Enterprise Information

Systems
Péter Halász - peter.halasz@live.com
Timetable
4th week: Project proposal deadline - 03.05

8th week: Mid-term exam - 04.03

10th week: Project deadline - 04.23

11th week: Presentations

12th week: Hungarian national holiday

13th week: Presentations

14th week: Repeating exam

Project work - Topic ideas
Topic proposal deadline: this sunday (03.05) 23:59
● Introducing a new system
● BPR
● CRM & SRM
● SOA
● BPM
● Microservice architecture (taken)
● SAP
● Enterprise architecture
Recap
● Suppliers, processes and data model
● Items, Stock, Warehouses data model and processes
● Individual and Balanced average unit price model
● Logging
● Process of receiving items
Enterprise functions
Sales Procurement

Items & Stock Production

Finance HR
Enterprise functions
Sales Procurement

Items & Stock

Quotations and orders
Quotation: expressing the interest for buying specific items in a
specific amount. The answer for a quotation isn’t considered to
be an official offer.

Purchase order: expressing the intent for buying. When the order
is answered, it is considered to be an official contract between
the client and the enterprise.
Quotations and orders
It’s useful to store the quotations and orders for the frequent
customers.

The answer for an order is only official is it is in writing.

The quotation and/or the purchase order can be left out in some
cases. With ad-hoc shopping there’s no need to store these data.
Quotations and orders
Supplier module: all the supplier related data needed for
choosing the right partner to do the procurement.

Customer module: identifying the customers during customer

quotations and orders.

Items & Stock module: getting data about items and stock levels
during processing quotations and purchase orders. Identifying
the needs of the customers.
Customer quotation process
RfQ arrives Customer
subsystem

Process RfQ

Identify
Customer

Identify needs Items & Stock

subsystem

Register RfQ

Supplier Elaborate
subsystem answer

Approval

Send Answer sent

Head and Line tables
Head table: data that only needs to be stored once. (One-to-
many connection to the lines)

Line table: data that is only specific to an item that is connected

to the head.

Consistent and redundancy-free data storage.

Head and Line tables
Teachers
1
ID
Classes
Name
ID
Office
Name
Phone
Description
Email
Time
0..n
Teacher ID
Customer quotation
The customer expresses interest in one or more of our goods.
Can happen in speech or in writing.

Even an answered quotation does not have any obligations

towards any parties.

The only purpose of storing it is to decide whether there was a

purchase order after it or not.
Customer Request for Quotation - Data
model RfQ Head
Customer

● ID
● Customer ID
● Timestamp of request
● Responsible ID
Customer RfQ - Data model
● Request ID
● Item ID
● Amount
● Requested price
● Requested deadline
● Answered price
● Answered deadline
● Status
● Timestamp of answer
Customer purchase order
Contractual relationship between the customer and the
enterprise.

The confirmation must be in writing.

A lot of information can be parsed out of them.

Customer purchase order process
Order arrives

Process order

Identify
Customer

Identify needs RfQ?

Register order

Elaborate
answer
Determine:
Source Approval
Price
Deadline
Order
Send
confirmed
Customer purchase order - Data model
Customer purchase order Head

● Customer purchase order ID

● Customer ID
● Timestamp of order
● Responsible ID
Customer purchase order - Data model
Customer purchase order Line
● Customer purchase order ID
● Item ID
● Ordered amount (free)
● Ordered amount (reserved)
● Requested / confirmed deadline
● Timestamp of confirmation
● Status
● …
Customer purchase order - Data model
Customer purchase order Line
● Requested / confirmed price
● Fulfilled amount (free)
● Fulfilled amount (reserved)
● Timestamp of fulfillment
Customer purchase order - System
process Customer orders
Customer
purchase order

Customer RfQs

Registering the order

Customers
Customer purchase order - System
Items
process
Customers Customer purchase
orders

Supplier RfQs

Stock
Approval of an order

Supplier orders
Customer order &
reserved stock

Supplier orderables
Customer purchase order - System
process Customer orders

Order confirmation

Customer order
Connecting customer and supplier
orders
Adding a new connector table that links customer and supplier
orders together.

● We know exactly which customer order will be satisfied with

a certain supplier order
● We can give delivery deadline based on the received supplier
delivery deadline
Connecting customer and supplier
orders
● Customer order ID
● Item ID
● Supplier order ID
● Connected amount
● Timestamp of connection
● Responsible ID
Connecting customer orders and
reserved
Creating stocktable that links customer orders and
a connector
reserved stock together.

