1. Welcome to anIBMS112 Group A Presentation Logistics -
Chapter 7 Order Management
2. Learning ObjectivesTo understand the linkage between
ordermanagement and customer service.To examin the order cycle and
its fourcomponents.To understand the four dimensions of
OrderManagement.
3. What is order management?Order management: Refers to
management of the various activities associated with the
ordercycle; refers to the time from when a customer places an order
to when the goods are received.In the ecommerce context, Order
management describeseverything that the merchant does after a
customer has placed anorder on the webstore. The typical steps
involved are: 1. Pickinventory from the warehouse and ship it to
the customer 2. senda email of notification to the customer that
the order is on its way.
4. However, things are not that simple for most orders. (This
could be due to)1. The merchant may be short on some items of stock
that the customer wishes to place an order on. In that case, the
merchant may ship out only part of the order with the items that
are in stock. Then, at a later stage, they would ship the remaining
items. This is the idea behind Partial Shipments.2. Sometimes, the
merchant may not stock all the items in the warehouse. For example,
a merchant who sells toys online, may decide to not stock the heavy
doll-houses in her warehouse. Anytime a customer orders a
doll-house on their website, she will ask the doll-house
manufacturer to ship it out directly from the manufacturers
warehouse to the customers address. This process of shipping
directly from the vendor to the customer without going through the
retailers warehouse is called Drop Shipping.3. Some merchants use
Outsourced Fulfillment Warehouses to avoid carrying any inventory.
(In simple words), the merchant uses a third party warehouse to
store the inventory for them. When an order is placed on the
website, the information is then forwarded to the third party
warehouse, where it is then shipped directly to the customer.
5. To make itmore clearDropShipping method
6. Order TransmittalOrder transmittal refers to the time from
when the customerplaces an order until the seller receives the
order. There arefive possible ways to transmit orders:in person, by
mail, by telephone, by fax machine and/orelectronically.Each method
of order transmittal has advantages anddisavantages and each
performs differently with respect tothe cost of ordering, time to
order, the potential for ordererrors, and ordering
convenience.Although Electronic ordering, which includes Electronic
datainterchange (EDI) and the Internet, can befast, convenient, and
accurate, praticularly those ordersinvolving scanners and bar
codes.
7. To makemore clearEDI model
8. Order processingOrdering Processing refers to the time from
when the sellerreceives an order until an appropriate location is
authorized to fillthe order.Advances in technology has allowed most
firms to automizemany aspects of their order processing
system.Until the order can be made there are a lot of different
stages tobe completed.__ these include: accuracy, checking the
buyersability to purchase, entering the order into the system,
crediting asalesperson with a sale, recording the transaction,
determininginventory location and arranging for outbound
transportation.There also are order triage activities. It refers to
classifyingorders according to preestablished guidelines so that a
companycan prioritize how orders should be filled.
9. Order Picking and AssemblyOrder picking and assembly is the
next stage of the ordermanagement process, and it includes all
activities from when anappropiate location is authorized to fill
the order until goods areloaded aboard an outbound carrier.Order
piece picking methods: there are several ways to pick anitem from a
warehouse. You can use handy equipment to find andreach the
specific item.Voice based order picking- refers to the use of
speech guideorder-picking activities.Pick to-light technology in
whichn orders to be picked areidentified by lights placed on
shelves or racks.
10. Examples of peice picking methods and equipment:- Basic
order picking: Pick your order manually by walkingtowards the item
you need.- Static Shelving: A common management method used
forstorage piece picking operations. Using static shelveswhere the
product is placed (as seen in the picture).- Pick-to-light: A handy
way to locate and reach an itemusing LED lights to find the right
item and the correctquantity of that item.- Bar-code scanners: Scan
an item to get high accuracyrates in order picking. You will find
your product directly.
