Enhanced Order and Demand Management Systems1
Enhanced Order and Demand Management Systems7 Enhanced Order and Demand Management Systems
Prateek Gupto
Harrisburg University
Abstract
Order and demand management is by far one of the prime aptitudes of supply chain and businesses. At present, maintaining a consistency in order management and fulfillment is more important for smooth functioning of a firm. At the same time, it has become tougher than ever. The reasons are familiar to any company operating in the global arena. This is mainly because rise in the complexity of order and delivery management process networks, the complexity of global supply chains and the increase in the awareness and outlook of customers and consumers. (Pearcy, 2013)
Every Retail Operations order management division in supply chain system would want to have an optimal way to capture and fulfil retail sales orders so that all the orders get processed, exceptions are flagged and resolved in time to meet the customer’s RDD (Requirement Delivery Date). Currently the most widely used systems by top tier companies are SAP EMW, NetOps, Oracle and others. But, these prove to cost companies a lot for contracting their services and becomes a big challenge specially when there’s an upgrade (e.g. Oracle 11g to 12 migration), ultimately costing companies. So, to overcome these challenges we can develop and introduce an independent in-house Order and Inventory management ERP system in Supply Chain Management division to capture all the B2B orders. The system will schedule a process which will run every half hour to sync all the retail orders inside the Order Management system to master database of supply chain. This in-house built system will act as the source of truth to view the information that is related to the whole lifecycle of B2B orders
Keywords: Order Management, Order Fulfilment, Demand Management, Inventory Management, Logistics, Logistic System, Warehouse, B2B orders, Warehouse Management
Table of Contents
Abstract2
Enhanced Order and Demand Management Systems4
Relation to CPT4
What HCL does?4
Overview of CPT Assignment.5
Relation to ISEM.5
Introduction6
Why do we need such system in SC Engineering?7
Key terms and Definitions8
Problem Statement and Justification9
Literature Review10
Proposed
Solution
Approach and Work Plan12
Conclusion13
References14
Enhanced Order and Demand Management Systems
Relation to CPT
My current CPT assignment is with the Global IT consulting firm, HCL Americas Inc. HCL America was established in 1989, headquartered in Sunnyvale, California. Based on a in depth assessment of the market and customer insights, HCL follows comprehensive services and portfolio that establishes it as one of the most reliable IT companies in the US.What HCL does?
“HCL uses its Integrated Infrastructure and Operations Management (IOMC) model to improve the supply chain and logistics for its customers which significantly reduces the vendor management overhea ...
Enhanced Order and Demand Management Systems1Enhanced Order and.docx
1. Enhanced Order and Demand Management Systems1
Enhanced Order and Demand Management Systems7 Enhanced
Order and Demand Management Systems
Prateek Gupto
Harrisburg University
Abstract
Order and demand management is by far one of the prime
aptitudes of supply chain and businesses. At present,
maintaining a consistency in order management and fulfillment
is more important for smooth functioning of a firm. At the same
time, it has become tougher than ever. The reasons are familiar
to any company operating in the global arena. This is mainly
because rise in the complexity of order and delivery
management process networks, the complexity of global supply
chains and the increase in the awareness and outlook of
customers and consumers. (Pearcy, 2013)
Every Retail Operations order management division in supply
chain system would want to have an optimal way to capture and
fulfil retail sales orders so that all the orders get processed,
exceptions are flagged and resolved in time to meet the
customer’s RDD (Requirement Delivery Date). Currently the
most widely used systems by top tier companies are SAP EMW,
NetOps, Oracle and others. But, these prove to cost companies a
lot for contracting their services and becomes a big challenge
specially when there’s an upgrade (e.g. Oracle 11g to 12
migration), ultimately costing companies. So, to overcome these
challenges we can develop and introduce an independent in-
house Order and Inventory management ERP system in Supply
Chain Management division to capture all the B2B orders. The
system will schedule a process which will run every half hour to
sync all the retail orders inside the Order Management system
to master database of supply chain. This in-house built system
2. will act as the source of truth to view the information that is
related to the whole lifecycle of B2B orders
Keywords: Order Management, Order Fulfilment, Demand
Management, Inventory Management, Logistics, Logistic
System, Warehouse, B2B orders, Warehouse Management
Table of Contents
Abstract2
Enhanced Order and Demand Management Systems4
Relation to CPT4
What HCL does?4
Overview of CPT Assignment.5
Relation to ISEM.5
Introduction6
Why do we need such system in SC Engineering?7
Key terms and Definitions8
Problem Statement and Justification9
Literature Review10
Proposed
Solution
Approach and Work Plan12
Conclusion13
References14
Enhanced Order and Demand Management Systems
Relation to CPT
My current CPT assignment is with the Global IT consulting
3. firm, HCL Americas Inc. HCL America was established in 1989,
headquartered in Sunnyvale, California. Based on a in depth
assessment of the market and customer insights, HCL follows
comprehensive services and portfolio that establishes it as one
of the most reliable IT companies in the US.What HCL does?
