Question

APC is a sales department consists of 17 full-time and part-time employees. They receive orders via traditional mail, e-mail, telephone, and the occasional walk-in. Because ABC is a wholesaler, the vast majority of its business is conducted on a credit basis. The process begins in the sales department, where the sales clerk enters the customer’s order into the centralized computer sales order system. The computer and file server are housed in APC is small data processing department. If the customer has done business with APC in the past his or her data are already on file. If the customer is a first-time buyer, however, the clerk creates a new record in the customer file. The system then creates a record of the transaction in the open sales order file. When the order is entered, an electronic copy of it is sent to the customer’s e-mail address as confirmation.

A clerk in the warehouse department periodically reviews the open sales order file from a terminal and prints two copies of a stock release document for each new sale, which he uses to pick the items sold from the shelves. The warehouse clerk sends one copy of the stock release to the sales department and the second copy, along with the goods, to the shipping department.

The warehouse clerk then updates the inventory subsidiary file to reflect the items and quantities shipped. Upon receipt of the stock release document, the sales clerk accesses the open sales order file from a terminal, closes the sales order, and files the stock release document in the sales department. The sales order system automatically posts these transactions to the sales, inventory control, and cost-of-goods sold accounts in the general ledger file.

Upon receipt of the goods and the stock release, the shipping department clerk prepares the goods for shipment to the customer. The clerk prepares three copies of the bill of lading. Two of these go with the goods to the carrier and the third, along with the stock release document, is filed in the shipping department. The billing department clerk reviews the closed sales orders from a terminal and prepares two copies of the sales invoice. One copy is mailed to the customer and the other is filed in the billing department. The clerk then creates a new record in the account receivable subsidiary file. The sales order system automatically updates the account receivable control account in the general ledger file.

QUESTION: Since inefficiencies are present in the current system, prepare a system flowchart of a redesigned computer-based system using an ERP System.

Answer 1

Dear Sir,

I tried to explain all steps for sale as following:-

1. Interaction records with Customers:

Now days, there are so many facilities available with ERP Software related to customer relationship management. A healthy customer relationship management is the key for success of business. So in step 1 we have to record our all interactions records along-with customer masters to our ERP system to gain the more opportunity.

2. Sending & recording of Quotation:

After winning a opportunity, from the interactions done with customers, we need to convert the winning opportunities in Quotation and sales offers and send a copy to our customer an automated email by software OR by sales department, because we already have all data of customer.

3. Recording of customers orders and sending sales orders to customers:

After receiving of orders via traditional             mail, email, or any other way, the order need to record in ERP system and send Order acknowledgement OR Sales orders to customers with details of availability of stock or delivery terms. If payment terms are advance then sales department can send Proforma-Invoice to customer with all payment details to customer to receive the advance payment.

4. Checking to available stock:

Clerk of ware house OR by purchase department should have the facility to check the list of pending orders and if the stock is ready then inform to store department OR dispatch department about the availability of stock through a materials issue slip. If stock is not then issue a generate a materials requirement indent by software to issue a purchase order to vendor to purchase the materials.

5. Materials dispatch Process

There are steps for purchase process, I am escaping the steps or purchase here, because we are creating the step of sales management here. So now when everything is completed and materials is ready to dispatch then ware house department generate a slip through ERP software of pending order list which are ready to dispatch on daily basis. And get a NOC from accounts department to dispatch the goods and handover the slip to store department. Store department issue the materials to shipping department with a proper packing and mentioned all shipping details on package. Shipping department prepare three copies of the bill of lading. Two copies of them will go with the goods and one for billing department to generate the invoice.

6. Billing and transportation

The billing department clerk can review the status of the orders, which are ready to dispatch on the terminal of software, about the clearance from all departments and if there are not any pendency about the order then generate three copies of Invoice and packing list. One copy is for office copy and two copies of invoices are need to send with the material. And apart from that one copy of invoice need to send to customer. Now after receiving of invoice copy shipping will transport the materials to customer and sales coordinator department will send all dispatch details to customer via email. Now after dispatching of order, order will close automatically and will update the receivable amount to ERP system in the general ledger file.

Time to time company can also check the reasons of failed interactions and will try to convert the opportunties as win, as software already have all the information.