Secondary sales / indirect sales

[Former Member]

Hello,

I'm inquiring about the best way(s) to track secondary sales (indirect sales), analyse them and manage rebates and discounts/credits based on them.

Our customer (company X) sells to distributors (primary sales). The distributor sells to retailers (secondary sales) and in no explicit way our customer gets involved in those last saleles.

The business request is as follows:

-Distributor will provide data of his sales made: endcustomers (retailers), products, quantity, period, prices. This can be individual orders or gathered data per period.

-Data will be entered in SAP via data upload (manually) or interfacing (less likely).

-Based on this data discounts and rebates should be applied (see 2 scenarios).

Scenario 1:

Company X pays rebates and co-advertising based on what distributor sells to retailers. So based on what, who and quantity.

Scenario 2:

Company X sells product X to distributor for eg 1.23 USD/pc, distributor on his turn sells to retailer for eg 1.10 USD/pc. Based on combination distributor, product, quantity, (price) and retailer Company X has to pay to the distributor eg bv .20 USD/pc.

Does anyone of you has implemented such a scenario?

-I assume it is possible with <u>extended rebate processing and pendulum list indirect sales</u>. This is however only available as off release 4.7 Is this correct?

Can this be implemented by plain custo without implementing Beverage building blocks (Best Practise)?

-In CRM there could be possibilities too. Like CRM Incentive and Commission Management. OR CRM Channel Management. OR CRM Partner Management. I am no CRM consultant but the customer is considering to implement some CRM modules anyhow, so maybe this can be a solution also.

-Other possibility with be a partner tool like VISTEX, if not overkill.

Any insight, feedback about own knoweldge, experiences or references on the net would be very much appreciated.

Thanks in advance,

Pieter

Points will be rewarded

[Former Member]

Hi Pieter,

well i read your senario and noticed that in both the cases the commision will go to distributors and not to retailers, so you should be worried only about the Distributors with a small clause in point 2 ( wher you say commssion has to be wrt qty, price, product & <b>retailer</b> ) how would you diffrentiate among the retailers or is it like you give certain discount if sold to certain relaiter...

this functionality is quite simple if you take it in CRM than handling it in SD as Incentive and Commision management is a powerful tool and can get you senario placed in it easily and you can manage what exactly you are looking for.

there is no standard builing block about this atleast in SD as per my knowledge

hope this gives some clarity on what you were asking

Cheers

[Former Member]

Hi Anuj,

Thanks for the quick reply.

You are correct that commissions and rebates will only be applied to the distributor.

To differentiate between retailers I would apply an analogue logic as in SD pricing master data (with extended rebate agreements this would be plain pricing)with access sequence where on a specific level aside of distributor/product also price and retailer can be one of the criteria to calculate a commision/rebate amount.

I will look further into the CRM incentive and commission management scenario.

Best Regards,

Pieter

To all: Other feedback is still appreciated!