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Vidya Vikas Universal college September 14, 2010

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Vidya Vikas Universal college September 14, 2010

ACKNOWLEDGEMENT
It gives me pleasure to thank
respected PRINCIPAL D.N.MISHRA.
You provided us an opportunity to compile
this project.

We acknowledge the help and


encouragement received from PROF.
Jigna Shah without whose support this
project would not have a successful one.

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DECLARARION

Mr. Charlie S. Manuel 16


Mr. Amardeep Mishra 17
Mr. Shravan L. Vishwakarma 29
Mr. Raju T. Yadav 31

We hereby declare that under the


guidance of “Ms. Jigna Shah” have
completed this project on “Customer service
& Order processing.
We have prepared the project keeping in
mind Elements of Logistics & Supply Chain
Management.

Contents:-
Sr.No Topic Page No.

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1. Introduction to customer service plan 05


2. Customer Commitments by Customer 06
group
3. Principles & Approach/Scope 09
4. Process & Quality Attributes 11
5. Agency-Wide Standards 13
6. Future Efforts 14
7. 8 Rule for customer service 15
8. The Ten commandments of Customer 18
service
9. Ordering Processing Introduction & 20-27
Sub division.
10. Order Processing Chat 29
11. Business Goals & Objectives 31
12. Customer Order Cycle 34
13. Monitor Inventory as it Moves to the 36
customer and back
14. Bibliography. 37

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Customer Service Plan


BACKGROUND
The National Institutes of Health (NIH), founded in 1887, is one of the world's
foremost medical research centers, and the Federal focal point for medical
research in the United States. 26 Institutes and Centers comprise the NIH, which
has the primary research goal of acquiring new knowledge to help prevent,
detect, diagnose, and treat disease and disability from the rarest genetic disorder
to the common cold. The NIH mission is to uncover new knowledge that will
lead to better health for everyone. In 1993, President William J. Clinton issued
Executive Order 12862 challenging Federal agencies to improve customer
service. Further, Executive Order 12862 tasked agencies to survey their
customers to identify what kinds of services they really want and to gather ideas
from front-line employees on how to better deliver those services. The goal of
this Customer Service Plan is to convey to you, the customer, a realistic,
achievable approach for improving customer service at the National Institutes of
Health.

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Customer Commitments by Customer Group


For General Public:

1. NIH will publicize ways in which the public can request and find
information, including its web page, toll-free numbers and email contact
information to help ensure consistency of information provided to consumers.

2. NIH will make better use of the correspondence tracking system to track
written inquiries more effectively and will provide accountability for timely
response to inquiries.

3. NIH will develop a system for retrieving, tracking and responding to


customer feedback. Periodic reports will be provided to appropriate NIH staff.
In web-presentations, whether it be information about grant funding or health
information, an e-mail address will be added for suggestions or comments (How
are we doing?).

4. NIH will seek advice from consumers through conferences, focus groups and
advisory committees to help reengineer its business processes and improve NIH
services for the public.

5. NIH will increase its accessibility to the public by expanding public outreach
to ensure the general public is aware of NIH, knows how to access NIH's
information, and understands the role NIH plays in the health of our nation.
This includes making information available in Spanish and other languages to
persons who do not speak English as a primary language. It also involves
making information presentations available on tape so persons with disabilities
can listen to them or run them through a Braille printer.

6. NIH will provide a web site for easy access to its health information for the
public through MEDLINE.

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For Grantee Community:


1. NIH has provided leadership in the development of the NIH/Federal
Commons, a web-based client/server environment where NIH and the grantee
community will conduct electronic research administration business
applications.

2. NIH has developed the searchable CRISP database, which includes


information regarding federally funded biomedical research projects conducted
at universities, hospitals and other research institutions.

3. NIH will work with the grantee community industry, professional


organizations and agency staff to develop workshops, grassroots meetings and
training events to educate the grantee community on policies and procedures.

4. NIH will continue to move toward a paperless, electronic submission and


review of grant applications to reduce the time and burden on institutions.

For Health Professionals:


1. NIH will identify additional electronic mechanisms that could be used to
more effectively communicate NIH health messages to physicians, nurses,
pharmacists, hospitals and HMOs.

2. NIH will increase its accessibility by amplifying public outreach programs


and by holding workshops and symposia with health professionals and
associations.

