Sales Order Fulfilment

Within service parts management two scenarios for sales order fulfilment exist: sales from stock and third party order processing (TPOP). Sales from stock is the common scenario where a sales order is confirmed (and delivered from) based on available stock. If service parts planning has been performed properly, this should be possible — unless it was decided that the customer facing location should not contain any stock (see chapter 4). In this case — or if the customer demand exceeds the forecast and the safety stock — it is checked whether any other distribution centre within the supply network is able to confirm the sales order. For the check within the supply network (i.e. the BOD) rules-based ATP is used. In the second scenario, third party order processing, the service part is procured directly from the supplier to the customer. Neither scenario is part of service parts planning, but at least the more straightforward scenario of sales from stock is briefly introduced in order to complete the picture from a supply chain management point of view.