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Session 3 Supply Chain Basics Order Fulfillment

Atanu Ghosh
atanu.ghosh@nevaehtech.com

22-Nov-08

Order fulfillment
Order fulfillment process Order to cash cycle Order fulfillment metrics Demand planning and forecasting Order promising Available to Promise (ATP) Product availability check Rule based ATP Consumption rules Product allocation Capable to promise (CTP) Multi-level ATP Order consolidation Multi-level, single-item (MISL) scenario Backorder processing Dynamic routing

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Customer order fulfillment process

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Order to cash cycle

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Cash conversion cycle

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Order fulfillment metrics

22-Nov-08

Demand planning and forecasting pain points in demand planning

22-Nov-08

Commonly used statistical forecasting methods

22-Nov-08

Univariate forecasting methods

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Choosing forecasting methods

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Choosing forecasting methods

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Multiple linear regression (MLR)

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Multiple linear regression (MLR)

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Composite forecasting

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Forecast error measures for univariate models

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Measures of fit for univariate models

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Seasonal planning

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Promotion planning

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Lifecycle management

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Cannibalisation planning

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Order promising (ATP) management pain points

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Benefits of a proper ATP process

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Position of ATP in order fulfillment supply chain

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Basic and advanced methods of ATP

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Product availability check

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Product availability check scheduling

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Rule based ATP

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Rule based ATP


Bill of Material Rules Based ATP
Customer Order End Item
2 1 3 ive rnat Alte onent Change of Source Location p Com C1 2 1 3 e ativ ltern nent Change of Source Location A po Com C2 2 1 3 e ativ ltern nent Change of Source Location A po Com
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ATP Tree Structure

BOM Explosion

BOM Explosion

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Consumption rules

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Consumption rules

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Product allocation

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Product allocation scenarios


Popular product, limited supply Fair share Preference to certain customers (ABC, for example) Production capacity Transportation or shipping capacities In support of a contract for material sales

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Allocation procedures

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Product allocation consumption

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Capable to Promise (CTP)

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Change of production method

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Change of production method

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Multi-level ATP

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Order consolidation

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Multiple items single location (MISL) scenario

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Backorder processing

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Backorder processing - scenarios

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Business value of backorder processing

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Backorder processing and scheduling

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Backorder processing and scheduling

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Backorder processing and scheduling

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Dynamic routing

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Next Session: Supply Chain Basics Manufacturing

Atanu Ghosh
atanu.ghosh@nevaehtech.com

22-Nov-08

48

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