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Company Fit-Gap Case StudiesOrder to CashAdvancedSLA: To be confirmed

SD Stakeholder Operating Model

Fit-Gap Document Source

Sales & Distribution Fit-Gap

1. Purpose

This page defines the company-specific SD Stakeholder Operating Model — the actual operating rules for the Sales & Distribution cycle based on the SD Fit-Gap document and management decisions.

For the generic best-practice version, see O2C Stakeholder Operating Model under Standard Business Cycles → Order to Cash.

2. Critical Rule: Quotation Approval Sequence

All sales quotations must follow this mandatory approval sequence before a sales order can be created:

Business Rules

  1. Financial Director approval is first — no sales approval can occur before it.
  2. Sales Director approval is second — cannot be skipped.
  3. A sales order cannot be created from a quotation before both approvals are received.
  4. Rejection by either approver sends the quotation back to the salesman for revision.
  5. Quotation approval does not trigger a credit check.
  6. Credit check starts during sales order processing, not during quotation.

3. Company SD Stakeholder Operating Model

SLA Status: All SLAs below are marked "To be confirmed" until formally approved by management.

Process StepDepartmentResponsible RoleApproval NeededSLA / TimelineSystem NotificationRequired ActionEscalation
Create quotationSalesSalesmanNo initial approvalTo be confirmedQuotation created / draft savedComplete customer, material, price, validity, sales employeeSales Manager if not submitted for approval
Financial approvalFinanceFinancial DirectorYes — first approvalTo be confirmedPending financial approvalApprove or reject with written reason— (Financial Director is final for this step)
Sales approvalSales ManagementSales DirectorYes — second approvalTo be confirmedPending sales approvalApprove or reject with written reason— (Sales Director is final for this step)
Create sales order from quotationSales / Customer ServiceSalesman / Customer ServiceAllowed only after full quotation approvalTo be confirmedQuotation fully approvedCreate sales order with reference to approved quotationSales Manager if not actioned
Credit checkFinance / CreditCredit ControllerIf blocked — Credit Controller decisionTo be confirmedCredit block notificationRelease, reject, or request advance paymentFinance Director if unresolved within SLA
Production / MRP handoffPlanningProduction PlannerNo / as per planning policyTo be confirmedSales order requirement createdReview planned order, confirm production capacityPlanning Manager
Delivery creationCustomer Service / LogisticsCustomer Service RepresentativeNoTo be confirmedOrder ready for deliveryCreate outbound deliveryLogistics Manager if overdue
Picking / packingWarehouseWarehouse TeamNoTo be confirmedDelivery created — pick list availablePick and pack goods per delivery noteWarehouse Supervisor
Post goods issueWarehouse / LogisticsWarehouse / LogisticsNoTo be confirmedPicking completedPost goods issue to transfer legal ownershipLogistics Manager
BillingFinanceBilling / AR AccountantNo / as per billing policyTo be confirmedGoods issue postedCreate invoice and send to customerFinance Manager
CollectionFinanceAR / Collection AccountantNoBased on payment termsInvoice due / overdue alertFollow up customer payment — dunningCollections Manager / Finance Director
Return requestSales / WarehouseSalesman / WarehouseFinance approval if credit note requiredTo be confirmedReturn request createdValidate original invoice reference and return reasonReturns Team Lead
Credit / debit memoSales / FinanceSalesman / AR AccountantBilling block review / approval requiredTo be confirmedMemo request pending approvalReview justification, release billing block, create memoFinance Manager
Credit managementFinance / CreditCredit ControllerOngoing monitoringContinuousCredit limit breach / aging alertReview exposure, update limits, escalate high-risk accountsFinance Director / CFO

4. Department Ownership Summary

DepartmentOwned Steps
SalesQuotation creation, sales order creation, return requests
FinanceFinancial approval, credit check, billing, collection, credit management
Sales ManagementSales Director approval
Customer ServiceSales order creation support, delivery creation
PlanningMRP / production handoff
WarehousePicking, packing, goods issue, return handling
LogisticsDelivery coordination, goods issue oversight

5. Approval Authority Matrix

Document / DecisionFirst ApproverSecond ApproverRejection Action
Sales quotation (financial)Financial Director—Return to Salesman
Sales quotation (commercial)Sales Director—Return to Salesman
Credit releaseCredit ControllerFinance Director (if escalated)Reject order or request prepayment
Return authorizationWarehouse (goods)Finance (credit note)Reject return
Credit / debit memoBilling reviewFinance ManagerReject memo

6. SLA Targets (To Be Confirmed by Management)

StepTarget SLAStatus
Quotation created → Financial approvalTo be confirmedPending management sign-off
Financial approval → Sales approvalTo be confirmedPending management sign-off
Full approval → Sales order creationTo be confirmedPending management sign-off
Credit block → Credit decisionTo be confirmedPending management sign-off
Sales order → Delivery creationTo be confirmedPending management sign-off
Delivery creation → PGITo be confirmedPending management sign-off
PGI → Invoice creationTo be confirmedPending management sign-off
Invoice → Collection follow-upBased on payment termsEvent-based

7. Notification Rules (To Be Confirmed)

TriggerWho Is NotifiedChannelExpected Action
Quotation submitted for approvalFinancial DirectorSystem workflow / EmailApprove or reject
Financial approval completedSales DirectorSystem workflow / EmailApprove or reject
Quotation fully approvedSalesmanSystem notificationCreate sales order with reference
Credit block on sales orderCredit Controller + SalesSystem notificationCredit decision
Delivery date approachingCustomer Service + WarehouseSystem alertCreate delivery
Delivery createdWarehouseSystem taskPick and pack
Picking completedLogisticsSystem notificationPost goods issue
PGI postedBilling teamSystem notificationCreate invoice
Invoice overdueAR / CollectionsAutomated dunningFollow up customer

8. Escalation Rules (To Be Confirmed)

StepSLA Breach ActionEscalation Target
Quotation financial approvalAfter SLA — notify Sales ManagerSales Manager → Finance Director
Credit decisionAfter SLA — notify Finance DirectorFinance Director → CFO
Delivery creationAfter committed date — notify Logistics ManagerCustomer Service Director
PGI postingAfter picking — notify Warehouse SupervisorLogistics Manager
Invoice creationAfter PGI — notify Finance ManagerCFO
Collection overdue > 30 daysCollections ManagerFinance Director / Legal

9. Related Pages