3. NIH will provide liaison services to health professional organizations in order


to facilitate communication of important agency issues and findings.

4. NIH will provide a convenient means of communication with health


professionals and respond to feedback received via electronic inquiries.

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Other Government Agencies:


1. NIH will expand collaborative partnerships with other Federal, state and local
agencies providing information related to health, biomedical research, new
drugs, product information and their appropriate use.

2. NIH will enhance its current web site to post relevant information,
particularly on hot issues related to the research community.

3. NIH will expand the use of collaborative agreements and partnership with
other agencies to provide a team approach to solving important research issues.

4. NIH will evaluate its internal processes in order to develop and enhance staff
skills as needed to assure consistency in service and on-going communications
with other government agencies.

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PRINCIPLES
This Customer Service Plan is based on ideas, suggestions, and feedback
received from our customers as well as an extensive best practices search. It
defines our customer service standards and processes for building and
maintaining high quality services to meet those standards throughout the
country.

The following principles drove the process for developing the plan:

Customers Know What They Want - Rather than sitting back and assuming
that we know what customers wanted and needed, our agency is going out and
asking. Through formal surveys, focus groups, and conversations, we are
listening to what our customers think about the types and quality of services and
products we offer. What we learn is helping to shape the ways in which we
strive to redirect our services to ensure that we continuously improve our ability
to meet your needs.

Customer's Needs Are Paramount - Based on feedback from our customers,


NIH must respond to comments and suggestions about improving the way we
deliver products and services.

Communication Is Key to Our Success - Developing effective tools to


maintain lines of communication with our customers will help us do our jobs
better. By developing more effective ways to direct information to our
customers and by providing clearer paths to receive feedback, our agency will
better address customer needs and concerns.

 APPROACH/SCOPE

NIH is diligently working to address the spirit of Executive Order 12862. A


dedicated group of representatives from across the agency is convening to form
an on-going Customer Service Management group to implement the customer
service program and to ensure that the agency enhances its customer focus as it
improves current services and develops new initiatives.

The agency has gathered information from customer service surveys, focus
groups with front-line staff, and conversations with key external partners, to
ensure that initiatives address issues important to our customers. This plan
presents an opportunity to share with our customers our commitment to
providing quality service.

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NIH is committed to protecting, promoting, and enhancing the health of the


American people and to improving its processes to offer high quality services
that are easily accessible to the public. The Customer Service Plan establishes a
broad framework to address customer issues. The customer service standards
address issues our customers have told us are important to them.

The primary focus of this document is to ensure that we are continuously


listening to our customers and making certain that their needs are being met or
exceeded. While the focus is on our outside customers, it does not diminish the
need to ensure that our internal NIH customer needs are also being met. It is
imperative that an integrated view of all our customers' needs be pursued in
order to ensure that the needs of our entire customer population are met. If we
do not provide outstanding service to our internal customers, we will be unable
to provide outstanding support to our external customers.

OUR CUSTOMERS
The NIH serves four primary external customer groups--the general public,
health professionals, other governmental agencies, and grantee/contractor
organizations. These four broad categories encompass the populations that we
serve and work with most often. When the agency embarked on this process, we
felt it was necessary to define and limit our primary groups. As we continue
with our customer service initiatives, we may include additional customer
groups.

STANDARDS
The standards described in this report represent the NIH effort to identify the
needs and concerns of our customers and to establish measurable processes to
address these needs and concerns. The standards have been developed from
information gathered from surveys/focus groups, and benchmarking with other
outstanding organizations and are based on measured performance attributes - a
set of criteria that expresses customer requirements and expectations.
Performance attributes are organized into two categories.

1. Process attributes -- transaction-related characteristics represented by


internal operations, such as procedures, policies, and functions - the
primary focus is continuously improving our internal operations so we
can deliver our products and services quicker, better and cheaper; and

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2. Quality attributes -- image-related characteristics that describe the


contact between the customer and the organization. The overall standard
of quality we seek is customer service for the American people that is
equal to or better than the best in business.

