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Process and Order FulfillmentComplete a process and order fulfillment paper using either a personal experience or select a fortune 500 company (i.e. Amazon, Google, or Coca Cola) to discuss their purchasing, production, and logistics processes.
The requirements below must be met for your paper to be accepted and graded:Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
Use font size 12 and 1” margins.
Include cover page and reference page.
At least 80% of your paper must be original content/writing.
No more than 20% of your content/information may come from references.
Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing. LECTURE:DoD Fulfillment ConsiderationsEnd-customer satisfaction is predicated upon establishing an effective and efficient fulfillment process to meet company strategic and SCM goals. This lecture relates the general steps used by the Department of Defense (DoD) in supporting material fulfillment demands and requirements in support of the warfighter. Overarching order fulfillment categories examined include the supply chain design, order fulfillment and the associated tenets, as well as fulfillment strategies.Supply Chain DesignOrder fulfillment predecessors are developed based upon the supply chain design and business models executed. The supply chain is constantly evolving based on the product or service life cycle, while balancing the Key Performance Parameters (KPPs) and Key System Attributes (KSAs), making a product appealing or desirable to the consumer. As a logistics and supply manager, you will find multiple systems or product lines furnished at different stages of the life cycle. The product life cycle includes the introduction, growth, maturity, and decline phases as illustrated in figure one below.The introduction or embryonic period is derived based on innovative new ideas or incremental changes. This is the most critical period in the life cycle as the product quality and pricing significantly affect long-term promotion and distribution results. SCM personnel work very closely with marketing to align with the marketing mix, which is the product, price, place, and promotion. For example, HTC, Samsung, and Apple smart phones reflect incremental modernization developments over an annual period due to intense pressure on growth and maturity phases shortening the life cycle. In contrast, the Boeing B-52 Stratofortress has been operational since 1948, and includes minor incremental changes based on a solid design with an innate ability to integrate newer technologies to continue performing the military mission.Business models further propagate supply chain actions to fulfill multiple strategic goals and objectives. There are four primary business models to consider including Business-to-Business (B2B), Business-to-Customer (B2C), Peer-to-Peer (P2P), and Customer-to-Business (C2B). A good supply chain program normally incorporates multiple business models to determine what the competition is doing, strengths and weaknesses, integrated distribution channels with partners or alliances, and gaining feedback from customers to maximize product or service supportability. Lastly, each of the business models employed encompass a product reliability curve and associated failure rates, while comparing organic (internal) production versus outsourcing aligned with ownership short and long-term goals, organization core advantages to outpace competitors, and quantitative results associated with the life cycle support schedules.Order FulfillmentOrder fulfillment definitions differ based on the business model and tailored supportability requirements to meet organizational goals. Common order fulfillment elements consists of purchase and receiving, inventory management, transportation management, and order processing, as well as returns processing. Each element or Area of Responsibility (AOR) sponsors an incredible amount of planning and organizing to implement an effective fulfillment process. Fawcett, Ellram, and Ogden denote the functional components of the physical supply chain flow which aligns with the Supply-Chain Operation Reference (SCOR), which is the most common template used across the world.Each element associated with the order fulfillment process correlates to the SCOR framework to meet push and pull demand requirements.ReceivingDespite the organic or outsourcing methodologies, receiving inventory from manufacturers or suppliers is the first step in distributing products to consumers. Common steps include counting items, inspecting inventory, and using warehousing management software to assist in accounting for Stock Keeping Units (SKUs). An essential function includes the process mapping and training of employees as invoices must be paid, materials accounted for, and databases reconciled to reflect the hundreds to thousands of products received daily. An example process flow I created is depicted below to illustrate the intricacies of receiving IT hardware assets associated with the OCONUS Navy Enterprise Network (ONE-NET).It is not essential to understand every step, but to comprehend the stakeholder dependencies and correlations required to ensure accurate receipt of materials to fulfill customer demand needs. The ONE-NET receiving process example accounts for 127 full inventory turnover cycles per annum valued at $1.2 billion.Packaging, Handling, Storage, and Transportation (PHS&T)Behind material management and fulfillment operations are procedures that ensure support items are properly preserved, appropriately packaged, marked, stored and handled, as well as transported for short and long-term requirements. Based on seasonal or environmental differences (humid versus dry climate) tailoring the preservation, packaging, and storage requirements is based on support item type and category classification. Part and shipping configurations play a key role in determining the transportation mode and networks available. Intermodal transportation considerations include air, rail, ship, motor, and pipeline to include unique differences when considering international requirements. Key considerations for PHS&T include:Design, item configuration, hazardous and sensitive materials
