St.

Louise de Marillac College of Sorsogon

Higher Education Department
Sorsogon City
2nd Semester, S.Y 2020-2021

LOGISTICS MANAGEMENT

Name: _______________________________ Score: ____________

Year & Course: ________________________

I. Observe the diagram below: Give your insight about figure below:
a. What are your observations
b. Which is more effective figure A or figure b and why?

Figure A.

Figure B.

II. Order and processing information system: Finished goods are about to be sold in a
store in the city. The customer informs your company to deliver the orders as soon as
possible. As the logistics officer create your own:
a. order cycle
b. Path of a customer order
c. Information based supply chain flows

ANSWER:

I.
a. Figure A shows the Traditional Method of Order and Processing Information
System where several processes of purchase order, invoices and others are
observed. Based on the diagram given, a buyer purchased a certain order, then
entering onto the buyer’s computer to create PO (purchase order), prints and mails
it to post office. After several days, the vendor receives the PO and manually
enters the order, then prints an invoice and enclosed it with the shipment. The
buyer then manually enters the invoice into the Accounts Payable system.
On the other hand, Figure B shows EDI or Electronic Data Interchange, a
computer-to-computer exchange of business documents using standard electronic
format. In this process, the buyer’s utilizes EDI software like an application which
St. Louise de Marillac College of Sorsogon
Higher Education Department
Sorsogon City
2nd Semester, S.Y 2020-2021

LOGISTICS MANAGEMENT
automatically generates and sends an EDI-formatted PO. Minutes after, the
vendor’s sales order system or the EDI software, receives the EDI PO, then
notifies the shipping department for shipping the orders and generates an EDI
invoice to be transmitted directly to the buyers accounts payable system

b. In my perspective, Figure B (EDI) is much more effective than Figure A

(Traditional Method). It is because EDI has certain benefits which can be more
profitable than the traditional one, though there are still many organizations and
businesses who use the traditional method of transactions. First of all, EDI helps
reduced the cost of expenditure specifically by eliminating the usage of paper,
printing, reproduction, storage, filing, postage and document retrieval.
Additionally, it improves the business cycle speed. EDI help speed the order
processing because of automation unlike the traditional where manual input takes
more time and may cause some delay to transactions. Also, EDI increases the
business efficiency because it reduces human error and improves record accuracy.
By this, the business can also improve an organization’s customer and trading
partner relationships due to faster delivery of goods and services.

II.
a. Order Cycle

Customer Place Order

2.

2. Order 6. Order
Received delivered to
customer

5. Order
shipped to
3. Order customer
Processed

4. Order Picked
and Packed
 St. Louise de Marillac College of Sorsogon
Higher Education Department
Sorsogon City
2nd Semester, S.Y 2020-2021

LOGISTICS MANAGEMENT

b. Path of a Customer Order

Customer Customer Delivery Ship Customer Order

Order

Order
Transmittal

Back Order Invoice

Inventory
Available

Enter Customer Inventory Process Warehouse

Order Check Credit File Order Withdrawal

Production Transportation
Schedule Scheduling
Shipping
Production Documentation
 St. Louise de Marillac College of Sorsogon
Higher Education Department
Sorsogon City
2nd Semester, S.Y 2020-2021

LOGISTICS MANAGEMENT

c. Information based supply chain flows

Material Flow

Inbound Outbound
Vendor Sourcing Storage/T Operations Storage/ Consumer Customer
ransporta Transportatio Distribution
tion n

Information Flow

Money Flow