In any business, the sales and distribution process is the backbone of customer satisfaction and operational success. Ensuring products are purchased seamlessly and delivered on time is crucial, as even minor inefficiencies can impact revenue and reputation. SAP SD (Sales and Distribution), a core module of SAP ERP, provides the tools to streamline and optimise every step of this process. From managing sales orders to billing and delivery, SAP SD helps businesses enhance efficiency, reduce errors, and uncover opportunities for continuous improvement, driving overall success.
Jump to a section:
What is SAP SD?
The SD part of its name stands for Sales and Distribution, and it provides a way for businesses to ensure a seamless journey for their customers from price or Sales Order to billing and, ultimately, receiving the products. Every step of the journey is taken care of and can be analysed for improvement or to create a level of forecasting that just wouldn’t be possible without the SAP SD and other complementing modules.
This polished process is achievable largely because of how SAP SD uses Master Data. Like other modules in the SAP ERP infrastructure, it takes entries such as customer names, product details, and shipping information from a central location, which are stored in a specific way that allows for easy access from different departments. The program can then use this data where needed so that everything is as accurate as possible.
SAP SD Components
The SAP SD module is split into various different components, known as sub-modules, which essentially handle each part of the sales journey. Each has its own unique function that performs a vital role in the overall software structure. Here is a brief look at what each sub-module focuses on:
Basic Functions (SAP-SD-BF)
Forming the skeleton that the rest of the SAP SD sub-modules flesh out, Basic Functions deals with the fundamental settings and data inputs that feed information through to everything else. This could be something as simple as the price of a product (ensuring it is the same every time) or as complex as checking the real-time availability of something.
Basic Functions can be broken down even further into components such as Credit Management (CM) and Output Control (OC). In these examples, the former assesses the risk attached to a specific customer when providing credit, and the latter deals with important documentation like delivery notes and invoices. Other parts of SAP-SD-BF include SD-BF-PR (Pricing), SD-BF-TM (Text Management), and SD-BF-FT (foreign trade).
Foreign Trade (SAP-SD-FTT)
Not to be confused with SAP-SD-BF-FT, mentioned briefly above, the Foreign Trade submodule is particularly designed for companies dealing with multiple customs regulations in multiple countries. It ensures compliance with embargos and manages any needed export licences.
Sales (SAP-SD-SLS)
As expected, this sub-module handles all parts of the sale, including each data point relating to both the product and the customer. It also includes any feedback that may have been provided.
Shipping (SAP-SD-SHP)
Again, the name sums up the process involved here, but this sub-module records everything relating to the shipping operations. This includes how an item will be transported during each part of the journey, which delivery partner will be used, and whether any items need to be returned.
Transportation (SAP-SD-TBA)
Working in tandem with Shipping, the Transportation sub-module notes all the information collected during the distribution process, including the physical modes of transport used at different times.
Billing (SAP-SD-BIL)
SAP-SD-BIL works hard to collate information relating to all of the different payment methods that could be used, ensuring this important data is stored securely. As well as processing payments both online and at the point of sale in-store, the Billing sub-module can also issue rebates and credit memos before transferring everything to the finance department.
Electronic Data Interchange (SAP-SD-EDI)
Also helping to provide support to customers (and suppliers), this time electronically, SAP-SD-EDI controls electronic messages being sent between each party. This could include order confirmation, tracking information and invoices. Electronic Data Exchange also ensures that things like purchase orders are pulled automatically into the system without having to be manually added.
Sales Support (SAP-SD-CAS)
A key part of providing a problem-free sales journey is the support offered by staff to customers looking for updates on their products. The Sales Support sub-module keeps a record of these interactions so that they can be stored centrally and accessed by other team members.
Why Businesses Should Use SAP SD
As highlighted by the range of sub-modules and functionality above, there are many great benefits for companies using SAP SD. Ensuring a seamless sales journey means there will be fewer mistakes, faster transactions and, ultimately, pleasurable experiences for customers when making a purchase. All of this means that they are more likely to become repeat customers, boosting profits and business reputation in the process.
SAP SD can also help your company save money and avoid unnecessary risks, particularly with the use of SAP-SD-BF-CM and its ability to calculate the credit risks associated with each customer. Finally, one of the major benefits is the capacity to access information that can be used to create business forecasts and inform the future of the company. By utilising historical sales and product data, you can plot trends to help show where seasonality may impact availability and clearly see opportunities for new product lines.
Key Integrations With SAP SD
To get even more from SAP-SD it can be implemented alongside other SAP modules, enhancing functionality even further and creating a winning combination. Deploying it in harmony with SAP MM (Materials Management) will mean you can be even more agile when planning which products will be needed when and in what volumes.
Integrating it with SAP PP (Production Planning) will guarantee that the raw materials needed for each product are always available during production, whilst adding SAP WM (Warehouse Management) will let you keep track of their storage. Finally, using SAP SD in Tandem with SAP FI/CO will ensure the swift and accurate tracking of what those materials cost and how valuable your inventory is at any one time.
In summary, it’s easy to see how SAP SD can enable a business to track, record, maximise and rationalise each touch point during the purchase journey. From the initial purchase order to processing the payment and distributing the product to the customer, everything is covered and all data is stored centrally.
Ready to Transform Your Sales Process?
If you’re ready to transform your company with the implementation of SAP or you’re looking to enhance the skills within your business to get the most out of this software, Whitehall already has an existing relationship with the best candidates. Find out more about our SAP recruitment services and get in touch with the team today.
