FIT3138 W4 - ERM in Sales and Marketing and CRM

Why do unintegrated Marketing and Sales systems cause companywide inefficiency?

Separate sales order and warehouse and accounting systems create stale or inconsistent data and manual re-entry. This causes pricing errors and order delays and missed deliveries and incorrect invoices and returns or credit problems

How does ERP improve Fitter Snacker's sales process?

Shared real-time data reduce repeated entry and connect Sales with Warehouse and Accounting. Linked orders and deliveries and invoices and payments improve coordination and traceability. Accurate data and timely posting remain essential

How do company code and sales organisation and sales area differ?

• Company code — smallest unit with a legal set of books.

• Sales organisation — sales responsibility assigned to one company code.

• Sales area — combination of sales organisation and distribution channel and division

How do distribution channel and division and credit control area differ?

• Distribution channel — how products reach customers such as wholesale or direct sales

• Division — grouping of products or services.

• Credit control area — entity that grants and monitors customer credit limits across one or more company codes

What are the three main SD master-data categories?

• Customer master — general data and company-code data and sales-area data

• Material master — shared material information organised into functional views

• Condition master — prices and surcharges and discounts and freight and taxes

How does the condition technique support pricing?

Configured conditions determine prices and discounts using relevant data such as customer and material. Discount limits can be enforced. Pricing may apply at header or item level and permitted manual changes can also be entered

What are the six stages of the standard sales cycle?

1. Pre-sales activities

2. Sales order processing

3. Inventory sourcing

4. Shipping or delivery

5. Billing

6. Payment

How do an inquiry and a quotation and a sales order differ?

• Inquiry — request for information without an obligation to buy.

• Quotation — an offer specifying products and price and timeframe.

• Sales order — records the customer's order and processing details. It can reuse inquiry or quotation data or begin directly

What are the three parts of a sales order?

• Header — data for the whole order

• Line item — a particular material and quantity and value

• Schedule line — delivery quantity and date belonging to one line item

How do backward and forward delivery scheduling differ?

Backward scheduling works from the requested delivery date to determine earlier preparation and availability dates. Forward scheduling starts from feasible readiness to determine a possible delivery date. Relevant times include picking and packing and loading and transit

What does an Available-to-Promise check determine?

ATP checks inventory and production-planning information and relevant incoming and outgoing movements to determine whether requested quantities can meet the delivery date. It includes shipping time and is more than a current-stock check

Why is credit management important and how does ERP support it?

It balances sales opportunities against the risk of unpaid balances. ERP checks current Accounts Receivable information against credit limits and can alert or block orders or deliveries under configured rules. Prompt payment and credit posting keep later checks accurate

How does SD transfer requirements to materials planning?

Sales order requirements tell planners the quantities needed to fulfil customer orders. This links sales demand to procurement and production planning and can support increased planned production when a shortfall is expected

What happens during delivery and picking and packing?

An outbound delivery copies relevant order data and controls shipping. Picking selects goods and can group work by storage bin or material. Packing assigns items to shipping units which may be nested. These activities precede posting goods issue

How do goods issue and billing and payment differ financially?

• Goods issue — debit Cost of Goods Sold and credit Inventory

• Billing — debit Accounts Receivable and credit Revenue

• Payment — debit Bank or Cash and credit Accounts Receivable. Billing does not mean cash has been received

How do delivery-based and collective and split invoicing differ?

Delivery-based invoicing creates separate invoices for separate deliveries. Collective invoicing combines several deliveries into one invoice. Split invoicing creates multiple invoices from a delivery. The applicable rules depend on configuration

What is document flow and why is it useful?

Document flow links document numbers related to an order. Users can trace order progress and inspect deliveries and invoices and payments. This supports status tracking and investigation and auditability

What does CRM do and what are the four customer-relationship phases?

CRM coordinates customer interactions across marketing and sales and service. The four phases are prospecting and acquiring and servicing and retaining. Shared customer information supports a consistent customer experience.

• Plan and budget the campaign

• Create and select target groups

• Execute through contact channels

• Analyse results using measures and customer data.

How can CRM campaigns create business value?

Better targeting and follow-up can lower costs and raise revenue and improve strategy and performance measurement

How does CRM differ from SCM and when is additional CRM justified?

CRM manages customer relationships using contact and sales and service information. SCM coordinates demand and production and supply-chain participants. Additional CRM should follow a cost–benefit analysis of customer needs and capabilities beyond those already provided by ERP and SCM