Improve Inventory Management Business Processes
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| www.TekoaERP.com |
By: Amy Sterk
What is a “business process?”
The different kinds of
business processes are the different tasks and actions that are performed in
order for a business to operate and provide their product or service. Even though each organization will have its own
version and alterations on their business processes, the three that are
considered to be the fundamental processes are, procurement process, production
process, and fulfillment process.
What is the fulfillment process?
Considered to be the
third of the core processes, in the fulfillment process the products or
services are delivered to the consumer or buyer. The fulfillment process is broken down into the
steps of; Receive Customer Order, Prepare Shipment, Send Shipment, Send Invoice
to Customer, and Receive Payment. Of course, each of these steps has many
different aspects and variables depending on the nature of the business and the
products/ services being produced.
How to enhance the fulfillment process
When trying to specialize your
company’s fulfillment process, one must go through each of the steps that must
be taken in order to provide your product/ service to your customers. In this case, we will use the standard steps
that are provided by the book. Keep in
mind that your company may have alternative steps, as well as more or less due
to different needs and practices.
Receive Customer Order:
What process does your company use to take customer orders? Is it the most effective
and convenient for your customer base?
For example, if a company requires a customer to fill out a paper order
form and either mail fax or deliver it to their store this company might
benefit from researching and using an online source to allow customers to place
orders through the internet. This switch could also benefit the company by
giving the ability to sort and organize the information from the order much
easier and quicker than if they received the order on a hard copy.
Prepare Shipment: In this
step, organization and communication is essential. Communication between the people in charge of
receiving and sorting out orders and the people putting the orders together
makes or breaks this stage.
Miscommunication can lead to unfulfilled orders and unhappy customers.
Send Shipment: the method
of shipment is a big choice. If the
company is large enough and has enough shipments, it could be beneficial for it
to invest in organizing their own transportation or if not, the company could
pair up with a business that specializes in transportation. This outsourcing could save them money and
unnecessary efforts, but the company should be aware and monitoring its many
different options in sending the shipment.
Send Invoice to Customer:
this step could also be enhanced if the company is using hard copies and
sending this information strictly through mail, or delivery. By using technology and the internet a
company could switch to electronically sending invoices and saving time as well
as money.
For more information about Improving Inventory Management for your enterprise, check out the tools from Tekoa Software at www.TekoaERP.com .
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