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B Y A B H I S H E K K U M A R S I N G HI S H A N

S U R E S H

ORDER PROCESSING & SUPPLYCHAIN MANAGEMENT

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What is Order Processing

Order processing is a key element of Order fulfillment.Order processing operations or facilities are commonlycalled 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 shippingcarrier.

Sales order processing is a process where customer ordersare received, checked for creditworthiness then checking

for product availability, and arranging for delivery tocustomers is done and finally billing and maintainingrecords of amounts due from customers is carried out.

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How order are processed

On the basis of requirements of the customer,producer or supplier check for the availability andthen 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.)

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On the basis of timeShort time , medium time and long period of time

Location of distributionInter city, Inter state, inside country, overseas ( road, rail,

shipping, air)

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ORDER PROCESS

(1)Receive order

(2)Order processing(3)Availability of material

(4)Fullfillment/ non-fullfillment of requirement

(5)Order execution/ fullfillment

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Supply chain management

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Business trends

Business initiative trends in manufacturing:

1970s : Manufacturing

1980s : Quality

1990s : Supply chain management

2000s : e-business and supply chains

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What is supply chain?

All activities associated with the flow andtransformation of goods from raw material to endusers.

The term supply chain refers to the entire network ofthe company that work together to design, producedeliver, and service products.

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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).

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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, informationand money along the supply chain.

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Supply Chain Management

A set of processes and sub-processes which attempt toimplement and optimize the functions, connectedentities, 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.

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Benefits of SCM

Reduce uncertainity along the chain

Proper inventory levels in the chain

Minimize delays Eliminate rush(unplanned) activities

Provide good customer service

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Problem along the supply chain

Delays in production, distribution, etc

Expensive inventories

Lack partners coordination Uncertainity in deliveries

Poor demand forecast

Poor Quality

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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 besupported?

Decentralized control

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Technology in SC

The internet can be very effective communicationenhancer.

Software includes demand forecasting tools andplanning tools to allow all supply chain members to

coordinate their activities and adjust theirproduction level.

Software can allow members to:

-Review past performance

-Monitor current performance

-Predict future production levels of productions.

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Thank you