chapter 13 : order fulfillment, logistics, and supply chain management

7/30/2019 Chapter 13 : Order Fulfillment, Logistics, and Supply Chain Management

http://slidepdf.com/reader/full/chapter-13-order-fulfillment-logistics-and-supply-chain-management 1/17

1

Chapter 13

Order Fulfillment,

Logistics, andSupply Chain Management

www.prestonians.webnode.com



2

Figure 13-1

Push vs. Pull Supply Chains




3

Major Concepts

Order fulfillment: Deliver right order on time

Front office operations:

Order taking Advertisement

CRM

Back office operations

Accounting Packaging

Finance Logistics

Inventory




4

Major Concepts (cont.)

Definitions of logistics:Managing the flow of goods, information andmoney along the supply chain

Aspect of military science dealing withprocurement, maintenance, and transportation

Management of details of an operation

All activities involved in management of product

movementRight product

Right place

Right time




5

The Steps of Order Fulfillment

1. Payment Clearance

2. In-stock availability

3. Packaging, shipment4. Insuring

5. Production (planning,execution)

6. Plant services

7. Purchasing,warehousing

8. Customer contacts9. Returns (Reverse

logistics)

10. Demand forecast

11. Accounting, billing

12. Reverse logistics




6

Supply Chain Management

Definition: Flow of material, information,money, etc. from rawmaterial suppliersthrough factories tocustomers

It includes:organizations,procedures, people

SCM: Integration of the businessprocesses along the

chain, Planning,Organizing, control of many activities

Activities: Purchasing,

delivery, packaging,checking,warehousing, etc.




Benefits of SCM

Reduce uncertainty along the chain

Proper inventory levels in the chain

Minimize delays

Eliminate rush (unplanned) activities

Provide superb customer service

Major contributor of success (eversurvival)




Global Supply Chain

Can be very long

Possible cross-border problems

Need information technology support of:

Communication

Collaboration

Possible delays due to: customs, tax,translations, politics




Areas of Opportunities

Manufacturingprocesses

Warehousingoperation

Packaging anddelivery

Materialinspection/receiving

Inbound andoutboundtransportation

Reverse logistics(return)

In-plant materialhandling

Vendor managementprogram

Customer orderprocessing




Areas of Opportunities (cont.)

Invoicing, auditingand other accountingactivities

Collaborationprocedures withpartners

Employee training anddeployments

Labor scheduling

Use of teams andempowerment of employees

Automation of processes

Use of software forfacilitating all the

aboveInventorymanagement andcontrol




Using Inventories

Insurance against stock out

Can be in several placesCan be excessive

Can be insufficient

Example: Littlewoods stores; UK




Using Inventories

Using inventories to solve supply chainshortages:

Building inventories as insurance against

uncertainty —

products and parts flow smoothly Very difficult to correctly determine inventory levelsfor each product and part

Customized finished products can only stock

componentsExcessive levels are costly to store

Insufficient levels cannot protect against highdemand or slow delivery times




EC Solutions Along

the Supply Chain

Automate order taking

Use EDI/Internet

Web-based ordering; intelligent agents

Electronic payments

Inventory reduction (made-to-order pull

process)Improved inventory management

Decreased administrative costs




EC Solutions Along

the Supply Chain (cont.)

Digitization of products —instantorder fulfillment

Back-office interface

Shortens cycletime

Eliminates errors

Collaborative commerceamong members of thesupply chain

Shortens cycle time

Minimizes delays andwork interruptions

Lower inventoriesLower administrativecosts

livery scheduling




15

Software Support

SCM Activities Type of Software

Upstream activities Supplier management

Ordering systemsOrder tracking systems

Internal supplychain activities

Inventory management

Purchasing order management

Budgeting, cost control

Human resource information

Downstreamactivities

Salesperson productivity tools

Online telemarketing

Ad management etc.

Tracking systems - available to customers




16

ERP Benefits

ERP = Integrating business processes and

activities in real timeSolves many supply chain problems

Necessary for medium to large corporations

Helpful also for some SMEs




17

ERP Implementation

Need to interface with EC order taking

systemManages all routine transactions in theenterprise

Recently extended to suppliers andcustomers

www prestonians webnode com

chapter 13 : order fulfillment, logistics, and supply chain management

Documents