Patterns of order processing: a study of the formalization of the ordering process in order-driven manufacturing companies

It is essential for many order-driven manufacturing companies to be able to respond quickly to changing customer demand. In this respect, the ordering process plays a central role, as coordination between demand and production takes places within this process. The ordering process must contribute to quick and flexible deliveries and to efficient production. In order to fulfill these goals manufacturing companies frequently use IT applications, such as ERP. Application of such systems assumes, however, that the ordering process can be modeled and formalized to a certain extent. It is therefore interesting to know, for instance, what type of modeling can be used and what aspects of the ordering process can be formalized. Manufacturing companies seem to have a need to obtain more insight in the possibilities and impossibilities of the formalization the ordering process. As yet, available knowledge in this area is apparently limited. The aim of this study was to develop a framework for describing and analyzing formalization of the ordering processes of manufacturing companies. The ultimate objective of the framework was to provide insight into variables that influence the degree to which the ordering process is formalized as well as the effects of formalization on the performance in terms of efficiency and responsiveness. The research consisted of four main phases. The first phase aimed to define and operationalize the formalization of the ordering process. The second phase elaborated relevant variables and assumed relationships between these variables. The third phase consisted of a multiple case study at five manufacturing companies. In the fourth phase of this study, the findings of the five cases are consolidated in a framework for describing and analyzing the formalization of the ordering process.

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