Procedures to meeting special handling needs
Spares or repair parts
Technologies and methods to optimize processes
Environmental concerns and legal requirements
Inventory planning must integrate optimized fulfillment software as the packing station conducts quality control checks, scans items, and packing slips prior to sealing the box. There are a variety of inventory methods and technologies, such as Radio Frequency (RFID), hand-scanners, or simple hand and eye validation for smaller inventory counts. Lastly, packaging plays an essential role with consumers as the product and promotional activities correlate to appeal and desire, followed by consumer buying behaviors.Order ProcessingAs e-business platforms have evolved, online work requests, new orders, and maintenance are most often scheduled through an e-order. The fulfillment software associated with the consumers cart allows orders to be automatically received and processed. Several processing methodologies exists as some companies, such as Amazon, Wal-Mart, or Target use robotics to pull the item from storage and process the specific order from the shipping line. The military uses intermediate process applications with a warehouse locator system, in which items are identified, pulled, and personally packaged upon being inspected. Despite the methodology employed, proper packaging and shipping considerations to meet the customer needs are essential during the order process.For every military system, component, and Lowest Replaceable Unit (LRU) an Approved Products List (APL) is created to account for material baselines within inventory and financial databases. The APL is a result of configuration management controls upon approving or modifying engineering plans. The process enhances the logistics and supply chain manager’s ability to track products, account for obsolescence, and maintain purchasing accuracy. The APL exhibited above reflects a New Mexico APL; however, demonstrates the same purpose of DoD and corporate APLs. The unique cataloging differences include nomenclature, model, and part numbers.Returns ProcessingHandling defective products may be related to a number of categories related to poor manufacturing, use of inventory degradation as all corporate policies and procedures do not equally sustain on-the-shelf materials. Quality control and inspection functions are an inherent responsibility of logistics and supply members when managing contracts between suppliers. While Total Quality Management (TQM) seeks zero defects, three defects per million is an allowable margin of error. Inventory degradation can include uncharged batteries, chemical byproducts leaking, or a lack of special packaging instructions to support specialty and fragile items.Each organizational SCM activity holds the responsibility to measure failures and continuously improve the product baseline by taking corrective action. The FRACAS flow chart illustrated above represents reliability and maintainability data collected through testing measures. Failures are tracked to account for the Mean Time Before Failure (MTBF) and Mean Time to Repair (MTTR). These metrics feed product configuration changes. For example, working in a program several years ago I found that server racks did not contain slide rails on several naval ships forcing three sailors versus one to complete the installation and removal of servers, routers, and Uninterruptible Power Supplies (UPSs). Because of cost burdens and program delays the program manager accepted the risk and installed new cyber systems on 18 ships prior to the forced correction of the issue. The corrective action included a cost of over $10 million versus the original $1 million accompanied by a one-month installation delay. Secondly, the loss of productivity among sailors serving on the 18 ships was estimated at over 4,374 hours in conducting unneeded maintenance efforts.Fulfillment StrategiesThe order fulfillment process is a delicate balancing act between managing the organization’s strategic goals and ensuring the most optimized process for quality products delivered to consumers. Distinguishing the order fulfillment process is predicated upon a strong supply chain foundation that enhances the organizational business model, product life cycle, and marketing mix. The order fulfillment process is an integrated chain that embodies the receiving, PHS&T, order processing, and return activities. Each variable is crucial and must be carefully weighed in employing a successful SCM program.ReferencesFawcett, S., Ellram, M. L., & Ogden, J. A. (2007). Supply chain management: from vision to implementation. Upper saddle River, New Jersey: Pearson Education, Inc.
MTain Inc. (2010). Failure reporting and corrective action system. Retrieved from http://www.mtain.com/relia/relfracas.htm
New Mexico Department of Transportation. (2015). NMDOT approved products list (apl). Retrieved from http://dot.state.nm.us/content/dam/nmdot/APL/APL.p…
QuickMBA. (2010). The product life cycle. Retrieved from http://www.quickmba.com/marketing/product/lifecycl…
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