Processes and Implementation, Business Framework, and ERP Integration

Streamlining Business Process

Name

Institution

Ordering and Requisition Process Diagram

Goals of the Trading system

· Streamlining the trading cycle

· Reducing the number of intermediaries and the system used in the ordering process hence creating efficiency of the system.

· Creating efficient trading process.

Functionality of the trading system

The business processes in the scenario include preparation of quotes, RFQ evaluation, and review. Order reviews and acceptance processes. When we look at the business objects, we talk about the order, buyer agent, superintendent, vendor and the receiving agent. The business service could be the decisions to be made such as checking if the request is acceptable if so the system should send notifications to the buyer and the seller. The current system has more advanced features such as improved reporting to acknowledge the user of the status of the ordering system (Krajewski & Ritzman, 2015). The primary goal of the system is to realize a complete order system, the goods are delivered according to the requirement of the buyer, and the multi-verification process is to ensure that the products are of the perfect state before the full order process is complete. The challenges are resulting from demand and planning, supply chain optimization and logistics planning present very complicated scenario, which could risk being oversimplified.

The buyer or its agents make a requisition to trigger the ordering process. The processing demand that the Quotation is reviewed evaluated and approved before going to the next level. The buyer or his agent do the evaluation and the review. When this is done, the order goes to the next level where the superintendent evaluates and approves the request for quotation. According to this process, the vendor then reviews the quote and decides on whether to go ahead with the quotation or rescind the decision. When this is done, the quote goes back to the buyer agent who reviews and approves the request for quotation. The next process is the review of the quote by vendor again reviews the quote and if satisfied, accepts the quotation

Objectives of the Trading System

· Increase the sales productivity by reducing the ordering cycle.

· Get better prices of goods by relying on the history of the orders made

· Increase profitability of the ordering system and reduce wasteful purchases through repeat and thorough ordering process.

· Improve efficiency through the detailed ordering process.

The buying (trading) process shown above is a process in which the trader evaluates the customer demands before making the purchases to ensure that the goods being bought are the right prescription of the buyer. The process looks straightforward, but the process as shown in the diagram needs skilled personnel to carry out (Kuglin, 2008). In the above diagram, the buying process is for the products the buyer cannot buy directly cost-effectively form the stores. Therefore, the distributor has to go to the company warehouse to initiate an ordering process. The major goals of this process are to ensure that the optimal inventory is purchased depending on the customer demand. Without proper tools and experience, the process can be difficult, with fluctuating lead times, unforeseen forward buying and a lot of time invested in the buying process. All these point figures to the poor design of the buying process (Kruger, 2016).

References

Krajewski, L.J. & Ritzman, L.P. (2015) Operations Management: Processes and Value Chains, Seventh edition. Pearson Prentice Hall, New Jersey, 805 p.

Krüger, V. (2016) “How can a company achieve improved levels of quality performance: technology versus employees?” The TQM Magazine, Vol. 8, No. 3, pp. 11-20.

Kuglin, F.A.K. (2008) Customer-Centered Supply Chain Management, A Link-by-Link Guide, American Management Association, New York, 267 p.