The following attributes were used to develop the standards:

Process Attributes
 Consistency in policies and procedures - holding to the same
principles across the organization
 Convenient feedback mechanisms - feedback that are easy to use
and access
 Frequent communication - including follow-up - any form of
communication on a regular basis, where taking action following that
communication enhances the effectiveness of that communication
 Managing resources well - careful control and use of resources,
human as well as fiscal, to maximize their impact and effectiveness
 Problem solving and attempts to remove barriers - proposed
solutions or considerations to resolve something that is an obstruction or
prevents progress
 Prompt handling of customer feedback - immediate or quick
management of customer dissatisfaction by empowering employees to fix
problems
 Flexible options - sending and receiving information using a variety of
methods, including greater use of e-commerce solutions
 Continuous Improvement - striving to do everything quicker, better
and cheaper

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Quality Attributes
 Accessible - ability or freedom to approach, communicate with, or make
use of
 Courteous - respect or consideration
 Flexible - capability to adapt to or change requirements
 Knowledgeable - familiarity with or understanding of facts and/or
conditions
 Listens well - gives attention and/or careful consideration to what is
said
 Reliable and Trustworthy - dependable, confidence in character,
abilities, and truth
 Timely - information and/or responses are provided early or on time

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AGENCY-WIDE STANDARDS
The following standards apply to all customer groups.

All NIH Customers are entitled to:


 fair, courteous and professional treatment
 information that is accurate and current
 timely responses to requests
 reasonable access to appropriate staff
 two-way communication
 opportunities for collaboration and partnerships, as appropriate and
 consideration of their opinions and concerns by the agency in the decision
making process
 use of plain language for all communication with the public.

In addition:
 The General Public is entitled to accurate and timely health
information about research being conducted.
 Health Professionals are entitled to timely information that will assist
them in advancing and protecting the public health.
 Other Government Agencies are entitled to:
o cooperation from the NIH in maximizing efficient use of resources,
eliminating duplication of efforts and carrying out collaborative
efforts;
o technical assistance, training and guidance
 Grantee/Contractor Organizations are entitled to:
o timely review of applications and awards;
o professional treatment in resolving disputes;
o fair application of laws, regulations and policies;
o fair and consistent application reviews;
o respect in the performance of duties and responsibilities; and
o timely payment.

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FUTURE EFFORTS
NIH will continue to embark on a variety of initiatives to ensure that it
continues to address customer needs. The on-going Customer Service
Management group will coordinate these activities. Ensuring that quality service
is provided is an on-going process that requires changes in the way we do
business by increasing emphasis on listening to our customers and by learning
from the best in private industry. The agency will strive to reinvent itself -- to
become more efficient and effective--and to provide the types of services the
public expects.

Over the coming months, the agency will:

 develop programs and initiatives that address customer


needs. The agency, as a whole, and the individual centers and institutes
will use the information gathered from the survey and focus groups to
develop and enhance services.
 benchmark against the best-in-the-business. The agency will
determine what internal processes need to be improved, benchmark with
leading industries, and establish performance standards.

establish processes to improve customer feedback. Systems will be


established to receive and address customer suggestions and feedback.

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8 Rules For Good Customer Service


Good Customer Service Made Simple
Good customer service is the lifeblood of any business. You can offer
promotions and slash prices to bring in as many new customers as you want, but
unless you can get some of those customers to come back, your business won’t
be profitable for long.

Good customer service is all about bringing customers back. And about sending
them away happy – happy enough to pass positive feedback about your business
along to others, who may then try the product or service you offer for
themselves and in their turn become repeat customers.

If you’re a good salesperson, you can sell anything to anyone once. But it will
be your approach to customer service that determines whether or not you’ll ever
be able to sell that person anything else. The essence of good customer service
is forming a relationship with customers – a relationship that that individual
customer feels that he would like to pursue.

1) Answer your phone.

Get call forwarding. Or an answering service. Hire staff if you need to. But
make sure that someone is picking up the phone when someone calls your
business. (Notice I say “someone”. People who call want to talk to a live
person, not a “fake recorded robot”.)

2) Don’t make promises unless you WILL keep them.

Not plan to keep them. Will keep them. Reliability is one of the keys to any
good relationship, and good customer service is no exception. If you say, “Your
new bedroom furniture will be delivered on Tuesday”, make sure it is delivered
on Tuesday. Otherwise, don’t say it. The same rule applies to client
appointments, deadlines, etc.. Think before you give any promise – because
nothing annoys customers more than a broken one.

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3) Listen to your customers.

