1. Chapter 4: The Fulfillment Process
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2. Outline A Basic Fulfillment Process
Role of Enterprise Systems in the Fulfillment Process
Exercise Using Simulated SAP
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3. A basic fulfillment process
Definition
Order to cash
Quote to cash
Inquiry to cash
All the steps needed to fill a customer order
Key concepts and assumptions
Conceptual Framework
Physical flow
Data and Document Flow
Information Flow
Financial Impact
Magal and Word | Essentials of Business Processes and Information Systems | © 2009

4. Key Concepts and Assumptions
Sell-from-stock
High volume, low cost products
Little choice for buyer
Example: iPod
Configure-to-order
Low volume, high cost products
Base model + options
Example: computer (Dell, Mac)
SSB uses sell from stock
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5. Physical Flow What is the trigger? What are the steps?
What is the purpose of each step?
Who is involved in each step?
How is communication and coordination accomplished
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6. A Basic Fulfillment Process
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7. Document Flow Customer Inquiry Quotation Customer Purchase Order
Sales Order
Picking Document
Packing Document
Customer Invoice
Customer Payment
Key questions regarding documents
What is the purpose?
What are the key data?
General: Who, when, what, where
Process / step specific: varies
How does data change across the process?
Who is responsible for the data?
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8. Customer Inquiry
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9. Quotation
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10. Customer Purchase Order
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11. Sales Order
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12. Picking Document
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13. Packing List
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14. Customer Invoice
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15. Information Flow Instance-Level Information Process-Level Information
Status of a customer inquiry / order
Has the order been acted on? Which step of the process is it in?
Have goods been shipped? When? Where are the goods?
If not, when can we expect shipment?
If shipped, has an invoice been sent?
Has payment been received?
Process-Level Information
How well is the process doing?
How much time does it take on average? Per material? Per customer?
Which customers are prompt in payment? Who habitually pay late?
What do we sell most? Which customer(s)?
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16. Financial Impact of the Fulfillment Process
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17. Financial Impact Impact on balance sheet and income statement accounts
Example: Customer orders $500 in materials.
Process step
B/S
I/S
Customer inquiry
Quotation
Customer PO
Picking
Packing
Shipment
Customer Invoice
Customer Payment
Magal and Word | Essentials of Business Processes and Information Systems | © 2009

18. Role of Enterprise Systems in the Fulfillment Process
Execute the Process
Create Quotation
Create Sales Order
Prepare Shipment
Send Shipment
Create and send Invoice
Receive and process payment
Capture and Store Process Data
Monitor the Process
Instance-Level Information Flow
Process-Level Information Flow
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19. Enterprise System in Fulfillment
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20. Customer Order (not in the book)
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21. Delivery Due List
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22. Picking document (Not in book)
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23. Billing Due List
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24. Process monitoring (Information flow)
Instance level – status information
Status of a customer order (order history)
Process level – aggregate information
How is the process doing?
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25. Order history – Completed Order
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26. Order history– Payment Pending
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27. Process Level Information
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28. Exercise Using Simulated SAP
The exercises will take you through the following steps that have been discussed in this chapter:
receive customer inquiry
create quotation
receive a customer purchase order
create a sales order
prepare the shipment (pick and pack)
send the shipment (post goods issue)
create a customer invoice
receive a customer payment
Magal and Word | Essentials of Business Processes and Information Systems | © 2009