- SAP Managed Tags:
In any organization, a well-structured sales hierarchy is key to managing operations efficiently. Instead of looking at it from the top down, let’s take a bottom-up approach, starting from the execution teams and working our way up to strategic decision-making.
1. Sales Group: The Frontline Sales Force
At the foundation of any sales structure is the Sales Group, which consists of the individuals responsible for selling products in their assigned regions. These teams interact directly with customers, generate sales, and ensure smooth order fulfillment.
Creation: Sales Group
- Path: Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Group
Assignment: Sales Group to Sales Office
- Path: Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Group to Sales Office
2. Sales Office: Managing Regional Operations
Each Sales Group reports to a Sales Office, which acts as the regional hub for sales activities. These offices oversee sales teams, provide support, and manage operational logistics.
For example:
- The Singapore Sales Office oversees operations in South East Asia.
- The Germany Sales Office handles sales for East Asia.
Creation: Sales Office
- Path: Enterprise Structure → Definition → Sales and Distribution → Maintain Sales Office
Assignment: Sales Office to Sales Area
- Path: Enterprise Structure → Assignment → Sales and Distribution → Assign Sales Office to Sales Areas
3. Sales Area: Defining Product, Channel, and Organization Alignment
Before products reach customers, they must be assigned to a Sales Area, which is a combination of three critical elements:
- Sales Organization (the business entity responsible for sales)
- Distribution Channel (the method of selling)
- Division (the type of product)
For example:
- Sales Org: Food + Wholesale Channel + Carcass Division → This area focuses on selling raw food products through wholesale distributors.
- Sales Org: Food + Retail Channel + Processed Division → This area manages processed food products sold directly to retail customers.
Each Sales Area determines pricing, customer contracts, and order management processes.
Assignment: Sales Area Setup
- Path: Enterprise Structure → Assignment → Sales and Distribution → Set Up Sales Area
4. Division: Organizing Product Categories
A Division categorizes products based on how they are handled in the supply chain. The three divisions in this structure are:
- Carcass → Raw, unprocessed goods.
- Processed → Packaged and ready-to-consume products.
- Live Stock → Direct sale of live animals.
Divisions ensure that sales teams know which products they are responsible for and how they should be distributed.
Creation: Division
- Path: Enterprise Structure → Definition → Logistics – General → Define, Copy, Delete, Check Division (T-code: OVXB)
Assignment: Division to Sales Organization
- Path: Enterprise Structure → Assignment → Sales and Distribution → Assign Division to Sales Organization
5. Distribution Channel: Delivering Products to Customers
Once products are categorized, they need a Distribution Channel to reach customers. The company uses three primary channels:
- Wholesale → Bulk selling to large-scale buyers.
- Retail → Direct sales to consumers through stores or e-commerce.
- Distributor → Third-party partners who handle sales and distribution.
Each channel serves a unique market and requires different sales strategies.
Creation: Distribution Channel
- Path: Enterprise Structure → Definition → Sales and Distribution → Define, Copy, Delete, Check Distribution Channel (T-code: OVXI)
Assignment: Distribution Channel to Sales Organization
- Path: Enterprise Structure → Assignment → Sales and Distribution → Assign Distribution Channel to Sales Organization
6. Sales Organization: The Strategic Backbone
At the highest level, we have the Sales Organization, which oversees all sales functions. In this structure, there are two main Sales Organizations:
- Food
- Packaging
These organizations define high-level strategies, pricing policies, and overall business goals for their respective industries.
Creation: Sales Organization
- Path: Enterprise Structure → Definition → Sales and Distribution → Define, Copy, Delete, Check Sales Organization (T-code: OVX5)
Conclusion
By building the SAP Sales Organizational Structure from the ground up, we can see how each layer supports the one above it. The Sales Groups execute the strategy, the Sales Offices manage regions, the Sales Areas define product-market alignment, and the Sales Organization oversees the entire operation.
This bottom-up approach highlights the importance of each role in ensuring seamless sales execution, efficient distribution, and strong market presence.
1 Comment
