Order cycle

Order cycle description

1. Presented by: Suanny Franco Elena Mirian Villacis Lecturer: max Galarza Grade: 9 CUSTOMER ORDER CYCLE Logistic II

2. CUSTOMER ORDER CYCLE It includes all of the elapsed time from the placement of the order until the product is received and placed into the customer’s inventory. In logistics: Nothing happens until somebody orders something.

3. 6 COMPONENTS OF CUSTOMER ORDER CYCLE Order preparation & transmittal Order receipt & order entry Order processing Warehouse picking & packing Order transportation Customer delivery & unloading

4. CUSTOMER ORDER CYCLE

5. ORDER CYCLE TIME D A Y 1 D A Y 2 D A Y 3 D A Y 4 D A Y 5 D A Y 6 D A Y 7 D A Y 8 Customer order cycle duration: Ranges from 5-21 Days Most likely: 13 Days

6. D A Y 1 ORDER PREPARATION & TRANSMITTAL

7. ORDER PREPARATION The customer formally requests the products to be purchased. It may involve: - Determining the appropriate vendor. - Filling out an order form by the customer or a sales person. - Determining the stock availability. - Voice communication of the order. - Making selection from a computer menu.

8. ORDER TRANSMITTAL Transferring the order request from the point of origin to the place where the order entry can be handled. 2 Fundamental ways: (a) Manually - Physically carrying the order - Slow, inexpensive (b) Electronically - Toll-free numbers, internet, satellite communications - Reliable, accurate, fast - Expensive

9. D A Y 1 D A Y 2 ORDER RECEIPT & SYSTEM ENTRY

10. ORDER ENTRY Checking order information accuracy. - Item description, item number, quantity, price. Checking availability of requested items. Prepare back order or order cancellation documentation, if necessary. Checking customer’s credit status. Transcribing order information as necessary. Billing.

11. ORDER PROCESSING Notifying the buyer. Scheduling the shipment for delivery. Prepare the shipping documentation. Priorities can affect speed of order processing. D A Y 3 D A Y 1 D A Y 2

12. ORDER PROCESSING

13. D A Y 1 D A Y 2 D A Y 3 D A Y 4 PICKING & PACKING

14. PICKING & PACKING(Contd.) Acquire the items through stock retrieval, production & purchasing. Packing the items for shipment.

15. D A Y 1 D A Y 2 D A Y 3 D A Y 4 D A Y 5 D A Y 6 D A Y 7 TRANSPORTATION

16. ORDER STATUS REPORTING Keep the customer informed of any delay in processing or delivery. It involves: - Tracing & tracking the order throughout the entire cycle. - Communicating with the customer as to where the order may be & when it may be delivered.

17. D A Y 1 D A Y 2 D A Y 3 D A Y 4 D A Y 5 D A Y 6 D A Y 7 D A Y 8 CUSTOMER RECEIVES AND UNLOADS ORDER

18. PATH OF A CUSTOMER’S ORDER

19. FACTORS AFFECTING ORDER PROCESSING TIME Processing priorities. Inadequate stock. Order filling accuracy. Order batching: - processing in groups or batches may reduce cost, but may delay order filling. Shipment consolidation: - Holding orders for consolidation reduces cost, but extends processing time.

20. IMPROVING THE 8 DAY ORDER CYCLE Better selection & monitoring of carriers is cost effective. Switching to fastest carriers. Advanced order processing methods. Improved information flow & communication. Maintain adequate safety stock to cover possible delays due to stock outs.

21. SUMMARY Time to complete the activities of order cycle: The Heart of customer service . Speed and accuracy affect the level of customer service.

22. THANK YOU

23. References http:// www.businessdictionary.com/definition/order-cycle-time.html https:// docs.oracle.com/cd/A60725_05/html/comnls/us/oe/defordcy.htm https:// docs.oracle.com/cd/A60725_05/html/comnls/us/oe/ordcyc.htm http:// www.supplychainmetric.com/cycle.htm https://www.cips.org/en/knowledge/procurement-topics-and-skills/developing-and-managing-contracts/purchase-order-cycle--process /