Module Integrating Processes

The concept of process integration posits that various processes are interdependent and steps in one process can impact other processes. In 3-4 pages, provide an example of this interdependence. Describe in detail the six processes (Financial Accounting, Procurement, fulfillment, production, inventory, and warehouse management, and material planning) and their interrelationships. In addition, give examples of these interrelationships, and explain the approach of these processes but from an integrative perspective and the connections and operational dependencies among them. Explain how the different processes interact. Be sure to review the assigned reading. READING IS AT THE BOTTOM.


Process integration posits that the various processes are independent, and steps in one process can impact other processes. The fulfillment process is triggered by the customer purchase order and continues with the sales order processing. The shortage of materials creates a requirement that triggers the procurement process. The internal procurement process considers the STO without delivery document. The goods issue and goods receipt are created during this step. The status of the materials being shipped at the receiving plant are in transit. The status of the materials is changed from in transit to unrestricted use, and the material document is created.

In the real world, however, the three key processes are actually tightly integrated. Consider, for example, what happens if a customer orders some standard skateboards (which SSB assemblies in the production process), and there are no finished goods in stock. In this case, SSB starts the fulfillment process normally, but it must suspend the process after it determines that there are insufficient finished goods to fulfill the sales order. The integrated process introduces the concepts of availability checks and decision points to illustrate the interdependencies among the key processes.

These are important concepts that govern the operations of every large and medium-sized (and, increasingly, small) company on the planet. The knowledge you have gained from this course will provide you with a distinct advantage in the workplace. Appreciation for the role of business processes in the operations of companies coupled with hands-on exposure to the capabilities of the world’s leading ERP systems for executing and managing business processes will serve you well for the rest of your career.

Integrate processes with ERPimage

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