In the logistics domain, Order Processing is also another integral
Order processing refers to the process or the work flow that begins
with the picking of the packed item and ends in the delivery of the item to a
Order processing leads to order fulfillment finally and order
fulfillment in the right way at the right time to a right customer is the
breath of sustained business. In fact,
efficient order fulfillment promises, so to say, more orders since order
fulfillment testifies to the efficiency of the organization thus inspiring
confidence in the competency of the organization.
processing includes tasks like picking, sorting, labeling, packing, loading.
Picking is collecting articles to
requirement for shipment.
Separating items according to
destinations is sorting.
Packing is getting the items ready for
shipment in safety
From a simple small enterprise to
international entities, order processing occupies a very crucial position since
it honors the orders of the customers who give business. Of course, if order
processing involves different countries, advanced order processing systems have
to be used.
Customer satisfaction is a major cause
for success in business and no organization can afford to make mistakes in
order processing. Any fault in order processing due to administrative error or
human faults will negatively impact the business; it is waste of time and money
and there is a possibility the relationship between the customer and the
company is soured.
Having, therefore, an infallible order
processing system is a must for a company; it creates a win-win situation for
business and for its customers.
Sometimes, using an advanced order
processing system exploiting information technology can prove rather expensive
as it calls for IT personnel on the job. But, where there is necessity for advanced
order processing system, business cannot afford to be indifferent to the need
lest it runs the risk of losing business over a period of time.
In fact discreet use of both the
traditional and advanced systems is always advised depending on the nature of
business. For example, a wholesaler can employ salespeople who can manually
write down details of order and put them into computer software and the rest of
it can be taken care of by the shipping departments.
Having looked into fundamentals of order
processing, we will move on to the next component of the logistics.