Structured Process

Procurement

               Procurement is the process of finding, buying, and receiving the goods and services necessary for the success of your company. This process first starts when a purchase order (PO) is made and ends when the supplier is paid, and the goods are received by the customer. Once the supplier gets the order, they validate it and forward the goods. For Marc Jacobs Körber changes the inventory levels and creates a pick ticket for proof when the cargo shows up at the warehouse. The personnel in the warehouse check the goods and change the DB inventory records. The computer system handles the order and creates important shipping documentation, including the bill of lading (BOL), following validation. The warehouse closes the order in the WMS and finishes the shipment, creating an invoice in the ERP. Reviewing the invoice, the Department of Finance ensures correct pricing, payment terms, and quantities. Once the goods are obtained, sales emails the invoice to the buyer, therefore completing the process. 

Marc Jacobs understands that this approach is necessary to keep perfect operations. It ensures correct inventory control, timely delivery of products, and correct vendor payment. This kind of simple strategy allows Marc Jacobs in the fast-paced fashion sector to keep its high product standards, meet consumer expectations, and build its credibility for reliability and excellence.

Five Framework Components:

Hardware: Desktops—Windows OS, servers that support D365 ERP, Körber WMS, and AS400; barcode scanners that are used for warehouse operations; and label printers. 

Software: D365 ERP is used for managing relationships with vendors, finance, and managing the company’s procurement. Körber WMS is used to handle the packaging, picking, and movement of inventory. Marc Jacobs’ back-end system is AS400, used for processing transactions and operational workflow. 

Data: Marc Jacobs’ data is stored in an IBM DB2 Database with the key elements of their data being: PO’s, supplier info, inventory levels, stock locations for their warehouse, logs for shipping and receiving, and financial transactions such as invoices and payments. 

People: Many people across different departments are involved in the Marc Jacobs procurement process. The process involves the following departments of people: design team, procurement department, external suppliers, warehouse department, financial department, and its financial systems. 

Procedures: The procurement department makes a PO in the Microsoft Dynamics 365 ERP. The supplier will then receive the order, which they will then confirm and ship out. When the warehouse receives the shipment, Körber will then update the levels of inventory, and a pick ticket is made for verification purposes. The warehouse department then inspects the items they have received and updates the records of inventory in DB2. After the verification, AS400 then processes the order and generates documents that include a packing list and BOL for shipment. The warehouse department finalizes the shipping and closes the order on Körber. Closing the order will then trigger a generation of an invoice in Microsoft Dynamics 365 ERP. The finance department authenticates the invoice, then checks the terms for pricing, payment, and quantity. Sales support will email the invoice to customers, and the process will be completed whenever customers receive goods. 

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As-is Swimlane Flowchart: