ORDER PROCESSING & SUPPLY CHAIN MANAGEMENT

BY ABHISHEK KUMAR SINGH ISHAN SURESH

What is Order Processing

Order processing is a key element of Order fulfillment.

Order processing operations or facilities are commonly called Distribution Centers. "Order processing" is the term generally used to describe the process or the work flow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier. Sales order processing is a process where customer orders are received, checked for creditworthiness then checking for product availability, and arranging for delivery to customers is done and finally billing and maintaining records of amounts due from customers is carried out.

How order are processed

On the basis of requirements of the customer,

producer or supplier check for the availability and then process the order on the basis of the following basis:
Quantity ( In numbers) Quality ( By sample or description) Specification ( in case of pharmacy, edibles) Sample ( textile, food grains etc.)

On the basis of time

Short time , medium time and long period of time

Location of distribution
Inter city, Inter state, inside country, overseas ( road, rail, shipping, air)

ORDER PROCESS

(1)Receive order (2)Order processing (3)Availability of material (4)Fullfillment/ non-fullfillment of requirement (5)Order execution/ fullfillment

Supply chain management

Business trends

Business initiative trends in manufacturing:

1970s : Manufacturing 1980s : Quality 1990s : Supply chain management 2000s : e-business and supply chains

What is supply chain?

All activities associated with the flow and

transformation of goods from raw material to end users. The term supply chain refers to the entire network of the company that work together to design, produce deliver, and service products.

Push vs. Pull in supply chain

Push or building to stock(BTS): Producing stock on

the basis of anticipated demand. Pull or building to order(BTO): Producing stock in response to actual demand(firm orders).

Major concepts to be considered..

Order fulfillment: Deliver right order on time

Front office operations: Order taking,

Advertisement, etc. Back office operations: Accounting, finance, packaging, logistics, etc. Logistics: Managing the flow of goods, information and money along the supply chain.

Supply Chain Management

A set of processes and sub-processes which attempt to

implement and optimize the functions, connected entities, and interacting elements of a supply chain.

Supply Chain Management involves:

Organizations, procedures, people. Activities: Purchasing, Delivery, Packaging, Checking,

Warehousing, etc. Establishment of long term relationship with suppliers and distributors. Effective flow of information through the supply chain.

Benefits of SCM

Reduce uncertainity along the chain

Proper inventory levels in the chain Minimize delays

Eliminate rush(unplanned) activities

Provide good customer service

Problem along the supply chain

Delays in production, distribution, etc

Expensive inventories Lack partners coordination

Uncertainity in deliveries
Poor demand forecast Poor Quality

More challenges
Complexity of the supply chain network

-e.g. Large no. of suppliers and distributors Complexity in product structure and manufacturing process -How much product differentiation/customization/localization should be supported? Decentralized control

Technology in SC
The internet can be very effective communication

enhancer. Software includes demand forecasting tools and planning tools to allow all supply chain members to coordinate their activities and adjust their production level. Software can allow members to: -Review past performance -Monitor current performance -Predict future production levels of productions.

Thank you