11. Order DeliveryOrder delivery refers to the time from when
atransportation carrier picks up the shipment until it isreceived
by the customer.An example:A customer orders a product, this
product will betransported by a carrier. When the carrier picks up
theproduct and delivers it to the customer, this is the
orderdelivery process.In order to deliver products fast, depends on
the flexibilityof a company and the carrier. Depending on the
products itcould be deliverd in a day till several weeks.
12. Customer ServiceCompanies strive to keep their customers
happy, it iseasier to keep an existing customer than it is to
acquirenew customers.Customer service will be defined as the
ability of logisticsmanagement to satisfy users in terms oftime,
dependability, communication and convenience.Customer service can
also be an excellent competativeweapon. It is more difficult for
competitors to imitateservices. Your prices of products could be
the same, buthow you receive your customers, deliver your
productsvary with each company. This is where companies
differ.
13. Example Bol.com Ordering process when someone purchase
something1. Customer goes to the webshop Bol.com. And put the
product in the shopping cart.2. Bol.com receives your order, and
will send you automatically a confirmation mail of your purchase.
And thank you for your purchase.3. Bol.com will check if the
product on stock if not they will order it.4. The logistics
department will check the product on visible damages. If not they
give it a clearance. And the product will continue its
process.
14. 6. The products will be selected and put it on a large
conveyor belt. Everything will be coded with barcodes or RFID
sticker.7. The products will be labelled, the order will be printed
out and the bill included. Bol.com will choose a right sort of
carton box. The box will also be labelled. The address of the
customer will be stated on the box.8. Contacting delivery service
like TNT and UPS. They will deliver the products to your home.
15. 9. Bol.com will send you a letter of shipment and they will
provide you a tracking number, which the customer can clearly see
where the package is.10. The delivery of the products in the
Netherlands willalways be between 1 to 3 days and EU between 1 to 5
days.11. Customer receives the product, when there is adamage the
product can always be sended back. Within 30days you can get a
refund. Besides they have a goodwarranty service. And in the
Netherlands there areregulations about warranty. So the consumer
will mostlybe protected.
16. Extra video Bol.com ProcessClick on the link below to get a
better ideahttp://www.youtube.com/watch?v=K8f8hpVYtm4
17. ExceriseTo understand the topic wellwrite a essay about
order management and givea examplerequirements: 1000 words
18. Open and Multiplec. Questions10 questions about this topic3
open questions7 multiple choice2 minutes allowed per question
19. Open questions1. What are the typical steps of order
management?2. Draw the EDI model3. What can you do as a customer
when an order isnt delivered on time?
20. Multichoice questions1. ____ refers to the management of
various activities associated with the order cycle. a. Logistics b.
Order processing c. Demand management d. Order management
21. Multichoice questions2. Which of the following is false? a.
order cycle lengths continue to get shorter b. the order cycle
should be analyzed in terms of total cycle time and cycle time
variability c. order management has been profoundly impacted by
advances in information systems d. order management and the order
cycle are vitally important to the perfect order concept e. all are
true
22. Multichoice questions3. Order transmittal is: a. the same
thing as an order cycle b. the series of events that occur between
the time a customer places an order and the time the seller
receives the order c. the series of events that occur between the
time the customer perceives the need for something and the time the
seller receives the order d. the series of events between the time
a customer places an order and the time the order cycle begins
23. Multichoice questions4. In general, there are ____ possible
ways to transmit orders. a. six b. five c. four d. Three
24. Multichoice questions5. ____ refers to the time from when
the seller receives an order until anappropriate location is
authorized to fill the order. a. Order processing b. Order cycle c.
Order management d. Order transmittal
25. Multichoice questions6. Order picking and assembly is: a.
the most important component of the order cycle b. the way a
customer decides what he needs to purchase c. the component that
follows order processing d. the most computerized part of the order
cycle
26. Multichoice questions7. The ability of logistics management
to satisfy users in terms oftime, dependability, communication, and
convenience is the definition of: a. customer satisfaction b. the
order cycle c. perfect order d. customer service