The document outlines Verizon's order fulfillment process, detailing how orders are currently processed through four distribution centers (DCs) which face challenges like long shipping times and high costs. A proposed new process aims to fulfill orders directly from nearby Verizon stores, streamlining operations and reducing costs associated with DCs. Key goals include achieving 100% order accuracy, improving delivery times to within 48 hours, and minimizing expenses by cutting packaging costs at DCs.

1. Workflow Design Team
Project
MIS-710 Process Innovation and Management

2. INTRODUCTION TO
PROCESS (IS)

3. Verizon Order fulfillment Process
Brief functional description of Order fulfillment (IS)
- Verizon has 4 distribution centers across the nation
- These 4 DC operated by third parties but manages Verizon inventory.
- These 4 DC located geographically east, west, south and Midwest of the country to serve the
states close to it.
- Verizon also has 1700 stores across the nation to sell their products.
-Store will be replenished by DCs based on necessity
-DC’s does direct order fulfillments, approximately 1000 orders each DC per day

5. Verizon Order fulfillment Process
Brief functional description of Order fulfillment (IS)
Some steps in the current Order fulfillment Process include
- Customer places the order online for the cell phone and connection
-Verizon takes the order, check for basic fraud check, credit check.
-Once credit checks done, it finds out the availability of the order items in the nearest
distribution centers.
- Once the DC identified, Verizon drops the order to DC.
-DC does the pick pack of items (order fulfillment) and ships to Customer.
-DC charges Verizon on order basis

6. Verizon Order fulfillment Process
Some of the problems with current process
1. Even though the Verizon store is close to customer, order is shipping from DC which might
be far away from customer.
2. Time to reach customer and shipping cost increasing.
3. Distribution center are over loaded because only 4 DCs needs to serve entire county, and also
it will have other responsibility of replenishing the
4. DC are charging Verizon for fulfillment on order basis, which take out some of Verizon
revenue.

7. Process Constituents (IS)
Order Fulfillment
Process
Structure Human Information Tools
Departments
involved in
this process:
Picking/Order
Packing at DC
Shipping at DC
Individuals involved in this
process:
Pujan Smith,
Order/Inventory Control
Supervisor
Abishek Rumman,
Packing Supervisor
Cecilia Almeida,
Shipping Coordinator
Information comes from:
Control Orders to DC
Inventory availability check at
DC
Pick and re-stock Inventory at
DC
Tracking Products Shipped
Computer Stock
Control Software
Scan devices
Packing Verification
Software
Computer Shipping
Track Software

8. Relationship Map (IS)
DC
Inventory
Customer
A
New RequestVerizon
online
system
Customer
B
Customer
C
Verizon
order
DC
Accounting
Verizon
Accounting
Invoice Bill Paid
pick & pack
Ship to customer
check for basic fraud check, credit check.
Place order to DC
Order fulfilled
Order
Delivery

9. Process Map (IS)

10. PROCESS (TO BE)

11. Functional Narrative (SHOULD)
Existing D-Fill process has 3 different department Verizon online system, Distribution
centers, customers.
New Process also have 4 different department Verizon online system, Verizon stores,
Distribution centers, customers
New Process:
1. Finds 3 stores, which are closest to the customer.
2. Checks the availability of inventory of the orders in the available 3 stores.
3. If the inventory available at stores , order will be dropped to the store
4. pick pack and ship process will be done at store
5. If no inventory at then Order will be full filled from DC.

