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Zach

Order sales
and entry
process
Executive Summary

The purpose of this report was to help the client company on modelling their
Order Entry/Sales (OE/S) process. Bizagi was used as a BPMN tool to design
an OE/S business process in BPMN format. Additionally, Business integration
plan has been proposed in the report to help client to come up with effective
business solution. The recommendation would be the implement the new
business integration plan to ensure the competitive advantage and to cop
with potential problems with the existing process.

Introduction

The client company is an average retailing organization which secures


products from suppliers and offers them to the customers. The report covers
on the broad aspect of the OE/S process for the client company which
involves order-to-cash process, presales activities, sales order processing,
picking and packing of the goods, shipping and also handles the billing and
processes customer payment. The report is composed with textual
description of the OE/S process to ensure the transparency amongst client.
BPMN patterns are well explained so the client can understand BPMN
diagram properly and to ensure there dont exist any ambiguousness.
Potential problems of this system has been pointed. Similarly, needed
organisational and IT resources for the business integration plan has been
presented in a tabular format.
OE/S Process Description

The process begins with the customer wanting to buy the product from the
client company. Firstly, the customer calls to the Customer Service
Representative (CSR) to place an order of the product. However, customer
can also call CSR to make an enquiry about the product, check the status of
the open order or to check the price and availability of the inventory items.
Firstly, system prompts the CSR to enter the customer number. The customer
has been assigned with their unique number that is used to store their
information like, Customer name, Address, Credit Information, Contact
details. When customer makes a call to CSR, the CSR will begin with entering
the customer number in to the system. When CSR enters the valid customer
number, the system retrieves the customers information from the systems
master data. CSR verifies and confirms the information is correct and
updated. But, if the system couldnt find customers information or the
record is null. The system will terminate. CSR begins with the further process
when the customer number has been entered accurately or it is valid in the
system.
Part number has been assigned for every product. Part number for the
product provides the general description and price information for the
particular products when entered to the system. After CSR enters the part
number of the product for which the customer wants to purchase, CSR will
enter the the quantity of an ordered item. Sales department will further
request for the credit approval from credit department. However, if the
outstanding receivable balance exceeds the customers credit limit the order
becomes unsuccessful and it gets suspended. The process will terminate.
Simultaneously, the operator is also notified of the fact. If the customers
credit falls within the credit range the processing will further continue. Now,
the quantity ordered is checked with the availability of the product in the
inventory. If, the inventory data be less than the customers ordered quantity
the procedures terminates and customer is notified. If the ordered quantity is
less than the available quantity and after CSR finished entering the order
data, computer generates sales order record also updates the inventory
master data for the allocation of the inventory to the sales order. The sales
order number is generated and CSR relays to the customer with the sales
order number. The warehouse department prints the picking ticket which
contains the bar code of the sales order number. The warehouse personnel
will insert the picked quantities in the picking ticket and compares the
product with the picking ticket and initials the ticket, and the completed
tickets are further moved to the shipping department
Shipping department will need the picking ticket for the confirmation of the
order and to ensure the ordered quantities are correct. When the shipping
department confirms the orders are accurate this will record the shipment in
the system. Record of shipment will further update the sales order, inventory
and the general ledger master data to reflect the shipment. Simultaneously,
the packing slip and shipping label (bill of lading) are printed. The goods are
packed with the packing slip inside the box and shipping label is attached to
the box and is given to carrier for the delivery. After the whole process
completes, the completed printed tickets are discarded.

Assumptions:
1. Customer calls Customer Service Representative (CSR) to place an
order.
2. Customers are ongoing customers and their personal information are
stored in the systems master data.
3. Customers are provided with the customer number.
4. Error routines are initiated if the customer record does not exist, the
customers credit limit is not sufficient, the goods are not available in
the correct quantity, the goods picked from the shelf do not agree with
the picking ticket, or the goods to be shipped do not match the picking
ticket and sales order.
BPMN Diagram
BPMN Patterns

Business Process Modelling Notation is used to explain in a graphic way how


a process is conducted. There are different elements to explain a process; for
instance, activities, gateways, messages, alarms, etc. Furthermore, only a
few elements were used for the Ordering Entry/Sales process BPMN, which
only uses exclusive gateway, parallel gateway, activities and messages. On
the other hand, some problems may be obvious as some activities seem to
be too general and may confused the reader.
The main component utilized is an exclusive gateway. This condition is
utilized to choose which pathway the procedure should to take. For example,
in case of exception such as receive confirmation on order for credit approval
can only follow one of two options. In case of being a receive order
unsuccessful information then customer is notified and the process is
finished. The customer can start from the very beginning again on the off
chance that they wish to do. On the other hand if credit approval information
received then the customer received confirmation of order and then the
process continues its regular flow. In addition, exclusive gateways are utilized
to beware of stock accessibility for merchandise, if stock is not available
customer will get informed about it and if the stock is available then the
process continues it flow and customer receive shipping information.
The Second component is a parallel gateway. During the process parallel
gateway used twice. (1) When the sales department received sales
information the system needs to notify customer for order information and
send message to warehouse to send out the product for delivery. (2) When
the warehouse send confirmation about the product quantity the process
sends order information to sales department and send message with order
details for shipping. Another component utilized are activities and messages.
The activities are to describe what task should be done and by which part
inside the procedure and the messages are utilized to convey data between
roles; for example, as used in between the sales order department and
warehouse as where sales department send message to warehouse for
sending out the product.
Furthermore, this BPMN may have, a few activities might be excessively
broad. For example, the product availability if the product is not available the
system straightaway informs the customer, product is not available at the
moment. From the business perspective of the company this may appear as
the obvious decision. When this case is achieved the company knowledge
they need to get more stock before getting more requests and when product
is going low in quantity. But seeing from customer point they get notification
that product is not available and then they will make an order somewhere
else which will effect company benefit. In addition, the customer has not got
any login details for them to track their shipment details or change any
shipment details. They got shipment tracking information which they can use
but cannot use as a member to just put login details and see their products
and payments through account.

