SÃO JOSE DE LHANGUENE MEDIUM INSTITUTE

QUALIFICACTION: Vocational Accounting

THEME: Placement of orders

Module : CIRE

Trainee: HENRIQUES ABÍLIO MASSANGO

Trainer: MR Monjane

Maputo , aos 16 de outubro de 2022

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Introduction

Order processing is representing by a set of activities that make up the costumer’s Order cycle,
starting with preparation, transmission, entry or receipt, fulfillment (pick-up and production),
dispatch, transport and receipt by the costumer.

Processing an order can be complex and slow, thus generating a delay in meeting customer
needs.

The crucial factor in the processing of any request is the efficiency of its

Information flow, which is very noticeable when we scale this service situation.

Request for a larger scale of projection

This entire relationship between the different segments of a business to serve

The final consumer is what is called the supply chain.

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3.2 Order processing

Taylor (2005p.68) states that processing an order can be complex and slow, thus generating a
delay in meeting customer needs.

According to Ballou (1993), order entry and processing are bureaucratic activities for collecting,
verifying and transmitting information regarding sales made. They are key factors in the total
order cicly time of the request.

For bowersox and closs(2001):

“ the best ways to process orders are those ingrated with order
management,so that solutions are defined that seek to satisfy

both customers and the company’s resource constraints.”

Order processing costs tend to be small compared to transportation or inventory holding costs.
However, order processing is a primary logistics activity. Your importance

3.2.1Order processing types

a) Processing Industrial orders

Normally, the orders placed by the industry are large –scale, that is, large quantities, as
they deal with different inputs for the maintenance of its daily operation.

Manual processing system is one that has a high component of human activities through
some stages of order processing can be automated, manual activity will
Represent the largest proportion in an industrial order processing.

b) Retail order processing

By having a varlely of products available, supplied by industries and distributors, and
composing a larger portfolio in the market, the retail order processing ends up counting
on a higher level of autornation compared to the industry. Even so, electronic transactions
tend to be minimal, because they have stocks that increase the response time regarding
replacement and supply

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The use of the internet has enable these companies to reduce warehouse space, lower
inventory level, reduce handling time and improve order progress tracking.

c) Processing the customer’s order

Order processing systems designed to interact directly with the end consumer demand
a high level of customer services.
Due to the dynamism and speed of response demanded by customers, the immediate
fulfillment of the order is a priority for many companies that sell to the final
consumer, especially when the products involved are highly replaceable.

d) Order processing via web channel

Another example of widely used order processing is the internet, isn’t it?

Buy the processing of orders via the web channel characterized by placing an order
and all its follow-up for fulfillment via the internet, and not just a part of it.

This type operation is common in the flow of orders along a supply channel. All
members off the supply chain (buyer, supplier, carrier,etc…) work together , sharing
directed and real-times information , which makes orders are placed instantly and all
problems with customer service ment are resolved quickly and accurately.

3.3 order processing and information system

Organizations can no longer maintain themselves without beling integrated into an

information system. without it, there is no way for opertions to function properly,
from a simple purchase order to the receipt of goods or after –sales service. The
information needs to be easily accessible, so that operations take place with agility
and reliability.

Laudon and Laudon (2004, p.7) also define that:

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 “An information system can be technically defined as a set of
Interconnected components that collect (or retrieve). process,
Store and distribute information intended to support
Decision-making, coordination and control of an organization.
Decision making, coordination and control, these systems also
Help managers and workers to assess problems, visualize
Complex issues and create new products “

The information system needs to be comprehensive and have the capacity enough to
allow communication not only between the functional areas of the company
(marketing, production,finance,logistics),but also between the members of the supply
channel (vendors and customers), in addition to being responsible for the activities of
collection , maintenance and manipulation of the data that will subsidize the decision-
making process.

3.4 order preparation

Order preparation begins with the collection of necessary information about the
future acquisition of products or services, and ends with the formal request of the
products to be acquired (Ballou,2005and Fleury 2003).

According to Fleury (2003), the identification of the acquisition need can be

provoked by several stimuli: from the visit of a salesperson, the consultation of a
catalog, the reading of a newspaper or magazine ad, the display of an ad in the
television or radio, receiving a message over the internet or identifying that the time
has come to replenish stocks.
3.4.1 Transmission of the order

Companies use their own methods for transmitting orders requested from their point
of origin to the place where the order entry will be handled: whether manual or
electronic.

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 Manual transmission, when orders are formalized through forms, sent by
post or through vendors, is slow but inexpensive. Due to the low initial cost and
greater adaptability, manual transmission is recommended for companies that deal
with a reduced number of orders or that need more flexibility for different sales
solutions.

3.4.2 Entry of orders

Entry of orders takes place after they are received by the supplier and delivered to
those responsible for this activity. This step usually requires transcription of data in
the order processing system, in cases where the order is made via the internet, this
step tends to be automated, eliminating the transcription of data (Fleury, 2003).

This step covers several tasks performed before the order is fulfilled. Are they;

*Check the accuracy of the information contained in the order, such as description,
quantity and prices of items;

*Check the availability of ordered items;

*Prepare backlog or cancellation documentation when necessary;

*Check the customer’s credit status;

* Transcribe the order information as needed;

*Perform billing.

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