Transcript Value Chain Analysis and Sales Logistics
Value Chain Analysis and Sales Logistics
R/3 Text Chapters 4 & 5
Strategic Significance (1)
– – – – “Value Chain”, the company’s activities are divided into the technologically and economically distinct activities that the company performs in doing business “Value Activities”, are nine generic activities (split in two categories: primary and support) which value is the amount that buyers are willing to pay for a product or service “Primary activities” are those involved in the physical creation of the product or service “Support activities” provide the inputs and infrastructure that allow the primary activity to take place
The Value Chain
Firm Infrastructure Human Resources Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Sales & Marketing Service
Primary VC Activities
Inbound logistics – inventory control, vehicle scheduling, returns to supplier, etc.
Outbound logistics – collecting, order processing, delivery, etc.
Operations – machining, packaging, assembly, etc.
Marketing & sales – advertising, promotion, quoting Service – installation, repair, training
VC Support Activities
Procurement Technology development Human resource management Firm infrastructure
Transforming the Value Chain (2)
Firm Infrastructure Human Resources Management Technology Development Procurement Office Automation
Work Force Planning Systems
CAD EDI Inbound Logistics Operations Outbound Logistics Sales & Marketing Service
Automated Warehousing Computerized ordering Computer-Controlled Machine Equip. Maintenance Automated Shipment Scheduling
Mapping R/3 Text to VC
External Accounting/Treasury Mgt Human Resources Management Controlling Procurement Chapter 8 and 12
Chapter 9
Chapter 10 Chapter 7 Inbound Logistics Operations Outbound Logistics Sales & Marketing Service
Chapter 5 Chapter 6 and 7 Chapter 5 Chapter 5 Chap 11 and 13
Strategic Significance (2)
Supplier VC – – A company’s value chain is a system of interdependent activities A value chain for a company in a particular industry is embedded in a larger stream of activities that it is called “Value System” Firm VC Channel VC Buyer VC – Linkage among activities not only connect value activities inside a company but also create interdependence between its value chain and those of its suppliers and channels
Porter’s Five Forces Model
Threat of new entrants Bargaining Power of Suppliers Rivalry Among Existing Competitors Bargaining Power of Buyers Threat of Substitute Products or Services Interaction between opportunities and threats
Individual Company VC
Every company activity can be categorized into primary or support activity – start with generic VC and subdivide into discrete activities – – categorize those activities that contribute best to a firm’s competitive advantage can compare company VC to industry VC
R/3 and the VC
Allows company to restructure activities on VC Business reference scenarios are structured around primary and support VC activities Text is organized around VC activities See VC examples – copier machine, AMCC, Dell computer
Standard Order Handling Scenario
Mailing campaign Monitor sales activity Possible customer inquiry Customer RFQ processing Order entry Delivery processing Goods issue processing Billing Possible rebate processing
VC for Direct Sale to Industrial Customer
Sales Support Sales inquiry/ Quotation proc Customer Outline Agreement Sales Order Shipping Quality Managment Transportation Credit Management Warehouse Management selection Foreign Trade Customer Rebate Processing Information System
Standard Order Handling Scenario (1)
Cust mail Campaign to Be carried out Sales activity Is to be prepared Mailing Campaign processing ^ Sales activity Is agreed upon Direct mail Campaign Is sent Customer Inquires about products Customer RFQ processing XOR XOR Sales Activity processing Inquiry Items rejectec Quotation to Be created From inquiry Quotation to Be created From contract XOR Quotation Reason occurred
Standard Order Handling Scenario (2)
Customer Quotation Processing ^ XOR Stand Order w/o Quote ref received Quotation Is Valid Quotation Items are rejected Stand. Order w/ref to quote received Quotation Is sent ^ XOR Standard Order Processing ^ ^ XOR Framework Agreement Processing XOR Framework Agreement Is Agreed w/ref Framework Agreement is To be created
Standard Order Handling Scenario (3)
XOR Rejection Notice sent to customer ^ Order is released Order Confirmation sent Sales Requirements created ^ ^ Cash Management Delivery Processing Make-to Order Production Repetitive Manufacturing Production For Lot Size Process Manufacturing XOR Delivery Cannot be created
Standard Order Handling Scenario (4)
^ XOR Delivery is Relevant For billing ^ Material For quality Check is available Shipping papers Are created/ transmitted Delivery is Not relevant For shipment Delivery is Relevant for shipment Transportation Planning Quality Management Goods issue Is posted Shipment Is determined COGLAS GmbH - Logistics Solutions Goods issue Processing for Stock material XOR Transportation processing Shipping Notification generated
Standard Order Handling Scenario (5)
Billing Export papers Are created/ sent ^ Billing doc Is released For billing Billing doc Is sent ^ Cash Management Profitability Analysis w/ Overhead cost Profitability Analysis w/ Flex. Stand costing Profitability Analysis w/ Allocation costing Profitability Analysis w/ Static stand costing Customer processing
More Complex Sales Scenarios
Contract handling & agreements Third party order handling Customer consignment handling Cash orders Rush orders Make-to-order Returns handling
Buy/Sell Overview
Requisite Catalog
• Select catalog item R/3 Buy • Goods Receipt • ERS • A/P • Send Purchase Order IDoc • Create Purchase Order XML XML • Create Sales Order IDoc R/3 Sell Marketplace •Receive Order Confirmation • Create Purchase Order Confirmation • Access Marketplace via BBP • Pick • Pack • Ship • EFT Payment BBP