While supply chain planning applications facilitate demand forecasting, inventory simulation, manufacturing planning and
transportation scheduling, supply chain execution applications automate order processing, manufacturing ,distribution and return function.
Supply chain planning is considered a part of enterprise strategic planning. Supply chain execution is about managerial and operational control.
Supply chain execution is the process of putting supply chain planning into action.
Order Processing
In supply chain execution, order processing involves order placement, order confirmation, order fulfillment and order inquiry. Supply chain
management software has build-in capability that allows both workers and trading partners to easily place orders. Orders are confirmed by
email notifications and online confirmation. Users can easily lookup their order status online.
Production & Assembly
In manufacturing or production phase, raw components are assembled into final products or raw materials are manufactured into
finished goods. Workers perform kitting, packaging and labeling work for specific products. Manufacturing involves production, testing,
packaging and preparation for delivery.
Distribution
After manufacturing, products or services are needed to be delivered to distributors or to end consumers.
Distribution involves warehousing, delivering, invoicing and payment collection. Distribution management is integrated with
transportation planning and scheduling.
Return
Handling return and refund is important part of supply chain execution. Lack of planning and logistics for processing return/refund have been
a common problem in supply chain execution. Supply chain management systems should have infrastructure in place for receiving defective and
excess products back from customers. In holiday seasons, the rate of return to sales could hit more than 10% at some retailers and catalog
order firms.
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