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B2B Approach Paper
 

 

Introduction

This document discusses the various issues pertaining to the targetapplication domain of shoper retail solutions B2B Web Suite. This document is aprecursor to functional specs of the product.

 

Background

The shoper retail solutions B2B Web suite addresses the application spaces wherein thefollowing are considered true:

Merchandise are sold to customers who are distributors and retailers
Merchandize are fashion dependent and seasonal. That is most of the merchandize are not repeatedly produced as on successive seasons newer merchandize are offered
The merchandize are procured in either or both of the following manner:
Raw material are procured from Raw Material Vendors and the same are sent to Fabricators (factories) who manufacture the merchandise as per specification provided
Ready-made merchandise procured from Fabricators who will procure the raw material manufacture in bulk as per specification. In this situation the Fabricator is responsible for raw material quality also.
Ready-made merchandise procured from Finished Goods Vendors. Vendors specify the merchandise. And merchandise is selected from Vendors' collection.
Sales is carried out either directly or by booking agents
Stock of items ordered by the customers may or may not readily exist. Besides, the merchandise may be still under production at the time of order booking
Possible factors that affect order fulfillment are:
Shortage of stocks due to unforeseen short production and inability of servicing the orders within the stipulated period
keno en ligneOrders booked in excess of production when production quantity is fixed and models are not repeatedly produced
Stockpiles are caused in following situations:
Newer models competing are offered either together with older models or before the older models are fully sold. Many a time this may be unavoidable as production planning and execution are processes independent of sales
Customers and selling agents do not get to know the availability of stocks in time
Maintaining high service levels include giving the customers the status of their order in time
Production seconds result due to fabrication errors. These are normally accepted from fabricators when if they are within stipulated norms

 

Objectives

The objectives of supply-chain management may be summarized as achievementof:

100% Order Fulfillment
five star hotel in Milan100% Need Fulfillment
Nil Stockpile

 

100% Order Fulfillment

The means for achieving this objective are as follows:

Order Booking: Offer for order booking only those merchandise that can be fully delivered
Manufacturing: Ensure that the quality of merchandise is consistent with the samples shown while order booking
Warehousing: Ensure 100% servicing within stipulated time for order execution.
Order Tracking: Till the orders are fully serviced, tracking the order execution and keeping the customer informed on status of the orders

 

Order Booking: Offering only those merchandise that can be delivered

The following are possible options:

Accept orders only against Stock on Hand
Pros: Order Fulfillment will be 100%
Cons: Probability stockpile is high; Up-front investment on merchandise leads to higher inventory levels; Misconceptions on customer preferences lead to dead-stock
Accept orders against planned production
Pros: Order Booking can start before goods arrive at the warehouse; Higher stock-turn-out at the warehouse
Cons: Raw material defects detected during production and production errors result in shortage of merchandise and hence short-servicing of orders. Possibility of dead stock still exists
Accept orders against staged production plan: This scenario can be applicable only if production time is much less than maximum permissible time for order execution. The production is planned in at least two stages. Each stage is planned based on availability of raw material (either with self or with Raw Material Vendor). Smaller quantities should be planned for the first stage and based on the order inflow, subsequent stages are to be planned.
Pros: Same as the previous option
Cons: Longer order execution time and hence up-front planning. Lesser dead stocks

Hoteles economicos en BoracayOrder Tracking: Keeping the customer informed

Orders booked may go through various stages of execution depending on thepoints of servicing of orders. Besides orders may get executed from any of thevarious stocking points or even fabricators' warehouses themselves. For eachitem ordered in each ordered the stage of execution the items is in needs to betracked and the customer informed on the same.

 
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