Customer Order Management

MACRO 2000 Customer Order Management

The Macro Customer Order Management System is used to control customer orders where an  order is not just a simple instruction to deliver product.

Useful Where:
Orders are received for later delivery (e.g.. a manufacturing environment)
Orders require careful planning, management and handling (e.g.. where order versus delivery performance statistics are needed)
The system is designed to allow a wide range of facilities and options.  These are not compulsory and the user need only use the facilities that the facilities that he requires.

Objectives
To record all incoming orders and to provide effective management of the order book.
To apply simple but effective credit control procedures to incoming orders.
To provide sophisticated Order Analysis facilities, and management data (daily if required) on the order book status.
To (optionally) plan production taking into account the current order book.  This facility includes:
Determination of the quantities of product to be manufactured, and the dates by when manufacture must be complete.
Requirement Planning
Capacity Requirement Planning
To ensure that stock is being produced in time to meet order delivery dates.
To simplify (and optionally to automate) dispatch and invoicing procedures
To keep track of the status of all orders (un-actioned, in production, in dispatch, dispatched, etc), and delivered quantities/dates.
To provide on-line inquiry into orders and current  vs. historical order status.  On-line inquiries are available into:-
Individual Orders
All Orders for a specific customer
All orders for a specific product
To control orders overdue for delivery, and orders partly but not fully dispatched
To provide history for completed orders

Note:  There are two separate Customer Order Systems, one relative only to the Clothing, Textile and Footwear Industries, and a second General Purpose System.  Both systems are identical in concept, and vary only in detail.

Facilities
The Order Entry and Analysis System provides the processing necessary to capture details of all orders and to analyse them for use in measuring sales performance and for planning production.  The system also interfaces to the Invoicing/Debtors and stock sub-systems to facilitate dispatch and invoicing.

The system is often used for orders received for future delivery ie. it is not expected that the product can be delivered from stock.  This is typically a situation where tentative production plans are set initially and firm production schedules are set only after the bulk of the orders for a period are received.  The system will however  operate in any situation where orders are accepted for future delivery.

It may also be used where orders are received for immediate delivery, but where it is important to record and control at order level.  This may be for the historical statistics that are built up or simply to maintain orders on file to meet in-house or customer inquiries.

The system is capable of operating in a mixed situation ie. product is made both to order and for stock.  Order data capture and analysis is used principally for production planning and for analysis of sales.  The Invoicing Analysis sub-system will provide full analysis of invoices sales (actual sales).

Main Functions
To capture details of all orders received and to record them on the Order Master File.
To provide order analysis to assist in measuring sales performance by product customer, agent, rep or area.
To provide analysis for use in production planning and forward ordering of raw materials.
To analyse order details on the basis of selling price versus cost.
To provide input to the dispatch and invoicing functions.
To provide on-line inquiry into the status of any order or summary totals by product.
Order information is captured from the standard order form directly into the system
To provide historical analysis to access order versus delivery performance

Information captured is as follows:-
Order Number
Order Date
Customer Code
Customer Order Reference No
Rep Code and Commission Rate Code (optional)
Delivery date (or date range)
Delivery address (if not the customers usual delivery address)
Method of delivery
Delivery Route Code (Optional)
Order priority
Order discount %
Tax Chargeable indicator
Special Instructions for dispatch
Special Instructions for invoice
For each order line:
Product code
Colour – if applicable
Sizes – if applicable
Quantity ordered
Price (if not standard price)
Delivery Date (if not the same as the main order delivery date)

A number of computer checks and controls are used to ensure accurate order data capture.
Order data capture is designed for speed of operation because of the high volume of input sometimes over relatively short periods when orders are taken for particular selling periods.

Because of the options available the system in fact provides two order entry programs:
A high speed order entry program that allows only one delivery date and one discount for the entire order.  This program is normally used for the vast bulk of the data capture.

A slower speed program that allows different delivery dates, different pricing and discounting for each item on the order. This program is normally only used for special situations (large customers, etc.)

Data Capture
The Order Data Capture has special facilities and checks Order Priorities
Each order may be loaded with a priority of 1-9 (1 is the highest priority, 8 the lowest – priority 9 is a special priority – Order in Credit Check). The priority is used in reporting on outstanding orders due for delivery at a specified date or alternatively for automatic generation of product picking slips. Lowest priority numbers are printed first so that if limited stocks are available the higher priority orders are delivery first.

Delivery Priorities
Each order may be loaded with a delivery priority of 1-9 (0 is the highest priority, 9 the lowest). The priority is used in reporting and scheduling on outstanding orders due for delivery at a specified date or alternatively for automatic generation of product picking slips. Lowest priority numbers are printed first so that if limited stocks are available the higher priority orders are delivered first

Delivery Date Options
The following delivery date options exist:-
Delivery as soon as possible
A delivery date for the order
A delivery data range for the order
For order analysis purposes the first delivery date is for sequencing orders by delivery date.

Credit Control
The system can check orders on receipt against the customers credit limit and terms. If the customer fails the credit check the order is not rejected but is retained on file with priority 9. Priority 9 is a special status. The system will not dispatch any invoices in priority 9 status. A daily report is produced of orders in credit check status. An order in credit check status can only be authorized for delivery by using a special program, the Order Credit Check Over-ride program to authorize execution of the order. This program has a special password and is normally used only by the Credit Manager.

