Organizational Structure: Example
The following example illustrates how the structure of a company could be reproduced in SAP Retail and explains what the various organizational units mean. The fictitious company has several subsidiaries, which themselves comprise several distribution chains.
Organizational Structure: Example Graphic
The organizational structure of the company in the example graphic would be modeled in SAP Retail as follows:
The highest element in the whole corporate group hierarchy is the client. All the organizational units in a client are subject to the same control mechanisms. Data valid across the whole corporate group is stored at client level. In the example, the central purchasing department of the company is located in the SAP Retail structure at client level.
Local purchasing departments are assigned to central purchasing. Each local purchasing department is responsible for a different distribution chain. Each local purchasing department corresponds to a company code or a purchasing organization in SAP Retail. Specific purchasing activities are assigned to individual purchasing groups.
Local purchasing procures merchandise for different distribution chains centrally. Distribution chains in SAP Retail are a combination of sales organization and distribution channel. The sales organizations are assigned to different company codes.
Distribution chains consist of distribution centers (DC) and stores. The generic term for DCs and stores in SAP Retail is "site."
Sites are also managed as customers in the system.
Sites can also be seen as a combination of one or more locations in close proximity to each other where stocks of merchandise can be found (examples are storage locations and storage sections). Stores can also be subdivided into departments, which in turn can be understood as cost centers. Each department can be assigned a receiving point.
The value chain concludes with the customer or consumer. If the customer is recorded in the system (and is therefore an identifiable customer), natural persons can be defined in the customer master as the contact persons at that customer.