Sales and Distribution

SAP Sales and Distribution module (SD) is part of the Logistics area and supports your sales processes like quotation and contract management, order processing management and invoicing of the product or service you provide to your customers.

SD is tightly integrated with other SAP core modules like Finance and Controlling (FICO), Materials Management (MM), and Production Planning (PP), allowing you to see immediate impact of each transaction processed through the Sales and Distribution module.

SD (Sales and Distribution) Components

  • Sales Support
  • Master Data
  • Shipping
  • Sales
  • Credit management
  • Foreign Trade
  • Billing
  • Transportation
  • Sales information systemcrmsalesbusprocess1

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Quotation Management

ERP Foundation

Accelerate your sales cycles and win more deals with accurate and compelling sales quotes

For many sales organizations, delivering compelling sales quotations to their customers and prospects is a key part of their daily lives. To stay ahead of the competition, these quotations must be delivered quickly and accurately. SAP’s capabilities enable your sales and partner teams to provide accurate and relevant pricing, additional product recommendations, and reliable delivery commitments. In addition, seamless integration between preceding and follow-on processes such as order creation, helps to further streamline and simplify the sales process. In organizations where products and services can be complex, product configuration and collaboration capabilities allow you to offer valid configurations to customers and leverage the involvement of subject matter experts within your company in the quoting cycle. Lastly, when leveraging the power of SAP Price and Margin Management, the profitability of these quotations can be ensured through insight and guidance.

Business Drivers

  • Reduce sales cycle by providing accurate and relevant quotations to customers
  • Increase win rate by delivering compelling sales quotations quickly and accurately
  • Reduce order processing time by integrating quotation processing within the order cycle

Sales Contract Management

ERP Foundation

Ensuring continuous sales revenue through long-term sales agreements

SAP software integrates contract management with the sales, pricing, and logistics functions of order management in ERP. With unified processes, salespeople can negotiate and approve long-term sales agreements that define special conditions on pricing or products for customers. Organizations can monitor sales contracts throughout the agreement’s lifecycle, from contract quote to closing or renewal. They can also track how well purchases are mapping to agreements – and react quickly when a customer is dissatisfied or when contracts are up for renewal. This level of integration and clarity can help improve sales forecast accuracy and increase customer satisfaction.

Business Drivers

  • Improve customer retention by tailoring sales agreements focused on unique customer needs
  • Increase sales forecast accuracy by predicting sales revenues through long-running sales agreements
  • Increase customer interactions which result in a sale by continuously monitoring contract fulfillment and renewal

Order Management and Processing

ERP Foundation

Frictionless order processing, from quote to cash

SAP software enables sales organizations to integrate all ERP-related order-processing activities and functions – from quote to shipment and from billing to booking revenue. Integration creates a smooth and seamless order management process that can be designed to meet industry-specific requirements. SAP software does the behind-the-scenes work to streamline the process, capturing sales data from multiple channels and providing role-based access to the information each user needs throughout the process. The result: lower administrative costs, profitable channels, and loyal customers.

Business Drivers

  • Increase sales actuals vs. target by reducing days sales outstanding (DSO) and improving overall sales effectiveness
  • Improve sales productivity by providing a streamlined and predefined order management process
  • Improve customer retention by improving information flow on order status and tracking

Sales and Logistics Execution

Automating critical industry and OEM processes to better collaborate with suppliers and customers

SAP can help automotive manufacturers and suppliers improve manufacturing and outbound logistics. Our software offers the functionality to integrate bar codes and RFID technology as well as automate various types of OEM processes, including just-in-time, just-in-sequence, handling-unit management, EDI, supplier-managed inventory, and self-billing and invoicing. With SAP, companies can communicate and collaborate with customers and suppliers. They also get the visibility to produce the lowest possible inventory levels capable of meeting customer demand. As a result, they can prevent stock-outs, accelerate fulfillment, increase customer service, and reduce operating costs.

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Business Drivers

  • Improve on-time delivery performance by improving on-delivery
  • Increase inventory turnover / reduce days in inventory by reducing days in inventory
  • Reduce revenue loss due to stock-outs by reducing revenue loss caused by stock-outs
  • Reduce transport spend by reducing transport spend

Convergent Invoicing

Simplified invoicing that enhances cash flow and customer care

SAP software pulls together information from several billing streams and individual-rated events. This functionality enables service providers to consolidate charges into a single invoice and give a complete view of the customer. Providers can accommodate partnerships with third parties and ramp up new services by clearly delineating which party is responsible for any given charge. They can also manage sophisticated rules for invoice-level discounting. By greatly simplifying complex billing processes, providers can give customers a single, consolidated invoice, while delivering better, more personalized services.

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Business Drivers

  • Improve customer satisfaction by generating clear, easy-to-understand invoices for all services on a single bill
  • Reduce days sales outstanding by making bills easier to understand to ensure prompt payment without disputes
  • Reduce number of applications per billion revenue by consolidating multiple billing systems into one source
  • Reduce customer service & support cost by reducing billing-related inquiries with clear, consolidated billing

Receivables Management and Payment Handling

Accounting, controlling, and reporting of high volumes of financial transactions

SAP software considers every possible payment channel and provides sophisticated and flexible clearing control. This functionality enables billing professional to assign individual clearing strategies, automate payment reconciliation, and generate reports aligned with accounting principles. Processing payments in a highly automated manner enables the billing team to reduce days sales outstanding and processing costs. As a result, customer satisfaction increases because payments are accurately and quickly processed while collections target the proper customers.

Business Drivers

  • Reduce uncollectible A/R write offs by making better decisions with a consolidated view of outstanding debts across multiple billing systems
  • Reduce days sales outstanding by automating the payment reconciliation process and removing manual processing
  • Reduce number of applications per billion revenue by consolidating multiple bills into a single invoice
  • Improve customer retention by properly processing payments and targeting collections to customers who require it

Customer Usage Analytics

SAP HANA ,   Analytics ,

Enabling business agility through instant analysis of large volumes of customer usage data from charging and billing systems

SAP software for customer usage analytics offers instant access to usage, revenue, and payment data for individual customers and groups. This enables service providers to get insight into rapidly changing patterns of usage, including how customers respond to new offers as well as how customer behavior is affected by competition. Analysts can quickly drill down from a group of customers to an individual customer; even accessing individual records to gain a deep understanding of how usage behavior affects revenue. Comprehensive coverage of the billing and collections process allows analysis to go beyond revenue generation and into collections and cash flow. That way, financial analysts can see both billed and unbilled revenue, allowing them to gain insight and streamline collections processes.

Business Drivers

  • Improve customer retention by using real-time insights into customer behavior to identify and correct service issues promptly
  • Reduce uncollectible A/R write offs by analyzing payment behavior to properly adapt collections strategiescrmleadcycle1