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

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Objectives

Examine the sales and marketing modules Understand the interrelationships among business processes

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

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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

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Sales and Marketing Processes

Operational-level processes
Daily activities
Prospecting, telemarketing, direct mail

Contact management
Databases, lists Sales representatives need to create and maintain a contact management system, which tracks customer preferences, sales history data.

Support operational functions are supported by

Sales order processing system : captures order data POS systems : capture data at the point of sale

These systems are linked to inventory management systems, which update inventory levels for stock items based upon sales date.
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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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 Sales management 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

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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 Identifies channels that will be most effective Decision supported by pricing models Examines CPI, expected consumer disposable income, production volumes, labor costs, costs of raw materials
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Advertising and Promotion

Product pricing

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

Sales and Marketing Modules

ERP systems differ from traditional systems

Provide integrated marketing support systems - including contact files, order entry files, and sales history files.
Provide integrated CRM software provides information about the previous experiences of customers, including purchases, product preferences and payment history.

With an ERP module, a customer places an order, and a sales order is recorded. The system schedules shipping and works backward from the shipping date to reserve the materials, to order parts from the suppliers, and to schedule manufacturing. The module checks for customers credit limits, updates sales forecasts, and creates a bill of materials. The salespersons commission is updated. Product costs and profitability are calculated. Finally, accounting data is updated, including balance sheets, accounts payables, ledgers and other financial informations.
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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Sales and Marketing Modules

ERP systems differ from traditional systems

Provide integrated marketing support systems - including contact files, order entry files, and sales history files. Provide integrated CRM software provides information about the previous experiences of customers, including purchases, product preferences and payment history.

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

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

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CRM Customer Relationship Management

Front-end interface with customer to sales and marketing Comprehensive sales & marketing approach to build long-term customer relationships. 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

The major functions of a CRM system includes one-to-one marketing, telemarketing, call centre automation, e-Selling, data warehousing and customer service. CRM data accessible through data warehouse. A data warehouse is a repository of integrated data, which enables sales representatives to make queries and to generate reports on customer-specific trends.
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

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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

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

Featured Article: Staples and Integrated ERP, continued

Reduced number of direct linkages Web services

Standardized systems Team review of systems, users, needs

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

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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

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