ORDER PROCESSING AND PURCHASING DHL

ORDER PROCESSING AND PURCHASING DHL

Hi guys! have a great weekend! today Im going to show you guys the order processing in DHL company.

WHAT IS ORDER PROCESSING?

   Order processing is the process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier. Order processing is a key element of order fulfillment.Order processing operations or facilities are commonly called "distribution centers".

   Order processing, with the support of various procedures, forms the basis of all logistics activities at a company. This makes it a crucial factor in logistics operations.

Information flow from the order to delivery

     An order forms the basis for the information flow in a logistics system. It has three principal functions - it creates a flow of information that precedes the goods, accompanies them and follows them. The tasks of order processing are divided into six phases: order transmission, preparation, routing, picking, shipment and invoicing.

The order and its impact

  The transmission of the customer’s order triggers the logistics processes within the company. On the information-flow level, order processing addresses the handling and monitoring of an order - from the time it is placed by the customer to the delivery of the shipment documents and invoice to the customer. The time required for order processing makes up a substantial amount of the total delivery time.

Order transmission

  Order transmission can be done by mail, fax, telephone, e-mail or electronic data exchange (web) EDI Electronic data interchange . To avoid uneven capacity use of a logistics system, the appropriate means of transmission should be selected in each case.

Preparation

    Preparation adjusts the order to meet internal company requirements and integrates the order into the logistics system’s planning. This includes obtaining missing information, and checking pricing conditions, delivery conditions and customer creditworthiness as well as the availability of the material in the warehouse.

Routing

   Order preparation is usually followed by order routing, a process that includes order confirmation and the generation of internal job orders - manually, mechanically or electronically. For example, a delivery notification containing all related shipping documents is prepared and tells the storage point to process the shipment. As the integration of electronic data processing expands, the routing process is becoming increasingly automated, reducing paperwork associated with the information flow.

Picking

     Based on prepared and processed orders, goods are picked in the warehouse. Picking is organized according to factors such as order size, urgency and orders that have to be delivered simultaneously. In this phase, order processing provides information to the warehouse and inventories that can be used for tasks such as management of storage and retrieval equipment or for inventory book keeping.

Shipment

    Picking is followed by preparation of shipping documents. When options are available, this phase includes selecting the optimal means of transport and route for delivery. This information is closely linked to transportation because both loading and movement of goods are initiated in this phase.

Invoicing

    Invoicing of orders may be done at various points - either as post-invoicing after shipping has been arranged or as pre-invoicing before or while compilation and shipping are being done. The strength of post-invoicing is that an order can smoothly proceed to the warehouse. The strength of pre-invoicing is that as much paperwork as possible can be completed in one phase.

 

HERE IS SOME VIDEO FOR THE DHL DELIVERY PROCESS.

Functions of order processing

Order processing serves to plan, manage and monitor the flow of goods. This requires an information flow that precedes, accompanies and follows the flow of goods.

DHL PACKAGING SERVICES

DHL SUPPLY CHAIN TRACK AND TRACE

Inventory Flow

The management of logistics is concerned with the movement and storage of materials and finished products. From the initial purchase of a material or component, the logistical process adds value. By moving inventory when and where needed. Thus the material gains value at each step.

For a large manufacturer, logistical operations may consist of thousands of movements, which ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or customer.

In order to understand logistics it is useful to divide it into three areas:

Physical distribution

Manufacturing support

Procurement

For DHL:

   DHL is completely service oriented therefore it does not have its own material movement but that of the customers both the sender, the receiver and also the intermediateries. That means it only involves physical distribution and procurement. Procurement also includes the material needed for packaging such as paper, moulded trays and boxes, wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods collected from the senders (including papers, documents, physical goods like clothing, household good, chemicals, exotic animals etc) are weighed, checked for condition, and depending upon its various characteristics it is packed. The goods are then dispatched to their destinations. There is no value addition to the material itself but it is done to the service which is provided ( eg if there has to be a certain package delivered from India to UK the normal services would take about 2 days whereas as a super fast delivery would be done in about 9 hours).

THATS ALL FOR TODAY!!! SEE YOU SOON.