Sales management ERD model: Role and how to draw an ERD diagram

The ERD model of sales management is increasingly widely used by businesses. Applying this model helps the board of directors have a more comprehensive view of the sales database management system, thereby building effective business plans. In the article below, let's learn with 1C Vietnam what an ERD diagram is, its role and how to draw an ERD diagram.

1. What is a sales management ERD diagram?

The sales management ERD model, also known as the entity relationship model, is used to design the database. ERD uses many symbols to connect and visualize important information about key entities in the system and the relationships between them.

ERD (Entity-Relationship Diagram) is a concept that first appeared in ancient Greece, used in many works of philosophers such as Aristotle, Socrates and Plato. During the 19th and 20th centuries, ERD continued to be used in many works by logicians such as Charles Sanders Peirce, Gottlob Frege. In the 1970s, this concept was developed more comprehensively by professor Peter Chen.

2. The importance of the ERD model in sales management for businesses

The ERD sales management model plays an important role for businesses, especially in the commercial field including:

• Creating a database: The ERD model is applied to design information databases in businesses.
• Troubleshooting problems in the database: ERD has the ability to analyze and resolve problems and incidents occurring in the enterprise's database. ERD helps locate and understand relationships between entities, attributes, and technical constraints in data systems. From there, businesses can find ways to repair and overcome.
• Reengineering business processes: Sales management ERD diagrams help businesses analyze databases. From there, businesses can restructure business processes and design new, more suitable databases.
• Systematize enterprise business processes: The ERD model helps businesses streamline business processes, improve and optimize organizational operations.
• Analytical support: The ERD model is an important tool in the process of establishing a useful database. Thanks to that, businesses can use data for analysis to serve the requirements of production and business activities.

3. Components in the ERD diagram

The sales management ERD model includes three main components: entity, relationship and attribute. The detailed content of each component is presented specifically as follows:

3.1. Entity: Entity

Entity represents a specific object or aspect in the sales management system. Commonly used entities are customers, products, orders, suppliers, and warehouses. Each entity has a number of unique properties to store and describe detailed information.

3.2. Attribute: Attribute

Attributes are specific and related information about each entity in the management system. For example, in the "Customer" entity, attributes might include name, address, phone number, and email. This component is used to identify and store detailed information of each entity, making it easier to manage sales better.

3.3. Relationship: Relationship

In the sales management ERD model , relationships can be identified through entities interacting and linking together. For example, a sales management system has a "Purchase" relationship between a customer and a product or a "Supply" relationship between a supplier and a product. The above relationships show the interactions and dependencies between entities in the sales process, which can be one-to-one, one-to-many or many-to-many relationships, depending on the scale and logic of the process. sales program.

4. How to draw an ERD diagram for effective sales management

To draw an effective sales management ERD model , businesses need to follow the following main steps:

• Step 1: Identify key entities: Includes customers, products, orders, employees, and warehouses.

• Step 2: Identify relationships between entities: Include the relationship between "Customer" and "Order" in the purchasing relationship, between "Employee" and "Warehouse" in the management relationship .

• Step 3: Name and define the attributes of each entity: For example, the attributes of "Customer" include full name, address, phone number and email.

• Step 4: Draw an ERD diagram: Use appropriate symbols, shapes or diagrams to draw a sales management ERD diagram, specifically entities using oval shapes, relationships using straight lines and attribute uses small circle. In addition, businesses can also use software that supports process management to draw ERD diagrams.

• Step 5: Connect and determine the level of correlation: Enterprises need to determine the number and relationship between entities. For example, the "Purchases" relationship has a "One to many" correlation where one customer can create multiple orders.

• Step 6: Check and adjust: Enterprises need to review and improve the ERD diagram to ensure that the sales process diagram accurately reflects the data structure and relationships between components, thereby meeting goals and requirements of the business.

5. 1C:Company Management software application for automatic sales management

Today, with the development of technology, sales management has become easier than ever thanks to supporting software. In particular, 1C:Company Management software is a powerful and versatile online tool with an intelligent sales management module to help businesses manage sales effectively. The software possesses many outstanding features including:

• Make a sales plan.

• Calculate trade discounts, payment discounts, and period-end discounts according to declared policies.

• Quickly create customer orders with multiple order statuses: Open/In progress/Closed.

• Set up payment schedule, delivery schedule, set up inventory according to orders (goods in stock will be kept for this order and will not be sold for other orders).

• Control delivery progress for each item/customer order and customer receivables.
• Clear and intelligent sales reports.

Above, 1C Vietnam shared the concept, role and how to draw a detailed sales management ERD model . Hopefully the above useful information will help businesses build an ERD model suitable for their scale and business activities. In addition, for support and advice on effective sales management software, please contact 1C Vietnam today!