Many supply chain companies are seeking the elusive goal of perfect order fulfillment. However, obstacles like dated planning operations and disconnected execution programs often prevent the maintenance of a completely optimized scenario.
While the challenges to perfect order fulfillment vary from industry to industry, there are a few steps that can be applied in a more general sense.
Improve Demand Sensing and Demand Shaping
The initial step toward optimal order fulfillment is superior demand management. Businesses can make use of advanced demand management systems to better handle demand volatility, enhance demand-planning operations, and improve forecasting. Two crucial capabilities that enhance demand planning are demand sensing and demand shaping.
Demand sensing attempts to address a problem created by customers ordering from multiple channels. With orders coming in from every direction, it makes data capture on those orders challenging. A demand signal repository and other tools allow a company to recognize patterns across multiple channels. Seeing these patterns allows a company to make better demand forecasts.
Businesses can also take a proactive approach to demand by shaping it with a variety of tools. Dynamic pricing and other methods can be used to boost demand or maximize product promotions.
Boost the Reliability and Accuracy of Promises to Customers
Over promising and under delivering is a major problem in dynamic industries, and companies can improve their order fulfillment by better delivering on promises.
Many companies use global order promising (GOP) to see what part of the development process is causing problems with respect to delivering on promises. A GOP system presents active, real-time operations data, including manufacturing, supplier, and logistics limitations. The system essentially permits organizations to make speedy delivery promises that customers can count on.
The complete visibility of a GOP system allows retailers to commit to orders knowing total order fulfillment cost. The system also allows companies to utilize inventory without increasing transportation costs.
Improve Order Orchestration
Many companies – and large, complex organizations in particular – must regularly deal with order complexities. This problem is often made worse by the surge in order capture and fulfillment systems. These many systems are often either poorly integrated or not integrated at all.
Companies can improve the orchestration of their order fulfillment by breaking down information silos, offering a more complete view into global operations. Using a Distributed Order Orchestration (DOO) system, a company can cut through complexity to create a more centralized view of current orders.
A DOO system offers business managers total control over order management operations, which includes the ability to monitor order progress, evaluate issues, resolve difficulties, and alter fulfillment operations as the company grows.
A DOO system can be used for companies of all sizes, but applies best to order management processes for global companies. For these companies, a DOO system can reduce costs, expand margins and improve customer service.
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