Module 3: Order Management Flashcards
Purchase Orders Management Activities
Order Placement Monitoring Receiving Acceptance Payment of Supplier
Manufacturing Orders Management Activities
Order Release Routing Manufacture Monitoring Store receipt or finished Goods Inventories
Customer Orders
Order Promising Order Entry Order Pick Pack and ship Billing Account Reconciliation
7 Rights
Getting the right product The Right Condition To the Right Customer In the Right Quantity At the right Cost To the Right Location at the right Time
Order Cycle
The progression used by a company starting with receipt of a customers order and ending with delivery to that customer
Order Processing
The activity required to administratively process a customers order and make it ready for shipment or production
Net Inventory (available inventory)
Determining if the desired items are in stock or on backorder. “The on-hand inventory balance minus allocations, reservations, backorders, and quantiies held for quality problems. Often called Beginning Available Balance”
Delivery Reliability
A performance criterion that measures how consistently the goods or services are delviered on, or before, the promissed date and time
Product Conditions
The condition of the items in the order,; the items should be as-described and undamaged
Delivery Alternatives
The appropriate mode of transport for delivery of the order
delivery time
the amount of time needed to transport and deliver the order to the customer; it should correspond to the date/time told to the customer
Order Status
information avaliable for the customer to identify where the order is in the delivery process
Customer Relationship Management (CRM)
a marketing philosopy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (as contrased to enterprise resorces planning information). to understand and support existing and portential customer needs. It includes account management, catalong and order entry, payment processing, credits and adjustments, and other ffunctions.
Customer
a person or organization receiving a good, service, or information
Benefits of Lifetime Customers
Higher Customer Satisfaction
Increased ability to anticipate customer needs
Growth in revenue and profits
Decreased marketing costs
Lifetime Customer Value (LCV)
a metric for defining customer profitability. A prediction of the net present valude of the future profites attributed to the etire futuer relationsihp with a customer. Focus on long-term health of its customer relationship rather than quarterly profits
Formula of Operating Profit Contribution
Gross Profit - (Invoices X Avg Cost/Invoice)
make sure time period of GP and Inv is same
80-20 Rule
A term referring to the PARETO PRINCIPLE. It suggests that most effects come from relatively few causes; that is, 80% of the effects (or sales or costs) come from 20% of the possible causes (or items)
Single Allocation Criteria
Determine the costs of direct materials, labor, overhead during a particular time period for each customer
Activity Based Costing
ID the specific costs of servicing each customers orders based on how, how much, what, and when that customer orders
Cost-to-Serve
ID the costs of different business activities within each stage of the supply Chain as well as the Overhead costs associated with each customer
Determining the proper customer service levels involves:
- ID what each customer segment values
- Categorize components
- Prioritize the elements of customer service by segment or customer level
- Benchmark against competitors to establish relative service level
- Perform a gap analysis
- Design product/service packages that will meet or exceed minimum service requirements
- Establish service level metrics, targets, and monitoring and controlling procedures
- Monitor and control
Service Level Agreement
A contract specifying the service levels that wil be provided in each area along with relavant metrics and targets that will be used to measure compliance
Inbound Logistics
The group of moving materials from suppliers or vendors into production processes or storage facilities, or the actual movement of such material