“HCL uses its Integrated Infrastructure and Operations
Management (IOMC) model to improve the supply chain and
logistics for its customers which significantly reduces the
vendor management overheads via improved strategic
partnerships, and thus, greatly increases IT operations through
the induction of frameworks and technology solutions, metrics
that are constrained to Service Level Agreements and last but
not the least a service request automation and support. Through
HCL’s “managed services” model, operations became more
flexible and agile, helping the company optimize costs and
increase profitability.” (Nowicki M, 2016)
Highlights of Proposed Research.
The thesis will focus mainly on why an advanced and improved
Order and Purchase Management framework is required from a
supply chain standpoint. The thesis will explain the
complexities which revolves around purchase and order
management system specially when the orders are in bulk and
the quantities vary in thousands or more. So, inventory
management is something which I will be primarily focusing on
4. as it is essential for supporting other domains of the supply
chain, including demand and supply planning, order promising
and order fulfillment. Anticipating and managing exceptions to
order fulfillment is made possible by having a comprehensive
and accurate visibility to inventory.
Overview of CPT Assignment.
I have been working as a SC-PMO consultant focusing on the
client’s business strategy, objectives, processes and operations
in Retail/ Supply Chain space. Thus, providing the clients to
incorporate advanced, automated and streamlined processes in
Supply Chain - Order and Delivery Management to maximize
their customer satisfaction and help them in optimal use of their
inventory.
As a supply chain delivery and process management specialist, I
need to understand the business objectives clearly and work on
such supply chain systems, conduct data scrubbing and
reporting (mostly generating reports and automating the sheets
to reduce manual effort), develop workflows and implement and
improve centralized process and monitor the End-to-End impact.
Relation to ISEM.
Information Systems play a crucial role in Supply Chain system.
5. It webs a network of supply chain networks in which the firms
use to sell, distribute and acquire goods and products anywhere
in the world. Information system helps to create meaningful
relation between the core flow functions that contains buying,
manufacturing, delivering and returning to the planning aspects
such as customer relation, post-sale support, managing orders
and delivery, and new product launches and design. This is
widely used in service sector that includes consulting, retailing,
and health care industries and also by manufacturing sector that
includes aerospace, pharma, electronics, electrical, chemical,
auto, food, petroleum, computers and consumer products
industriesIntroduction
Background
The Supply Chain system covers six areas: Plan, Source, Make,
Deliver, Return, Enable. Any given business, and even a
specific supply chain within a business, will require support
from products in each of the areas, although the precise
configuration will vary from business to business and from
supply chain to supply chain.
The inventory is managed efficiently by controlling the
transfer in of units to prevent overstocking, or to prevent
inventory from reaching low levels that could affect the
operations of the business. Various aspects of inventory require
attention to manage inventory efficiently, including processing
6. lead times, buffer stock, finished goods, and refurbished goods.
