Business Process:

The Fulfillment
ERP
ENTERPRISE RESOURCE
Process
ISE184146-03
PLANNING
Enterprise Resource Planning
Romy Loice
 The Fulfillment Process
includes all the steps necessary to take an order
from a customer; fill, pack, and ship it; and
receive payment for it.

• Also referred as order-to-cash process

• The fulfillment process differs greatly
depending on the countries, industries,
and products that the company must deal
with.

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Key Concept and Assumptions

BUSINESS -TO-BUSINESS (B2B) COMMERCE

• Two of the most common strategies are sell-

from-stock and configure-to-order
• Sell-from-stock involves fulfilling customer orders
directly from the company’s inventory of finished
goods
• Configure-to-order usually involves taking a
standard or base model of a product and then
configuring it to meet the customer’s special needs
by adding either special options or add-on parts
• Example: Apple ipods and Mac

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 A Basic Fulfillment
ERP
ENTERPRISE RESOURCE
Process
PLANNING
A Simple Fulfillment Process
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Simple Fulfillemt Process (2)

How does Accounting

know when to send a bill
How does warehouse to the customer?
What will be contained in
know to prepare a How does she know what
the shipment?
shipment? was shipped to the
customer and how much
to charge?

Recall:
C o m p a n i e s u s e a v a r i e t y o f d o c u m e n t t o ke e p t r a c k o f t h e d a t a
associated with each of the steps in a process
Business Process: The Fulfillment Process 6
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Flows in Business Processes
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Fulfillment Process Flow

Physical Flow Document and Data Flow

• the physical activities associated with • Data associated with each step of the
process. These data accompany, or ‘‘flow,’’
the process. through the physical steps in a process, and
along the way, they are often modified and
updated.
• Customer inquiry
• Quotation
• Customer purchase order
• Sales order
• Picking document
• Packing list
• Customer invoice
• Customer payment

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Information Flow (1)
 Instance-Level Information
 Related to the status of one particular instance of the process,
 Status information is concerned with the state of the order as the
process is executed.
 Has a quotation been issued for a customer inquiry?
 Has a customer PO received after a quotation sent?
 Has a sales order been issued for a customer PO? Obtaining simple status
 Have the goods been pack? information in a manual
environment can be time
 When were they send?
 Has an invoice been sended and payment received?
consuming and frustrating.
Status information becomes
!
increasingly important to
customers when order
Business Process: The Fulfillment Process volumes and values increase.
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Information Flow (2)
 Process-Level Information
 concerned with the fulfillment process on an overall level, across multiple
instances.
 Data generated in the process must be aggregated over a certain time period
(weekly, monthly, or quarterly) and converted into information.
 Example:
 What are our best-selling products? Which products does it sell the least?
 Who are our best customers in terms of dollar sales and quantity? What do they
purchase?
 On average, how much time does we take to process a customer order?
 What is the average value of a sales order?
 What is the average time to complete each step in the process?
 Which customers pay promptly? Which are habitually late?
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Financial Impact
• Some of the steps in the fulfillment process have an impact on the organization’s
financial position.

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 Role of ERP
Enterprise
Systems
in The Fulfillment
Process

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ENTERPRISE RESOURCE
Thank You.
Romy Loice
PLANNING +62 22 203 2655 (ext 180325)
romy.loice@unpar.ac.id
www.unpar.ac.id