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Case Study: Webers, Inc.

Aayush Choudhary

Schulich School of Business, York University

OMIS 6560 U – Supply Chain Management

Prof. Ashay Gude

26 Sep. 2023
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Executive Summary:

Webers, an omni-channel retailer specializing in men's and women's clothing, faces

increased competition and a growing need to enhance customer service. With a rigid order

management process, the company historically prioritized productivity over customer service.

Under the previous order management process (OMS), consumers placed orders online and

received limited flexibility regarding delivery times. Inventory availability checks occurred post-order

placement, often resulting in back orders, negatively impacting customer satisfaction. Orders were

picked in the order of receipt, and consumers couldn't select specific delivery times.

Webers has implemented a new order management process to address the challenge it faces

from its competitors. Inventory availability is checked in real-time during online ordering to

immediately inform customers of item availability. Consumers can choose specific delivery windows

during the order process, such as next-day or two-day delivery. To accommodate consumer-selected

delivery times, Webers has enhanced the communication between the Order Management System

(OMS), Warehouse Management System (WMS), and Transportation Management System (TMS). To

assess the new process's success and identify improvement areas, Webers needs new KPIs such as

On-Time Delivery Rate, Delivery Time Variance, and Inventory Availability Rate.

By implementing these recommendations, Webers aims to enhance its order management

process, improve customer satisfaction, and remain competitive in the evolving retail landscape.

Adopting real-time inventory checks and consumer-selected delivery times will create a more

customer-centric shopping experience, ultimately driving growth and loyalty in the market.
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Question 1: create process maps for the “before” and “after” order management processes. Use

Figure 8.15 as a guide. Start from when the consumer places the order and end when the shipment

is made.

Answer:

The main difference between these two processes is that the new process checks inventory

availability in real-time, and consumers can choose their delivery options. This requires more

communication between OMS, WMS, and TMS to ensure that orders are picked and shipped on time

to meet the chosen delivery window.

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Question 2: from these process maps, identify where the major changes to the order management

process occur.

Answer: The major changes to the order management process occur at the following steps:

1. Inventory Check: Previously, the inventory check was performed after placing the order. The

new process checks inventory availability in real time as the consumer places the order. This

allows the system to immediately assess if the items are in stock and inform the consumer,

facilitating more informed decision-making.

2. Delivery Option Selection: This step is introduced in the new process. The consumer can now

choose a delivery option (e.g., next-day, two-day) while placing the order.

3. Communication between OMS, WMS, and TMS: In the previous process, if inventory was

available, the OMS would route the order to the WMS for picking, followed by the WMS

transmitting it to the TMS for scheduling shipment. In the new process, after the customer

selects a delivery option, the OMS establishes communication with the TMS to ascertain the

timing required to tend the order to meet the chosen delivery window. Subsequently, the

TMS coordinates with the WMS to determine the optimal picking schedule for the order.

These changes aim to improve customer service by allowing consumers to choose their delivery

options and ensuring that orders are picked up and shipped on time to meet the delivery windows.
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Question 3: Develop a new set of metrics that Webers can use to measure the performance of the

new process. Use Figure 8.11 as a guide.

Answer: Webers can use the following metrics to measure the performance of the new process:

1. On-Time Delivery Rate: Measure the percentage of orders delivered within the specified

consumer-selected delivery window. This metric directly reflects the ability of the new

process to meet customer expectations.

2. Order Fulfillment Time: Calculate the average time from order placement to shipment. This

metric can help assess the speed and efficiency of the order fulfillment process.

3. Delivery Time Variance: Calculate the difference between the consumer-selected and actual

delivery times. Weber can use this metric to identify issues with meeting committed delivery

windows.

4. Inventory Availability Rate: Calculate the percentage of times that the requested items are

available in stock when consumers place orders. A higher availability rate indicates better

inventory management.

5. Return Rate: Monitor the rate at which customers return orders due to dissatisfaction or

other issues. A lower return rate may indicate improved order accuracy.

By monitoring these metrics, Webers can gain insights into the new order management process's

effectiveness, identify improvement areas, and ensure that customer expectations for timely and

accurate deliveries are consistently met.