(Yang Liu, 2016)
In the professional environment, the Retail
Operations team sells hardware devices to its consumers and
retailers all over the country and world. Now, the consumers
want their orders to be delivered as soon as possible, and this
puts a premium on the company’s ability to locate, manage, and
ship its inventory with a quick turnaround time. When the
orders are at bulk, one should have the ability to expose the
right Order and Logistics metrics and reports that highlight
potential issues and risks to the business. Along with that, an
interface - that allows for the ability for end users to create
their own reports and dashboards facilitating a quick navigation
and “drill-downs” to investigate and identify problem areas.
Reporting of Freight and related accessory charges by specified
dimensions with the ability for partners to edit exceptions as
needed to categorize and measure order and shipment
exceptions correctly. This affects several internal groups within
the supply chain, including Retail and store Operations,
Logistics, Marketing and Finance. Thus, leads to the efficient
utilization of scarce resources - human capital and inventory -
enabled by automated processes. (Hakan Karaosman, 2015)
7. Why do we need such system in SC Engineering?
Taking a step back, the Supply Chain Engineering can focus on
a system which is an integrated, automated Inventory and Order
management system that will give Retail Operations the extra
boost it needs to maximize customer satisfaction. (Tan KC,
1998)Encircling inventory management, order management, and
order promising, the system can offer a diverse solution by
making optimal use of available inventory across all regions and
retail channels.
Our main goal here will be to reduce stock-outs, upsurge
customer satisfaction while reducing inventory on hand, and
enable the business to scale to sell a larger range of devices in a
greater set of regions. The system will provide key capabilities
in setting safety stock, setting allocation rules across channels
(B2B, B2C) and customers (BestBuy, Amazon, Marketing
giveaways), setting up customer priorities etc. And also,
surfacing exceptions about inventory accuracy, order
fulfillment, on-time SLA, etc.
8. Key terms and Definitions
Following definitions and terms will commonly be used in this
research paper:
Order Management - The collection of actions and processes for
capturing orders, promising, change management and successful
fulfillment of customer orders according to business strategies
(e.g. direct to consumer, business to business).
Inventory - The supervision of non-capitalized assets and stock
items and the tracking of goods from suppliers/manufacturers to
warehouses and point of sale.
Inventory Management- Keeping a detailed record of each new
or returned product as it enters or leaves any node in the supply
chain system.
Logistics - Logistics refers to the movement of materials
between the various locations and parties in our supply chain
network.
Logistics System - The systems that create and deliver
execution instructions to the partners and then monitors the
network and resolves problems. These overall focus is on the “7
9. rights” (right product, customer/supplier/etc., quantity,
condition, place, time, and cost).
Warehouse Management - A warehouse management system
allows a warehouse (or other facility) to receive inventory, put
it on a shelf, track its location, pick it, pack it and ship it back
out. It also sends out information about its current state and
transactions and receives instructions.
Macros This is primarily the recording of a series of tasks. This
is the simplest form of automation and show the software all the
steps you follow to get something done, and the software will
follow along. Macros help in saving hours of time by
automating repetitive tasks.Problem Statement and Justification
Problem Statement
Manual effort and lack of visibility are frequent problems
throughout the supply chain space. For the short term, the
manual work means redundant latency and the potential for
errors. Longer term, our reliance on manual effort will prevent
the businesses from scaling, either because of direct headcount
cost or because the coordination challenges will become so
severe that operations will possibly break down.
As for visibility, the businesses can’t easily see or know what’s
going on. For instance, it’s too hard to determine which
10. inventory is physically present in which locations or which
shipments are showing up on time. (Cigolini R, 2004)
Problem Justification
Today, we face numerous challenges that inhibit our ability to
execute order management that contribute to supply chain
inefficiencies and higher order fulfillment costs. The order
management processes are very manual, fragmented across
multiple disparate. It takes several human touch points in
multiple systems to provide customers accurate promise dates or
answer basic customer queries like “where is my order?”.
Further, we also lack the key core capabilities to support fast
growing business needs across various process areas. This has
forced to switch and opt for alternate inefficient processes to
support their immediate needs. For example, managing Bundles,
orders, Vendor Consigned Inventory, etc.
Now, the inventory is tracked in as the source of truth, but
additional systems are used to track specific channels of
inventory. Keeping the systems in sync has been a manual
process that can lead to discrepancies in on-hand values.
