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Function documentationTerritory Management

 

Territory management is a tool that enables you to organize your sales markets according to criteria of your choice. You do this by creating territories and structuring them in a territory hierarchy.

Integration

This function is closely related to the following applications in SAP CRM:

Organization Model

  • The territory hierarchy is linked to the organizational model via the position of the employee responsible. You can adapt the territory hierarchy or structure to an existing organizational model structure and assign employees to territories, based on this.

  • While the organizational model reflects the internal view of your organization, the territory hierarchy reflects the market view. Changes to the territory hierarchy occur more frequently than changes to the organizational model. The customer base can increase or decrease, and territories must be resized or reallocated to accommodate this, to ensure that a sales representative has the appropriate workload.

Accounts, Products, and Sales Areas

  • By creating business rules you establish territory relationships, which provide information about which accounts, products, and sales areas belong to which territories. This allows you to align ownership of accounts, products, and sales areas with territory ownership.

Rule Builder

For more information, see Rule Builder, Rule Builder Setup, and Rules in Territory Management.

Prerequisites

  • You have made settings in Customizing for Customer Relationship Management under   Master Data  Territory Management  .

  • Use authorization object CRM_TERRMA to control which territories the user may process (create, change, and display).

Features

  • Initial design and assignment

    This includes defining territory hierarchy levels, creating territories, assigning business rules to a territory to define its scope, and assigning employees responsible for them.

    You create and structure territories in a territory hierarchy. A territory hierarchy consists of different levels, such as country, region and area, and is also time-dependent, meaning that it has a validity period. This enables you to create territory hierarchies in the future as well as keep a record of territory hierarchies in the past, when you change them.

    You can also auto-generate territory IDs during creation, if this has been specified in Customizing. You can always overwrite an automatically generated ID.

    Once you have the structure in place, you can assign employees and rules to a territory

  • Restructuring

    • You can analyze “what if” scenarios by simulating changes to territories without actually changing the underlying territory data. This includes simulating changes to territories and territory hierarchies based on key performance indicators. You can use parameters such as the number of accounts handled by a particular sales representative, travel time per sales representative, market/sales potential, create the required business rules to remap territory relationships, review the impact of these changes and then decide whether you want to save or discard the changes.

    • You can change the description of a territory, and change its validity period.

  • Continuous management

    If a change you make to a territory affects that territory’s relationship with accounts, products or sales area (master data changes), you have to run the Update Territory Relationships report. This ensures that the territory relationships you see are the latest and most up-to-date. Creating or changing rules, saving simulated changes are some of the activities after which you have to run this report.

    For more information, see Customizing documentation under   Customer Relationship Management  Master Data  Territory Management  Update Territory Relationships  .

  • Archiving

    This includes clearing the database of information that is no longer used, thus optimizing the performance of the tool.

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