Integrating Processes

Running Head: CONCEPT OF PROCESS INTEGRATION

CONCEPT OF PROCESS INTEGRATION 6

Concept of Process Integration

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Process integration in a business plays a key role where several systems, processes and even workers collaborate in order to increase the performance of the business as well as increase its production yields and profits. These processes do interact together so as to improve the effectiveness of different activities in the business or organization such as sales, marketing, supply chain management among others where they do depend on each other for the smooth flow in the business.

Financial accounting is basically a specialized accounting branch which evaluates and overviews all financial transactions that are carried out in a company or any business organization. The financial transactions are delivered through a financial statement such as the balance sheet, statement of equity, income statement and statement of cash flows or can be done through financial report which is mostly done annually. This is made possible by recording and summarizing all the transactions made in a specified period of time. The main aim for financial accounting is to offer detailed information to various stakeholders and investors to assess and understand the company’s value in order to make their own decisions. Financial accounting is accompanied by guidelines and rules referred to as Accounting Standards and also General Accepted Accounting Principles which are used to ensure the financial reports and statements do not have errors and proper entries are recorded and summarized well for them to be credible, clear, understandable and comparable as stated by Hogget, (2015).

According to McLean, T (2017), Procurement is an act or process which involves searching and coming to mutual agreement terms in order to obtain or buy goods and services basically from another external supply source which can be done through tenders or even a competitive process of bidding. Comparison in the quality, quantity, location and time for the goods and services is done in order to offer the buyer favorable price. Procurement involves making decisions based on buying at scarcity conditions in the market. These decisions are based on planning of purchases, development specifications of certain goods and services, determinants to setting up specific standards, Evaluation of research and selection made by the supplier, analysis and evaluation of the goods and services value, negotiations on prices, process to follow in order to make a purchase among others. Procurement is very important in a company because the determination of operations continuity is based on the purchase ability of certain goods and services.

Fulfillment is basically a process where ordered goods by the consumers or buyers are received, packaged and shipped to them. This process is more practiced in online marketing such as e-commerce. This is done by sending the customers an email when their products are already packed and send for them to wait to receive them. The orders can be made through the company’s website. Fulfillment companies do take goods from the warehouse premises, pack them and after that they give the packed goods to shippers then after that they go ahead to conduct the customers through email in order to have a knowledge that the goods are on transit as stated by McLean, (2017).

Production is a process where various raw materials are transformed into a valuable product such as a good or service that can be used to satisfy the needs and wants of a customer. Production involves making goods and services which have favorable prices and of good quality in order to satisfy the end user. It involves three forms which are market, public and household production. In producing companies the main processes do entail the real process, process of income distribution, process of production, process of monetary and finally process of market value as explained by Silver, Pyke, Silver & Thomas, (2017).

Inventory is the total amount of goods and assets held by a company or business enterprise with an aim of repairing or resale. The inventory keeping are useful in various ways such as economies of scale where goods held can be bought in bulk at a particular period of time. Also inventories may gain the required value by buyers when they are kept which can be therefore taken for production or even consumption. For seasonal demands, inventory plays a key role because production companies may require the goods when the demand is high thus increasing their production stock as explained by Bond, (2017).

Warehousing management plays a key role in assisting the daily planning of various activities such receiving, packing, shipping, picking, directing and controlling of various goods within the warehouse in order to reach the end user. This is done through the use of warehouse inventory software in order to help workers to improve their performance and make it efficient when dealing with huge amounts of goods.

According to McLean, (2017), material requirements planning is a control mechanism for planning of the production, its scheduling timetable and inventory which is basically applied to manage, control and improve processes used in manufacturing. It is aimed at ensuring that production materials are available at all times and also the goods to be delivered to customers are also available. Additionally, it looks upon to ensure that in the store the materials and product are in the minimum levels required and finally it focuses on planning the activities in manufacturing, schedules for deliveries are in order and also the activities in purchasing are well aligned.

In these processes, it is evident from the discussion that they all work hand in hand. For procurement to be done effective, the external sources must include financial accounting into consideration. Also, the company before procuring any product, they have to evaluate the financial statements and financial reports of the company in order to procure the exact product which will help the company to grow and also expand further. Price factor is included where financial accounting is employed to determine how the procured products will be priced for them to be bought by customers. Production relates with procurement in that goods are procured from the production company and through negotiations, the production company will produce goods as advised by the procurement department. This also calls for financial accounting to connect the two processes in order to understand how to price the goods, the capital to be used and all costs to be incurred.

Warehousing management relates with inventory where it observes on these goods and products while in the warehouse store and decisions made when they can be packed or shipped or delivered etc. Also Material requirement planning is applied in warehousing management to ensure the inventory is in good state and also at their lowest possible levels. Also in Production, material requirement planning gives a guideline in planning on how to produce certain products and at what specific period of time. Also, inventory can be purchased by Production Company when demands are high in order to produce those products which are in demand thus increasing their stock. With all these, fulfillment comes in when the inventory needs to be transferred to Production Company or even the products are ready to be shipped to the customer. In conclusion, all these processes they relatively work together in order to help several companies to produce goods and deliver them to the targeted customer.

References

Bond, D. (2017). Inventory: London: Henry Stewart Talks.

Hogget, J. (2015). Financial accounting: Milton: John Wiley & Sons Australia.

McLean, T.(2017). On Time, In Full: Achieving Perfect Delivery with Lean Thinking in Purchasing, Supply Chain and Production Planning: Portland: CRC Press.

Silver, E. A., Pyke, D. F., Silver, E. A., & Thomas, D. J.(2017). Inventory and Production Management in Supply Chains: Boca Raton: CRC Press, Taylor & Francis Group.