Topic Covered -

1. Enterprise Organization Structure and Company Code  

2. Roles and Responsibilities in Sales and Distribution  

3. Exploring Organizational Structures for Unilever India  

4. Company Codes, Sales Organizations, and SAP Implementation  

5. Exploring Business Structure and Sales Organizations  

6. SAP Organization Structure and Nomenclature Discussion  

7. Common Distribution Channels and Divisions in Sales  

8. Master Data Creation and Distribution Channels  

9. Exploring Common Distribution Channels and Divisions  

10. Material Master Concept and Industry Applications  

11. Exploring Number Ranges and Material Master Data  

Enterprise Organization Structure and Company Code

Rohan led an interactive session on the enterprise organization structure. He clarified that the term 'enterprise' refers to a business or company, and the structure of the business is referred to as enterprise organizational structure by SAP. He explained that the structure represents different legal and organizational structures of a company, showing how the various departments are structured. Rohan also introduced the concept of a company code, which is a financial entity where the balance sheet and profit and loss statement are maintained. He emphasized that the company code is the highest element in the organization structure, followed by the sales organization, which is responsible for sales and distribution of goods and services.

Roles and Responsibilities in Sales and Distribution

Rohan led a discussion on the roles and responsibilities of different organizational elements in sales and distribution. He explained the concept of a distribution channel, which refers to the means through which goods reach a customer, and clarified that a division is a product line. Rohan also emphasized that multiple sales organizations can be assigned to one company code, but only one company code can be assigned to one sales organization. Ravi attempted to explain these terms from a business standpoint, while Rohan sought a more business-oriented explanation. Prithviraj and Rohan further discussed the structure of a company, using Unilever as an example, and defined terms such as 'company goal', 'distribution channel', 'division','sales','sales office', and'sales group'.

Exploring Organizational Structures for Unilever India

Rohan discussed various organizational structures for a company, using Unilever as an example. He proposed three main structures: treating Unilever India as a client level with separate subdivisions, treating each subdivision as a separate sales organization, and dividing Unilever India into North, South, West, and East India due to its vast business. The discussion focused on the potential benefits and challenges of each structure, with a particular emphasis on revenue generation and sales organization. Rohan also highlighted the importance of aligning the structure with the company's business design and understanding the business setup when defining organization elements. Ravi asked a question, but the content was not provided in the transcript. They also discussed the possibility of having separate company codes for different product lines within a country.

Company Codes, Sales Organizations, and SAP Implementation

Rohan explained the structure of company codes and sales organizations, emphasizing that one sales organization can only be assigned to one company code. He used the example of L Brands to illustrate this point. Rohan also clarified that the distribution channel is the means through which goods reach the customer. He discussed the setup of his branch offices and sub-offices across various locations in India. Prithviraj asked about the strategy for implementing SAP, to which Rohan responded that it starts with understanding the business and discussing with the business how their business is done. The conversation ended without any clear decisions or next steps.

Exploring Business Structure and Sales Organizations

Rohan explained the structure of his business organization, which includes a head office in New Delhi and Hyderabad, and branch offices in various locations across India. He detailed how these offices are categorized as sales organizations, sales offices, and sales groups, and clarified that these categories are mandatory for those with the SD module. Rohan emphasized the importance of defining the sales organization structure for reporting purposes and highlighted the need for interaction with the business to understand their sales and operations needs. He also discussed the various sales organizations and their roles within the company, including distributor, wholesaler, e-commerce, and institutional sales. Rohan differentiated between store sales (retail) and online sales (ecommerce), and explained that institutional sales involve selling to government organizations and hospitals. He encouraged everyone to familiarize themselves with these terminologies for better understanding of the company's operations.

SAP Organization Structure and Nomenclature Discussion

Rohan led a discussion on the organization structure in SAP, emphasizing the importance of alphanumeric nomenclature for ease of use. He explained that the sales organization can be alphanumeric, with distribution channel and division also being alphanumeric but preferably numerical for ease of memory. He also highlighted the need to delete assignments before deleting definitions in the enterprise organization structure. The team encountered technical difficulties with SAP access, which Rohan suggested to continue with the theoretical explanation while the issue was being resolved. Ravi asked about the impact of deleting a business based on a sales area or sales organization, to which Rohan responded that it could cause inconsistencies in the system.

Common Distribution Channels and Divisions in Sales

Rohan discussed the concept of common distribution channels and divisions in the context of sales areas. He explained that creating a customer for all sales areas can be a cumbersome process, especially when there are numerous divisions and distribution channels. To simplify this, he introduced the concept of a common distribution channel and division, which allows a customer to be eligible to buy from all sales areas by creating just one record. This approach significantly reduces the number of records needed to be created in the system. However, he clarified that this method may not work in all scenarios, particularly when specific restrictions are in place.

Master Data Creation and Distribution Channels

Rohan explained the process for creating customers in specific sales areas versus common areas. For common distribution channels, materials apply across all channels. Pricing conditions must be created individually per customer if different customers require different pricing for the same products. SAP tools like LSMW and LTMC streamline data creation via Excel uploads. The concept of common distribution channels reduces master data records needed for customers and materials, but is not applicable for pricing data. Master data like customers remains fixed, while transactional data like sales orders varies across sales areas. Transactional data archiving decisions are based on sales volumes.

Exploring Common Distribution Channels and Divisions

Rohan explained the concept of common distribution channels and divisions, stating that they are optional features in sales and distribution that depend on business requirements. He demonstrated this using Apollo Pharmacy as an example and clarified that common distribution channels are relevant for customers and materials, while common divisions are relevant for conditions and customers but not materials. Arvind and Aloke agreed to create these as instructed by Rohan. Rohan also provided a tip on using the "stop transaction" feature to reset the system when it gets stuck.

Material Master Concept and Industry Applications

Rohan, Arvind, Aloke, and Manuel discussed the material master concept and its application in different industries. Rohan explained the various types of products a company can sell, including raw materials, semi-finished goods, finished goods, and scrap. He also clarified the process of creating trading goods in their system and how the material type determines which fields are visible when creating a material master. Rohan further explained the process of manufacturing cough syrup and cough tablets, including the procurement of raw materials and the creation of different material types. Manuel confirmed his understanding of the process.

Exploring Number Ranges and Material Master Data

Rohan explained the concept of internal and external number ranges in the context of material types, clarifying that internal number ranges are system-generated while external ones are manually assigned. He introduced the transaction code SNRO for number ranges and the Sd number range object, Rv. Underscore BELE. Rohan emphasized the importance of understanding the material master data, specifically the tables Mara, Mvke, Mard, and MbeW, and promised to walk through important fields in future sessions. The team also discussed the slow system speed and the need for a system refresh, with Rohan assuring to check on it and keep the team updated. The next session was planned to cover the enterprise organization structure and transactional data.