1. Welcome to anIBMS112 Group A Presentation Logistics - Chapter 7 Order Management

2. Learning ObjectivesTo understand the linkage between ordermanagement and customer service.To examin the order cycle and its fourcomponents.To understand the four dimensions of OrderManagement.

3. What is order management?Order management: Refers to management of the various activities associated with the ordercycle; refers to the time from when a customer places an order to when the goods are received.In the ecommerce context, Order management describeseverything that the merchant does after a customer has placed anorder on the webstore. The typical steps involved are: 1. Pickinventory from the warehouse and ship it to the customer 2. senda email of notification to the customer that the order is on its way.

4. However, things are not that simple for most orders. (This could be due to)1. The merchant may be short on some items of stock that the customer wishes to place an order on. In that case, the merchant may ship out only part of the order with the items that are in stock. Then, at a later stage, they would ship the remaining items. This is the idea behind Partial Shipments.2. Sometimes, the merchant may not stock all the items in the warehouse. For example, a merchant who sells toys online, may decide to not stock the heavy doll-houses in her warehouse. Anytime a customer orders a doll-house on their website, she will ask the doll-house manufacturer to ship it out directly from the manufacturers warehouse to the customers address. This process of shipping directly from the vendor to the customer without going through the retailers warehouse is called Drop Shipping.3. Some merchants use Outsourced Fulfillment Warehouses to avoid carrying any inventory. (In simple words), the merchant uses a third party warehouse to store the inventory for them. When an order is placed on the website, the information is then forwarded to the third party warehouse, where it is then shipped directly to the customer.

5. To make itmore clearDropShipping method

6. Order TransmittalOrder transmittal refers to the time from when the customerplaces an order until the seller receives the order. There arefive possible ways to transmit orders:in person, by mail, by telephone, by fax machine and/orelectronically.Each method of order transmittal has advantages anddisavantages and each performs differently with respect tothe cost of ordering, time to order, the potential for ordererrors, and ordering convenience.Although Electronic ordering, which includes Electronic datainterchange (EDI) and the Internet, can befast, convenient, and accurate, praticularly those ordersinvolving scanners and bar codes.

7. To makemore clearEDI model

8. Order processingOrdering Processing refers to the time from when the sellerreceives an order until an appropriate location is authorized to fillthe order.Advances in technology has allowed most firms to automizemany aspects of their order processing system.Until the order can be made there are a lot of different stages tobe completed.__ these include: accuracy, checking the buyersability to purchase, entering the order into the system, crediting asalesperson with a sale, recording the transaction, determininginventory location and arranging for outbound transportation.There also are order triage activities. It refers to classifyingorders according to preestablished guidelines so that a companycan prioritize how orders should be filled.

9. Order Picking and AssemblyOrder picking and assembly is the next stage of the ordermanagement process, and it includes all activities from when anappropiate location is authorized to fill the order until goods areloaded aboard an outbound carrier.Order piece picking methods: there are several ways to pick anitem from a warehouse. You can use handy equipment to find andreach the specific item.Voice based order picking- refers to the use of speech guideorder-picking activities.Pick to-light technology in whichn orders to be picked areidentified by lights placed on shelves or racks.

10. Examples of peice picking methods and equipment:- Basic order picking: Pick your order manually by walkingtowards the item you need.- Static Shelving: A common management method used forstorage piece picking operations. Using static shelveswhere the product is placed (as seen in the picture).- Pick-to-light: A handy way to locate and reach an itemusing LED lights to find the right item and the correctquantity of that item.- Bar-code scanners: Scan an item to get high accuracyrates in order picking. You will find your product directly.

11. Order DeliveryOrder delivery refers to the time from when atransportation carrier picks up the shipment until it isreceived by the customer.An example:A customer orders a product, this product will betransported by a carrier. When the carrier picks up theproduct and delivers it to the customer, this is the orderdelivery process.In order to deliver products fast, depends on the flexibilityof a company and the carrier. Depending on the products itcould be deliverd in a day till several weeks.

12. Customer ServiceCompanies strive to keep their customers happy, it iseasier to keep an existing customer than it is to acquirenew customers.Customer service will be defined as the ability of logisticsmanagement to satisfy users in terms oftime, dependability, communication and convenience.Customer service can also be an excellent competativeweapon. It is more difficult for competitors to imitateservices. Your prices of products could be the same, buthow you receive your customers, deliver your productsvary with each company. This is where companies differ.

13. Example Bol.com Ordering process when someone purchase something1. Customer goes to the webshop Bol.com. And put the product in the shopping cart.2. Bol.com receives your order, and will send you automatically a confirmation mail of your purchase. And thank you for your purchase.3. Bol.com will check if the product on stock if not they will order it.4. The logistics department will check the product on visible damages. If not they give it a clearance. And the product will continue its process.

14. 6. The products will be selected and put it on a large conveyor belt. Everything will be coded with barcodes or RFID sticker.7. The products will be labelled, the order will be printed out and the bill included. Bol.com will choose a right sort of carton box. The box will also be labelled. The address of the customer will be stated on the box.8. Contacting delivery service like TNT and UPS. They will deliver the products to your home.

15. 9. Bol.com will send you a letter of shipment and they will provide you a tracking number, which the customer can clearly see where the package is.10. The delivery of the products in the Netherlands willalways be between 1 to 3 days and EU between 1 to 5 days.11. Customer receives the product, when there is adamage the product can always be sended back. Within 30days you can get a refund. Besides they have a goodwarranty service. And in the Netherlands there areregulations about warranty. So the consumer will mostlybe protected.

16. Extra video Bol.com ProcessClick on the link below to get a better ideahttp://www.youtube.com/watch?v=K8f8hpVYtm4

17. ExceriseTo understand the topic wellwrite a essay about order management and givea examplerequirements: 1000 words

18. Open and Multiplec. Questions10 questions about this topic3 open questions7 multiple choice2 minutes allowed per question

19. Open questions1. What are the typical steps of order management?2. Draw the EDI model3. What can you do as a customer when an order isnt delivered on time?

20. Multichoice questions1. ____ refers to the management of various activities associated with the order cycle. a. Logistics b. Order processing c. Demand management d. Order management

21. Multichoice questions2. Which of the following is false? a. order cycle lengths continue to get shorter b. the order cycle should be analyzed in terms of total cycle time and cycle time variability c. order management has been profoundly impacted by advances in information systems d. order management and the order cycle are vitally important to the perfect order concept e. all are true

22. Multichoice questions3. Order transmittal is: a. the same thing as an order cycle b. the series of events that occur between the time a customer places an order and the time the seller receives the order c. the series of events that occur between the time the customer perceives the need for something and the time the seller receives the order d. the series of events between the time a customer places an order and the time the order cycle begins

23. Multichoice questions4. In general, there are ____ possible ways to transmit orders. a. six b. five c. four d. Three

24. Multichoice questions5. ____ refers to the time from when the seller receives an order until anappropriate location is authorized to fill the order. a. Order processing b. Order cycle c. Order management d. Order transmittal

25. Multichoice questions6. Order picking and assembly is: a. the most important component of the order cycle b. the way a customer decides what he needs to purchase c. the component that follows order processing d. the most computerized part of the order cycle

26. Multichoice questions7. The ability of logistics management to satisfy users in terms oftime, dependability, communication, and convenience is the definition of: a. customer satisfaction b. the order cycle c. perfect order d. customer service

27. Multiple Choice Answer1. D2. E3. B4. B5. A6. C7. D