Integration Plan
Target Business Process
Business Process Description
This business process start with when customer wants to start ordering
products through online system of client order system website. To use this
system customer has to create an account or login before purchasing of any
item so customer place the order with shipment details and payment then
they will receive confirmation email regarding the order with order number.
The order number will update in the system and logistic department will
receive a picking ticket with order number and then they have to check the
order details and make it ready to dispatch. Then finally send the shipment
according to the location detail of order number in shipping ticket to the
customer.
Needed Organisational Resources
Related Role Hierarchy
List of needed organisational resources

Role Name Responsibil Assigned Rights/Limita Special


ity Activities tions requirements
(if
applicable)
Marketing Looking after Not All rights
manage the overall specifically, mentioned
system yet the role above. Not
can overtake specific
any activity limitations.
assigned to all
the
departments
Sales Enter order As shown Receive Need more
department details to the BPMN orders, send staff to
staf system & diagram sales order to ordering
communicat shipping process when
e with clients department, using multiple
and Create retrieve resource to get
new client account orders
according to information of
the registered
information client and
given request for
credit check /
cannot decide
about credits
Finance Credit check As shown Check clients Need fast
department and approve BPMN meta data for faced system
staf or reject it diagram credits on to check on
approval or credits
rejection and
get the sales
order / cannot
decide on
orders
Logistic Complete As shown Check and Need more
department the sales BPMN complete the staff
order and diagram picking notes
send with
shipping warehouse
notice and and send
shipping the shipping
order notice and
shipping the
order
Needed IT Resources
System Architecture

IT Res. Function Related Input to IT Output from Special


Name Activities Res. IT Res. Require
ments
(if
applica
ble)
The Process receive User name & For website
order the order customer password purchasing
entry/sal account items
es (OE/S) receive order info Picking ticket
process customer with items
order
check Total cost of Customer
customer the items credit statues
credit limits and
exceeding or
not exceeding
the limit
maintain Picking & Sales order
information shipping number
from tickets
customer
through sales,
finance,
logistic
departments
Custome Maintains create customer customer
r DB customer customer detail, purchased
info profile metadata history and
purchasing and financial details
history detail
and credit
issues

Related Business Rules


Existing rules related to target business process
Australian standard purchasing and returning polices, safety and work place
policies.
New rules created for target business process

Customer must have an account with client order system


Customer must maintain the credit limits
Customer must place the order with correct detail of the items
logistic department must update system about the available quantity
of items
Logistic department must check shipping info and order number before
shipping
Only sales department can change order detail if customer request
All the department must communicate through ordering system

Business Process Dependency

Business Process Name Description of Dependency to


target business process
Customer order system process Customers need to log in to the
customer order website to purchase
their item and to arrange the
shipment location.
All the departments must use the
ordering system to perform an
accurate process of delivering the
goods until finishing the shipment.

Conclusion

The vigorous analysis of the OE/S process of the client company has been
done to comprehend the effective business solution for the client. The
Business Process diagram was created for the client using the BPMN
modelling tool Bizagi. The BPMN patterns were described for the ease of
client to understand the process and activities. Textual description of OE/S
process are also the key documented part to help client understand the OE/S
process. Further more, the integration plan has been proposed and the
needed resources are made clear for the client to make it more transparent.
References

Richard B. Dull, Ulric J. Gellinas . Accounting Information Systems:


Foundations in Enterprise Risk Management. Edition. Cengage Learning.
White, Stephen A., Process Modeling Notations and Workflow Patterns, IBM
Corp, United States
Blueshift. 2016. Integrated Business Planning | Blueshift . [ONLINE] Available
at: http://www.blueshift.com.au/integrated-business-planning/. [Accessed 04
May 2016]
The Planning Blog. 2016. Integrating the S&OP Process - The Planning Blog.
[ONLINE] Available at: http://theplanningblog.com/integrating-the-sop-
process-go-with-the-flow/. [Accessed 03 May 2016].
ORACLE. 2012. The Order-to-Cash Business Process in a WMS Integration.
[ONLINE] Available at:
http://docs.oracle.com/cd/E39583_01/fscm92pbr0/eng/fscm/fstp/concept_The
Order-to-CashBusinessProcessinaWMSIntegration-c9fc69.html. [Accessed 30
April 2016].