Is there anything more exasperating than telling someone what you want or
what your problem is and then discovering that that person hasn’t been paying
attention and needs to have it explained again? From a customer’s point of
view, I doubt it. Can the sales pitches and the product babble. Let your customer
talk and show him that you are listening by making the appropriate responses,
such as suggesting how to solve the problem.

4) Deal with complaints.

No one likes hearing complaints, and many of us have developed a reflex shrug,
saying, “You can’t please all the people all the time”. Maybe not, but if you
give the complaint your attention, you may be able to please this one person this
one time - and position your business to reap the benefits of good customer
service.

5) Be helpful - even if there’s no immediate profit in it.

The other day I popped into a local watch shop because I had lost the small
piece that clips the pieces of my watch band together. When I explained the
problem, the proprietor said that he thought he might have one lying around. He
found it, attached it to my watch band – and charged me nothing! Where do you
think I’ll go when I need a new watch band or even a new watch? And how
many people do you think I’ve told this story to?

6) Train your staff (if you have any) to be ALWAYS helpful,


courteous, and knowledgeable.

Do it yourself or hire someone to train them. Talk to them about good customer
service and what it is (and isn’t) regularly. Most importantly, give every
member of your staff enough information and power to make those small
customer-pleasing decisions, so he never has to say, “I don’t know, but so-and-
so will be back at...”

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7) Take the extra step.

For instance, if someone walks into your store and asks you to help them find
something, don’t just say, “It’s in Aisle 3.” Lead the customer to the item.
Better yet, wait and see if he has questions about it, or further needs. Whatever
the extra step may be, if you want to provide good customer service, take it.
They may not say so to you, but people notice when people make an extra effort
and will tell other people.

8) Throw in something extra.

Whether it’s a coupon for a future discount, additional information on how to


use the product, or a genuine smile, people love to get more than they thought
they were getting. And don’t think that a gesture has to be large to be effective.
The local art framer that we use attaches a package of picture hangers to every
picture he frames. A small thing, but so appreciated.

If you apply these eight simple rules consistently, your business will become
known for its good customer service. And the best part? The irony of good
customer service is that over time it will bring in more new customers than
promotions and price slashing ever did!

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The Ten Commandments of Customer Service


1. Know who is boss. You are in business to service customer needs, and
you can only do that if you know what it is your customers want. When you
truly listen to your customers, they let you know what they want and how
you can provide good service. Never forget that the customer pays our salary
and makes your job possible.
2. Be a good listener. Take the time to identify customer needs by asking
questions and concentrating on what the customer is really saying. Listen to
their words, tone of voice, body language, and most importantly, how they
feel. Beware of making assumptions - thinking you intuitively know what
the customer wants. Do you know what three things are most important to
your customer?

Effective listening and undivided attention are particularly important on the


show floor where there is a great danger of preoccupation - looking around to
see to whom else we could be selling to.

3. Identify and anticipate needs. Customers don't buy products or services.


They buy good feelings and solutions to problems. Most customer needs are
emotional rather than logical. The more you know your customers, the better

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you become at anticipating their needs. Communicate regularly so that you


are aware of problems or upcoming needs.
4. Make customers feel important and appreciated. Treat them as
individuals. Always use their name and find ways to compliment them, but
be sincere. People value sincerity. It creates good feeling and trust. Think
about ways to generate good feelings about doing business with you.
Customers are very sensitive and know whether or not you really care about
them. Thank them every time you get a chance.
5. Help customers understand your systems. Your organization may have
the world's best systems for getting things done, but if customers don't
understand them, they can get confused, impatient and angry. Take time to
explain how your systems work and how they simplify transactions.
Appreciate the power of "Yes". Always look for ways to help your
customers. When they have a request (as long as it is reasonable) tell them
that you can do it. Figure out how afterwards. Look for ways to make doing
business with you easy. Always do what you say you are going to do.
6. Know how to apologize. When something goes wrong, apologize. It's
easy and customers like it. The customer may not always be right, but the
customer must always win. Deal with problems immediately and let
customers know what you have done. Make it simple for customers to
complain. Value their complaints. As much as we dislike it, it gives us an
opportunity to improve. Even if customers are having a bad day, go out of
your way to make them feel comfortable.
7. Give more than expected. Since the future of all companies lies in
keeping customers happy, think of ways to elevate yourself above the
competition. Consider the following:

 What can you give customers that they cannot get elsewhere?
 What can you do to follow-up and thank people even when they
don't buy?
 What can you give customers that is totally unexpected?
. Get regular feedback. Encourage and welcome suggestions about how
you could improve. There are several ways in which you can find out what
customers think and feel about your services.
 Listen carefully to what they say.
 Check back regularly to see how things are going.
 Provide a method that invites constructive criticism, comments and
suggestions.
. Treat employees well. Employees are your internal customers and need a
regular dose of appreciation. Thank them and find ways to let them know
how important they are. Treat your employees with respect and chances are
they will have a higher regard for customers. Appreciation stems from the
top. Treating customers and employees well is equally important.

