ORDER FULFILLMENT

PROCESS
THE :
ORDER FULFILLMENT PROCESS PRODUCES AND DELIVERS THE SERVICE OR
PRODUCT TO THE FIRM’S CUSTOMER. THERE ARE FOUR KEY NESTED
PROCESSES (1) CUSTOMER DEMANDING PLANNING (2) SUPPLY PLANNING
(3)PRODUCTION (4) LOGISTICS
1.CUSTOMER DEMAND PLANNING :
CUSľOMER DEMAND PLANNING (CDP) IS A BUSINESS-
PLANNING PROCESS ľ H A ľ ENABLES SALES ľEAMS ľ O
DEVELOP DEMAND ÏORECASľS AS INPUľ ľ O SERVICE-
PLANNING PROCESSES, PRODUCľ ION, INVENľ ORY
PLANNING AND REVENUE PLANNING.
2. SUPPLY PLANNING:
THE SUPPLY PLANNING PROCESS TAKES THE DEMAND FORECAST
PRODUCE BY THE CDP PROCESS, SERVICE LEVELS AND INVENTORY
TARGETS PROVIDE BY INVENTORY MANAGEMENT, AND THE RESOURCES
PROVIDED BY SALES AND OPERATIONS PLANNING TO GENERATE A
PLAN TO MEET THE DEMAND.
3. PRODUCTION:
PRODUCTION IS PROCESS OF MAKING AND MANUFACTURING
PRODUCT OR SERVICE FROM RAW MATERIAL AND
COMPONENT.
• 4. LOGISTICS:
A KEY ASPECT OF ORDER FULFILLMENT IS THE LOGISTICS PROCESS,
WHICH DELIVERS THE PRODUCT OR SERVICE TO THE CUSTOMER. FIVE
IMPORTANT DECISION DETERMINE THE DESIGN AND IMPLEMENTATION
OF LOGISTICS PROCESS (1)DEGREE OF OWNERSHIP (2) FACILITY
LOCATION (3) MODE SELECTION (4)
CAPACITY LEVEL (5) AMOUNT OF CROSS-DOCKING.
CUSTOMER RELATIONSHIP PROCESS
:HE CUSTOMER RELATIONSHIP PROCESS ADDRESSES THE INTERFACE BETWEEN
T
THE FIRMS AND IT’S CUSTOMER. KEY NESTED PROCESSES INCLUDES THE
MARKETING, ORDER PLACEMENT AND CUSTOMER SERVICE
PROCESSES.
.MARKETING :
Maíketing is the píocess of exploíing, cíeating, and deliveíing value to meet the
needs of a taíget maíket in teíms of goods and seívices. In this íegaíds, electíonic
commeíce (e –commeíce) has had a huge impact up and down the supply chain. ľheíe
aíe two e-commeíce technologies that íelate to the maíketing píocess (1) B2C and (2)
B2B systems.
1. BUSINESS -TO- CONSUMER SYSTEMS :
ľ h e teím business-to-consumeí (B2C) íefeís to the píocess of selling píoducts
and seívices diíectly between a business and consumeís who aíe the end-useís
of its píoducts oí seívices
2. BUSINESS-ľO-BUSINESS SYSľEMS:
B2B (business-to-business), a type of electíonic commeíce (e-commeíce), is the
exchange of píoducts, seívices oí infoímation between businesses, íatheí than
between businesses and consumeís (B2C).
• ORDER PLACEMENT :
The order placement process involves the activities required to execute a sale,
register the specifics of the order request, confirm the acceptance of the
order and track progress of the order until it is completed. The internet
provides the following advantages for a firm’s order placement process.
Cost
Reduction ,Revenue Flow Increase, Global Access And Price Flexibility.
.CUSTOMER SERVICE :
The customer service process helps customer with answers to questions
regarding the service or product.
 SUPPLY CHAIN RISK
•MANAGEMENT:
Supply chain íisk management is “the implementation of stíategies to
manage both eveíyday and exceptional íisks along the supply chain based on
continuous íisk assessment with the objective of íeducing vulneíability and
ensuíing continuity“. In this section, we addíess the management of
opeíational, financial and íeveal impoítant peífoímance measuíes foí
tíacking supply chain opeíations.
.OPERATIONAL RISKS :
Are threats to the effective flow of materials, services and products in
a supply chain. The following options reduce the risk for operational
disruptions in supply chain.
1. Strategic alignment 2.upstream/downstream supply chain
integration
3.Visibility 4. Flexibility 5. Short replenishment lead times
6. Small order lot sizes 7. Rationing short supplies 8. EDLP
9. Cooperation and trustworthiness
• Financial Risk :
Financial íisk is any of vaíious types of íisk associated with financing, including
financial tíansactions that include company loans in íisk of default. Often it is
undeístood to include only downside íisk, meaning the potential foí financial
loss and unceítainty about its extent. ľ h e most often used appíoach to píotect
against financial íisk is called hedging ,a supply chain íisk management
stíategy used in limiting oí offsetting the píobability of loss fluctuation in píice
of commodities oí cuííencies.
Security Risks :
Security risks are threats to supply chain that could potentially damage
stakeholders, facilities or operations; destroy the integrity of business. Here
are some typical security activities : access control, physical security, shipping
and receiving, transportation service provider and ISO 28000.
• Performance Measures :
It is to monitor the performance of supply chains to see where improvement can
be made or to measure the the impact of disruptions. Supply chain
management monitor performance by measuring costs, time, quality and
environmental impact.