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SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

Business Blueprint

Sales and Distribution

Particulars Name Signature Date Designation

Prepared By

Reviewed By

Approved By

Sign Off By

Document change control:

V.No. Changed by Changed Description of change


date
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

DOCUMENT INDEX

Process Process Description Sub Sub Process Description Global Process


Number Process Reference
Number

SD 1.0 Enterprise Structure SD 1.1 Sales organization


SD 1.2 Distribution channel
SD 1.3 Division
SD 1.4 Sales Office
SD 1.5 Sales Group
SD 1.6 Sales Area
SD 1.7 Shipping Point
SD 2.0 Master Data
SD 2.1
Customer Master GP 1.0, GP 2.0
SD 2.2 Material Master
SD 2.3 Customer Material
information
SD 2.4 Conditions GP 1.0

SD 2.5 Output
SD 2.6 Routes / Stages
SD 2.7 Variant Configuration ( VC)
SD 3.0 Pre-Sales Handling
SD 3.1 Customer Inquiry GP 1.0
Processing
SD 3.2 Quotation Processing GP 1.0

SD 3.3 Contract Processing


Sale Of Finish GP 1.0
SD 4.0 Products
SD 4.1 Sale of Finish Products of
Ispat Karmet
SD 4.2 Sale of Finish Products of
Ispat Sidex
SD 4.3 Sale of Finish Products of
Ispat Annabba
SD 4.4 Sale of Finished Products
of Ispat Indo
SD 5.0 Sale Of Raw
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

Process Process Description Sub Sub Process Description Global Process


Number Process Reference
Number
Materials GP 2.0

SD 5.1 Sale of Raw materials to


Ispat Sidex by external
procurement:
SD 5.2 Sale of Raw materials to
PT Ispat Indo from external
procurement
SD 5.3 Sale of Raw materials to
Ispat Sidex from Ispat
Karmet
Complaints
SD 6.0 Processing GP 1.0

SD 6.1 Complaints
SD 6.2 Returns Process
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

Process Number: SD 1.0

TITLE: Enterprise Organisation Structure

I) Business Process Overview 3


II) Customer Expectation ( Filled by ABC BPO) 3
III) SAP System Functions (Process Flow ) 3
IV) Transactions / Programs / Reports / User Exits 3
V) Description of Functional Deficits 3
VI) Approaches to address Functional Deficits 3
VII) Interfaces 3
VIII) Authorisations 3
IX) SAP Configuration 3
X) Reporting Requirements 3
XI) Supplementary Information 3
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

I) Business Process Overview

SD 1.1 Sales organization

ABC Marketing, (ABCMF), sells steel products of steel mills under ABC Holding N.V
through its sales offices to different regions in the world. ABC Marketing, , sells raw
materials such as iron-ore and coal to steel mills under ABC Holdings, N.V.

Functionally, ABCMF is responsible for:


A. Marketing, through Product Managers who take decision on pricing, business
planning and profitability of sales of steel materials in various sales regions.
B. Sales, viz., Outside sales through Sales Managers and Technical Service Managers
based at various locations and responsible to book orders and manage customer
relationships. Inside Sales through Sales-coordinators, who interface with Customers
and respective mills
C. Planning, through Planning Managers responsible to monitor the load on aggregates
in respective Mills, and
D. Finance responsible for financial and raw material operations.
E. Planning logistics.

Geographically, ABC MF is responsible for sale of steel products of steel mills of Ispat
Sidex and Ispat Annaba under ABC Holdings N.V. to China, Asia, Iran, M.East and Turkey

D ir e c t o r ( S a le s )

P ro d u c t M a n a g e rs C o u n try M a n a g e rs P la n n in g M a n a g e r G e n e r a l M a n a g e r ( F in a n c e )

M A R K E T IN G S a le s & T S M a n a g e r s M ill L o a d P la n n in g F I N A N C I A L & R M O p e r a t io n s

S a le s C o o r d in a t o r s

SALES

ABCMF Organization Chart

SD 1.2 Distribution channel

ABC Marketing sells either directly or through intermediaries. Viz, traders and stockists
via different groups:-
Basically, the customer groups in the present scenario are:
1. International Trader.
2. Domestic Trader.
3. Financial Trader.
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

4. Stockist.
5. Direct End user.
6. Commission Agent

SD 1.3 Division

Divisions are based on product groupings namely, Slabs, Billets, Hot Rolled, Cold Rolled,
Tin Plate, Galvanized Products, Hot Rolled Plates, Pipes and Raw Material, PPGI, Pre-
painted, Miscellaneous

SD 1.4 Sales office

1.4.1 Following is sales office Org. structure

(I) Sales offices under ABC Marketing, .