Stock Availability
Three different levels of Stock Availability processing are available.
No checking
Display available stock but allow the operator to decide if stock is available.
Allow orders to be accepted only if stock is available.
The definition of stock availability can include only stock on hand, or could include incomplete Picking Slips, Reserved Stock, higher priority orders and Work in Progress

Price Options
Orders may be captured at standard price, at operator entered price or the System Price File may be used.
The Price File allows different prices to be loaded for different customers, or to load multiple price lists, or to allow for special promotions etc.
Order Confirmation
The system will print order confirmations if required. This is a computer printed confirmation of the order details including price extensions and delivery dates which is sent to the customer to confirm his order. Order confirmation can be automatically faxed or e-mailed.

Automatic Dispatch Facilities
The system provides some very powerful automatic dispatch facilities. This includes:-
Production of picking slips either immediately an order is received or for a user selected range of orders.
The system allows user selected sequencing of orders. This is important to allow allocation of available stock to the most important orders.
Various types of stock availability checking are available. This includes:-
User defined rules for stock availability and allocation calculations
Complete orders must be satisfied
Individual order lines may be satisfied
Picking Slips may be printed or packing slips
Carton Packing labels may be printed
The system can optionally print only orders for customers which are sufficient to fill a complete carton

Order File Controls
The order file is an extremely important file. The system applies the same controls to the order master file as it would to other financial systems. A daily control report is produced showing total movements (no of orders, no of units, and value) of the file each day. The control total is the total volume of value of outstanding orders on file. This control is able to be checked through manual controls to ensure that the system is operating correctly.

Continuous Fabric Update (Clothing Industry users only)
The system maintains an on-going check of the total quantity f the main fabric used for each style. This is compared to the total available quantity field (total quantity on hand plus quantity on order) on the Raw Materials Master File. If an order is received for which not fabric is available management will be advised via one of two methods. This provides immediate management advice of potential fabric shortages. Alternatively periodic reports will advise on fabric availability versus order requirements.

Order History Statistics
The system includes an optional facility to record summarised order statistics for as long a period as required; possibly many years of history.
The Order Statistics File contains a record by product or by customer or by product/customer.
Summarised totals are maintained usually by month, but these may optionally be by week.
The summarised totals include:-
Number of orders received
Number of units orders
Value of orders
Number of units dispatched
Number of units short shipped
Number of units cancelled

Interface to Dispatch & Invoicing
The order analysis system will optionally interface to the Dispatch and Invoicing system as follows:-
Picking Slips or reports of orders due for delivery can be produced. These reports can select products and/or delivery periods and can take into account available stock.
Order Data can be automatically loaded into the Invoicing program which minimises invoice data capture.
Dispatch data is updated to the order file so that both original quantity and delivered quantity and dates are recorded
The system also interfaces to the Production Planning System. This allows the recording of production started and completed so that orders there may be analyzed taking into account planned and completed production.

Order Summary Inquiries
Order Statistics Inquiry
The order-entry system builds up the total quantity of orders on hand by product. An on-line inquiry is available to inquire on the up to the minute totals for any product, or customer.
Individual Order Inquiry. This gives full details of any order including delivery information.
Orders for a specified customer. This inquiry will list all orders for a specific customer.
Orders for a specific product. This inquiry will list all orders for a specific product.
Orders by Customer/Product Summary Inquiry
Orders by Product/Customer Summary Inquiry

Order Analysis Reporting
There are a large number of Order Analysis Reports
Major reports produced include:-
Order analysis by Product/ Colour/Size. This report summarises orders for each product by colour (and size total optional)
Order Analysis by Product/ Customer. This report analysis orders for each Product by customer.
Order analysis by Customer/Product. This report lists and totals orders for a particular period by customer. The report will report on all orders or optionally outstanding orders only.
Order Analysis by Agent (or Rep or Area). This report is similar in format to the analysis by Customer. It reports on orders by Rep/Agent or optionally by Area Code.
Order Analysis by Delivery Period/Product
Overdue Order delivery Report
Short Delivered Order Report
Order Credit Check Report
Order Analysis by product Group
Stock Availability versus Customer Orders
Customer Order Performance Year by Year
Order Analysis by Product/Delivery period. This report analyses and totals orders within customer selectable delivery periods.
Production Planning summary. This report analyses order by product within delivery period. This is used in production planning. The report will optionally report only outstanding orders for use by the Dispatch Department.
The various order analyses reports are available either in summary form (ie. totals by selected category are printed) or in detail format (individual orders for each category are printed). The exception to this rule is the analysis by product/colour/size which is available in summary format only.
Detail reports are available for a selected part of the file only. For example orders for a particular style can be printed to facilitate dispatch

CONTACT DETAILS
Macro 2000
Unit B, First Floor
Upper East Side
Brickfield Road
Woodstock
Cape Town
7925
South Africa

Contact: Anthea van Breemen or Chris Strachan

Phone: +27 21 448 7203
Email: macro@macro.co.za
Web: www.macro.o.za