Inventory inaccuracies can have a major direct impact on the
on-time delivery of orders and create a lack of a complete
picture. This lack of a complete picture of inventory can inhibit
proper resolution of these inventory exceptions. Additionally,
11. visibility to partner inventories is lacking or is provided
sporadically, which prevents a fully automated replenishment
supply chain. So, to simplify we are looking into a better supply
chain system which will help us to manage customer orders in
an efficient way, and the process can be used to get much
improved reports about inventory, warehouses, shipments,
delivery and delivery.
Literature Review
The Supply Chain system covers six areas: Plan, Source, Make,
Deliver, Return, Enable. Any given business, and even a
specific supply chain within a business, will require support
from products in each of the areas, although the specific
configuration will vary from business to business and from
supply chain to supply chain. (Wątróbski., Jarosław, 2016)
Key idea here is to provide a point-in-time inventory
management system that provides visibility to all inventories
and their locations, including transaction history, and
discrepancies. Provides an accurate picture of current and future
inventory for consumption by users and other products, such as
order management and planning. Includes visibility to what is
on hand in our warehouses, how much is reserved for shipments,
what is pristine versus the damaged stock, what is in-transit
between warehouses or from suppliers, extending to how much
inventory is at supplier or customer locations. (Cooper, 1997) It
12. accomplishes this by accurately tracking all inflows and
outflows in the global supply network, so the inventory
balances are kept up to date in real-time and provides a view to
expected inventory in the future. The order capturing is again
workflow Driven. Thus, order capture and fulfillment process is
orchestrated by a workflow, which is determined by
configurable business rules based on the order attributes e.g.
sales channel, products, order types, fulfillment options (e.g.
MTS, MTO, dropship, consignment, prepaid, etc.). The
workflow determines and controls the sequence of events that
occur in further processing of the specific order: (Gligor, 2014)
· Data Derivations: Based on the customer order, necessary
order attributes (e.g. product, customer, pricing details, etc.) are
derived by invoking respective APIs.
· Order Validations: Re-validate the checks that were imposed
on an order during the Order Capture process to ensure that the
order still meets the criteria to be shipped. This is to account
for potential changes between the time of order capture and
shipping, e.g. whether customer still has sufficient credit to
cover the shipment. The specific checks that are applied at the
time of release can be configurable and appropriate alerts will
be raised for orders that fail the checks The specific validations
that are applied per order type are configurable for example,
e.g.
13. · Technical validations are performed to ensure the data
integrity e.g. mandatory data elements are included and valid.
· Functional validations: Depending on the configuration,
applicable functional checks can be performed (e.g. Customer
credit could be checked against Accounts Receivables for B2B
customers or Wallet/Credit card for B2C customers). Examples
of such checks include: Credit Check, Export Compliance
check, etc.
.
· Order Promising Request: Order management system will
interface with Order Promising with information such as item,
request date, quantity, or source warehouse etc. The request will
specify any customer or demand specific restrictions (e.g.
substitutions allowed, partials allowed, multiple shipments
allowed, specific source warehouse etc.) that the Order
Promising service will respect in trying to provide the
promising response (Gligor, 2014). If demand specific
restrictions not provided by OMS (e.g. source WH), the order
promising will try to find the best possible source WH and
shipping mode which can meet the delivery dates at lowest cost.
· Order Promising Response: Order Promising will return
availability information such as quantity available on request
date, sourcing warehouse, ship method etc. respecting the
demand restrictions provided by OMS. The OMS will use the
14. promising information to schedule and processing the orders.
In case of exceptions i.e. If the order cannot be fulfilled on the
requested date, the Order promising will provide earliest
available date, partial quantity available on the requested date
etc and OMS will decide what specific information to use for
processing the orders e.g. split the lines to ship the partial
quantity and backorder the remaining or reschedule full order
quantity to delivery at later date as suggested by promising
service. (Gligor, 2014)
In case, there are any changes on the order attributes which
impacts the order commits (e.g. quantity, source warehouse
etc.), the order will re-invoke order promising service to
reconfirm the order.
Proposed