12. Behavior Narrative (SHOULD)
In new process customer places the order from verizonwireless.com no difference.
Customer has no clue whether order is shipped from DC or store.
Store manager gets the notification when the order drops to Store
Store reps will login to the system ,completes pick pack and generates shipping label
Carrier like UPS and FedEx will come to the store to pick up packages
Delivers to Customers

13. Process Constituents (Should)
Order Fulfillment
Process
Structure Human Information Tools
Departments
involved in
this process:
Order/Sales
Pick/Packing
at store
Shipping at
store
Individuals involved in this
process:
Order Control Supervisor at
Store
Packing Supervisor at Store
Shipping Coordinator at Store
Information comes from:
Receive Order confirmation
Inventory availability,
pick/packing and re-stock
goods
Track Order Shipped
Computer Stock
Control Software
Scan devices
Packing Verification
Software
Shipping Track
Software

14. Key
Reengineering
Principles Used
(Hammer)
Principle #2 - Question the
original Process
Principle #4 - Self-Service
Principle #5 - Value Chain
Redesign
Principle #6 - Reduce Busy Work

15. Key
Reengineering
Principles Used
(Hammer)
Principle #7 - Self Reports
Principle #10 - Decentralization
Principle #13 - Early Data Capture
Principle #15 - Bottleneck

16. Entity Relationship Diagram

17. Organizational
Goals
Fulfill all of the online orders through stores
by the end of 2017.
By the end of next year, fill orders with 100
percent accuracy within 48 hours.
Generate revenue for the company by cutting
the packaging expenses at the DC by
100%.

18. Process Design
Goals
Orders are shipped from a verizon store
instead of DC.
Reduce the cost of shipping orders from
the DC.
Reduce the load on distribution centers.
Reduce the time an order takes to reach
a customer
Reduce the order fulfillment operation
cost at DC.

19. Process Design
Goals
Update the inventory at store on a
real time basis once the order
is shipped.
Check the availability of items of
an order at the store, if the
order cannot be fulfilled at a
nearby store or push the order
to the nearest DC.
Train the employees at stores on
using the system and on
packaging.

20. Operating Goals
Check the inventory levels at stores at
real time.
The system should up and running at
all times.
The system should be able to inform
the delivery service for pick up on a
real-time basis.

21. Process Map (To Be)

22. Process Map Detailed (To Be)

23. Relationship Map (To Be)
DC/Store
Inventory
Customer
A
New RequestVerizon
online
system
Customer
B
Customer
C
Verizon
order
DC
Accounting
Verizon
Accounting
Invoice Bill Paid
pick & pack
Ship to customer
check for basic fraud check, credit check.
Place order
Order fulfilled by DC
Order
Delivery

24. Functional Goals
Functional goals summary
Function Quality Timeliness Quantity Cost
Measures Goals Measures Goals Measures Goals Measures Goals
Total
process
Percent of
accurate
orders
received by
customers
100% Percent of orders
received by
customers within
promised time
95% Average
number of
orders fulfilled
per day
4000 Average
handling cost
per order
$10
Store Percent of
accurate
orders picked
and packed
100% Percent of orders
ready to be
shipped within 2
hours of order
receipt
95% Average
number of
orders picked
and packed per
day per store
2.5 Average pick
and packing
cost per order
$0

25. Functional Goals
Functional goals summary
Function Quality Timeliness Quantity Cost
Measures Goals Measures Goals Measures Goals Measures Goals
Shipping
service
Percent of
accurate
orders
delivered to
customers
100% Percent of
orders delivered
within promised
time
95% Average number
of orders
delivered to
customers per
day
4000 Average
shipping cost
per order
$10
Distribution
center
Percent of
orders directed
to a DC
20%

26. Costs
Initial investment:
Cost of developing or purchasing
software (subscription or licensing
fee)
Cost of implementing software
Cost of infrastructure and hardware
Cost of network
Operating cost:
Cost of training
Maintenance and support cost
Database administration cost

27. Benefits
Tangible: minimize holding costs,
reduce shipping time and cost,
lower operational expenses, more
responsive to demand, better
coordination with business
partners
Intangible: increase customer
satisfaction, increase process
efficiency, improve organization’s
overall performance, align with
business goals

28. Other Process
Impacted
Inventory and replenishment planning
Sales and operations planning
Transportation planning and
management
Warehouse management
Accounting

29. Future Evolution
of the System
Same day delivery with premium
charges, which brings
additional revenue Verizon .