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Ordering Processing
I. Introduction

Third Party Logistics (3PL) is the development of modern logistics industry a


brand new form of logistics theory and practice is becoming the focus of
attention. Experienced a short period of ten years of development, the world’s
third-party logistics market has clearly demonstrated the potential of large,
progressive and high growth characteristics. Third-party logistics companies to
introduce advanced information processing technology will not only improve
the logistics enterprise of the degree of automation and information sharing,
improve efficiency, lower costs, more important is to fundamentally change the
strategic development of logistics enterprises effectively promote the logistics
enterprises collaboration between departments to improve the logistics business
and customer information-sharing.

From the third party logistics service company in China with research results,
53% of businesses were satisfied with third-party logistics services, 47% were
dissatisfied, while the main reason for dissatisfaction is the slow operation and
logistics information is not timely , inaccurate, followed by operating the high
error rate, operating costs are high. Thus, our third party logistics logistics
operation of much-needed improvements, especially in its logistics information
capabilities. China Storage Association, the national logistics supply and
demand on the results of several surveys also show that the quality of logistics
information to become operational after the third-party logistics companies are
not satisfied with the current one of the main. From the third survey, we can see
that the demand for the introduction of third-party logistics companies, 67% of
the production enterprises and 54% of the commercial enterprises are satisfied
with a third party logistics services, 23% of manufacturing enterprises and 7 %
of commercial enterprises are not satisfied with third-party logistics services.
Not satisfied with the reasons, first because the work is slow and logistics

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information is not timely, inaccurate, followed by the operation of high error


rate, operating costs are high. To the fifth survey is still the high operating costs
and logistics information is not accurate and the top two, as shown in Table 1.

Can be seen from the production companies and commercial enterprises


concerned about third-party logistics services is the cost and operation of the
first quality and includes logistics information, including the operation of the
capability.

The current competition for third-party logistics companies around the


possession of information resources and, hence the establishment of efficient
and appropriate management information system is the challenge, an effective
means to strengthen its own. How to establish reasonable and effective third
party logistics management information system in front of us has become very
urgent task.

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2, from the perspective of third party supply chain logistics management


information system of recycling

Supply chain management mainly through the supply chain, feed-forward


information flow and feedback of logistics, information flow, of suppliers,
manufacturers, distributors, and so the end-user fused to the include order, sales,
inventory management, transportation , warehousing, customer service,
integrating the various aspects of management, so that each node in the supply
chain to share the functions of the integrated enterprise to form a holistic
management model. It requires the enterprise supply chain information flow,
logistics and cash flow, value-added flow, traffic Yiji collaborative partnerships
to design, planning and control of suppliers, manufacturers, distributors until the
end user to connect into a whole reached on the mutual logistics business
processes seamlessly, from the perspective of system optimization to achieve an
integrated supply chain management control of, and to deliver value according
to the value.

In the middle of the third party supply chain logistics enterprises should play a
bridging function of its logistics, its logistics operation in the implementation of

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information technology on the basis of operation should be established with the


supply chain can lower the node Jinxing Shujujiaohu and transmission of data
platform, by information technology and information systems support, and
supply chain partners and downstream customers to share the logistics of supply
and demand information in a timely manner, thereby integrating all of its supply
chain logistics resources.

From the implementation point of view of supply chain management, third party
logistics enterprises should form a network of the logistics management
information Xitong, to strengthen the whole supply chain logistics part of the
information Jiao Liu, 达到 with suppliers and logistics partners, vendors and
outside the Society, between the downstream customers supply chain of
information processing and sharing, and logistics through the creation of Web-
based trading system to simplify the logistics logistics orders transaction-driven
process, so as to effectively realize the integration of its logistics business
collaboration.

