PRJ1 – Details and Grading Rubric
Organizational Overview:
ABC Table Company manufactures and distributes high-end, quality tables to big-box store
retailers. We collaborate with retailers to manufacture tables specifically to their in-store brand
image. ABC Table Company employs 150 full-time employees whose duties range from design,
sales, manufacturing, and warehouse inventory management. We have been in business for over
30 years and have established strong partnerships with some big retailers. Our average sales
revenue is $20 million with a target annual growth of 5%.
We typically only work with large box store retailers (for example: Target, Fred Meyer’s) with a
minimum of 250 units per order. The average wholesale price per table is $500 and retailers
markup the price as they choose. The price can vary due to design specifications. We regularly
work with 8 large retailers who typically order at least 1,000 units per order and place an order
every quarter for completion and delivery in the next quarter.
We place a high emphasis on quality and take extra care to package and deliver our product in a
way that protects our customer’s brand image.
Process Overview:
ABC Table Company’s distribution process involves proper packaging of individual units and
freight arrangements to ultimately get the product to the retailer without damage. We partner
with transport company that specializes in freight.
This distribution process involves a packer, loader, a shipping department manager, and the
receiving department’s signing authority. All the details about the orders, the shipments and our
freight partner are stored in a database. The shipping department manager plays a big role in
ensuring the product is safely, promptly, and correctly delivered to the retailer. Retailers place
orders with us the quarter before they expect to receive the product. Packers and loaders support
the shipping department manager’s workload.
The packer, loader, and shipping department manager all have access to the database so that
everyone involved in the process can know the location and status of an order at any time. This
also aids in efficient and accurate communication. An example of a good use of the database
would be a vendor calling to inquire on their seasonal order and a loader being able to
communicate exactly where in the process of distribution their order is.
Retailers trust us to provide them with tables for their in-house brands that not only meet their
quality standards, but also arrive on time and undamaged. If we do not take proper precautions
and customers were to return our products as damaged, the retailer could attempt to collect
damages from us or even terminate their contract with us. Although we have long-standing
relationships with some retailers, it is crucial for us to consistently maintain our quality from
manufacturing all the way until delivery.
Process Description:
The distribution process begins when the packer receives the table components. Since tables are
shipped unassembled in order to prevent damage to the product as much as possible, each
component is also bubble-wrapped before being packaged together as a unit. After packaging, a
shipping department manager approves the packaging or sends it back to be re-packed to protect
ABC Table Company from liability issues regarding improper packaging.
Once packaging has been approved, the shipping department manager verifies order data from
the database. The packaged table components are then handled by the loader who packs the
individual units onto shipping pallets. The pallets are then taken to a warehouse for storage to
await shipment. After the loader has stored the pallets, he or she will update inventory to reflect
updated status and location of inventory.
After the loader has updated status of inventory, the shipping department manager will assign the
shipment to a vendor. If the vendor is an existing vendor, then a shipping invoice will be created,
and the invoice data is stored in the database. If the vendor is new, then vendor review sub-
process is triggered.
When the shipping invoice has been created, the order can now be processed for shipment. As
mentioned earlier, we utilize a freight company to transport goods to retailers. The shipping
department manager will double check the shipment details like correct shipping address and
other shipment data before the goods are handed over to the shipping vendor.
Once the order is in the truck, the liability now shifts to the shipping vendor who will sign to
cover any damage incurred through freight. Once the order has left the warehouse via the
shipping vendor, order information stored in the database will be updated to reflect its completed
status.
Transactions and Objects:
All the data related with the distribution process is stored in ABC Table Company’s database.
Object Tables:
The Inventory data store is an object table. It has data regarding our product which is
tables. It has details like SKU Number, Model, Size, and Price of every table.
The Vendor table stores data regarding the names of approved vendors and their contact
information like Address, and Phone Number. Each vendor can be involved with multiple
transactions over time.
Transaction Tables:
The Order table is a transaction table as it records a unique event. For each order, key
details such as Order Number, Date, Product, Quantity and Price are recorded.
The Invoice table also records unique events associated with each sale. Specifically,
details like Invoice Number, Date, and Amount of each invoice are stored.
Figure 1: Shipping and Handling Process at ABC Table Company
Shipping & Handling Process
LoaderPacker Data Store Shipping Dept.
Manager Shipping Vendor
Receive Table Components
Bubble-Wrap Table Components
Package Table Components
Approve Packaging
No
Input Order Information
Yes
Palletize Packaged Table Components
Store Pallets in Warehouse
Order
Input Inventory Information
Inventory
Assign Vendor
Add Vendor (see Vendor
Selection diagram)
New Vendor
Create Shipping Invoice
Existing Vendor
Receive Order (see Vendor
Loading diagram)
Vendor
Invoice
Send to Destination
Verify Order
Details Order
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