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Operations Management
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.

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
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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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