Analysis of Integrated System in Order Fulfilment Process

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This report examines the crucial role of integrated systems in optimizing the order fulfilment process, which encompasses generating, filling, delivering, and servicing customer orders. It emphasizes that this process is vital for shaping customer experiences. The report underscores the need for businesses to develop integrated networks that streamline order fulfillment while minimizing costs. It highlights the integration of logistics, finance, research and development, internal production, and collaboration with suppliers and customers. The analysis stresses the operational aspects of order fulfilment, focusing on transaction-level details and strategic improvements to impact financial performance. The report discusses the impact of order fulfilment on product availability and sales volume. It also explores how to define order fulfilment requirements, considering customer demands and network limitations. The report identifies challenges associated with shipping providers and inventory management when integrated systems are not utilized. It concludes by emphasizing the benefits of combining integrated systems with order fulfilment to enhance efficiency and customer satisfaction. The report includes references to relevant literature supporting the concepts discussed.
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Running head: INTEGRATED SYSTEM IN ORDER FULFILMENT PROCESS
INTEGRATED SYSTEM IN ORDER FULFILMENT PROCESS
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1INTEGRATED SYSTEM IN ORDER FULFILMENT PROCESS
Fulfilment of order includes different steps that are generating, filling up, delivering
and servicing the orders of the customers. It is a very important process because this can said
to be as the only process that determines the experience of the customer with the firm. In
order to achieve these tasks, the management of any organization must develop a network
and a process of fulfilment that in turn would permit the firm to fulfil the requests of the
customers, decreasing the total delivery cost at the same time. This needs integrating
logistics, finance, research and development, in house production and cooperation with the
primary suppliers and the customers (Leung et al. 2018). At the level of operations, the
process of order fulfilment lays stress on the various transactions. At the level of strategies,
the officials in the management mainly work on making certain critical improvements in the
process that affect the financial performance of the firm, the customers and the suppliers.
Order fulfilment has a direct effect on the availability of the products that have a significant
influence on the total volume of sales. An optimized network has the potential to minimize
the total delivered costs that include the costs related to sourcing. A streamlined process in
turn is effective in reducing the cycle involved in order-to-cash and helps in reducing the
capital at the same time reducing the lead-time related to delivery. This in turn reduces the
inventory levels. In order to understand or rather define the requirements related to order
fulfilment process, the demands of the customers and limits that are imposed by network
structure must be understood (Kosicka, Kozłowski and Mazurkiewicz 2017) . This includes
the process of reviewing the capabilities of the supply chain, order-to-cash cycle at the same
time providing proper definition of lead-time and customer demands. The customer
relationship management and related manufacturing flow processes provide the requisite
input to achieve the same (Slack and Brandon-Jones 2018). Added to the above things the
team involved should understand the requirements of the operations to create a positive order
fulfilment environment that include details such as the number of the orders required to be
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2INTEGRATED SYSTEM IN ORDER FULFILMENT PROCESS
filled up in a day and the number of dock-doors that are required. In integrated systems legal
requirements are also there which should be considered for example handling certain
requirements for the hazardous materials or the customs requirements for the international
shipments.
Two issues if order fulfilment process is not supported by integrated process are as
follows:
1) Problem with the shipping providers- This is the last step of the order fulfilment process
and generally the businesses do not have much control over this final step. Combining the
order fulfilment process with integrated system can help the businesses enhance their
business and associated customer experience. Partnering with wrong provider has a negative
effect on the business process.
2) Disruptions in the inventory management- Order fulfilment process involve streamlining
inventory management. This is the key element in every successful business. If the inventory
is not managed properly then it affects the revenue system of the business and affects the
customer experience as well (Staeblein and Aoki 2015). This results in pending orders,
unavailability of stocks, increase in the fulfilment costs, dead inventory and many more.
Integrated system can thus serve as an effective support to the order fulfilment process.
Combining integrated system with order fulfilment process can be make the system advanced
as a whole. The efficiency of the system will increase as a result of this combination.
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3INTEGRATED SYSTEM IN ORDER FULFILMENT PROCESS
References
Leung, K.H., Choy, K.L., Siu, P.K., Ho, G.T., Lam, H.Y. and Lee, C.K., 2018. A B2C e-
commerce intelligent system for re-engineering the e-order fulfilment process. Expert
Systems with Applications, 91, pp.386-401.
Kosicka, E., Kozłowski, E. and Mazurkiewicz, D., 2017, September. Intelligent Systems of
Forecasting the Failure of Machinery Park and Supporting Fulfilment of Orders of Spare
Parts. In International Conference on Intelligent Systems in Production Engineering and
Maintenance (pp. 54-63). Springer, Cham.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Staeblein, T. and Aoki, K., 2015. Planning and scheduling in the automotive industry: A
comparison of industrial practice at German and Japanese makers. International Journal of
Production Economics, 162, pp.258-272.
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