Sales process in SAP ERP solution for Apparel and Footwear

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Many business organisations across the world experience these issues. With the growth of business come these inherent problems. Business growths need to be supported by efficient tools that keep the corporate intact and on track. The corporate need to set their long term Goals and targets and define the strategy which is going to drive them.

Now the whole corporate machinery (manpower, machinery & other resources) need to fall in line with the strategy. This is where the use of tools like SAP is put to use. SAP ensures that the whole mechanism is working in tandem and the management could ensure the smooth working.

To ensure that the system works as per the corporate strategy, SAP has designed its ERP system keeping in mind a strong organisation structure. Hence it is of utmost importance that a strong & rigid organisation structure remains in place. This helps to build in the corporate strategy and goals into the system while implementing a strong ERP system like SAP. Implementing SAP is not just implementing software, it is not to be considered as an exclusive IT project, is to be considered as a business solution. The success would deeply depend on the organisational structure of the company. Hence it not recommended to have a variable organisational structure after SAP implementation as your corporate strategy has been already built into the system.

The Price control on any product sold by the company can be established in the system through a minimum selling price policy, this would enable a sales division to sell only at a higher price than that of MSP.

 Sales Process

Sales Order process in SAP ERP solution for Apparel and Footwear

Client search: sales division searches for client information from various sources: website, phone directory, newspapers, and sales distribution channels, or from relationships, traditional client list to filter potential client list.

  • Search and receive client information: through analyzed information on clients and the market. Sales and Import divisions will analyze and identify market demands to set up plans for approaching potential clients.
  • Contact clients: Sales and import divisions will directly approach clients by sending mails or calling to introduce COMPANY ’s garment collections. The company has regulations on client management; sales divisions will send a list of clients currently being approached to the whole company for other divisions not to approach. After presenting, business development agents will report on approached clients and discussion content. Sales divisions will update their own client information. In 3 months, if sales divisions are unable to receive any orders from these approached clients, other divisions can approach these clients.
  • Sample preparation and price calculation: Sales and import divisions have a sample bank of designs including yarn, fabric, and garment products. The design team has to actively search information from the Internet or fashion books, magazines; moreover, designs are also based on responses from sales and marketing department.
  • Currently, the company has a marketing department to carry out certain activities instructed by the company: market research, participation in fairs, expos, print of catalogs. However, the marketing department does not fully support the design department in analyzing and updating information of client demands to develop new collections.
  • Based on client demands, sales divisions will choose appropriate designs and present to clients. Business development agents who calculate quotation for clients will collect all input costs of spinning, weaving and sewing, waste level by using norms for each group of products. The team inspecting quote calculation, the accounting department, will double-check the price. Before sending clients, quotation must be simultaneously sent to the team inspecting quote calculation and the deputy general director or any appropriate authorized person for approval.
  • Send designs & quotation: business development agents will send designs and quotations to clients and try to figure out clients’ needs. Quotation must be signed by the appropriate authorized person before sending to the client.

Monitor clients’ responses: business development agents will monitor clients’ responses information from designs and quotation, and receive purchase orders if possible.

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