A business process generally has a number of phases from start to finish. GS1 Sweden’s template for describing a business process uses the Common Business Process Catalog (CBPC), UN/CEFACT Modeling Methodology (UMM) as shown in the following diagram.
Figure 1. Phases of a business process in the GS1 Sweden business process model
All business processes in these guidelines go through these phases. The content of a phase depends, however, on the business process being described.
Description of the phases
In the planning phase, the parties look into their own organisations to plan their operations. They gather information to be able to decide what needs to be done to buy or sell a product or service. For example, a buyer can investigate which suppliers might offer the goods required.
In the identification phase, the parties turn outside their own organisations. Potential partners exchange information which will allow them to establish a business relationship (usually between two parties). For example, a buyer might ask for catalogues and price lists from a potential supplier.
The negotiation phase results in a frame contract or business agreement between the parties. This contract specifies agreed terms and conditions for what products and services should be supplied, prices, delivery, payment, etc.
The actualization phase includes all actions and events needed to fulfil all contractual commitments. It is for this phase that GS1 Sweden and its customers have developed standards for electronic commerce. This phase is split into sub-phases as shown in the following diagram.
Figure 2. Sub-phases of Actualization
The content of the sub-phases is as follows:
Identify basic information: Information is exchanged between the contractual parties in order to establish (usually) a bilateral relationship. The buyer and seller exchange additional data on parties and delivery locations, prices and products, etc.
Order/Calloff: The buyer issues a purchase order or calloff in accordance with the contract. The supplier undertakes to deliver in accordance with the contract. The buyer agrees to reimburse the supplier for products or services delivered.
Deliver: This sub-phase includes all actions and events needed to comply with the delivery commitments made in the contract.
Pay: This sub-phase includes all actions and events needed to comply with the payment commitments made in the contract.
Post-processing: This sub-phase includes all actions and events which occur after the products or services have been (or should have been) delivered. This might include handling deposits and returns or various types of guarantee.