Model example 1: electronics company

Alphabet Electronics Corporation has two companies, ABC and XYZ.

ABC has one legal entity in North America and one in the Asia Pacific. ABC has two sales organizations; one sells electronic gadgets (called, Sales-Electronics) and other sells music and movies (called, Sales-Entertainment).

ABC North America Sales-Electronics has one distribution center in California and one in Massachusetts.

ABC North America Sales-Entertainment has two distribution centers in California, one for music and the other for movies. It also has one distribution center in Massachusetts for both music and movies.

ABC North America has one purchasing organization for its distribution centers in North America.

ABC Asia Pacific has one sales organization for both electronics and entertainment. It has one distribution center in China. It has one purchasing organization for the distribution centers in Asia Pacific.

The organization structure of the XYZ company is the same as ABC.