which is the best practice of creating distribution channels and divisions

[Former Member]

actually my company has 11 plant and every plant has differnt type of finished goods

the sales is gone on order ,its exported and its given to distributers

the goods are totally based on order and one product is dedicatedly going to one customer

so in this way what should be the stretegy to creat division and distribution channel.

[Former Member]

hi subrat,

you have only to find the right plant. Ther is only one plant for one single material.

So you can put this information in the Master Material data under the field delivery-plant. ( otherwhise, there is also a userexit for plant-determination ).

Make the simples you can do -- 1 vkorg 1 vtweg 1 spart

hans

[Former Member]

I will suggest the other way. Why 11 division. Though ther all are different type of finished product, instead of 11 Division, maintain as single Division & maintain different Finished material as Material Group.

Advantage:

This will reduce your configuration to a great Extend.

This will also reduce your master data to a great extend.

Also if in future the plant starts manufacturing similar product line as the other plant, it will not have any impact on the configuration & same configuration will work fine.

It is best to have as simple enterprise structure as possible, as it will be convienent to all.

Regards,

Rajesh Banka

Reward points if helpfil.

[Former Member]

Rajesh's advice is much better and very practical.

[Former Member]

hi rajesh

thanks for ur co-operation

i just want to know of creation of meterial group and watis the importance of creating material groups.

[former_member194164]

Dear Friend,

11 divisions will be needed because of differnet product range

you can keep distribution channels as low as possible

{for example, for all export customers you can create export as distribution channels, likewise for all defence customers you can create defence as distribution channels, & similarly for all other domestic civil customers you can create civil as distribution channel.this is just an example but understand the message that for entirely different type of customers, you can create that many distribution channels avoiding many segregations} and since you have entirely different plnts & entirely different divisions your reporting requirements will also be met with plant &/or division as the basis.

for any other clarification please contact

regards

vikas chhabra

[Former Member]

hi,

just to add, since the type of products if they are totally different in nature better you create that many divisions. But a customer might be buying all of those are some of those. So, use common divisions concept. You might as well need to use the common distribution channel since you have exports and tomorrow see a situation for domestic sale. There can be different type of customers in domestic.

so having few distribution channels helps. But, this depends on the project scope.

but basically you are doing only export. Can go ahead with one distribution channel.

But remember building up enterprise is the most critical thing and has to be done after a great deal of analysis keeping in view the project scope.

Hope it helps.

Thanks

Sadhu kishore

[Former Member]

one thing is pretty clear, "every plant has differnt type of finished good", you will have 11 divisions, & the 'amount of distributors' shall then determine the need of distribution channels.

So in your case, 1 sales organization, then (*) distribution channels then 11 divisions.

Finally create as many sales order type for as many sales areas you have come out with, keeping the above in mind.

Regards