Business Processes: Procurement and Fulfillment

Overview

This Module is designed to introduce you to Procurement process (buy) and fulfillment process (sell). Three processes are directly related to creating and delivering products and services. They are procurement process (buy), production process (make) and fulfillment process (sell). The procurement process refers to all the activities and steps required in buying or acquiring the material used by the organization to make products. The fulfillment process consists of all the steps involved in selling and delivering products to the organization’s customers.

Note that the terms above are generic to commercial companies that sell physical products. Organizations that accomplish services whether commercial or government may not use these terms but they still fit.

If you work in Government agency, you provide a service. There are still procurement processes to obtain the systems and supplies required. The production process in a government agency is everything required to fulfill the service to customers. In federal or local government agencies such as military or police this may mean continuous training until such time as the actual service is provided (i.e. during a contingency)

Similar inferences can be made about other government service providers whether state, local, or federal.

Background

There is a wide selection of reading material available for procurement process and fulfillment process. There are some reading material identified below but feel free to conduct your own search on internet and find more reading material.

Required Reading

Halchin, L. (2012). Overview of the federal procurement process and resources. Retrieved from http://www.fas.org/sgp/crs/misc/RS22536.pdf

Purchasing Insight. (2012, September 23). The procurement process. Retrieved from http://purchasinginsight.com/resources/the-procurement-process/

Microsoft. (2012, September 23). Learn about Microsoft's procurement. Retrieved from http://www.microsoft.com/about/companyinformation/procurement/process/en/us/default.aspx

VendorSeek. (2012, September 23). What is the fulfillment process. Retrieved from http://www.vendorseek.com/what-is-fulfillment-process.asp

Optional Reading

Google. (2012, September 23). Multiple sources of procurement process images.

La Rosa, M., Clemens, S., & ter Hofstede, A. (2009, September 30). The order fulfillment process model. Retrieved from http://www.yawlfoundation.org/yawldocs/orderfulfillment.pdf

Google. (2012, September 23). Multiple sources of order fulfillment process images.

ASSIGNMENT 1 - Case

Business Processes: Procurement and Fulfillment

Assignment Overview

Required Reading

GovWin. (2010). Government procurement process. Retrieved from http://govwin.com/knowledge/procurement-process

Purchasing Insight. (2012, September 23). The procurement process. Retrieved from http://purchasinginsight.com/resources/the-procurement-process/

Microsoft. (2012, September 23). Learn about Microsoft's procurement. Retrieved from http://www.microsoft.com/about/companyinformation/procurement/process/en/us/default.aspx

VendorSeek. (2012, September 23). What is the fulfillment process. Retrieved from http://www.vendorseek.com/what-is-fulfillment-process.asp

Optional Reading

Google. (2012, September 23). Multiple sources of procurement process images.

La Rosa, M., Clemens, S., & ter Hofstede, A. (2009, September 30). The order fulfillment process model. Retrieved from http://www.yawlfoundation.org/yawldocs/orderfulfillment.pdf

Google. (2012, September 23). Multiple sources of order fulfillment process images.

You have studied both procurement process and fulfillment process in this module. When you've had a chance to review information from the background readings and research other sources on your own, please prepare a 3-5 page paper on the topic:

Describe the steps in the procurement process. What are the possible variations to this process?

or

Describe the steps in the fulfillment process. What are the possible variations to this process?

You may like to approach the question by discussing 1) what the steps are, 2) various functional areas involved and what the triggers are for the start of the 3) procurement or fulfillment process(not both). It is highly encouraged to provide diagram for all the steps and details.

The example for the Process Flow Example is available at this link.

It may be helpful to augment the above with a description of an a procurement or fulfillment process you are familiar with from your current job, past job, or from personal experience

You may like to approach the question by discussing what the steps are, various functional areas involved and what the triggers are for the start of the procurement or fulfillment process. It is highly encouraged to provide diagram for all the steps and details.

Assignment Expectations

Your paper should be between three and five pages. Take a definite stand on the issues, and develop your supporting argument carefully. Using material from the background information and any other sources you can find to support specific points in your argument is highly recommended; try to avoid making assertions for which you can find no support other than your own opinion.


 

ASSIGNMENT 2 - SLP

Business Processes: Procurement and Fulfillment

This SLP will focus on Enterprise Systems that support a Procurement Department in an organization. All organizations have Procurement departments. If you are in the military, police, or other Government agency, the functions may be accomplished by the logistics organization or by the contracting office. Before reading about Procurement Enterprise Systems, go to each of these websites and look at the responsibilities (i.e., the business processes) of a Procurement Department.

·        Steve P. (2013), Definition of Procurement Department, Retrieved from, http://www.ehow.com/about_6711466_definition-procurement-department.html

·        The Supply Chain Resource Cooperative (2011), Role of procurement within an organization, Retrieved from, http://scm.ncsu.edu/scm-articles/article/role-of-procurement-within-an-organization-procurement-a-tutorial

·        GovWin (2010), Government procurement process, Retrieved from, http://govwin.com/knowledge/procurement-process

Once you have an idea of what business processes Procurement departments accomplish, take a look at Enterprise Solutions for Procurement provided by one software company.

Go To: “Procurement” at SAP ERP website http://www.sap.com/lines-of-business/procurement/index.epx. The select the Explore Our Solutions link

For this SLP paper, select the Procurement functional area from the list above and review the site.

The direct link to the Procurement Functional Area software is: http://www54.sap.com/lob/procurement/software/overview/highlights.html

There are several solutions for Procurement. Pick one and expand in.

Now that you have general ideas about what a Procurement department does and what an Enterprise System that supports Procurement can do, please discuss the following questions specifically:

1.    What are the potential benefits of one or more of the solutions identified by SAP? Specifically identify which solution or solutions you selected.

2.    Do you agree with them? Discuss and analyze. Explain why you agree or disagree. Try and explain the benefit that the SAP solutions you selected bring to an organization.

3.    Using the knowledge you gained on Procurement departments and Enterprise Systems that support them discuss how this enterprise module might be useful to your organization? In discussing this state whether your organization has or does not have, one or more Enterprise Systems for Procurement and whether the people that run them could use the tools you identified.

SLP Assignment Expectations

Your paper should be two to three pages in length, and reflect your personal experiences with this issue. The important part of all these project assignments is to carefully assess your own experiences with the topic, and then reflect critically on what you might have learned about yourself and about situations through this assessment process.

The more that you can use the exercise to develop personal implications for your growth as a potential business person as well as a knowledge user, the more value you'll get out of the exercise.

 

If there are reasons why the entire exercise is impractical for you to undertake at all, please explain them to your instructor as early in the Module as possible, so that an alternative assignment can be arranged.

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