For CHINA, the sales offices are located in:


1. URUMQI
2. BEIJING
3. GUANGZHOU
4. CHENGDU

For the South East Asia region, the sales office is located in SINGAPORE.
For IRAN, the sales office is located in TEHERAN.
For TURKEY, the sales office is located in ISTANBUL.
For the Eastern Europe region, the sales office is located in VIENNA.
For the US region, the sales office is located in CHICAGO.
For Canada, the sales office is located in MONTREAL.
For the Middle East, Africa, Latin America & Central America regions, the sales is from
office located in Dubai, Jebel Ali , and UAE.

(II) Sales offices not under ABC Marketing, .

For RUSSIA / CIS regions, the sales offices are located in MOSCOW and Timertau.
For EU region, the sales office is located in VIENNA, and
For Romania, the sales office is located in Galati.

.SD 1.5 Sales Group

Sales Managers in respective Sales Offices are responsible for sales of all steel products
in their regions on the basis of business / Monthly Recent forecast / plan by ABC MF.

SD 1.6 Sales Area


Not applicable.
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

SD 1.7 Shipping Point:


Not applicable.

II) Customer Expectation (Filled by ABC BPO)

None.
III) SAP System Functions (Process Flow)

SD 1.1 Sales organization

To facilitate sales transactions in SAP, it is mandatory to define following sales organizational


units for present business scenario. Each selling transaction is processed within a sales
organization. Subsequently new sales organization can be added by customizing transactions
given in section IX) SAP Configuration.

Sales Organization Description

1000 ABC Marketing

1100 Alkarom Metals Inc


1200 Eastern Steel Ltd.
1300 Montage International Corp
1400 Pacific Atlantic Steel Corporation
1500 Expert Placement Services Ltd.
1600 Global Inter Trader Holdings Ltd.
1700 Sanguine International Ltd.
3000 Ispat Karmet Trading
4000 Glacier Trade Center
5000 ABC Global IT Services

Each sales organization is assigned to only one company code.

SD 1.2 Distribution channel

01 EXTERNAL = Sale transaction that leads to Sales to Customers in various


regions.
02 INTERNAL = Sale transaction that leads to Sales to Group Companies.

SD 1.3 Division
Main product categories are represented as Division. Following Divisions are
required to define in system.

Division in SAP Description


11 RAW MATERIAL
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Business Blueprint Document

22 BILLETS
33 SLABS
44 HOT ROLLED
55 COLD ROLLED
66 BLACK PLATE
67 HOT ROLLED PLATES
68 TINPLATE
77 GALVANISED
88 PRE PAINTED
90 PIPES
99 MISCELLENEOUS

SD 1.4 Sales office

From ABC marketing perspective, Sales Regions are configured as Sales Offices in SAP.
SAP sales office entity represents REGION of ABC marketing:-

Sales Office in SAP Description


5000 CHINA
5001 South East ASIA
5002 SOUTH ASIA
5003 IRAN
5004 M EAST
5005 TURKEY
5006 AFRICA
5007 Eastern EUROPE
5008 LATIN & CENTRAL AMERICA
5009 NORTH AMERICA

New sales offices can be defined in system if required.

SD 1.5 Sales Group

All the physical sales offices that are located in various regions are configured as Sales
Groups.

Following table shows various Sales offices and sales groups to be defined in system
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

Sales Groups in AP Description


500 DUBAI
501 URUMQI
502 BEIJING
503 CHENGDU
504 GUANGZHOU
505 SINGAPORE
506 TEHRAN
507 VIENNA
508 MONTREAL
509 CHICAGO

Sales Groups can be created in SAP if ABC sales offices are increased or expansion take
place.

SD 1.6 Sales Area

Sales area is a combination of Sales organization - Distribution channel - Division. Following


sales area combinations are defined.

