Answer to Question #266130 in Marketing for Saif

Question

New Products Company receives more than 12,000 customer orders a month, drawing on a combined inventory of over 1,000 products stocked at the company’s warehouse. About 60 PCs are installed at New Products Company’s headquarters which are connected in a local area network to several servers. Orders are received by phone or mail and entered into the system by customer representatives or they are entered directly by customers who use the electronic commerce website developed by New Products Company. Well-designed user interfaces help users follow data entry procedures. The servers store these orders in a database. They use simple database management inquiry commands to get responses and reports concerning sales orders, customers, and inventory

Indicate how information flows through the various departments in the organization to fulfil an order and identify delay points

and How can an ERP help them in managing its order fulfilment process efficiently by reducing manual intervention? Indicate at least two points.

Answer 1

To be fulfilled, it must pass through the following departments of an organisation, receiving inventory department then it is moved to storage department. The order is then moved to the picking department then moved to the order packing department where it is packed. The order then is moved to the shipping department where it is scheduled for shipping then it is taken to the delivery and return department where the customer receives it.

Delay points in the order fulfilment process.

1. Inability of the organisation to inventory an order. The delay may occur when the warehouse is full.

2. the Delayed payment of start off fees.

3. Mispicks( picking up wrong order)

4. Misships (shipping wrong order)

How ERP can help in the order fulfilment process.

1. By increasing yield

2. It leads to a reduction in human error.

3. It leads to the creation of more warehouse space.

4. It helps to ensure that both the client and the organisation have access to the same information hence reducing loss of data.