● We can free the reserved stock if the order is cancelled

● We always know why a reservation is made

Working capital. Our money is in our assets. Storing items is not

beneficial.
Connecting customer orders and
reserved stock
● Customer order ID
● Item ID
● Amount
● Warehouse ID
● Timestamp of connection
● Responsible ID
Supplier orderables
Since the sales subsystem handles the sales related processes and
ordering from a supplier is a responsibility of the procurement
subsystem, there’s a need for sales to indicate procurement if an
new supplier order is needed.
Supplier orderables
● Customer order ID
● Item ID
● Ordered amount
● Requested deadline
● Customer responsible ID
● Supplier responsible ID
● Timestamp of customer order
● Timestamp of supplier order
● Status
Supplier quotation and order
Before ordering the enterprise usually sends out quotations to
more than one supplier, to be able to pick the best offer.

After a supplier confirmed our order, we are in an official

contractual relationship.
Supplier quotations
When do we request for quotation?
● One-off Order:
● New item to be purchased
● Item not ordered for a long time
● Usual supplier has no stock
Repeating Order:
● Trying to replace usual supplier
● Other business decisions
Supplier purchase orders
● Does not necessary need a quotation, can be done frequently
or even automatically
○ List price
○ Discount on list price
○ Contracted price
● Can be the result of an accepted quotation
Supplier purchase order - Data model
Supplier purchase order Head

● Supplier order ID
● Timestamp of order
● Supplier ID
● Responsible ID
Supplier purchase order - Data model
Supplier purchase order Line

● Supplier purchase order ID

● Item ID
● Amount (free)
● Amount (reserved)
● Timestamp of confirmation
● …
Supplier purchase order - Data model
Supplier purchase order Line

● Requested / confirmed deadline

● Status
● Requested / confirmed price
● Fulfilled amount (free)
● Fulfilled amount (reserved)
● Timestamp of fulfillment
Supplier order - System process
Supplier RfQs
Items

Processing an order
Stock Supplier orders

Customer order
Supplier orderables

Supplier order
Supplier order confirmation - System
process Processing an
Supplier order
Supplier orders
confirmation order

Confirming
Customer orders
customer order

Customer order
confirmation
Optimising procurement
● Minimising orders per supplier
● Order bigger amounts at a time
● While avoiding keeping excessive stock

Collect and pre-process requests coming from customers.

Identify the frequently needed items.

Automating sales and procurement
● Automatic
○ reply for POs if item is on stock
○ supply quotation or even order if item is not on stock
○ PO on items that are low on stock
○ notification to warehouse personnel
Automating sales and procurement
● Fully automating?
● Human approval?

Mostly depends on context, but it is possible with an EIS.

Webshops work like this.
Automating inventory
Quotations and orders - Informations
● Unfulfilled purchase orders (customer and supplier)
● Missed fulfillment deadlines (customer and supplier)
● Unfulfilled orders
○ For a specific item
○ For a specific customer or supplier
● Which items procurement is usually late
● Which orders can be expected to arrive on a specific date
● …
Supply chain management
Supply chain management (SCM), the management of the flow of
goods and services, involves the movement and storage of raw
materials, of work-in-process inventory, and of finished goods from
point of origin to point of consumption.

"The design, planning, execution, control, and monitoring of supply

chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally."
JIT procurement strategy
Just In Time strategy

● Mainly used in manufacturing enterprises

● Heavily relies on the suppliers, only the most reliable
suppliers can be a partner in this
● Tries to minimize the cost of storing items
Sales - Pulling and pushing strategies
Pulling
● Taking the product to the
customer"
● Direct selling to customers in
showrooms
● Negotiation with retailers to stock
your product
● Efficient supply chain allowing
retailers an efficient supply
● Packaging design to encourage
purchase
Pushing
● "Getting the customer to come to
you"
● Advertising and mass media
promotion
● Word of mouth referrals
● Customer relationship
management
● Sales promotions and discounts
Conclusion
● Request for quotations - customer/supplier
● Purchase orders - customer/supplier
● Connector tables
● Automating
● SCM
Thank you for your attention
Example questions
● What is the difference between a quotation and a purchase
order?
● What would you store about a customer/supplier PO?
● What kind of information can RfQ and PO database provide?
● What is JIT?
● What is the difference between push and pull sales strategies?