1. ASSIGNMENT NO 1
MUHAMMAD FARAZ
64219
PRODUCTION MANAGEMENT
Process:
Toll Manufacturing:(Outsource some partofManufacturing) Warehouse:
I
ssue to Vendor (Raw Materials)
Vendor Stock the Finished Product
Transfer to (Outsourced Warehouse) (Third Party Logistics)
Sales Order to Third Party to deliver the product to customer
Delivery from Third Party
Findings:
RM stock Reconciliation
Customer Lead time increase
Order fulfillment decrease
DesignTO-BE with observations (Descriptive points)
2. ANSWER
STOCK RECONCILIATION:
Stock Reconciliation is the process of counting and evaluating material/products, periodically and at year end in
order to:
Keep the actual physicalstock count and book stock count in sync
Value the stock for preparation of the accounting statements
SUGGESTION:
Inventory reconciliation is used for displaying stock balances fromthird party warehousesystemto our
system. This data can be used for customized report and display any out of synch stock balances between
the two systems.so weshould implement an integrated systemto resolvethis issueor loophole.
Customer Lead time:
Customer lead time or Total lead time is defined as the time it takes for a customer to receivea good or
servicefromthe time the customer places the order or performs a purchasetransaction. The customer lead
time can be viewed as a general measureof efficiency of the entire supply chain KPI of an organization.
SUGGESTION:
Staying in touch with your supplier throughoutthe production process helps ensurethat expectations are
being met and that any issues along the way can be addressed promptly. Providing key performance
indicators will also help motivate your supplier to achieve the levels of service you expect.
Order fulfillment:
Order fulfillment means fulfilling a sales order to the customer's specifications. That is, delivering goods as
promised at the time of sale. There are three main steps in this process: receiving, processing and shipping.
3. SUGGESTION:
Enable exception-basedorder management:
While we’reon the topic of order shipment, end-to-end visibility also allows you to enable exception-based
order management. What does that mean? Basically, that instead of merely notifying customers thatorders
are delayed (and thereforeopening yourself to bad customer experiences), you can instead automatically
upgradeshipping methods to meet your original delivery promise.
CONCLUSION:
In my opinion,we should implement an integrated system to our third party because we have
problems like stock reconciliation,customerlead time increases&order fulfillment decrease.