3, the supply chain point of view of operation of third-party logistics


business

Information system analysis and planning in, we need to understand in detail the
actual processes third-party logistics, and related links Meige specific analysis
in order to develop the actual situation for third-party logistics enterprise
management information system.

Basic third-party logistics supply chain processes as: customer acceptance of


third party logistics distribution request, to review the order, classification,
treatment, and arrangements for goods to and from libraries under orders to
draw up distribution plans, seek the goods according to customer demand
accurate and timely service suppliers from the market demand side (Figure 1).

Specific third-party logistics processes include the following aspects.

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1. Order Processing

Order processing is the beginning of the distribution center operations, is also


the starting point of data information systems. And efficient order processing is

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the key to the success of information systems, order service throughout every
aspect of the logistics supply chain. Logistics center is only valid in the
customer service received a request to continue the distribution, transportation.
Received orders to implement the main through the Internet can also be by
phone, fax and other means, but in this case, the need to manually input order
information.

2. Authentication
A reliable system should be receiving an order to verify the identity of the
customer only after the passage to whom the authentication service, or need
further contact with customers, allow customers to modify or Register.
Customers through distribution centers in the registration server, you must
provide some useful information such as company contact telephone number,
company location and so on.

3. Information Classification Management

Because different sources of customers, it should distinguish between different


types of service, while the need for timely response to customer requests, but
also on the distribution of goods, quantity, type, mode of transport, etc. were
classified and sorted.

4. Inventory Management

Inventory management is mainly the status of the entire stock merchandise


tracking surveys and the overall management, including storage management, a
database management, inventory counts. First, the warehouse management of
goods entering the warehouse to collect information (such as registration,
classification), to prepare for future delivery; Second, the library management is
the coordinated combination of processing to achieve picking, receiving orders

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and distribution request, the request to order the release of goods, and record
distribution of relevant information; third, stock warehouse inventory is
available to manage the status of goods. To keep them in meeting delivery
requirements.

5. Distribution, transport processing

Distribution system is a system of specific customer orders processed sector in


order processing and inventory processing, transport processing between a
processing system. System according to the order requirements, combined with
stock picking conditions or contact procured treatment, and treatment results of
the corresponding category, or delivery to the demand side. Distribution,
transport processing is a complex system to process, because the third-party
logistics companies are facing customers in different areas, logistics centers
must have the real-time status of each distribution point, then decision-making
system to analyze and judge for the formulation of a reliable and economical
distribution plan, the appropriate distribution point or integrated with other
supply chain enterprise resources to complete.

6. Financial settlement

Third-party logistics and financial settlement of 计算 the same manner as other


transactions, are generally set up a special account through the bank, with
delivery receipts, by network or other means, the money designated to
Zhongxin . Be noted that this settlement is built on both sides based on integrity.

7. Decision Analysis

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Decision analysis is intended to allow enterprises to lower costs and better


delivery to complete the task. Decision analysis usually involves making the site
distribution, inventory decisions, scheduling, selection of foreign co-partners,
customers and management.

8. Management

Business management is the management of staff through various means to


achieve efficient management of distribution centers, and to develop appropriate
business decisions. According to various information and reports, including
statistical data distribution, customer service response to the report on the
distribution, number and duration of delivery of goods report, the failure rate of
distribution of goods, warehouse inventory, equipment breakdowns and
maintenance reports, equipment, cost analysis, human resource analysis,
decision-making.

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Order processing chat.

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Opportunity Flowchart Description


This opportunity flowchart shows the steps involved in processing an order.
When things go right, the steps in the left column are taken. When things go
wrong, the steps in the right column are taken. 

Opportunity flowcharts show the steps in a process and also show whether each
step adds value to a product or only adds cost. Value-added steps are shown in
the left column. These are the steps taken when everything goes right. Cost-
added steps are shown in the right column. These steps only occur when things
go wrong. If there are no problems, then only the steps in the left column are
taken.

Opportunity flowcharts allow you to see where a process can be improved.


They highlight the opportunities for improvement. Opportunity charts separate
those essential steps for making a product from those that are included only to
check for or fix problems.

You can first draw a detailed flowchart of a process and then separate the steps
into value-added or cost-added-only. Ask yourself, "Would this step be needed
if the process worked perfectly?" 

By looking at an opportunity flowchart you can quickly see how much work is
caused by things going wrong. Opportunity flowcharts allow you to see where a
process can be improved.

