Identify and Discuss Four of the Steps in the Order

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The Answer is Step 1: Make sure the customer will pay. Depending on the payment method and prior arrangements with the customer, verify that the customer can and will pay and the payment terms. This activity is done by the finance department for B2B sales or an external company, such as PayPal or a credit card issuer such as Visa for B2C sales.
Step 2: Check in-stock availability, and re-order as necessary. As soon as an order is received, the stock inventory) is checked to determine the availability of the product or materials. If there's not enough stock, the ordering system places an order, typically automatically using EDI electronic data interchange).
Step 3: Arrange shipments. When the product is available, shipment to the customer is arranged. Products can be digital or physical. If the item is physical and it's readily available, packaging and shipment arrangements are made. Both the packaging/shipping department and internal shippers or outside transporters may be involved.
Step 4: Insurance. Sometimes the contents of a shipment need to be insured. Both the finance department and an insurance company could be involved, and again, information needs to flow, not only inside the company, but also to and from the customer and insurance agent.
Step 5: Replenishment. Customized orders will always trigger a need for some manufacturing or assembly operation. Similarly, if standard items are out of stock, they need to be produced or procured.
Step 6: In-house production. In-house production needs to be planned and actual production needs to be scheduled. Production planning involves people, materials, components, machines, financial resources, and possibly suppliers and subcontractors.
Step 7: Use suppliers. A manufacturer may opt to buy products or subassemblies from suppliers. Similarly, if the seller is a retailer, such as in the case of Amazon.com or Walmart.com, the retailer must purchase products from its manufacturers. In this case, appropriate receiving and quality assurance of incoming materials and products must take place.
Step 8: Contacts with customers. Sales representatives need to keep in close contact with customers, especially in B2B, starting with notification of orders received and ending with notification of a shipment or a change in delivery date. These contacts are usually done via e-mail and are frequently generated automatically.
Step 9: Returns. In some cases, customers want to exchange or return items. The movement of returns from customers back to vendors is reverse logistics.

Identify and Discuss Four of the Steps in the Order

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