In the logistics domain, Order Processing is also another integral part.
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 shipping carrier.
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.
Order 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.