Course 7 - Demand side: Customer Order Fulfilment

Question 1

Customer order fulfilment = Order-to-cash process

Answer 1

=> cross-functional process:

• sales dpmt validates incoming order and create sales order
• warehouse prepares and sends shipment
• accounting is notified, creates invoice and sends it
• customer makes payment
• accounting records payment

Question 2

Order-to-cash - steps

Answer 2

1. Sales order
2. Outbound delivery
3. Warehouse request / task / confirmation
4. Invoice
5. Journal entry

Question 3

Order-to-cash - scenario

Answer 3

1. Customer order processing
   2a. Ordering
   2b. Goods receipt
   2c. Settlement
   3a. Shipping
   3b. Invoicing
   3c. Returns processing
   3d. Sales analysis

Question 4

Availability check

Answer 4

whether or not a requested quantity of a product is available at a certain place at a certain point in time

Question 5

Availability - calculation

Answer 5

=> based on current stock levels

=> based on planned receipts of material from either procurement or production

Question 6

Order confirmation

Answer 6

=> results of availability check

Question 7

Availability check ->

Answer 7

=> Objective
=> 4 steps:
1. Determine the source of supply
2. Backward scheduling (determine execution start, based on requested delivery date,…)
3. Confirmation determination
4. Forward scheduling (determine the confirmed delivery date)
=> Result

Question 8

Outbound delivery ->

Answer 8

1. Customer demand
2. Delivery planning
3. Pack, load
4. Goods issue
5. Follow-up processes

Question 9

Customer returns ->

Answer 9

1. Reasons
2. Customer return notification
3. Inbound delivery
4. Credit memo