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The order processing system and the different flows of information across the system are depicted in Figure 1.
Considering that the order entry system and the order processing system are within the boundary of the system being considered, there will be multiple outputs generate by the process. Some of them are detailed below.
I. The order itself that a customer will pace can be considered as an output of the process. The order will be cataloged in the Customer Database, the order will also be sent to the warehouses for possible shipments and it will also be sent to the payments database to monitor the billing activities.
II. For those orders, where the products are not available, a back order report is generated to remind customer service representatives of orders that they have to be reprocessed. This will be an output generated by the order entry system itself to the customer service representative and to the warehouses also.
III. A request is generated to the Credit Department for the customer information. This will be an output of the order entry system
IV. A report on credit holds is generated by the credit department upon receiving a credit check request for a particular customer. This is an output of the system, but is generated as a secondary output of the initial credit request
V. The customer receives the shipment and the invoice for the purchase made.
2. What other major business processes outside of the order process are likely to be impacted by the order process? Explain.
The parts of Business process that are affected by this order process are,
a. The customer service representative accesses the company’s order entry system and checks the inventory for each product ordered. The customer service representative first checks the warehouse closest to the customer’s shipping address. This affects the Warehouse through the products that are stored and might cause the warehouse to produce more products than required by the customer. This process is used to contain several processes that are involved in inventory management. This includes processes for managing reserves on inventory (prevent it from being allocated to orders), for managing adjustments to inventory, and for managing expected inventory. Expected inventory allows the tracking of inventory that has been ordered as well as what has and has not arrived.
b. The production unit should manufacture the product as per the consumption, supply and demand.
c. The credit department is affected by the orders placed.
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d. This process includes processes that manage payment exceptions, such as payments requiring attention (those that have not be able to be processed automatically for some reason). An example of a payment requiring attention is when a payment that has failed authorization because of an address verification (AVS) code check.
3. How could this process be made more efficient?
The objective is to create reports and analyze data to identify trends and opportunities in online activity and close the loop by feeding back the results into the Commerce system. Businesses can better understand the effectiveness of their online shopping presence and their customers by analyzing data in the following ways:
I. Change the customer orders are taken. Define the customer code for a new customer before his order is taken. By doing this, we can have complete details about the customer like, name, billing address, shipping address, tax registration details, payment options of the customer and the category of the customer. This will lead to a better customer relationship with the company.
II. Through an extract, transform and load process, data is manipulated in a database optimized for business intelligence reporting.
III. Business Intelligence reports are generated and studied to help determine future marketing and sales actions to maximize profits.
IV. An automatic generation of an Order number will help in efficient transaction of the order. Follow up between the customer and the customer rep as per the order number generated by the system will be more precise.
V. Data mining runs against historical data, identifying trends in shopping and characteristics of shoppers.
VI. Results from data mining can be used to create customer profiles.
Business accounts represent the relationship between a store and the store's customer organizations and are the starting point for managing business relationships. Using business accounts, you can track contracts and orders for customer organizations and configure how Buyers from customer organizations shop in a store. A business account contains the following information about a customer organization:
I. The name of the customer organization and a contact person within that organization.
II. The department and name of the Account Representative from the store assigned to the customer organization.
III. Information about purchase orders a customer organization has with a store.
IV. Information on how invoices are delivered to the customer organization.
V. Whether or not the customer organization has a credit line.
VI. Any display customization information for the business customer. Store pages can be customized for a business account by specifying a piece of HTML code that can be used by a store's JSP files.
VII. Any general remarks about the business account.
Also, business accounts control customer entitlement by controlling the ability of Buyers from customer organizations to access a store's master catalog and see standard pricing for products contained in the master catalog. If a customer organization is not entitled to purchase products in the store's master catalog at standard prices, they are limited to products and prices covered by contracts the customer organization has with a store.
4. Should your company use enterprise software for its new order process?
SAP is the world largest maker of Enterprise Software. They produce software which is suitable for businesses of different sizes and needs. They also offer services for customizing their software to fit a particular company’s needs and setup. The most relevant software that we will consider for this project is the SAP R/3 6.0. This version is more suitable and convenient to use. Many fortune 500 companies and MNCs are using this software. SAP is providing enterprise software on different module basis. Like Ware house management for ware house, Production planning for production unit and Materials management for Purchase and stores. Finance and control for finance and accounts dept. For this order process which is called Sales and Distribution. This module will help us to maintain customer database with complete details, make customer order or sales order, and maintain inventory level in the warehouse. Check the inventory level at different warehouses from any office. Feedback to the production unit by the warehouse for the low inventory products can be done.
5. You have heard that commercially-available enterprise software might not be able to handle the following situations:
a. When the system checks for available inventory, it treats material that is still undergoing quality control inspection as available inventory as well as material in inventory that has already passed quality control inspection.
b. There is no way to automatically check customer records to see which qualify for sales tax exemptions
c. The system assigns a date for backorders that are currently out of stock rather than the original requested data on the customer order
What impact might this lack of functionality have on order processing and other parts of the company? How could you determine how serious a problem this creates? What questions would you ask?
In SAP, in the inventory database, there is a option of segregating the products as follows:
a. Under quality control
b. Rejected as poor quality
c. Restricted to use stock
d. Reserved stock
e. Non restricted stock.