1. Chapter 8 Supporting the Sales Process with SAP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-1

2. Who has worked in B2B sales? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-2 Do any of the issues at Chuck’s Bikes before the implementation of SAP resonate with you? As managers, why would we want to be in a B2B sales market?

3. What Are the Fundamentals of a Sales Process? Figure 8-2 Sales Process Within the Value Chain of CBI Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-3 Once again, note that these things do bleed into each other. The relationship between each of the activities is symbiotically related to the others

4. What Are the Fundamentals of a Sales Process? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-4 “For a business, sales is the most important process. Without sales, no one gets paid and buildings go dark” How much does it cost to acquire new customers? Why?

5. Pre-Sales Sue and other sales reps – Contact customers – Give price quotes – Verify product availability – Check special terms – Confirm deliver options – Pray If the customer decides to buy… Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-5

6. Sales Order Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-6 With a sales order in hand, is it time for Sue to head to Maxi’s and buy a round of drinks? Why or why not?

7. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-7 3 People 3 Information Silos Sale price? Credit? In Stock?

8. Scenario Inventory only updated once at the end of each day When Sue sold 50 bikes, inventory showed 55 available but 10 bikes sold earlier in the day to a small company Accounting knew about the earlier sale and had to cancel the order for their biggest customer because they only had 45 bikes Big customer didn’t need bikes for a few weeks but frames discontinued and nobody told sales to stop selling these bikes. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-8

9. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-9 Since the inventory info is only updated once at the end of each day, does the salesperson really know what they have to sell? Wally picks-n-packs orders before Accounting approves credit. What happens to inventory and how much time is wasted when credit is denied? What kind of chaos do you have managing credit if a mistake is made creating an invoice, posting a payment, or dealing with a return? Is this the “well oiled machine”?

10. What Were the Problems with the Sales Process Before SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-10 A Note on User Error….

11. How Does CBI Implement SAP? Objectives and Measures Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-11

12. How Does the Sales Process Work at CBI After SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-12 Inventory updated in real-time Sue can see that there are 55 bikes available but that 10 have already been sold to another customer. These 10 have not been shipped and her customer will have priority.

13. Off Book For A Second Customer priority… why is this a thing? How should we manage it? Do we manage it visibly or invisibly? – What are the benefits of each? Why must must must must must customer priority be centrally controlled? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-13

14. How Does the Sales Process Work at CBI After SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-14 Wally picks, packs and ships this order… …once Wally posts that the order has shipped, who legally owns the 50 bikes and what happens next?

15. How Does the Sales Process Work at CBI After SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-15 The text says that accounting receives a message and generates an invoice but seriously, do I really need anyone to do this if everything I need to generate the invoice is in SAP? Do I print out and invoice and mail it? Could I have shipped it with the order? Can I send it to them electronically and get my cash sooner?

16. Question The accounting department at CBI receives a message that it can bill a customer for a sale when the ________. – A) sales order is approved in SAP – B) sales order is generated in SAP – C) order is picked and packed at the warehouse – D) warehouse posts the goods issue in SAP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-16

17. How Does the Sales Process Work at CBI After SAP? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-17 If the customer sends me a check then I do need a clerk to post it. If the customer sends me an electronic payment, how many people do I need to post the payment?

18. How Can SAP Improve the Integration of Customer-Facing Processes at CBI? Methods – Integration by Sharing Data – Increasing Process Synergy Technical Challenges – SAP Integration Problems with Emerging Technologies Business Challenges Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-18

19. A Thought Exercise: Bechtel Largest American construction and civil engineering firm 4 th largest private firm in the world : 39.4B in revenue Major player in the Marshal Plan, the Trans-Arabian pipeline, etc. Need to rebuild a country or prepare for the Olympics… right here… Five Major Groups: Civil Infrastructure, Govt Services, Mining and Metals, Oil/Gas/Chem, and Power Consider the firm’s complexity… why SAP for sales? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-19

20. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8-20