Sales organization Distribution channel Division

External BILLETS
ABC Marketing
ABC Marketing External SLABS
ABC Marketing External HOT ROLLED
ABC Marketing External COLD ROLLED
ABC Marketing External BLACK PLATE
ABC Marketing External HOT ROLLED PLATES
ABC Marketing External TINPLATE
ABC Marketing External GALVANISED
ABC Marketing External PRE PAINTED
ABC Marketing External PIPES
ABC Marketing External MISCELLENEOUS
ABC Marketing External RAW MATERIAL
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

ABC Marketing Internal RAW MATERIAL


ABC Marketing Internal MISCELLENEOUS

Table SALES AREA

As explained in above table SALES AREA is only for ABC MF. Similar sales area will be created
for all sales organizations defined in section III. SD 1.1 Sales organization.

.
Following diagram shows sales area combination in ABC MF. Similar Sales area combinations
can be formed for other sales organizations (other company codes).
ABC Marketing

External Internal

HOT ROLLED RAW MATERIAL

MISCELLENEOUS
COLD ROLLED

GALVANISED

TINPLATE

HOT ROLLED PLATES

PIPES

BLACK PLATE

SLABS

BILLETS

MISCELLENEOUS

PRE PAINTED

SD 1.7 Shipping Point:

Shipping point is an organizational unit where deliveries are planned and executed.
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Business Blueprint Document

A delivery is always carried out by one shipping point only. It is proposed to use one
shipping point for all company codes.

9100 General shipping Point.

Shipping points can be subdivided into loading points. We may not use loading point.

IV) Transactions / Programs / Reports / User Exits

This process SD 1.0 Requires customizing transactions only as explained in Section IX

Transactions Program Reports User Exits Description \ Comments

V) Description of Functional Deficits


None.

VI) Approaches to address Functional Deficits


Not Applicable.

VII) Interfaces
Source Destination Interface Comments
System System Name

No interfaces are envisaged at this stage as per the current process.

VIII) Authorisations

Roles Restricted Authorization


Transaction Code Object / Value

SD-BPO As Given Below Section 9

IX) SAP Configuration


Customizing
IMG configuration MENU PATH
tasks or IMG
transactions
OVX5 Sales Organization: IMG > Enterprise Structure > Maintain Structure >
Definition > Sales and Distribution > Define, copy, delete, check Sales
Organization > Define Sales Organization
SAP SD FORUM STEEL INDUSTRY PROJECT

Business Blueprint Document

OVX5 Sales Organization Address: IMG > Enterprise Structure > Maintain
Structure > Definition > Sales and Distribution > Define, copy, delete,
check Sales Organization > Define Sales Organization
OVXI Distribution Channel: IMG > Enterprise Structure > Maintain Structure >
Definition > Sales and Distribution > Define, copy, delete, check
Distribution Channel > Define Distribution Channel
OVXI Sales Office: IMG > Enterprise Structure > Maintain Structure > Definition
> Sales and Distribution > Maintain Sales Office (updates TVBUR)

OVXI Sales Office Address: IMG > Enterprise Structure > Maintain Structure >
Definition > Sales and Distribution > Maintain Sales Office

OVX4 Sales group: IMG > Enterprise Structure > Maintain Structure > Definition
> Sales and Distribution > Maintain Sales Group

OVXB Division: IMG > Enterprise Structure > Maintain Structure > Definition >
Logistics General > Define, copy, delete, check division
OVXG Sales Area: Define sales areas

OVXA Assign division to sales organization

OVXG Set up sales area

OVXM Assign sales office to sales area

OX10 Plant: IMG > Enterprise Structure > Maintain Structure > Definition >
Logistics General > Define, copy, delete, check plant

X) Reporting Requirements
None.
S.NO. Reports Required Priority Compliance T Code
H/M/L (C, CC, X ,R. N.P.*)

C Compliant (Available as it is in SAP)


CC Conditionally Compliant (Data available in different format)
X May be developed in ABAP
R - Redundant
NP - Not Possible
TBA - To be assigned
TBD - To be decided

XI) Supplementary Information


Organization structure in Sales and Distribution is defined to suit the existing organization. For
future needs; new organization elements such as sales organization, divisions, sales offices or
sales groups can be added through configuration.
The transportation planning point is an organizational unit in Logistics, responsible for planning
and processing transportation activities. As we are not using shipments created with reference to
deliveries, we will not map this organizational element. However it can be configured in future on
need basis.