Order management defines how an organization gets an order by both manual and electronic means, fills, ships, and manages an order. In other words, it identifies and puts in motion the logistics infrastructure of the company. All these processes are determined by how a company manages an order. There are two stages of order management. The first one is influencing the order. This is where the company tries to alter the manner in which customers place orders. The second stage is order execution. This is where the company receives the order (Altekar, 2005).
Types of Demand and Its Influence on the Supply Chain
There are two types of demand: dependent and independent demand. Independent demand is the one for primary commodity while dependent demand is the one for that is caused by the demand for the independent commodity. For instance, the demand for cars is the demand for a finished or primary product hence is independent, and is caused by the customer. The demand for car tires will then be termed as dependent since the number of tires needed is determined by the number of cars demanded.
In most cases, forecasting techniques centers on independent demand. For instance, a car manufacturer will forecast the demand during the given period. In that level of demand, the manufacturer will be aware of the tires that are required for each car demanded. There is no need for the manufacturer at this point to forecast the demand for tires (Coyle, 2009). From a different point of view, because these are dependent demand items, the tire manufacturer will be expected to anticipate the demand for tires. However, there is no need to predict the demand for rims since every tire needs only one rim. Though forecasting will be done at independent stage, each enterprise in a given supply chain will have unique definitions for dependent and independent commodities.