Partner Opportunities
As the supply network of EMS/ODM extends to include other partners,
component manufacturers and third party distributors, it is critical to co-ordinate
fulfillment processes across multiple parties and have real time visibility to
react quickly to any problems. To maintain customer service, the EMS must
provide customers with continuous and up to date information, while still
minimizing internal and external distribution and warehouse costs. Frequently,
the EMS is required to monitor and replenish customer inventory and guarantee
availability of parts at the Brand Owner location. Fulfillment controls the actual
fulfillment of customer replenishment orders based on the manufacturing
program and according to the criteria established in the contract with the Brand
Owner.  Fulfillment orders frequently involve similar processes as sales order
processing in terms of logistics and configuration, however pricing and the
actual sale was established through the contracting process.

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Business Goals & Objectives


1. Improving Customer Service: Increase multi-channel delivery of
services Reduce late orders.
2. Improving Regulatory Compliance: Reduce risks of fines and
penalties.
3. Managing Fixed Assets & Resources: Improve physical
inventory process.
4. Reducing Operating Costs & Increasing Efficiency: Lower
logistics costs.

Business Processes
Sales (fulfilment) Order Processing

This business process makes it possible for you to deliver a specific product
configuration and quantity, or to provide a service at a specific time. During
sales, fulfilment order processing, a fulfilment organization accepts the order
and is responsible for fulfilling the contract.

Interactive Configuration

This process enables you as a sales employee or customer to configure a


product in line with your requirements.

Responsive Replenishment

You can use this business process to plan responsive replenishment


based on the results of the Responsive Demand Planning process.
Responsive Replenishment Planning plans the optimal shipments to
customer locations. During this process the netting take place, transport
loads are created, and finally the orders are created. Promotion and
baseline demands can be planned independently.

Fulfillment Order Analysis

You can use this business process to analyze sales quotations and sales orders.
This enables you to monitor the sales transactions that have taken place in your
organization at a detailed level.

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Safety Stock Planning

Safety stock is the quantity of additional stock procured and/or held to


satisfy unexpectedly high fluctuation in demand. Safety Stock Planning
Planning allows you to meet a target service level while creating a
minimum necessary amount of safety stock throughout your entire
supply chain for all intermediate and finished products at their respective
locations.

Warehousing and Storage

Warehousing and Storage includes multiple processes throughout the


warehouse from the time materials enter the warehouse via Goods
Receipt until they exit the warehouse with a Post Goods Issue.
Specifically covered in this process you will find the management of
inventory including putaway strategies and replenishment. Possible
variants include task and resource management and Radio Frequence
(RF) support. Optional steps include support for production supply,
Value Added Services and Yard Management.

Outbound Processing

Outbound with WM: Outbound processing comprises the preparation of goods


to be delivered from a warehouse to a receiving location. Outbound processing
within the scope of warehouse management typically comprises activities like
the notification of goods to be supplied from a warehouse to a customer for
which the outbound delivery serves as the reference document, picking,
packing, physical goods issue in warehouse, loading, goods issue and goods
issue posting to IM, advising advanced shipping notifications to business
partners and, obtaining a proof-of-delivery from the receiving business partner.

Outbound without WM: Outbound processing without WM comprises the


preparation of goods to be delivered from a warehouse to a receiving location.
The warehouse is managed on a storage location level using Lean WM.

Supply Chain Monitoring and Control

Supply Chain Performance Management (SCPM) enables you to define,


select, and monitor key performance indicators (KPIs), giving you an
integrated, comprehensive view of performance across the supply chain.
SCPM with mySAP SCM includes a large number of predefined KPIs
based on the Supply Chain Operations Reference model (SCOR) covering

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all supply chain activities including source, plan, make, deliver, and
return.

Physical Inventory

Physical Inventory is a process that all companies with their own stocks
or special stocks in their warehouse eventually face. There are several
different kinds of physical inventory that can be managed, for example:
periodic inventory, continuous inventory, cycle counting or inventory
sampling.

Freight Costing

A shipment can have costs which represent the charges of the


Transportation Service Provider (TSP, carrier), possible handling
charges, surcharges such as fuel, and other accessorial or direct
transportation costs. The Shipment Cost Document enables the
calculation of the shipment costs for any given shipment.

