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EMG Business Management System Manual
Doc # epsg1026386
Rev. 112
Page 21 of 35
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(c) Agilent Technologies, Inc. 2002, AGILENT TECHNOLOGIES
8. Order Fulfillment
EMG Order Fulfillment (OF) is a constituent part of Agilent Order Fulfillment (AOF). The ultimate
vision for the function is “To build a best-in-class order-fulfillment and supply-chain function with
strong gross margins and high customer satisfaction”
EMG OF Org Chart –
http://ofsc.business.agilent.com:81/About%20AOF/EMG%20OF%20Org%20Chart%20(F)Feb.pdf
8.1 Planning (7.2.1a, 7.2.2c, 7.5)
8.1.1 Demand Planning (forecasting) (7.2.1a, 7.2.2.c)
Demand Planning can be one using statistical forecasting tools or sales forecasting and creates a
plan for future customer orders. Forecast accuracy is measured and utilized to improve the
demand plan and processes. Demand planning includes the process to generate product plans,
schedule orders into the manufacturing system (ensuring proper staffing).
8.1.2 Supply Chain Planning and Scheduling (7.4)
Supply Chain planning creates a supply plan that considers supply chain constraints
(i.e., inventory, lead times, etc) and forecasted customer requirements and actual orders to create
and execute shipment plan. Customer orders are promised against the supply chain plan and in
some businesses against customer/service delivery schedules.
8.2 Materials Purchasing (7.4, 7.4.1, 7.4.2, 7.4.3, 7.5.5)
Materials purchasing management in EMG is led out of the manufacturing divisions. Purchasing
departments typically are organized as a function reporting to business unit sub-division
management. The Strategic Supplier Management (SSM) assists the businesses with managing
alliances with top-tier strategic suppliers. The EMG Worldwide Field Operations (WWFO)
organization, which manages sales and support, generally uses the BU organizations for its
materials purchasing needs. The most senior Managers with Procurement responsibility within
the manufacturing divisions are responsible for making sure supplier contracts are complete,
supplier performance reviews are done on time, and performance issues are resolved in a timely
manner.
Four generic processes are used to manage supplier quality:
1. Requirements Specification;
2. Supplier Selection;
3. On-Going Conformance Assurance; and,
4. Performance Evaluation
8.2.1 Requirements Specification
The BU purchasing operations specify the product to be purchased in accordance with the needs of
the operation and the needs of the ultimate Agilent customers. Customer requirements flow into the
purchasing process through the requirement specifications of the manufacturing entity sourcing the
material. Purchasing staff assembles the requirements to be tendered to the supplier, reviews them