Chapter 4: The Fulfillment Process Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Outline A Basic Fulfillment Process Role of Enterprise Systems in the Fulfillment Process Exercise Using Simulated SAP Magal and Word | Essentials of Business Processes and Information Systems | © 2009 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 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 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 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 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 A Basic Fulfillment Process Magal and Word | Essentials of Business Processes and Information Systems | © 2009 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? Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Customer Inquiry Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Quotation Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Customer Purchase Order 10 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Customer Invoice 14 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Information Flow Instance-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 we sell most? Which customer(s)? 15 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Financial Impact of the Fulfillment Process 16 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 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 17 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 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 18 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Enterprise System in Fulfillment 19 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Customer Order (not in the book) 20 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Delivery Due List 21 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Picking document (Not in book) 22 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Billing Due List 23 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Process monitoring (Information flow) Instance level – status information Status of a customer order (order history) Process level – aggregate information How is the process doing? 24 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Order history – Completed Order 25 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 ... and Word | Essentials of Business Processes and Information Systems | © 2009 Customer Invoice 14 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Information... customer order (order history) Process level – aggregate information How is the process doing? 24 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 Order history