DEPARTMENT OF BUSINESS &
INDUSTRIAL MANAGEMENT
VNSGU, Surat
SUBJECT:
SSCM
Topic:
Order Processing
Class:
MBA (Sem- 4, Div. - B)
Submitted By:
Patel Parth
SUBMITED TO:
Dr. V.B. Patel
Order processing
Order processing is the process or work-flow associated with the picking, packing and delivery
of the packed items to a shipping carrier. Order processing is a key element of order fulfillment.
Order processing operations or facilities are commonly called "distribution centers".
Order processing is a key element of Order fulfilment. Order processing operations or
facilities are commonly called "distribution centers".
"Order processing" is the term generally used to describe the process or the work flow
associated with the packing and delivery of the packed item(s) to a shipping carrier.
The specific "order fulfilment process" or the operational procedures of distribution
centers are determined by many factors. Each distribution center has its own unique
requirements or priorities.
Order Processing involves various procedures like pick up, packaging, and delivery of
packed items to the shipping carrier.
Order Processing software, which help you to take your business orders effectively and
encourages interest from your customers towards repeating their business.
Sales order
The Sales order, sometimes abbreviated as SO, is an order issued by a business to a customer. A
sales order may be for products and/or services. Given the wide variety of businesses, this means
that the orders can be fulfilled in several ways. Broadly, the fulfillment modes, based on the
relationship between the order receipt and production, are as follows:
Digital copy - Where prices are digital and inventory is maintained with a single digital
master. Copies are made on demand in real time and instantly delivered to customers.
Build to stock - Where products are built and stocked in anticipation of demand. Most
products for the consumer would fall into this category
Build to order - Where products are built based on orders received. This is most prevalent
for custom parts where the designs are known beforehand.
Configure-to-order - Where products are configured or assembled to meet unique
customer requirements e.g. Computers
Engineer to order - Where some amount of product design work is done after receiving
the order
Process of order processing
Process:
Order processing is a sequential process involving;
Picking: consists in taking and collecting articles in a specified quantity before shipment
to satisfy customers' orders.
Sorting: process that separates items according to destination.
Pre-consolidation or package formation: includes weighting, labeling and packing.
Consolidation: gathering packages into loading units for transportation, control and bill of
lading.
Customer Order Cycle
Payment
Factors affecting order processing:
The specific "order fulfillment process" or the operational procedures of distribution centers are
determined by many factors. Each distribution center has its own unique requirements or
priorities. There is no "one size fits all" process that universally provides the most efficient
operation. Some of the factors that determine the specific process flow of a distribution center
are:
The nature of the shipped product - shipping eggs and shipping shirts can require
differing fulfillment processes
The nature of the orders - the number of differing items and quantities of each item in
orders
The nature of the shipping packaging - cases, totes, envelopes, pallets can create process
variations
Shipping costs - consolidation of orders, shipping pre-sort can change processing
operations
Availability and cost and productivity of workforce - can create trade -off decisions in
automation and manual processing operations
Timeliness of shipment windows - when shipments need to be completed based on
carriers can create processing variations
Availability of capital expenditure dollars - influence on manual verses automated
process decisions and longer term benefits
Value of product shipped - the ratio of the value of the shipped product and the order
fulfillment cost
Seasonality variations in outbound volume - amount and duration of seasonal peaks and
valleys of outbound volume
Predictability of future volume, product and order profiles
Predictability of distribution network - whether or not the network itself is going to
change
Presence of small volume distribution
Minimization of shipping costs
