturing facility
Warehouse
Office
A company code must have at least be at least one plant defined in a company code.
A plant must be uniquely assigned to a company code.
A plant can be assigned to deliver products or services for multiple distribution chains.
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17. Plants and Distribution Chains
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18. Shipping Point
A physical location from which outbound deliveries are sent
Loading dock
Mail room
Rail depot
Group of employees (to handle expedited orders)
A plant must have at least one shipping point
A shipping point can be assigned to many plants
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19. Shared Shipping Points
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20. Multiple Shipping Points
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21. Shipping Point Example
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22. Shipping Point Example
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23. Shipping Point Example
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24. Credit Control Area Responsible for customer credit Centralized
One credit control area for all company codes in the enterprise
All customers in all company codes are managed by one credit control area
Decentralized
More than one credit control area in the enterprise
Each credit control area manages credit for one or more company codes
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25. Centralized Credit Control Area
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26. Decentralized Credit Control Area
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27. Master Data Material master (what views?)
Customer master (what segments?)
Customer-material info record
Conditions
Output master data
Credit management master record
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28. Material Master Data Basic Data Sales: Sales Organization
Includes data specific to a combination of sales organization and distribution channels
Examples include: delivering plant, sales units (unit of measure), minimum quantities (order, delivery)
Sales: General/Plant
Includes data specific to a plant
Examples include: handling requirements (refrigeration), loading (hand cart, forklift)
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29. Demo 5.1 Review Material Master
Review some of the data included in a material master
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30. Customer Master Data General Data Financial/ Accounting data
Specific to a client
Valid across company code and sales area
Financial/ Accounting data
Specific to a company code
Sales Area data
Specific to a sales area
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31. Segments Of Customer Master Data
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32. Customer Master Data General data Company code data (FI)
Account number
Address
Communication
Company code data (FI)
Reconciliation account
Payment terms
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33. Customer Master Data Sales Area data (Sales)
Sales related
Sales area, pricing, currency
Shipping
Delivering plant, priorities, methods, tolerances, partial delivery
Billing
Terms, tax-related,
Partner functions: multiple roles
Sold-to-party, ship-to-party, bill-to-party, payer
A customer can be served by multiple sales areas
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34. Multiple Definitions of a Customer
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35. GBI Customers
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36. Demo 5.2 Review Customer Master
Review some of the data included in a customer master
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37. Customer - Material Information Record
Intersection data for one customer and one material
Data specific to the combination of customer and material
Supersedes data in customer master and material master
Examples of data
Cross references customer material numbers, descriptions
Specific terms (e.g., shipping, tolerances, partial deliveries, delivering plant)
Alternate delivery plant, shipping terms/methods, tolerances, partial deliveries (e.g. not accepted for this material)
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38. RMB and GBI Material Numbers
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39. Demo 5.3 Review Customer-Material Information Record
Review some of the data included in a customer-material information record
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40. Pricing Conditions Prices Freight Surcharges and discounts Taxes
Material price
Customer specific price
Freight
InCoTerms
Surcharges and discounts
For customer, material, or combination
Taxes
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41. Demo 5.4 Review Pricing Conditions
Review some of the data included in a pricing conditions
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42. Output Conditions Sent to customers using a variety of media
Examples of output
Quotation, order confirmation, invoices
Media
Mail, fax, EDI
Master data includes
Output type, medium, time (immediate or later), partner function
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43. Credit Management Master Record
Extension of the customer master record
General data (client level)
Address, communication, total credit at the enterprise level
Credit control area data (credit control area level)
Credit limit for the credit control area
Risk category
Overview (key data from other areas)
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44. Fulfillment Process Steps
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45. GBI Scenario Customer: RMB, Denver, CO.
Silver Deluxe Touring bikes: 40
Delivery 30 by May 10, 10 by June 10
T-shirts: 100 (qualifies for 10% disc)
Delivery all by May 10
Deliver to racing location in Colorado Springs
Selling price
Cost price
Silver deluxe touring bike
$2,800
$1,400
T-shirt
$30
$15
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46. Pre-sales Activity
CRM light – establishing and maintaining customer relationships
Activities include
Creating and tracking customer contacts
Mailing campaigns
Responding to customer inquiries and request for quotation
Quotations
Outline agreements
Contracts
Scheduling agreements
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47. Elements of the Pre-sales activity
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48. Data in a Quotation
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49. Reference Documents for a Quotation
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50. Demo 5.5 Create a Quotation
Review how to create a quotation
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51. Elements of a Sales Order
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52. Sales Order Processing
Typical data in a sales order
Customer and material data
Delivery dates and quantities
Pricing conditions
Shipping information
Billing information
Source of data
Customer order
Master data
Contracts
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53. Data in a Sales Order
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54. Relationship between Quotations and Sales Orders
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55. Structure of a Sales Order
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56. Sales Order Document Header Line items
Dates, terms, customer data, etc
Line items
Item number
Quantity
Schedule lines
Date
Order quantity
Delivery quantity
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57. Backward Scheduling
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58. Demo 5.6 Create a Sales Order
Review how to create a sales order
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59. Inventory Sourcing
Transfer of requirements (materials management / materials planning)
From stock
Materials management
Internal procurement
In-house production process
External procurement
Procurement process
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60. Shipping Create outbound deliveries Picking (optional)
Packing (optional)
Transfer requirement (if WM is enabled)
Post goods issue
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