Webers is an omni-channel retailer with 250 stores throughout the United States and six distribution/fulfillment centers. Webers specializes in men's and women's clothing across numerous designers and styles. Previously, Webers had relatively no competition for its line of clothing and, as such, was focused more on its productivity rather than on service to its internet customers. Under the current order management process, a consumer would place an order on-line with Webers and receive a notification that the order was received. The order management system (OMS) would then check the availability of inventory for the order. If inventory was not available, the consumer would receive a notice for a backorder. If inventory was available, the OMS would send the order to the warehouse management system (WMS) to be scheduled for picking. Orders were picked in the order in which they were received. Once picked, the WMS would send the order to the transportation management system (TMS) to be scheduled for shipment. Once shipped, the consumer would be sent a notice of ship date. Under this process, the consumer could not pick delivery times when order- ing. Although this has a negative impact on Webers customer service, it allowed Webers to increase productivity in its fulfillment operations. Under increasing pressure from competitors, Webers decided to now allow the consumer to choose delivery times, e.g., next-day, two-day, etc. This was going to have a major impact on how the three systems (OMS, WMS, TMS) operated and exchanged information to facilitate the order management process. While the consumer is ordering, inventory avail- ability is checked in real-time. When the consumer chooses a delivery option, the OMS must communicate with the TMS to determine when the order needs to be tendered to the carrier at the fulfillment center to meet that delivery window. The TMS then communicates with the WMS to determine when the order needs to be picked. CASE QUESTIONS 1. Create process maps for the "before" and "after" order management processes. Use Figure 8.15 as a guide. Start from when the consumer places the order and end when the shipment is made.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Figure 8.15
Customer Wait Time (CWT)
Build/Outsource
No
(1)
(2)
(3)
(6)
(7)
ID or forecast
ID
Current
Yes ID
Local Yes
Repair/
Diagnose
Capacity
Capacity
Inv.
Inventory
Maintenance
Required
Adequate?
Req's
Available?
Reserve
Inventory
Perform
Maintenance
Update
Make
Vehicle
Vehicle
or Repair
Readiness
Available
Labor
Space
No
Reschedule
No
Prepare/
Place Order
Receive
Enter, &
Validate
Order
Receive
Inventory
Select
Plan
and
Determine
Consolidate and
Order
Route
Build Shipments
Loads
Carriers
and
Rate
Receive Pick
Product Product
Load
Vehicle
and
Generate Product
Deliver
Ship
Dly Date
Shipments
Shipping
to
Customer
Site
Docs
D1.2
D1.3
D1.4
D1.5
D1.6
D1.7
D1.8
DI19
D1.10
D1.11
From Make
or Source
Invoice &
Receive
Payment
Transcribed Image Text:Figure 8.15 Customer Wait Time (CWT) Build/Outsource No (1) (2) (3) (6) (7) ID or forecast ID Current Yes ID Local Yes Repair/ Diagnose Capacity Capacity Inv. Inventory Maintenance Required Adequate? Req's Available? Reserve Inventory Perform Maintenance Update Make Vehicle Vehicle or Repair Readiness Available Labor Space No Reschedule No Prepare/ Place Order Receive Enter, & Validate Order Receive Inventory Select Plan and Determine Consolidate and Order Route Build Shipments Loads Carriers and Rate Receive Pick Product Product Load Vehicle and Generate Product Deliver Ship Dly Date Shipments Shipping to Customer Site Docs D1.2 D1.3 D1.4 D1.5 D1.6 D1.7 D1.8 DI19 D1.10 D1.11 From Make or Source Invoice & Receive Payment
CASE 8.2
Webers, Inc.
Webers is an omni-channel retailer with 250 stores throughout the United States and six
distribution/fulfillment centers. Webers specializes in men's and women's clothing across
numerous designers and styles. Previously, Webers had relatively no competition for its line
of clothing and, as such, was focused more on its productivity rather than on service to its
internet customers.
Under the current order management process, a consumer would place an order on-line
with Webers and receive a notification that the order was received. The order management
system (OMS) would then check the availability of inventory for the order. If inventory
was not available, the consumer would receive a notice for a backorder. If inventory was
available, the OMS would send the order to the warehouse management system (WMS)
to be scheduled for picking. Orders were picked in the order in which they were received.
Once picked, the WMS would send the order to the transportation management system
(TMS) to be scheduled for shipment. Once shipped, the consumer would be sent a notice
of ship date. Under this process, the consumer could not pick delivery times when order-
ing. Although this has a negative impact on Webers customer service, it allowed Webers to
increase productivity in its fulfillment operations.
Under increasing pressure from competitors, Webers decided to now allow the consumer
to choose delivery times, e.g., next-day, two-day, etc. This was going to have a major impact
on how the three systems (OMS, WMS, TMS) operated and exchanged information to
facilitate the order management process. While the consumer is ordering, inventory avail-
ability is checked in real-time. When the consumer chooses a delivery option, the OMS
must communicate with the TMS to determine when the order needs to be tendered to the
carrier at the fulfillment center to meet that delivery window. The TMS then communicates
with the WMS to determine when the order needs to be picked.
CASE QUESTIONS
1. Create process maps for the "before" and "after" order management processes. Use
Figure 8.15 as a guide. Start from when the consumer places the order and end when
the shipment is made.
Transcribed Image Text:CASE 8.2 Webers, Inc. Webers is an omni-channel retailer with 250 stores throughout the United States and six distribution/fulfillment centers. Webers specializes in men's and women's clothing across numerous designers and styles. Previously, Webers had relatively no competition for its line of clothing and, as such, was focused more on its productivity rather than on service to its internet customers. Under the current order management process, a consumer would place an order on-line with Webers and receive a notification that the order was received. The order management system (OMS) would then check the availability of inventory for the order. If inventory was not available, the consumer would receive a notice for a backorder. If inventory was available, the OMS would send the order to the warehouse management system (WMS) to be scheduled for picking. Orders were picked in the order in which they were received. Once picked, the WMS would send the order to the transportation management system (TMS) to be scheduled for shipment. Once shipped, the consumer would be sent a notice of ship date. Under this process, the consumer could not pick delivery times when order- ing. Although this has a negative impact on Webers customer service, it allowed Webers to increase productivity in its fulfillment operations. Under increasing pressure from competitors, Webers decided to now allow the consumer to choose delivery times, e.g., next-day, two-day, etc. This was going to have a major impact on how the three systems (OMS, WMS, TMS) operated and exchanged information to facilitate the order management process. While the consumer is ordering, inventory avail- ability is checked in real-time. When the consumer chooses a delivery option, the OMS must communicate with the TMS to determine when the order needs to be tendered to the carrier at the fulfillment center to meet that delivery window. The TMS then communicates with the WMS to determine when the order needs to be picked. CASE QUESTIONS 1. Create process maps for the "before" and "after" order management processes. Use Figure 8.15 as a guide. Start from when the consumer places the order and end when the shipment is made.
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