CHAPTER 6 : GENERAL DESCRIPTION OF P.O SYSTEM

The system has been chosen for our group is purchasing order system. Purchase order (PO) is a buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties.

A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller. Purchasing order is one of the Transaction Processing System (TPS). It is a computerize system that perform and record that daily routine transactions necessary to conduct of the business.

The purchasing order system of the Tesco online shopping has 9 steps start from the customer order until the good is delivering to the customer. 

Figure 4-1

Purchasing Order Process

1)    As the Figure 4-1 showed above, the business process starts when customers try to purchase some goods through TESCO online shopping. The web browser communicates back-and-forth over the Internet with a web server that manages the Tesco store's website.

2)    Once the customers have chose the goods that they want to purchase, the web server sends customer’s order to the order manager which is a central computer that sees orders through every stage of processing from submission to dispatch.

3)    The order manager queries a database to find out whether what the customer wants is actually in stock or not based on the availability of  the quantity that desired by customers. Within the order manager, it provides sorted order date, customer’s name, and the status of the purchased order.

4)    Then, the stock database response the confirmation whether the item required is in stock or the system will suggests an estimated delivery date when supplies will be received from the suppliers.

5)    If the items are not in stock, the stock database system can order new supplies from the suppliers. This might involve communicating with order systems at the suppliers HQ to find out estimated supply times. In this case study, we are assuming that the items required are in the stocks, and then the order manager continues to process it. The order manager confirms that the transaction has been successfully processed and notifies to the customers through the web server. The web server shows the customer a web page confirming that customer’s order has been processed and the transaction has been completed.

6)    The order manager sends a request to the warehouse to dispatch the goods to the customer. The warehousing systems for the storing and ready for dispatch purposes. Once the goods have been dispatched by trucks provided by TESCO, the warehouse computer e-mails the customer to confirm that their goods are on their way.

7)    A truck from a dispatch firm collects the goods from the warehouse and delivers them. Finally, the goods are delivered to the customer.

8)    Next, it communicates with a merchant system (run by a credit-card processing firm or linked to a bank) to take payment using the customer's credit or debit card number.

9)    The merchant system might make extra checks with the customer's own bank computer, and then gives confirmation whether the customers have enough funds or not.