Billing

You use this business process in order to create customer invoices in SAP
CRM. Here, one or more than one billing due list item is copied into a billing
document. You can either create the billing document with reference to the
delivery, or to the sales order. It is also possible to create billing documents with
reference to contracts. You make the necessary setting in Customizing. The
following describes delivery-related billing.   Also see associated process,
outgoing royalties settlement.

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Customer Order Cycle


The customer order cycle occurs at the customer/retailer interface and includes
all processes directly involved in receiving and filling the customer’s order.
Typically, the customer initiates this cycle at a retailer site and the cycle
primarily involves filling customer demand. The retailer’s interaction with the
customer starts when the customer arrives or contact is initiated and ends when
the customer receives the order. The processes involved in the customer order
cycle include:
• Customer arrival
• Customer order entry
• Customer order fulfillment
• Customer order receiving

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Customer Arrival. The term customer arrival refers to the customer’s


arrival at the location
where he or she has access to his or her choices and makes a decision regarding
a purchase. The starting point for any supply chain is the arrival of a customer.
Customer arrival can occur when
• The customer walks into a supermarket to make a purchase
• The customer calls a mail order telemarketing center
• The customer uses the Web or an electronic link to a mail order firm
From the supply chain perspective, the key flow in this process is the
customer’s arrival.
The goal is to facilitate the contact between the customer and the appropriate
product so that the customer’s arrival turns into a customer order. At a
supermarket, facilitating a customer order may involve managing customer
flows and product displays. At a telemarketing center, it may mean ensuring
that customers do not have to wait on hold for too long. It may also mean
having systems in place so that sales representatives can answer customer
queries in a way that turns calls into orders. At a Web site, a key stem may be
search capabilities with tools such as personalization that allow customers to
quickly locate and view products that may interest them.
The objective of the customer arrival process is to maximize the conversion of
customer arrivals to customer orders.

Customer Order Entry. The term customer order entry refers to


customers informing the
retailer what products they want to purchase and the retailer allocating products
to customers. At a supermarket, order entry may take the form of customers
loading all items that they intend to purchase onto their carts. At a mail order
firm’s telemarketing center or Web site, order entry may involve customers
informing the retailer of the items and quantities they selected. The objective of
the customer order entry process is to ensure that the order entry is quick,
accurate, and communicated to all other supply chain processes that are affected
by it.

Customer Order Fulfillment. During the process, the customer’s


order is filled and sent to
the customer. At a supermarket, the customer performs this process. At a mail
order firm this
process generally includes picking the order from inventory, packaging it, and
shipping it to the customer. All inventories will need to be updated, which may
result in the initiation of the

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replenishment cycle. In general, customer order fulfillment takes place from


retailer inventory. In a build-to-order scenario, however, order fulfillment takes
place directly from the manufacturer’s production line. The objective of the
customer order fulfillment process is to get the correct orders to customers by
the promised due dates at the lowest possible cost.

Customer Order Receiving. During this process, the customer


receives the order and takes
ownership. Records of this receipt may be updated and payment completed. At
a supermarket, receiving occurs at the checkout counter. For a mail order firm,
receiving occurs when the product is delivered to the customer.

Monitor Inventory as It Moves to the Customer


—And Back
Order Lifecycle Management unites three powerful modules to put you in
control of the entire order management process.

 Distributed Order Management—Keep your supply and


customer demand in profitable balance. A global view of inventory—at
the supplier, in transit or at the warehouse—combines with cross-channel
order reporting to enable you to deliver what your customers want, when
they want it. Satisfy demand using the full supply pipeline by diverting
in-flight inventory to where it's needed most: directly to customers,
directly to stores, or to the appropriate distribution center based on real-
time inventory positions. Manage inventory across channels by creating
virtual divisions in the Distributed Order Management layer, alleviating
cross-channel inventory complexity from distribution center operators.

 Reverse Logistics Management—Make returns efficient,


accurate and easy. Capture customer information, track return reasons,
and automatically select the optimal mode of transportation to make
returns a source of valuable customer and quality information. Automate
vendor rules and streamline return-to-vendor credit process. Improve
vendor buyback, reduce cycle time and improve open-to-buy.

 Store/Customer Gateway—Let customers and stores place, track


and confirm their orders on line, giving you proof of receipt,
opportunities for feedback—and happier customers.

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Bibliography

WWW.Google.com
WWW.Managementparadise.com
WWW.Wikipida.com

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