Organizational structure

[Former Member]

Hi Friends,

Here is a business scenario:

Dan leather is a company that produces and sells leather products - leather coats, leather bags, leather shoes, leather belts.

This company has head office in California, USA and has regional offices in Toronto, Canada; California, USA; Dallas,USA.

All products sold in Canada are sold through their regional office in Toronto.

All products sold in USA are handled by two regional offices in California & Dallas.

All products are manufactured in California and are transferred from California to distribution centers at California, Dallas & Toronto.

Dan leather has different price agreements for its wholesale and retail trade customers. It also sells directly from its plant.

Dan Leather has sales offices in all capital cities of USA .

How to map above information into SAP organizational structures of SD in terms of company code, Sales Org, Dis. channel, Division?

I am looking for alternative solutions.

Thanks

[Former Member · Accepted solution]

Company:

Dan Leather, USA

Comapany codes:

Dan Leather, USA

Dan Leather, Canada

Sales Organisations:

Dan leather, California office

Dan leather, Dallas Office

Da leather, Toronto office

Distribution channel:

Wholesale

Retail

Factory sales

Divisions:

leather coats

leather bags

leather shoes

leather belts

Sales offices:

Capital cities of USA

Plant:

California Plant

[Former Member]

Hi,

Thanks both of you for replying.

I did completely different for sales organisation.

I created one sales organisation for each state in USA.

The reason is because a sales organization is an organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions.

I felt since sales office is doing these activities, it is better to have 1 sales organisation for each state in USA.

Am I correct?

[Former Member]

I don't say your sales organisation for each state in USA is incorrect.

From implementation point of view creating one sales organisation with 50 sales offices to represent each state results in a simpler organisational strurcture than having 50 sales organistions each representing one state.

Sales organizations should be kept to a minimum so try to have one per company code. Only have another sales organization if the company sells completely differently in a particular area.

As per your business scenario, goods are being transferred to distribution centers at California & Dallas in USA. I felt these distribution centres are used by company to subdivide markets into regions. That's the reason why I proposed two sales organisations for USA - California and Dallas.

As Anil as proposed, you could also work with one sales organisation for entire USA.

[Former Member]

Hi Tarun,

I would like to go with followin.

Two company codes 1 for u.s operations and the other for canada operations.

Two sales organizations 1 for u.s operations and the other for canada operations.

Thank you

ANil